Ivy Software Mba Prepworks Managerial Accounting Exam Questions With Answers,

IVY SOFTWARE MBA PREPWORKS
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MANAGERIAL ACCOUNTING EXAM |\ |\ |\




QUESTIONS WITH ANSWERS |\ |\




If Elli Inc sells 20,000 units of x and 60,000 units of y, the
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composite unit consists of .25x and .75y (T/F) - CORRECT
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ANSWERS ✔✔True. Adding 20,000 and 60,000 we get 80,000
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units. Splitting this up into proportions we have
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20,000/80,000=25%x and 60,000/80,000=75%y. |\ |\




If the quantity sold is greater than the quantity produced there
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has to be: - CORRECT ANSWERS ✔✔Finished goods beginning
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inventory. If you sell more than you produce, you must obtain the
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units somewhere. You obtain them from the finished goods
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beginning inventory. |\




Contribution margin and contribution margin per unit are the |\ |\ |\ |\ |\ |\ |\ |\ |\


same. - CORRECT ANSWERS ✔✔False
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Breakeven indicates that the sales dollars cover all fixed and
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variable costs of manufacturing - CORRECT ANSWERS ✔✔True
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Inventoriable costs using variable costing is appropriate for |\ |\ |\ |\ |\ |\ |\ |\


external reporting - CORRECT ANSWERS ✔✔False
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,Essex company sells two products- A and B. Product A sales are
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two times that of product B. The contribution per unit for A is $4
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and B is $1. What is the weighted average contribution margin
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per unit? - CORRECT ANSWERS ✔✔$3
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Absorption costing clearly separates fixed costs from variable |\ |\ |\ |\ |\ |\ |\ |\


costs - CORRECT ANSWERS ✔✔false
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Converse company has two products- A and B. The weighted
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average contribution margin per unit is $4. Converse sells twice
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as many As as Bs. The contribution margin per unit for B is $2.
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What is it for A? - CORRECT ANSWERS ✔✔$5
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If the breakeven is 5000 units and fixed costs are $50,000, what
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is the contribution margin per unit? - CORRECT ANSWERS ✔✔$10
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Which of the following will be found on an absorption costing
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income statement but not on a variable costing income
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statement? - CORRECT ANSWERS ✔✔Gross Margin and Cost of |\ |\ |\ |\ |\ |\ |\ |\ |\


Goods Sold |\




If units produced are less than units sold, net income using
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absorption costing is - CORRECT ANSWERS ✔✔Less than variable |\ |\ |\ |\ |\ |\ |\ |\ |\


costing


If the selling price is $5 per unit the variable cost is $1 per unit
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and the fixed cost is $20,000, what is the breakeven in units? -
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CORRECT ANSWERS ✔✔$5,000 (5x - 1x - 20000 = 0, 4x - |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


20,000=0, 4x=20000, x = 5000) |\ |\ |\ |\

,The total of ALL the right-hand sides of the T-accounts must
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equal the total of ALL the left-hand sides of the T-Accounts (T/F) -
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CORRECT ANSWERS ✔✔True. The double-entry system of
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accounting means that for each transaction recorded, there is a |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


left-hand (debit) entry offset by a right-hand (credit) entry.
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Since the total of all the R sides of accounts equals the total of L
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sides, then the total amount of increases entered in the general
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ledger must equal the total amount of decreases (T/F) - CORRECT
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ANSWERS ✔✔False. Cash (Asset) and Common Stock (Owners'
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Equity) is used to record the sale of company stock. While the R
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side equals the L side, they both increase, thus, the total amount
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of increases does not equal the decreases.
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Almost all the data necessary to prepare an income statement is
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contained in the retained earnings account. - CORRECT ANSWERS
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✔✔False. not Almost all. ALL.
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A transaction is an event that affects the financial position of a
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company. - CORRECT ANSWERS ✔✔True. |\ |\ |\ |\




Credits are generally good and debits are generally bad. -
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CORRECT ANSWERS ✔✔False. credit means nothing more than
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the R side while a debit means the L side. Neither is good or bad.
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Bookkeeping accounts are a method of accumulating financial |\ |\ |\ |\ |\ |\ |\ |\


transactions and summarizing their effects on balance sheet |\ |\ |\ |\ |\ |\ |\ |\


items. - CORRECT ANSWERS ✔✔True. Bookkeeping accounts
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, provide an easy means for recording, collecting, and reporting
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financial transactions of a firm. |\ |\ |\ |\




Liabilities normally have a L balance - CORRECT ANSWERS |\ |\ |\ |\ |\ |\ |\ |\ |\


✔✔False. Liabilities and OE usually have R balances while assets
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have L balances |\ |\




It is possible to have the books in balance but with mistakes. -
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CORRECT ANSWERS ✔✔Having the books in balance simply |\ |\ |\ |\ |\ |\ |\ |\


means that each time you entered a transaction you placed
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equal amounts on the R and L sides. Books which balance do not
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rule out the possibility that a transaction could have been posted
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to the wrong account.
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The main purpose of the trial balance is to make sure you have
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not committed any math errors in your T- Accounts (T/F) -
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CORRECT ANSWERS ✔✔True. The trial balance is taken as a |\ |\ |\ |\ |\ |\ |\ |\ |\ |\


partial check of the arithmetic accuracy of the entries previously
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made.


Fixed costs are fixed per unit produced, but vary in total (true or
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false) - CORRECT ANSWERS ✔✔False. Fixed costs vary by unit
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produced but are fixed in total. Remember the graph with the
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straight line over all the units of production.|\ |\ |\ |\ |\ |\ |\




True or False: Variable costs are fixed per unit but vary in total. -
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CORRECT ANSWERS ✔✔True. |\ |\