ACCOUNTING Exam Package Deal Questions and Verified Answers (2025 / 2026)

Sometimes companies must estimate ending inventory. Review the reasons given below for estimating inventory and choose all of the correct responses. - ANS -The store was flooded. -Fire destroyed the inventory warehouse. -Interim financial statements need to be prepared. Which of the statements b...

The term "cash" has several different meanings. - ANS True Cash usually means only currency and coins. - ANS False On any given day, it is unlikely that the balance in the cash account on the depositor's general ledger (or books) will be the same as the bank balance. - ANS True A deposi...

21. Which of the following is a limitation of the balance sheet? a. Many items that are of financial value are omitted. b. Judgments and estimates are used. c. Current fair value is not reported. d. All of these answer choices are correct. - ANS d 22. The balance sheet is useful for analyzing a...

Assume fixed costs total $280,000 per month, the variable cost per unit is $80, and each unit sells for $150. What is the contribution margin ratio (rounded)? 47% 56% 25% 65% - ANS 47% Contribution margin ratio is calculated by Contribution margin per unit / Sales price per unit. In this cas...

A company paid $500 for supplies that it purchased last month. The decrease in liabilities would be recorded with a __________ to Accounts Payable. - ANS Debit In May, Pasta Disasta, Inc. pays its suppliers $1,000 for supplies received in April. The effect on the accounting equation is a ________...

The definition of revenues includes which of the following statements? a) Revenues are creditor's claims against the company. b) Revenues increase equity c) Revenues are the sales of products or services to customers by a business d) Revenues are resources owned or controlled by a company - A...

Accounting is the information system that measures business activities, processes the information into reports, and communicates the results to decision makers. TRUE/FALSE - ANS TRUE Accounting is referred to as the language of business because it is the method of communicating business informat...

Identify the statements below which summarize what cash discounts are. (Check all that apply.) - ANS Sellers can grant a cash discount to encourage buyers to pay earlier. A seller views a cash discount as a sales discount. A buyer views a cash discount as a purchase discount. Cash discounts are ...

The principles of internal control include _____. - ANS establish responsibilities An internal control system consists of the policies and procedures managers use to _____. -ensure reliable accounting -protect assets -promote efficient operations -uphold company policies -all of the above - AN...

What two concerns of investors and creditors are summarized by the term "cash flow prospects?" - ANS return of investment and return on investment three financial statements used to communicate financial accounting info to interested external parties - ANS balance sheet (statement of finica...

Management Functions in Managerial Accounting - ANS Planning. Directing. Controlling Managerial accounting - ANS A field of accounting that provides economic and financial information for managers and other internal users. Activity-based costing (ABC) - ANS A method of allocating overhead based...