Accounting

Management Functions in Managerial Accounting - ANS Planning. Directing. Controlling Managerial accounting - ANS A field of accounting that provides economic and financial information for managers and other internal users. Activity-based costing (ABC) - ANS A method of allocating overhead based on each product's use of activities in making the product. Balanced scorecard - ANS A performance-measurement approach that uses both financial and nonfinancial measures, tied to company object...

What two concerns of investors and creditors are summarized by the term "cash flow prospects?" - ANS return of investment and return on investment three financial statements used to communicate financial accounting info to interested external parties - ANS balance sheet (statement of finical position), income statement, and statement of cash flow accounting system: - ANS the personnel, procedures, devices and records used by an entity to develop accounting info and communicate this i...

The principles of internal control include _____. - ANS establish responsibilities An internal control system consists of the policies and procedures managers use to _____. -ensure reliable accounting -protect assets -promote efficient operations -uphold company policies -all of the above - ANS all of the above An effective system of internal control _____. - ANS helps protect company assets The Sarbanes-Oxley Act _____. - ANS requires managers of public companies to document and assess...

Identify the statements below which summarize what cash discounts are. (Check all that apply.) - ANS Sellers can grant a cash discount to encourage buyers to pay earlier. A seller views a cash discount as a sales discount. A buyer views a cash discount as a purchase discount. Cash discounts are described in the credit terms. A reduced payment applies to the discount period. Demonstrate how to prepare a multiple-step income statement by ranking the items below in the order they would appea...

Accounting is the information system that measures business activities, processes the information into reports, and communicates the results to decision makers. TRUE/FALSE - ANS TRUE Accounting is referred to as the language of business because it is the method of communicating business information to stakeholders. TRUE/FALSE - ANS TRUE Managerial accounting focuses on information for external decision makers. TRUE/FALSE - ANS FALSE Stockholders primarily use managerial accounting informa...

The definition of revenues includes which of the following statements? a) Revenues are creditor's claims against the company. b) Revenues increase equity c) Revenues are the sales of products or services to customers by a business d) Revenues are resources owned or controlled by a company - ANS b & c Bakery Company receives its utility bill of $800 for the month and pays it immediately. Record this transaction in the accounting equation - ANS Increase expenses and decrease cash Expense...

A company paid $500 for supplies that it purchased last month. The decrease in liabilities would be recorded with a __________ to Accounts Payable. - ANS Debit In May, Pasta Disasta, Inc. pays its suppliers $1,000 for supplies received in April. The effect on the accounting equation is a __________. (Check all that apply.) - ANS $1,000 decrease in liabilities $1,000 decrease in assets Identify the account title that may be used to record borrowing cash in exchange for a promissory note. -...

Assume fixed costs total $280,000 per month, the variable cost per unit is $80, and each unit sells for $150. What is the contribution margin ratio (rounded)? 47% 56% 25% 65% - ANS 47% Contribution margin ratio is calculated by Contribution margin per unit / Sales price per unit. In this case, ($150 - $80) / $150 = 47% Assume fixed costs total $180,000 per month, the variable cost per unit is $70, and each unit sells for $160. What is the contribution margin ratio (rounded)? 56% 44%...

21. Which of the following is a limitation of the balance sheet? a. Many items that are of financial value are omitted. b. Judgments and estimates are used. c. Current fair value is not reported. d. All of these answer choices are correct. - ANS d 22. The balance sheet is useful for analyzing all of the following except a. liquidity. b. solvency. c. profitability. d. financial flexibility. - ANS c 23. Balance sheet information is useful for all of the following except to a. compute ra...

The term "cash" has several different meanings. - ANS True Cash usually means only currency and coins. - ANS False On any given day, it is unlikely that the balance in the cash account on the depositor's general ledger (or books) will be the same as the bank balance. - ANS True A depositor is not responsible or liable to the bank for items deposited that are not honored when presented for payment. - ANS False A restrictive endorsement means that the check is payable to any bearer....