Question 1: Which of the following represents the correct order in which inventories are reported on a manufacturer's balance sheet?
a. Raw materials, work in process, finished goods
b. Work in process, finished goods raw materials
c. Finished goods, work in process, raw materials
d. Work in process, raw materials, finished goods
Question 2: What is 'balanced'in the balanced scorecard approach?
a. The number of products produced
b. The emphasis on financial and non-financial performance measurements
c. The amount of costs allocated to products
d. The number of defeats found on each product
Question 3: Which of the following is not part of managerial accounting?
a. Determining whether planned goals are being met
b. Reporting financial information to the shareholders
c. Calculating product costs
d. Controlling costs
Question 4: Which description identifies financial statements that are prepared for external users?
a. External reports
b. Special-purpose
c. User-specific
d. General-purpose
Question 5: For what purpose did the U.S. Congress enact the Sarbanes-Oxley Act?
a. To control costs
b. To increase profits
c. To prevent theft
d. To prevent lapses in internal control
Question 6: Which one of the following shows the delegation of responsibility within a company?
a. Authority outline
b. Organization chart
c. Company's charter
d. Sarbanes-Oxley Act
Question 7: A company uses sandpaper in its production process. How is the cost of the sandpaper classified?
a. Miscellaneous expense
b. A direct material
c. A period cost
d. An indirect material
Question 8: Which one of the following costs are inventoriable?
a. Indirect material costs
b. Administrative costs
c. Period costs
d. Selling costs
Question 9: How does a manufacturing company report cost of goods manufactured?
a. As a current asset on the balance sheet
b. As a component of the raw materials inventory on the balance sheet
c. As a component in the calculation of cost of goods sold on the income statement
d. As an administrative expense on the income statement