accounting quiz one – Flashcards
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according to the SOX who is responsible for establishing and maintaining internal controls over financial accounting
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CEO, CFO
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what type of company has raw materials, WIP and finished goods inventory
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Manufacturers
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How would chevorlet classify its partially completed vehicles
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Work in progress
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Is administration part of a companys value chain?
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no
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A factory janitors wages would be classified as_________ when determining the cost of a manufactured product
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indirect cost
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a salespersons salary would be classified as_________ when determining the cost of a manufactured product
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period cost
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Prime costs consist of
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Direct materials and direct labor
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Conversion costs consist of
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Direct labor and manufacturing overhead
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Manufacturing Overhead costs consist of
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Indirect materials, indirect labor, and indirect manufacturing costs
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Creating budgets are part of which primary management responsibility
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planning
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the three primary manager responsibilities
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planning, controlling, feedback
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who is most likely to only use financial accounting information
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bank loan officers
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the focus of management accounting is on
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internal reporting
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T or F Managerial accounting focuses on historical transactions
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F
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T or F Managerial accounting uses the cash basis for recording transactions
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F
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T or F Managerial accounting focuses on future data
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F
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T or F Management accounting focuses on relevant data
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T
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Are customers of the company internal or external users of financial information?
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external
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Are potential investors internal or external users of financial information?
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external
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are vendors of the company internal or external users of financial information?
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external
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What position is typically responsible for financial accounting, managerial accounting, and tax reporting?
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Controller
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Which positions report to the audit committee of the board of directors?
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The internal audit department and the independent cpa firm
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What is the name of the professional association for managerial accountants
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Institute of management accountants
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A merchandisers purchases are equivalent to a manufactures
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cost of goods manufactured
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Managerial accounting places considerable weight on
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Detailed reports about departments, products and customers
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The plans of management are often expressed formally in
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budgets
