ID: A 14. Which of the following are characteristics of managerial a. It is geared toward the management of an organization b. It is used to produce specific management reports c. It is not independently audited. d. It is relatively flexible. e. All of the above are characteristics of managerial accounting. 15. What is a cost object? a. It is an activity that can only be traced to a specific activity or item. o. It is activity performed in the verification of accounts on the financial statements c. It is any activity or item for which a cost measurement is d. It is desired. any activity or item that is either financial or nonfinancial in nature 16. Which of the following is an example of a cost classification? a. product b. period c. project d. department e. all of the above are examples of a cost classification direct cost of manufacturing a product? 17. Which of the following is an example of a factory overhead b. cost of raw materials administrative salaraies c. d. What is the definition of a variable cost? a cost that remains constant within a defined range of activity b. 18. a. a cost that changes in direct proportion to a change in productive output a cost that varies with the accounting period d. c. a cost that is imposed by various agencies Materials and supplies that cannot be traced conveniently to specific products are called a. indirect materials. b. raw materials. 19. c. minor materials. d. direct materials. 20. If net sales are $1,000,000, and accounts receivable decreased by $100,000 during the year, then the cash received from customers is a. $900,000 b. $1,000,000 C. $1,100,000 d. $1,200,000 e. $1,300,000
sheet and income statement to answer the following question. Use ending balances average balances are required for computing ratios this balance Abner Systems Balance Sheet December 31, 2010 Liabilities Assets $4,000 1.00 $ 5,000 Current assets S 6,000 1,000 8,000 5,000 Current liabilities Long-term liabilities Total liabilities nvestments Property, plant, and equipment Intangible assets Owner’s Equity Dale Abner, Capital Total liabilities and Total assets Abner Systems Income Statement For the Year Ended December 31, 2010 Net sales Cost of goods sold Gross $24,000 8,00 S16,000 11,200 $.4.800 margin Operating expenses Net income The total amount of working capital for Abner Systems is a. $0. b. $6,000. c. $2,000. d. $10,000. 3 7. What is the effect of Depreciation Expense on the Statement of Cash Flows? a. Add to cash payment for expenses to arrive at net cash flows from operating activities b. Subtract from cash payments for expenses to arrive at net cash flows from operating activities Subtract from cash payments for purchasses to arrive at net cash flows from operating activities d. Not used to adjust net income to calculate net cash flows from operating activities c.
1. Management accounting a. deals primarily with people and organizations inside the business entity. b. requires specific management reporting on an as-needed basis. c. uses any type of useful measurement unit, including physical as well as monetary measures d. is not independently verified all of the above e. 2. Management accounting and financial accounting are similar in which of the following respects? a. Both use the dollar exclusively as the unit of measurement b. Both produce the same of financial reports c. Both produce almost all of their respective informational reports on a routine monthly basis. d. Both provide relevant and useful information to decisionmakers 3. The management process consists of which of the following processes? a. planning b. performing c. evaluating d. communicating e. all of the above 4. What functions does an accounting information system perform in an organizątion? a. It collects and stores data about activities and transartinu b. It processes data into infL
Income Stat For the Year Ended Decenl Revenues Net sales Dividend income Total revenues Costs and expenses Costs of goods sold Selling expenses General and administrative expenses Interest expense Total costs and expenses 3790 Net income If the income statement were prepared in a multistep fo a. $48,750. b. $41,250. c. $51,250 d. $42,500. 39. Planning decisions in an organization involve a. what task to perform and how to complete them b. managing, controlling, and monitoring individual perfomance c. adapting to organization changes resulting from technologial d. all of the above 40. Management accounting a. helps to create organizational value through better daciin b. helps in planning and controlling decision making C. is used to help compare financial performance betwean ure d. both a and b e. all of the above 41. Stakeholders of an organization include a. employees b. investors c. creditors d. society e. all of the above firns? among 42. What effect does competition have aos f products b. Competition eliminates inefficient fims s f c. Competition is affected by globalization marketplace d. all of the above as fims from a
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tion system add value to an information so that value chain activities uues an accounti a. It provides accurate performed more effectively b. it improves the quality and reduces the costs of products or c. It improves decisonmaking capabilities. d. all of these. 8. Which of the following is a characteristic of useful information? a. relevance b. reliability c. completeness d. understandability e. all of the above Which of the following is a stakeholder group? 9. a. owners and investors b. employees c. customers d. society as a whole all of the above e. 10. Which of the following are users of financial information? a. investors b. creditors c. management d. financial analysts e all of the above 1. What is the primary purpose of accounting information for extenal users? a. to facilitate pricing and costing decisions by investors b. to enable investment decisions to be made among altermative investoes c to communicate the stages of the management process d. to provide information about all stages of the management cycle Which of the following is a financial performance measure? a Return on investment b. Net income as a percentage of sales c Return on assets relationship of debt to equity all of the above inancial data is important to management because nonfinancial data are usually imeleyant
Option-(e): All of the above are charecteristics of managerial accounting All given statements are correct because there are two types of accounting such as Managerial accounting and Financial accounting. Some of the key differences between these two accounting types include: Managerial accounting Financial accounting -> Prepared for internal reporting purpose and use. Pepared for both internal and external reporting purpose and use, though mainly intended for external. No defined formats and set of principles to be followed to prepare managerial accounting. There are defined formats and set of principles to be followed to prepare financial accounting in accordance with U.S.GAAP and other standards of > accounts issued by various statutory authorities. >Aims at preparing and producing specific reports Aims at preparing and producing mandatory reports that the management expects for analysis. and financial statements as required by U.S.GAAP. ->Reports prepared are not required to be audited Reports prepared are required to be audited as these as these reports are prepared either using te reports are prepared using those financial transactions financial data available from the past or usingthat took place during the reporting period concerned. those forecasted/budgeted data for the future. It is not permitted to prepare reports based on future projected/forecasted/budgeted data.