PRINCIPLES OF FINANCIAL AND MANAGERIAL
ACCOUNTING 2026 COMPREHENSIVE
ASSESSMENT SCRIPT SOLVED QUESTIONS
ANSWERS UPDATED REVIEW SET
◉ What are the three primary functions that company managers use
managerial accounting info for.
Answer: Planning, controlling, evaluating
◉ How could a period cost be reported in an income statement?.
Answer: As an admin expense
◉ How are the wages of the cashiers classified in a merchandising
company?.
Answer: Selling expense
◉ What is the label given to the quantity computed as estimated
level of activity.
Answer: Predetermined overhead rate
◉ In a job order costing system, what is the proper accounting for a
product cost?.
,Answer: It is reported as a part of cost of goods sold
◉ Which item is a period cost?.
Answer: Utility bills to heat the headquarters building
◉ Accounting System.
Answer: The procedures and processes used by a business to
analyze transactions, handle routine bookkeeping tasks, and
structure information so it can be used to evaluate the performance
and health of the business.
◉ Activity-based Costing (ABC).
Answer: A method of attributing overhead costs to products based
on measurable factors that relate to activities that create overhead
costs.
◉ Arm's-length Transaction.
Answer: A transaction in which a buyer and seller act independently
to get the best possible deal.
◉ Articulation.
Answer: The interrelationships among the financial statements.
, ◉ Assets.
Answer: Economic resources that are owned or controlled by a
company.
◉ Accounting Equation.
Answer: An algebraic equation that expresses the relationship
between assets (resources), liabilities (obligations), and owner's
equity (net assets, or the residual interest in a business after all
liabilities have been met): Assets = Liabilities + Owners' Equity.
◉ Batch-level Activities.
Answer: Activities that take place in order to support a batch or
production run, regardless of the size of the batch.
◉ Book Value.
Answer: The value of a company measured by the amount of
owner's equity in the company.
◉ Break Even.
Answer: To make just enough income to cover costs without any
profit or loss.
◉ Break-even Point.
ACCOUNTING 2026 COMPREHENSIVE
ASSESSMENT SCRIPT SOLVED QUESTIONS
ANSWERS UPDATED REVIEW SET
◉ What are the three primary functions that company managers use
managerial accounting info for.
Answer: Planning, controlling, evaluating
◉ How could a period cost be reported in an income statement?.
Answer: As an admin expense
◉ How are the wages of the cashiers classified in a merchandising
company?.
Answer: Selling expense
◉ What is the label given to the quantity computed as estimated
level of activity.
Answer: Predetermined overhead rate
◉ In a job order costing system, what is the proper accounting for a
product cost?.
,Answer: It is reported as a part of cost of goods sold
◉ Which item is a period cost?.
Answer: Utility bills to heat the headquarters building
◉ Accounting System.
Answer: The procedures and processes used by a business to
analyze transactions, handle routine bookkeeping tasks, and
structure information so it can be used to evaluate the performance
and health of the business.
◉ Activity-based Costing (ABC).
Answer: A method of attributing overhead costs to products based
on measurable factors that relate to activities that create overhead
costs.
◉ Arm's-length Transaction.
Answer: A transaction in which a buyer and seller act independently
to get the best possible deal.
◉ Articulation.
Answer: The interrelationships among the financial statements.
, ◉ Assets.
Answer: Economic resources that are owned or controlled by a
company.
◉ Accounting Equation.
Answer: An algebraic equation that expresses the relationship
between assets (resources), liabilities (obligations), and owner's
equity (net assets, or the residual interest in a business after all
liabilities have been met): Assets = Liabilities + Owners' Equity.
◉ Batch-level Activities.
Answer: Activities that take place in order to support a batch or
production run, regardless of the size of the batch.
◉ Book Value.
Answer: The value of a company measured by the amount of
owner's equity in the company.
◉ Break Even.
Answer: To make just enough income to cover costs without any
profit or loss.
◉ Break-even Point.
