Accounting Exam MBA 600 Complete Test || Questions and Answers
(Verified Answers) (Latest Update 2026) UPDATE!!
What is the accounting equation - (answer)Assets = Liabilities + Stockholders' Equity
In a ledger what are the liabilities? - (answer)Accounts payable
Unearned Rent
In a ledger what are the assets? - (answer)Accounts receivable
Supplies
Prepaid insurance
Land
Cash
Office equipment
What are examples of product costs? - (answer)Direct materials used
Direct labor
Depreciation on factory equipment
Factory overhead
What are examples of period costs? - (answer)Selling expenses
Administrative expenses
Operating expenses
What are examples of prime costs? - (answer)Direct materials
Direct labor
What are examples of conversion costs? - (answer)Direct labor costs
, Accounting Exam MBA 600 Complete Test || Questions and Answers
(Verified Answers) (Latest Update 2026) UPDATE!!
Factory overhead
What are conversion costs - (answer)Conversion costs are the costs of converting the materials into a
finished product.
direct labor and factory overhead costs
What is an income statement? When should it be used? - (answer)A summary of the revenue and
expenses for a specific period of time, such as a month or year
What is the statement of stockholders' equity (retained earnings statement)? When should it be used? -
(answer)A summary of the changes in stockholders' equity that have occurred during a specific period of
time, such as a month or year
What is a balance sheet? When should it be used? - (answer)A list of assets, liabilities, and stockholders'
equity as of the last day of a month or a year
What is a statement of cash flows? When should it be used - (answer)A summary of the cash receipts
and cash payments for a specific period of time, such as a month or year
What is the order the financial statements should be used? - (answer)1. Income statement
2. Statement of stakeholders'
3. Balance sheet
4. Statement of cash flows
Which financial statements report assets? - (answer)Balance sheet
Statement of cash flows
Notes to financial statements
(Verified Answers) (Latest Update 2026) UPDATE!!
What is the accounting equation - (answer)Assets = Liabilities + Stockholders' Equity
In a ledger what are the liabilities? - (answer)Accounts payable
Unearned Rent
In a ledger what are the assets? - (answer)Accounts receivable
Supplies
Prepaid insurance
Land
Cash
Office equipment
What are examples of product costs? - (answer)Direct materials used
Direct labor
Depreciation on factory equipment
Factory overhead
What are examples of period costs? - (answer)Selling expenses
Administrative expenses
Operating expenses
What are examples of prime costs? - (answer)Direct materials
Direct labor
What are examples of conversion costs? - (answer)Direct labor costs
, Accounting Exam MBA 600 Complete Test || Questions and Answers
(Verified Answers) (Latest Update 2026) UPDATE!!
Factory overhead
What are conversion costs - (answer)Conversion costs are the costs of converting the materials into a
finished product.
direct labor and factory overhead costs
What is an income statement? When should it be used? - (answer)A summary of the revenue and
expenses for a specific period of time, such as a month or year
What is the statement of stockholders' equity (retained earnings statement)? When should it be used? -
(answer)A summary of the changes in stockholders' equity that have occurred during a specific period of
time, such as a month or year
What is a balance sheet? When should it be used? - (answer)A list of assets, liabilities, and stockholders'
equity as of the last day of a month or a year
What is a statement of cash flows? When should it be used - (answer)A summary of the cash receipts
and cash payments for a specific period of time, such as a month or year
What is the order the financial statements should be used? - (answer)1. Income statement
2. Statement of stakeholders'
3. Balance sheet
4. Statement of cash flows
Which financial statements report assets? - (answer)Balance sheet
Statement of cash flows
Notes to financial statements
