Question 1 Which of the following is true about financial accounting?

it provides information to investors and creditors on the whole company

it reports detailed information for segments of the company

it provides detailed reports as needed

it provides guarantees required that the company will be able to pay debt

Flag this QuestionQuestion 2 Which type of company would report work-in-process inventory as a line item on their balance sheet?

service company

merchandising company

manufacturing company

nonprofit entity

Flag this QuestionQuestion 3 Conversion costs include:

direct labor and indirect labor

direct materials and direct labor

direct labor and factory overhead

direct materials and factory overhead

Flag this QuestionQuestion 4 Our company is a manufacturer and has the following data available for the current year: Sales, $550,000, sales discounts, $20,000, sales returns and allowances, $15,000, cost of goods sold, $200,000. What is the amount reported on the income statement for gross profit?

$530,000

$515,000

$330,000

$315,000

Flag this QuestionQuestion 5 Our company is a manufacturer of sunglasses. Depreciation for equipment at the manufacturing facility would most likely be classified as:

direct materials

indirect materials

direct labor

indirect labor

Other factory overhead

Flag this QuestionQuestion 6 Our company is a manufacturer and has the following data available for the current year: Sales, $550,000, cost of goods manufactured, $250,000, finished goods beginning inventory, $20,000, finished goods ending inventory, $30,000. What is the amount reported on the income statement for gross profit?

$260,000

$240,000

$290,000

$310,000

Flag this QuestionQuestion 7 Our company is a manufacturer and has the following data available for the current year: Sales, $550,000, cost of goods manufactured, $250,000, finished goods beginning inventory, $20,000, finished goods ending inventory, $30,000. What is the amount reported on the income statement for cost of goods sold?

$260,000

$240,000

$290,000

$310,000

Flag this QuestionQuestion 8 Our company is a manufacturer of sunglasses. Wages for the janitorial staff at the manufacturing facility would most likely be classified as:

direct materials

indirect materials

direct labor

indirect labor

Other factory overhead

Flag this QuestionQuestion 9 Which of the following is an example of a period cost?

property taxes on factory

depreciation on company cars used by sales force

plant janitors wages

oil for manufacturing equipment

Flag this QuestionQuestion 10 The primary users of managerial accounting include:

stockholders

managers

customers

the federal government