#4 Managerial Accounting

#4 Managerial Accounting - Quiz Question 1 (C) The...

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Quiz Question 1 (C) The “duality of effects” can best be described as follows: a) When one records a transaction in the accounting  system, at least two effects on the basic accounting  equation will result. b) When an exchange takes place between two parties,  both parties must record the transaction. c) When a transaction is recorded, both the balance sheet  and the income statement must be affected. d) When a transaction is recorded, one account will  always increase and one account will always decrease.
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Quiz Question 2 (E) Which of the following is  not  a financing activity on  the statement of cash flows? a) When the company lends money b) When the company borrows money. c) When the company pays dividends. d) When the company issues stock to  shareholders. e) None of the above.
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Quiz Question 3 (D) How many of the following are true regarding  debits  and  credits ? In any given transaction, the total amount of  the debits and the total amount of the credits  must be equal. Debits decrease certain accounts and credits  decrease certain accounts. Liabilities and stockholders’ equity accounts  usually end in credit balances, while assets  usually end in debit balances. a) None   b)  One   c)  Two   d)  Three
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Quiz Question 4 (D) Failure to make an adjusting entry to recognize  accrued salaries payable would cause which  of the following? a) An overstatement of assets and stockholders’  equity. b) An overstatement of assets and liabilities. c) An understatement of expenses, liabilities, and  stockholders’ equity. d) An understatement of expenses and liabilities  and an overstatement of stockholders’ equity.
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Managerial Accounting Managerial Accounting Management as a System Management as a System SM299 SM299 Professor Ted  Chadwick Professor Ted  Chadwick Building on Lectures by Building on Lectures by Professors J. F. Mahon and Peter Arnold Professors J. F. Mahon and Peter Arnold
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Financial Accounting: Accounting for External Users Reports on financial status of companies Performance and profitability Financial Soundness To afford comparability using formal accounting rules Managerial Accounting: Accounting for Internal Users Decision Making Pricing Decisions Produce in-house or outsource Expand profitable or discontinue unprofitable lines Performance measurement and control No standard accounting reports
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Type of User and Type of Information Economic data Financial Data Non-financial Outsiders Insiders Investors/Creditors Senior Executives Middle Managers Operating Workers
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Product Costing Managers need to know product or service cost: Pricing - costs influence pricing Control process - managers must be able to compare “actual” cost to “budgeted” cost;
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#4 Managerial Accounting - Quiz Question 1 (C) The...

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