Which of the following types of accounting is designed to meet the needs of decision-makers inside a company?
management accounting
The primary goal of managerial accounting is to provide information to which of the following?
management
Which statement is TRUE?
Both management accounting and financial accounting use the accrual basis to record transactions.
Which of the following is a characteristic of a service company?
It does not have tangible products intended for sale.
which of the following are period costs
costs incurred and expensed in the accounting period
Performing professional dooties in accordance with relevant laws, regulations, und technical standards are components of which IMA professional standard?
competence
You did not understand what the term "accrual" meant and failed to accrue the interest due at the end of the year on the company's bonds. Which IMA guideline has been violated?
competence
the institute of management accountants standards of ethical conduct contains a policy regarding confidentiality that requires that management accountants
refrain from disclosing confidential information acquired in the course of their work except when authorized by management unless legally obligated to do so
the standards of ethical conduct for management accountants developed by the institute of management accountants states that significant ethical issues should be discussed with ab immediate superior unless the superior is involved. if satisfactory resolut
submitted to the nest higher managerial level
which of the following costs would appear on the income statements for both merchandiser and a manufacturer
operating expenses
cost of good available for sale
beg. finished goods + purchases
costs of goods sold
cost of goods available for sale - ending inventory
gross profit
sales revenue - costs of goods sold
operating income
gross profit- operating expenses
profit margin
operating income/ sales revenue
gross profit percentage
gross profit/ sales revenue
What are the two basic types of costing systems?
job costing and process costing
The document used to accumulate the costs of a job is called the
job cost record
The __________ is a document prepared by manufacturing personnel to request materials for the production process.
materials requisition
Specialty Wood Products company had the following labor related transactions at its plant last month:
Woodworkers' wages $100,000
Staining tank workers' wages 20,000
Maintenance personnel wages 10,000
What is the journal entry to record the incurrence of
C) Manufacturing wages 130,000
Wages payable (cash) 130,000
The system normally used to assign costs to goods that are mass-produced in a continuous sequence of steps is known as which of the following?
process costing
A high correlation between two variables s and t indicates that:
s may cause t, or t may cause s
b. both may be affected by a third variable
c. the correlation may be due to random chance
d.all of these answers are correct
The cost function y = 8,000 + 4X
represents a mixed cost
The account analysis method estimates cost functions:
by classifying cost accounts as variable, fixed, or mixed based on qualitative analysis
The formal process of choosing between alternatives is known as a(n):
decision model
When using the five-step decision process, which one of the following steps should be done last?
evaluation and feedback
One-time-only special orders should only be accepted if:
incremental revenues exceed incremental costs
Which of the following is true about the assumptions underlying basic CVP analysis?
Only selling price, variable cost per unit, and total fixed costs are known and constant.
the margin of safety is the difference between
budgeted revenues and breakeven revenues
Budgeting is used to help companies:
. plan to better satisfy customers
b. anticipate potential problems
c. focus on opportunities
d. All of these answers are correct.
Operating budgets and financial budgets:
combined form the master budget
Rolling budgets help management to
focus on the upcoming budget period
The budgeting process is MOST strongly influenced by
the sales forecast
direct material purchases equal
production needs plus target ending inventories less beginning inventories
a variance is
the difference between the actual result and the budgeted result
a favorable variance indicates that
the actual amount decreased operating income relative to the budgeted amount
an unfavorable price variance for direct materials might indicate
that the purchasung manager purchased in smaller quantities due to a change in just in time inventory methods
a favorable efficiency variance for direct materials might indicate that
an over skilled workforce
an unfavorable efficiency variance for direct manufacturing labor might indicate that
machines were not properly maintained
Which of the following is TRUE of the statement of cash flows?
A) The statement of cash flows reports why cash increased or decreased during the period.
B) The statement of cash flows covers a span of time and is dated "Year Ended Month Day, Year".
C) The statement of cash flows shows where cash came from and how cash was spent.
D) All of the above are true of the statement of cash flows.
Which of the following are created by operating activities?
) Revenues and expenses are created by operating activities
Which of the following is true about a statement of cash flows?
B) The statement of cash flows is required by generally accepted accounting principles.
Which of the following is true if a corporation shows a net loss on its income statement?
The company may still have a net increase in cash.
Which of the following is the correct order of the sections on a statement of cash flows?
The correct order is operating, investing, financing
Which of the following sections from the statement of cash flows includes activities that create revenue, expenses, gains and losses?
Activities that create revenue, expenses, gains and losses are included in the operating section.
Which of the following sections from the statement of cash flows is the most important section because this section reflects the day-to-day operations that determine the future of an organization?
The operating section is the most important section of the statement of cash flows.
Which of the following sections from the statement of cash flows includes purchases and sales of long-term assets?
) Purchases and sales of long-term assets are included in the investing section.
Which of the following sections from the statement of cash flows includes the issuance of stock and the payment of dividends?
The issuance of stock and the payment of dividends are included in the financing section
Which of the following sections from the statement of cash flows includes borrowing money and paying off loans?
Borrowing money and paying off loans are included in the financing section
Which of the following sections from the statement of cash flows would include the payment of a note payable by issuing common stock?
The payment of a note payable by issuing common stock would not be included in any of the above-mentioned sections.
Which of the following items would be reported as an operating activity on the statement of cash flows?
) A payment of interest would be reported as an operating activity.
Which of the following items would be reported in the financing activities section on the statement of cash flows?
Cash received from a sale of treasury stock would be reported in the financing activities section.
A company uses the indirect method to prepare the statement of cash flows. How will depreciation be presented on the statement?
Depreciation expense will be added to net income in the operating activities section.
A company uses the indirect method to prepare the statement of cash flows. It sold a piece of equipment at a loss of $3,600. The equipment was purchased several years ago for $70,500 and had accumulated depreciation of $52,900. What is reported under the
The loss of $3,600 is added to net income.
What will appear in the operating activities section related to accounts receivable?
The increase of $10,000 will be subtracted from net income
What will appear in the operating activities section related to accounts payable?
The increase of $8,000 will be added to net income
What will appear in the operating activities section related to inventory?
The decrease of $19,000 will be added to net income.
What will appear in the operating activities section related to salary payable?
The increase of $3,000 will be added to net income.
A company purchases equipment for use in its business activities. Where would this transaction appear if the company prepares the statement of cash flows using the indirect method or the direct method?
The purchase of equipment would be presented in the investing activities section as a cash payment under both methods.
A company sold equipment with a book value of $9,000 at a gain of $2,500. How much will be reported in the investing activities section of the statement of cash flows as cash received upon the sale of the equipment?
) The cash received upon the sale of the equipment was $11,500.