A-100 EXAM #1 2025/2026 ACCURATE
ANSWERS
, A-100 EXAM #1 2025/2026 ACCURATE
ANSWERS
True or False: Factory expenses are also called inventoriable expenses or product costs. - CORRECT
ANSWERSTrue. Other expenses of the business that are not related to the factory operations are non-
inventoriable or period costs.
Which of the following statements is true?
A) Managerial accounting for companies in the US is governed by GAAP.
B) Managerial accounting statements are prepared to go to parties outside the company.
C) Managerial accounting is more future oriented than financial accounting.
D) The results of both managerial and financial accounting are reported only in currency. - CORRECT
ANSWERSC) Managerial accounting is more future oriented than financial accounting.
Which of the following is true?
A) Cost of goods sold on the income statement includes the cost of all inventory that has been
purchased by the company.
B) Inventory is recorded as an expense when it is purchased.
C) Inventory becomes an expense on the day of sale.
D) Inventory is an asset until the production process is completed, and it becomes an expense at that
time. - CORRECT ANSWERSC) Inventory becomes an expense on the day of sale.
Which of the following is true of a manufacturing company?
A) Manufacturing overhead includes direct materials and direct labor.
B) The costs that go into finished goods inventory include direct materialsl, direct labor, and
manufacturing overhead.
C) There are three inventory accounts in a manufacturing company: direct materials, direct labor, and
finished goods.
ANSWERS
, A-100 EXAM #1 2025/2026 ACCURATE
ANSWERS
True or False: Factory expenses are also called inventoriable expenses or product costs. - CORRECT
ANSWERSTrue. Other expenses of the business that are not related to the factory operations are non-
inventoriable or period costs.
Which of the following statements is true?
A) Managerial accounting for companies in the US is governed by GAAP.
B) Managerial accounting statements are prepared to go to parties outside the company.
C) Managerial accounting is more future oriented than financial accounting.
D) The results of both managerial and financial accounting are reported only in currency. - CORRECT
ANSWERSC) Managerial accounting is more future oriented than financial accounting.
Which of the following is true?
A) Cost of goods sold on the income statement includes the cost of all inventory that has been
purchased by the company.
B) Inventory is recorded as an expense when it is purchased.
C) Inventory becomes an expense on the day of sale.
D) Inventory is an asset until the production process is completed, and it becomes an expense at that
time. - CORRECT ANSWERSC) Inventory becomes an expense on the day of sale.
Which of the following is true of a manufacturing company?
A) Manufacturing overhead includes direct materials and direct labor.
B) The costs that go into finished goods inventory include direct materialsl, direct labor, and
manufacturing overhead.
C) There are three inventory accounts in a manufacturing company: direct materials, direct labor, and
finished goods.
