ACCT 526 Midterm Questions & Answers 100% Accurate

Describe a financial accountant. - ANSWERSprovides historical information to external users in accordance with GAAP Describe a managerial accountant. - ANSWERS- provides detailed financial information and nonfinancial information to internal users for decision making, planning, and control purposes - planning, directing, controlling ___ establishes goal - ANSWERSPlanning ___ assesses whether goals were achieved. - ANSWERSControl Describe the hierarchy of typical organization. - ANSWERSBoard of directors CEO VP and CFO Controller, treasurer, and internal auditor Managerial accountant, financial accountant, and tax accountant Describe IMA and ethical decision making. - ANSWERSUse resources provided by internal company policies Four standards: competence, confidentiality, integrity, credibility Yes, consult an attorney regarding your rights! Describe ERP systems. - ANSWERS- benefits must outweigh cost of implement - recording, sorting, analyzing, and reporting financial information for internal users - instant worldwide updates Describe manufacturing costs - ANSWERScosts (product costs) are classified as DM, DL or MFOH and expensed when sold Describe nonmanufacturing costs. - ANSWERScosts (period costs) are not related to production and are classified as selling costs or general and administrative costs and expensed in the period in which it was incurred Describe inventory accounts. - ANSWERS- raw material inventory account - work-in-process inventory account - finished goods inventory account - ALL asset accounts on the balance sheet - COGS is recorded as an expense