BUS105 Exam Dumps : Managerial Accounting (SAYA-0009) Exam

The indirect method starts with net income and adjusts for noncash items and changes in working capital.

As per Saylor Academy BUS105 – Unit 12.2: The Statement of Cash Flows:

“Depreciation and amortization are added back to net income under the indirect method. Increases in current assets (like accounts receivable) are subtracted from net income.”

Thus, applying these rules:

463,000 + 38,500 + 17,950 + 4,000 − 29,900 = 493,550

Answer: B

Comprehensive and Detailed Explanation:

Managerial accounting focuses on internal decision-making tools, such as budgeting, forecasting, and performance evaluation. A capital budget is a tool for planning long-term investments and is a key example of managerial accounting.

The other options (balance sheet, cash flow, liabilities) are financial accounting tools used for external reporting.

Answer: A

Comprehensive and Detailed Explanation:

Management by Exception is a management style that focuses attention and resources on areas where actual results deviate significantly from expected results.

According to Saylor Academy BUS105:

“Management by exception is a principle where managers focus only on significant variances between actual and budgeted results.”

Only Option D reflects a significant unfavorable variance that exceeds a predefined threshold—this is exactly the kind of situation where management by exception would trigger action.

Answer: D