Managerial Accounting deals with _____ accounting, while Financial Accounting deals with _____. - Correct Answer- Internal; External
True or False:
Managerial accounting must follow GAAP. - Correct Answer- False; Internal accounting so it does not have to follow GAAP.
The assumption that a ...
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Answers 2024
Managerial Accounting deals with _____ accounting, while Financial Accounting deals
with _____. - Correct Answer- Internal; External
True or False:
Managerial accounting must follow GAAP. - Correct Answer- False; Internal accounting
so it does not have to follow GAAP.
The assumption that a company or other entity will be able to continue operating for a
time that is sufficient to carry out its commitments and obligations. - Correct Answer-
Going Concern
The assumption that a company's business cycle can be broken into periods (i.e. one
year, one quarter, etc.) - Correct Answer- Periodicity
Accounting is reported as units of currency (i.e. dollars and cents); not indexed for
inflation - Correct Answer- Monetary Unit
An accounting principle that allows the accountant to keep business separate from
personal (excludes legal) - Correct Answer- Economic Entity
What is the general rule for capitalization of Research & Development costs? - Correct
Answer- You can't capitalize R&D
True or False:
You accrue a contingency deemed to be reasonably possible - Correct Answer- False:
you accrue contingencies deemed to be probable.
FASB ASC includes guidance for the _____. - Correct Answer- SEC
Accounting information that enables comparing a company's reporting of one
accounting period to another. - Correct Answer- Consistency
Principle that requires companies to match expenses with related revenues - Correct
Answer- Matching
What the company actually does vs. what the company says it does. - Correct Answer-
Substance over form
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