Accounting Exam 1 Practice
Guide Questions And
Correct Answers 2025-2026
GRADED A +
True or false, A factory manager's salary would be classified as a period cost. -
ANS-false
Equity= - ANS-paid-in capital+ending retained earnings
beginning retained earnings + net income - dividends= - ANS-ending retained
earnings
If owner's equity decreases from the beginning of the year to the end of the
year, then
A. net income is less than dividends.
B. there was a net income and no dividends.
C. additional investments are greater than a net loss.
D. net income is greater than dividends. - ANS-net income is less than dividends
To find the cost of the company to produce each unit, what costs must you add
together? - ANS-variable costs
Is utilities a fixed or variable cost? - ANS-variable
What is not a benefit of following a well-designed budgeting process? - ANS-
assurance of future profits
If an individual asset is increased, then there could be an equal _______ in
another asset - ANS-decrease
Guide Questions And
Correct Answers 2025-2026
GRADED A +
True or false, A factory manager's salary would be classified as a period cost. -
ANS-false
Equity= - ANS-paid-in capital+ending retained earnings
beginning retained earnings + net income - dividends= - ANS-ending retained
earnings
If owner's equity decreases from the beginning of the year to the end of the
year, then
A. net income is less than dividends.
B. there was a net income and no dividends.
C. additional investments are greater than a net loss.
D. net income is greater than dividends. - ANS-net income is less than dividends
To find the cost of the company to produce each unit, what costs must you add
together? - ANS-variable costs
Is utilities a fixed or variable cost? - ANS-variable
What is not a benefit of following a well-designed budgeting process? - ANS-
assurance of future profits
If an individual asset is increased, then there could be an equal _______ in
another asset - ANS-decrease
