Accounting 202 - Chapter 2 Review Test Quiz

46 Questions | Total Attempts: 453

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Accounting 202 - Chapter 2 Review Test Quiz

Accounting 202 - Chapter 2 Review Test Quiz Managerial accounting, as we know, is a branch of accounts that helps in collecting, analyzing, and reporting information about the operations and finances of a business. These reports are generally used to show the position of a business to continue as a going concern. Take up the quiz and see what you know about it.


Questions and Answers
  • 1. 
    Which of the following are merchandising companies?
    • A. 

      Manufactures

    • B. 

      Retailers

    • C. 

      Wholesalers

    • D. 

      Both Retailers and Wholesalers

  • 2. 
    Raw materials, work in process and finished goods are the three types of inventory held by which of the following types of companies?
    • A. 

      Manufacturing

    • B. 

      Retailers

    • C. 

      Wholesalers

    • D. 

      Service Companies

  • 3. 
    The balance sheet of a service company has:
    • A. 

      Little of no inventory

    • B. 

      Raw materials inventory

    • C. 

      Three categories of inventory

    • D. 

      Two categories of inventory

  • 4. 
    Which types of company typically produces it's own inventory?
    • A. 

      Manufacturer

    • B. 

      Service company

    • C. 

      Retailer

    • D. 

      Wholesaler

  • 5. 
    What type of company resells products it previously purchased ready-made from suppliers?
    • A. 

      Merchandise

    • B. 

      Retailer

    • C. 

      Wholesaler

    • D. 

      All of the above

  • 6. 
    Before these materials are used to manufacture its cars, Honda classifies steel, glass, and plastic as:
    • A. 

      Finished goods inventory

    • B. 

      Raw materials inventory

    • C. 

      Work in process inventory

    • D. 

      Merchandise inventory

  • 7. 
    Wal-Mart classifies its clothing held for sale as:
    • A. 

      Finished goods inventory

    • B. 

      Raw materials inventory

    • C. 

      Work in process inventory

    • D. 

      Merchandise inventory

  • 8. 
    How would Honda classify its partially completed vehicles?
    • A. 

      Finished goods

    • B. 

      Raw materials

    • C. 

      Supplies

    • D. 

      Work in process

  • 9. 
    Intel Corporation makes computer chips. Intel Corporation would be classified as a:
    • A. 

      Manufacturing company

    • B. 

      Merchandising company

    • C. 

      Service company

    • D. 

      Simple company

  • 10. 
    In ______________, inventory consists of freight-in and the cost of the product which is to be resold.
    • A. 

      A service company

    • B. 

      A merchandising company

    • C. 

      A manufacturing company

    • D. 

      All of these companies

  • 11. 
    Which of the following items would NOT be found in raw materials inventory for a furniture manufacturer?
    • A. 

      Wood

    • B. 

      Fabric

    • C. 

      Assembly worker wages

    • D. 

      Steel framing

  • 12. 
    Which of the following costs could be found in work in process inventory for an ice cream manufacturer?
    • A. 

      Utilities for administrative offices

    • B. 

      Assembly worker wages

    • C. 

      Depreciation of sales office

    • D. 

      Customer order forms

  • 13. 
    A company decision as to where to locate a new store would be considered?
    • A. 

      Customer service

    • B. 

      Marketing

    • C. 

      Production

    • D. 

      Research and development

  • 14. 
    Delivery expenses are are charged to which of the following areas?
    • A. 

      Customer service

    • B. 

      Distribution

    • C. 

      Production or purchases

    • D. 

      Marketing

  • 15. 
    A product support hot line would be considered:
    • A. 

      Customer service

    • B. 

      Distribution

    • C. 

      Production or purchases

    • D. 

      Marketing

  • 16. 
    Indirect costs incurred in manufacturing autos include all of the following EXCEPT:
    • A. 

      Cost of the engines

    • B. 

      Machinery depreciation in the factory

    • C. 

      Plant utilities

    • D. 

      Plant supervisor salary

  • 17. 
    Prime costs consist of:
    • A. 

      Direct labor and manufacturing overhead.

    • B. 

      Direct materials and direct labor

    • C. 

      Direct materials and manufacturing overhead

    • D. 

      Direct materials, direct labor and manufacturing overhead

  • 18. 
    Conversion costs consist of:
    • A. 

      Direct labor and manufacturing overhead

    • B. 

      Direct materials and direct labor

    • C. 

      Direct materials and manufacturing overhead

    • D. 

      Direct materials, direct labor and manufacturing overhead

  • 19. 
    Which of the following is an example of direct labor?
    • A. 

      Salary of a production manager

    • B. 

      Salary of the vice-president of operations

    • C. 

      Wages of assembly line personnel

    • D. 

      Wages of factory security

  • 20. 
    Which of the following are classifed as manufacturing overhead?
    • A. 

      Direct materials and direct labor

    • B. 

      Indirect labor and indirect materials

    • C. 

      All materials

    • D. 

      Factory rent and direct labor

  • 21. 
    Manufacturers consider selling and administrative costs to be:
    • A. 

      Prime costs

    • B. 

      Conversion costs

    • C. 

      Inventoriable costs

    • D. 

      Period costs

  • 22. 
    Period costs are:
    • A. 

      Always considered part of the inventory

    • B. 

      Always recorded as an expense

    • C. 

      Expensed only when the inventory is sold

    • D. 

      None of the above

  • 23. 
    Where would period costs be found on the financial statements?
    • A. 

      Under current assets on the balance sheet

    • B. 

      Under current liabilities on the balance sheet

    • C. 

      As operating expenses on the income statement for the previous period

    • D. 

      As operating expenses on the income statement in the period incurred

  • 24. 
    When manufacturing products, direct labor and direct materials are classified as:
    • A. 

      Period costs and expensed when incurred

    • B. 

      Period costs and expensed when the goods are sold

    • C. 

      Product costs and expensed when incurred

    • D. 

      Product costs and expensed when the goods are sold

  • 25. 
    Certain materials used in a manufacturing plant cannot be traced to a specific unit. These materials are called _________ materials.
    • A. 

      General

    • B. 

      Direct

    • C. 

      Finished

    • D. 

      Indirect

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