- Samenvattingen en Aantekeningen

The risk that the client's financial statements may be materially false and misleading is referred to as the information risk. - ANSWERSinformation risk. The auditor's judgment concerning the overall fairness of the presentation of financial position, results of operations, and cash flows is applied within the framework of Generally accepted auditing standards, which include the concept of materiality. Generally accepted accounting principles. - ANSWERSGenerally accepted accounti...

process costing - ANSWERSmass production of identical products, produced with uniform steps or processes, averages costs across all units produced (cereal or light bulbs) job costing - ANSWERSunique custom order products, small batches of different products, professional services, orders, batches and client engagements are jobs, costs for each job are accumulated (commercial buildings) inventory flow - ANSWERSraw materials to work-in-process to finished goods/ or COGS when the items are so...

variable costs - ANSWERSchange in total in direct proportion to changes in volume mixed costs per unit decrease as decrease as volume increases but - ANSWERSnot in direct proportion to chances in volume - because mixed costs contain both fixed cost and variable cost components, they behave differently contribution margin ratio - ANSWERScontribution margin / sales revenue operating leverage - ANSWERStells how responsive a company's operating income is to changes in volume - grea...

Planning, directing, and controlling are a manager's three primary responsibilities - ANSWERSTrue In the manufacturing firm, manufacturing costs and product costs are the same - ANSWERSTrue If the finished goods inventory decreases between the beginning and the end of a period, then the cost of goods manufactured for the period is larger than the cost of goods sold - ANSWERSFalse A plant-wide overhead rate is calculated by dividing the estimated total manufacturing overhead costs for...

Finished Goods Beginning Inventory - ANSWERSCost of Goods Sold + Finished Goods Inventory (ending) - Cost of Goods manufactured Cost of Goods Sold (Manufacturer) - ANSWERSBI+COGMS-EFI + Beginning finished goods inventory + Cost of goods manufactured = Cost of goods available for sale - Ending finished goods inventory = Cost of goods sold Cost of Goods manufactured (manufacturer) - ANSWERSbi + mfg costs-ending work in process invetory + Beginning work in process inventory + Dir...

The main focus of managerial accounting is: - ANSWERSdecision making What are objectives of Management accounting? - ANSWERS1. to provide information for planning, controlling, evaluating and continuous improvement 2. to provide information for decision making 3. to provide information for costing of services, products, and other objects of interest to management What is TRUE about managerial accounting? - ANSWERSmanagerial accounting reports provide detailed internal information ...

Four primary responsibilities of a manager - ANSWERS-planning -directing -controlling -decision making Financial Accounting - ANSWERS-external users -aids in making credit/ investment decisions -general purpose financial statements -compliance with GAAP Managerial Accounting - ANSWERS-internal users -planning, directing, controlling -internal reports are desired -not bound by authoritative rules How management accountants fit into an organization's structure - ANSWERS- They g...

Which of the following is NOT a step in the accounting process? a. Identification b. Recording c. Communication d. Verification - ANSWERSd. Verification Which of the following statements about users of accounting information is INCORRECT? a. Regulatory authorities are internal users. b. Management is an internal user. c. Taxing authorities are external users. d. Present creditors are external users. - ANSWERSa. Regulatory authorities are internal users. The first step in solving a...

Who reports to the audit committee of the Board of Directors? - ANSWERSThe internal audit department and the independent CPA firm Which management responsibilities are being fulfilled when management uses feedback to take corrective action on the budgets - ANSWERSControlling and decision-making Managerial Accounting information - ANSWERSEmphasizes relevance Who would be LEAST likely to receive detailed managerial accounting reports? - ANSWERSCurrent shareholders To resolve ethical di...