Saylor BUS105 Exam Questions Instant Access

Question 1

Cost behavior patterns tend to be reliable within which of the following?

AFree cash flow

BA relevant range

CThe current ratio

DA contribution margin

Answer : B

Question 2

Ladron Candies uses activity-based costing to allocate variable factory overhead costs. Which of the following statements best represents the excerpted activity data for indirect materials?

Indirect Materials:

AThere is a $500 favorable spending variance

BThere is a $1,000 favorable spending variance

CThere is a $500 unfavorable efficiency variance

DThere is a $1,000 unfavorable efficiency variance

Answer : A

Question 3

How does a statement of cash flows provide value for a company?

ABy showing assets, liabilities, and owners' equity at a point in time

BBy showing revenues and expenses using the accrual basis of accounting

CBy showing events that changed the stockholder's equity over the course of the accounting period

DBy showing the change from the beginning cash balance to the ending cash balance on the balance sheet

Answer : D

Question 4

Which of the following activities would be included in the cash flows from the financing section of the statement of cash flows?

ACash receipts from customers

BIncrease in accounts receivable

CPurchase of property and equipment

DCash dividends paid to noncontrolling interests

Answer : D

Question 5

Using this data, what is the contribution margin?

A$121,000

B$326,000

C$365,000

D$625,000

Answer : B

Question 6

Managers have several different methods from which to choose when evaluating long-term investments. Which method disregards the time value of money as a factor?

APayback

BAnnuity tables

CNet present value

DInternal rate of return

Answer : A

Question 7

What is the formula to calculate working capital?

ATotal assets - Total liabilities

BCurrent assets - Current liabilities

CTotal assets - Current liabilities

DCurrent assets + Current liabilities

Answer : B

Saylor Managerial Accounting BUS105 Exam Questions