Ivy software mba prepworks managerial accounting EXAM NEWEST VERSION WITH COMPLETE 380 QUESTIONS AND CORRECT ANSWERS JUST RELEASED

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Ivy software mba prepworks managerial
accounting EXAM NEWEST VERSION WITH
COMPLETE 380 QUESTIONS AND CORRECT
ANSWERS JUST RELEASED


Question: Converse company has two products- A and B. The weighted average contribution
margin per unit is $4. Converse sells twice as many As as Bs. The contribution margin per unit
for B is $2. What is it for A? - CORRECT ANSWER✔✔$5




Question: If the breakeven is 5000 units and fixed costs are $50,000, what is the contribution
margin per unit? - CORRECT ANSWER✔✔$10




Question: Which of the following will be found on an absorption costing income statement but
not on a variable costing income statement? - CORRECT ANSWER✔✔Gross Margin and Cost of
Goods Sold




Question: If units produced are less than units sold, net income using absorption costing is -
CORRECT ANSWER✔✔Less than variable costing




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Question: If the selling price is $5 per unit the variable cost is $1 per unit and the fixed cost is
$20,000, what is the breakeven in units? - CORRECT ANSWER✔✔$5,000 (5x - 1x - 20000 = 0, 4x -
20,000=0, 4x=20000, x = 5000)




Question: The total of ALL the right-hand sides of the T-accounts must equal the total of ALL the
left-hand sides of the T-Accounts (T/F) - CORRECT ANSWER✔✔True. The double-entry system of
accounting means that for each transaction recorded, there is a left-hand (debit) entry offset by
a right-hand (credit) entry.




Question: Since the total of all the R sides of accounts equals the total of L sides, then the total
amount of increases entered in the general ledger must equal the total amount of decreases
(T/F) - CORRECT ANSWER✔✔False. Cash (Asset) and Common Stock (Owners' Equity) is used to
record the sale of company stock. While the R side equals the L side, they both increase, thus,
the total amount of increases does not equal the decreases.




Question: Almost all the data necessary to prepare an income statement is contained in the
retained earnings account. - CORRECT ANSWER✔✔False. not Almost all. ALL.




Question: A transaction is an event that affects the financial position of a company. - CORRECT
ANSWER✔✔True.




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Question: Credits are generally good and debits are generally bad. - CORRECT
ANSWER✔✔False. credit means nothing more than the R side while a debit means the L side.
Neither is good or bad.




Question: Bookkeeping accounts are a method of accumulating financial transactions and
summarizing their effects on balance sheet items. - CORRECT ANSWER✔✔True. Bookkeeping
accounts provide an easy means for recording, collecting, and reporting financial transactions of
a firm.




Question: Liabilities normally have a L balance - CORRECT ANSWER✔✔False. Liabilities and OE
usually have R balances while assets have L balances




Question: It is possible to have the books in balance but with mistakes. - CORRECT
ANSWER✔✔Having the books in balance simply means that each time you entered a
transaction you placed equal amounts on the R and L sides. Books which balance do not rule
out the possibility that a transaction could have been posted to the wrong account.




Question: The main purpose of the trial balance is to make sure you have not committed any
math errors in your T- Accounts (T/F) - CORRECT ANSWER✔✔True. The trial balance is taken as a
partial check of the arithmetic accuracy of the entries previously made.




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




Question: True or False: Variable costs are fixed per unit but vary in total. - CORRECT
ANSWER✔✔True.




Question: Elmwood Inc. manufactures guitars. Elmwood's management has discovered that
after 3,000 guitars are manufactured, there is a need to add an additional quality control
engineer. If this is done it is an excellent example of a semi variable cost. - CORRECT
ANSWER✔✔False. This scenario indicates a semi fixed cost not a semi variable cost. This is an
example of a stepped fixed cost.




Question: The "Flex" in flexible budget comes from the assumption of activity levels that vary. -
CORRECT ANSWER✔✔True.




Question: Elmwood industries reported earnings of $3.10 per share in 2013. how far off could
this number be and still be in accordance with GAAP? In other words, could this number be:

$3.40

$4.00

$2.15




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