MBA MANAGERIAL ACCOUNTING PREP
WORKS TERMINAL REVIEW SCRIPT 2026
FULL ANSWERS GRADED A+
⩥ Balance Sheet.
Answer: A summary of the financial position of a company at a
particular date.
⩥ Capital Stock.
Answer: The portion of stockholder's equity that represents investment
by owners in exchange for shares of stock; also referred to as paid-in
capital.
⩥ Cost of Goods Manufactured Statement.
Answer: A schedule supporting the income statement that summarizes
the total cost of goods manufactured and transferred out of the work-in
process inventory account during a period. These costs include direct
materials, direct labor, and applied manufacturing overhead.
⩥ Economy of Scale.
Answer: A pattern of decreasing costs per unit as unit volume increases.
⩥ Expenses.
,Answer: The amount of assets consumed through business operations;
the costs incurred in normal business operations to generate revenues.
⩥ External Transaction.
Answer: An exchange that occurs between a company and an external
party and that is recorded in the financial records of the company.
⩥ Financial Accounting.
Answer: The area of accounting concerned with reporting financial
information to interested external parties.
⩥ Financial Accounting Standards Board (FASB).
Answer: The organization responsible for studying accounting issues
and establishing accounting standards to govern financial reporting in
the United States.
⩥ Financial Statement Analysis.
Answer: The examination of both the relationships among financial
statement numbers and the trends in those numbers over time.
⩥ Financial Statements.
Answer: Reports such as the balance sheet, income statement, and
statement of cash flows, which summarize the financial status and
results of operations of a business entity.
, ⩥ Financing Activities.
Answer: Activities whereby cash is obtained from or repaid to owners
and creditors.
⩥ Finished Goods Inventory.
Answer: Inventory that has completed the production process and is
ready for sale to customers.
⩥ Fixed Costs.
Answer: Costs that remain constant in total, regardless of activity level,
over a certain range of activity
⩥ Form 10-K.
Answer: A form required by the SEC for businesses to report a
comprehensive summary of financial perfomance, including the three
primary financial statements.
⩥ Gains.
Answer: Money made on activities outside the normal business of a
company
⩥ Governmental Accounting Standards Board (GASB).
WORKS TERMINAL REVIEW SCRIPT 2026
FULL ANSWERS GRADED A+
⩥ Balance Sheet.
Answer: A summary of the financial position of a company at a
particular date.
⩥ Capital Stock.
Answer: The portion of stockholder's equity that represents investment
by owners in exchange for shares of stock; also referred to as paid-in
capital.
⩥ Cost of Goods Manufactured Statement.
Answer: A schedule supporting the income statement that summarizes
the total cost of goods manufactured and transferred out of the work-in
process inventory account during a period. These costs include direct
materials, direct labor, and applied manufacturing overhead.
⩥ Economy of Scale.
Answer: A pattern of decreasing costs per unit as unit volume increases.
⩥ Expenses.
,Answer: The amount of assets consumed through business operations;
the costs incurred in normal business operations to generate revenues.
⩥ External Transaction.
Answer: An exchange that occurs between a company and an external
party and that is recorded in the financial records of the company.
⩥ Financial Accounting.
Answer: The area of accounting concerned with reporting financial
information to interested external parties.
⩥ Financial Accounting Standards Board (FASB).
Answer: The organization responsible for studying accounting issues
and establishing accounting standards to govern financial reporting in
the United States.
⩥ Financial Statement Analysis.
Answer: The examination of both the relationships among financial
statement numbers and the trends in those numbers over time.
⩥ Financial Statements.
Answer: Reports such as the balance sheet, income statement, and
statement of cash flows, which summarize the financial status and
results of operations of a business entity.
, ⩥ Financing Activities.
Answer: Activities whereby cash is obtained from or repaid to owners
and creditors.
⩥ Finished Goods Inventory.
Answer: Inventory that has completed the production process and is
ready for sale to customers.
⩥ Fixed Costs.
Answer: Costs that remain constant in total, regardless of activity level,
over a certain range of activity
⩥ Form 10-K.
Answer: A form required by the SEC for businesses to report a
comprehensive summary of financial perfomance, including the three
primary financial statements.
⩥ Gains.
Answer: Money made on activities outside the normal business of a
company
⩥ Governmental Accounting Standards Board (GASB).
