Accounting 202 – Flashcards
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Period vs. product
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A classification of costs that determines whether a cost is expensed to the income statement or capitalized to inventory is:
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Direct materials, direct labor, and factory overhead.
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The three major cost components of manufacturing a product are:
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The schedule of cost of goods manufactured is divided into four parts consisting of all of the following except:
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Computation of cost of goods sold.
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Flexibility of practice when applied to managerial accounting means that
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Managerial accounting system differ across companies depending on the nature of the business and the arrangement of its internal operations.
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Goods a company acquires to use in making products are called:
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Raw materials inventory.
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The accounting principle that requires important non-cash financing and investing activities be reported on the statement of cash flows or in a footnote is the:
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Full disclosure principle.
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The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is:
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Investing activities.
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Investing activities do not include the:
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issuance of common stock
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The statement of cash flows reports:
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Cash inflows and cash outflows for an accounting period.
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The direct method of reporting operating cash flows:
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Is recommended but not required by the FASB.
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Guidelines (rules-of-thumb) are general standards of comparison developed from:
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Past experience.
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Financial statements with data for two or more successive accounting periods placed in columns side by side, sometimes with changes shown in both dollar amounts and percentages, are referred to as:
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Comparative statements.
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Net income divided by net sales is the:
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profit margin
