Questions 2A - Questions 2A 1 The accounting system generates information about the degree to which the company is meeting its responsibilities 2

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Questions 2A 1. The accounting system generates information about the degree to which the company is meeting its responsibilities . 2. Managers rely on accounting information 3. Management accounting helps managers plan, operate and control a company’s activities 4. Financial accounting is used by individuals external to the organization to understand its performance. 5. Cost analysis is best described as defining the costs of specific products and activities. 6. A budget will show the impact of manager’s plans on company operating activities. 7. The goal of business is to earn profit . 8. Anything of value owned or leased by a business (such as cash, accounts, receivable and buildings) is an asset. 9. The two major classifications of those who have claims against a firm’s assets are liabilities and owners equity . 10. Anything owed to creditors is a liability (accounts payable) 11. Consumer Power bills the Diaz Company for gas used during the month of December. Until they pay their gas bill to Consumer Power, DiazCompany would
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This note was uploaded on 04/07/2008 for the course BA 101 taught by Professor Daseau during the Fall '06 term at University of Oregon.

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Questions 2A - Questions 2A 1 The accounting system generates information about the degree to which the company is meeting its responsibilities 2

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