ACCT 2000 LOWE-ARDOIN EXAM 3 ACTUAL /NEWEST
2026 WELL SORTED QUESTIONS AND ANSWERS
/GRADED A+ | Study Guide | A+
• external. CORRECT ANSWER: Financial accounting is an ______ primary user
• internal. CORRECT ANSWER: managerial accounting is a _____ primary user
• financial statement. CORRECT ANSWER: report used in financial accounting
• internal reports. CORRECT ANSWER: report used in managerial accounting
• monthly, quarterly or annual. CORRECT ANSWER: frequency of reports in financial
accounting
• as needed. CORRECT ANSWER: frequency of reports in managerial accounting
• general. CORRECT ANSWER: purpose of reports in financial accounting
• specific. CORRECT ANSWER: purpose of reports in managerial accounting
• highly aggregated. CORRECT ANSWER: content of reports in financial accounting
• very detailed. CORRECT ANSWER: content of reports in managerial accounting
• whole business. CORRECT ANSWER: portion of business covered in financial
accounting
• subunit. CORRECT ANSWER: portion of business covered in managerial accounting
• audited. CORRECT ANSWER: verification process in financial accounting
• not audited. CORRECT ANSWER: verification process in managerial accounting
• yes. CORRECT ANSWER: are you required to follow GAAP in financial accounting
• no. CORRECT ANSWER: are you required to follow GAAP in managerial accounting
• planning
directing
controlling. CORRECT ANSWER: the three broad functions of a manager are:
• planning. CORRECT ANSWER: looking ahead/setting goals
• directing. CORRECT ANSWER: coordinating day to day activities
, • controlling. CORRECT ANSWER: looking back, determining whether goals have met
• direct materials, direct labor, and manufacturing overhead. CORRECT ANSWER: 3
types of manufacturing costs
• indirect materials, indirect labor, and other manufacturing costs. CORRECT ANSWER:
manufacturing overhead can be separated into 3 categories
• product and period. CORRECT ANSWER: costs can be broken down into 2 main
categories
• product costs. CORRECT ANSWER: aka manufacturing costs; Incurred at the factory.
These are considered inventoriable costs as they are originally placed on the balance
sheet and moved to the income statement when goods are sold.
• period costs. CORRECT ANSWER: matched with revenues of a specific time period
and charged directly to expense.
• cost of goods sold (manufacturer). CORRECT ANSWER: beginning finished inventory
+ cost of goods manufactured- ending finished goods = cost of goods sold
• 1. finished goods
2. work in process
3. raw materials. CORRECT ANSWER: manufacturers have 3 types of inventory on the
balance sheet
• a. planning
b. directing
c. controlling
d. accounting
C. CONTROLLING. CORRECT ANSWER: the function that pertains to keeping the
activities of the enterprise on track is:
• a. depreciation of factory equipment
b. wages of salesperson
c. wages of matching operator
d. insurance on factory equipment
B. WAGES OF SALESPERSON. CORRECT ANSWER: for a manufacturing company,
which of the following is an example of a period cost rather than a product cost?
• a. $275,000
b. $300,000
c. $325,000
2026 WELL SORTED QUESTIONS AND ANSWERS
/GRADED A+ | Study Guide | A+
• external. CORRECT ANSWER: Financial accounting is an ______ primary user
• internal. CORRECT ANSWER: managerial accounting is a _____ primary user
• financial statement. CORRECT ANSWER: report used in financial accounting
• internal reports. CORRECT ANSWER: report used in managerial accounting
• monthly, quarterly or annual. CORRECT ANSWER: frequency of reports in financial
accounting
• as needed. CORRECT ANSWER: frequency of reports in managerial accounting
• general. CORRECT ANSWER: purpose of reports in financial accounting
• specific. CORRECT ANSWER: purpose of reports in managerial accounting
• highly aggregated. CORRECT ANSWER: content of reports in financial accounting
• very detailed. CORRECT ANSWER: content of reports in managerial accounting
• whole business. CORRECT ANSWER: portion of business covered in financial
accounting
• subunit. CORRECT ANSWER: portion of business covered in managerial accounting
• audited. CORRECT ANSWER: verification process in financial accounting
• not audited. CORRECT ANSWER: verification process in managerial accounting
• yes. CORRECT ANSWER: are you required to follow GAAP in financial accounting
• no. CORRECT ANSWER: are you required to follow GAAP in managerial accounting
• planning
directing
controlling. CORRECT ANSWER: the three broad functions of a manager are:
• planning. CORRECT ANSWER: looking ahead/setting goals
• directing. CORRECT ANSWER: coordinating day to day activities
, • controlling. CORRECT ANSWER: looking back, determining whether goals have met
• direct materials, direct labor, and manufacturing overhead. CORRECT ANSWER: 3
types of manufacturing costs
• indirect materials, indirect labor, and other manufacturing costs. CORRECT ANSWER:
manufacturing overhead can be separated into 3 categories
• product and period. CORRECT ANSWER: costs can be broken down into 2 main
categories
• product costs. CORRECT ANSWER: aka manufacturing costs; Incurred at the factory.
These are considered inventoriable costs as they are originally placed on the balance
sheet and moved to the income statement when goods are sold.
• period costs. CORRECT ANSWER: matched with revenues of a specific time period
and charged directly to expense.
• cost of goods sold (manufacturer). CORRECT ANSWER: beginning finished inventory
+ cost of goods manufactured- ending finished goods = cost of goods sold
• 1. finished goods
2. work in process
3. raw materials. CORRECT ANSWER: manufacturers have 3 types of inventory on the
balance sheet
• a. planning
b. directing
c. controlling
d. accounting
C. CONTROLLING. CORRECT ANSWER: the function that pertains to keeping the
activities of the enterprise on track is:
• a. depreciation of factory equipment
b. wages of salesperson
c. wages of matching operator
d. insurance on factory equipment
B. WAGES OF SALESPERSON. CORRECT ANSWER: for a manufacturing company,
which of the following is an example of a period cost rather than a product cost?
• a. $275,000
b. $300,000
c. $325,000
