Podcast
Questions and Answers
Which inventory system uses computer software to keep a running record of inventory on hand?
Which inventory system uses computer software to keep a running record of inventory on hand?
- Cost of goods sold inventory system
- Hybrid inventory system
- Perpetual inventory system (correct)
- Periodic inventory system
What is the purpose of management accounting?
What is the purpose of management accounting?
- Identifying, measuring, and analyzing information
- Helping managers fulfill organizational objectives (correct)
- Producing information for external stakeholders
- Supporting financial reporting requirements
When does an unfavorable variance occur on a performance report?
When does an unfavorable variance occur on a performance report?
- The actual cost is less than the budgeted cost
- The actual revenue is greater than the budgeted revenue
- The actual revenue is less than the budgeted revenue (correct)
- The actual profit is greater than the budgeted profit
Who is the primary user of performance reports for planning and controlling operations?
Who is the primary user of performance reports for planning and controlling operations?
Which statement correctly represents the rules of debits and credits?
Which statement correctly represents the rules of debits and credits?
What is the first step in recording a transaction in the journal?
What is the first step in recording a transaction in the journal?
Which account represents the cost of inventory that is still on hand?
Which account represents the cost of inventory that is still on hand?
What is another term for gross profit?
What is another term for gross profit?
Which two accounts appear on a merchandising company's financial statements but not on a service company's?
Which two accounts appear on a merchandising company's financial statements but not on a service company's?
Sales revenue is based on the ___ of the inventory, while cost of goods sold is based on the ___ of the inventory.
Sales revenue is based on the ___ of the inventory, while cost of goods sold is based on the ___ of the inventory.
What is the correct order of items on the income statement?
What is the correct order of items on the income statement?
Which statement about a periodic inventory system is true?
Which statement about a periodic inventory system is true?
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