Which of the following statement about managerial accounting versus financial accounting is false
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Which of the following statements regarding inventory accounting is true? Show
Image transcription text Which of the following statements regarding inventory accounting is true? Multiple Choice O The specific identification method of inventory accounting is generally considered to be the most prevalent. O FIFO charges the most recent costs against revenues on the income statement. O The primary difference between FIFO and LIFO is that each method makes a different choice regarding which financial statement element is shown at the out-of-date cost. O In the U.S., FASB prefers replacement cost accounting because it records holding gains on the financial statements as they arise. ... Show moreAnswer & Explanation  FIFO charges the most recent costs against revenues in the income statement Step-by-step explanation
First In, First Out, commonly known as FIFO, is an asset-management and valuation strategy in which assets created or acquired first are sold, used, or disposed of first. For tax purposes, FIFO assumes that assets with the oldest expenses are reflected in the income statement's cost of goods sold (COGS) (COGS). The remaining inventory assets are matched to the most recently purchased or manufactured assets. REFERENCE Manurung, J. (2019). APPLICATION OF FIFO ALGORITHM (FIRST IN FIRST OUT) TO SIMULATION QUEUE. INFOKUM, 7(2, Juni), 44-47. Accounting 403 – Cost Accounting INSTRUCTIONS: Multiple Choice: Highlight in BOLD the letter and item alternative of the best answer. 1.In comparing financial and management accounting, which of the following more accurately describes management accounting information? a.historical, precise, useful b.required, estimated, internal c.budgeted, informative, adaptable d.comparable, verifiable, monetary 2.Management and financial accounting are used for which of the following purposes? Management accountingFinancial accounting a.internalexternal b.externalinternal c.internalinternal d.externalexternal 3.One major difference between financial and management accounting is that a.financial accounting reports are prepared primarily for users external to the company. b.management accounting is not under the jurisdiction of the Securities and Exchange Commission. c.government regulations do not apply to management accounting. d.all of the above are true. 4. Which of the following statements about management or financial accounting is false? a.Financial accounting must follow GAAP. b.Management accounting is not subject to regulatory reporting standards. c.Both management and financial accounting are subject to mandatory recordkeeping requirements. d.Management accounting should be flexible. 5.Management accounting a.is more concerned with the future than is financial accounting. b.is less concerned with segments of a company than is financial accounting. c.is more constrained by rules and regulations than is financial accounting. d. all of the above are true. 6.Modern management accounting can be characterized by its a.flexibility. b.standardization. c.complexity. d.precision. 7.To meet decision-making needs, the process of gathering and analyzing information about a company and its competitive environment is known as a.business process reengineering. b.process elimination. c.business intelligence. d.planning. Which of the following statement is false regarding management accounting?Answer: a) Managerial accounting cannot be used to determine how many products need to be sold in order to cover the recurring cost.
Which of the following statements about management accounting and financial accounting is true?Answer: a.
Explanation: Management accounting is one of the branches of accounting which is associated with the presentation of accounting data for use by management of a company.
Which of the following statements is a difference between financial accounting and managerial accounting?Which of the following statements is a difference between financial accounting and managerial accounting? Under financial accounting, reports are prepared using GAAP, whereas under managerial accounting, information that is useful to management for its decision making is not recorded using GAAP.
What is the difference between financial accounting cost accounting and management accounting?Cost accounting only deals with costs. Management accounting analyzes every aspect of the business, including costs. Since management accounting encompasses all aspects of the business's financials, cost accounting is actually a subset of management accounting.
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