Which statement regarding managementaccounts is true?1. Management accounts areused by managers within theorganization.2.3.4.Management accounts aregoverned by standards andconventions.Management accounts will beused by shareholders tocompare one company againstanother.Management accounts areprepared for parties external tothe organization.

Mnagement accounts are the financial representation of the financial data of the company. Unlike…

Answered: Which statement regarding management…

Business

Accounting

Which statement regarding management accounts is true?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter1: Accounting As A Tool For Managers

Section: Chapter Questions

Problem 10MC: Which of the following statements is incorrect? The practice of management accounting is fairly...

See similar textbooks

Related questions

Q: Concord Corporation made the following purchases of investments during 2023, the first year in which…

A: Equity securities refer to the claim of ownership on the net assets of the company. There are three…

Q: Smokey Enterprises began operations by receiving $100,000 cash from its sole owner Jessica Jones.…

A: The revenues and expenses are reported in the income statement of the company. The net income is…

Q: Del Pilar Inc. insured the life of its president for P5,000,000, the corporation being the…

A: Life insurance policy is defined as the policy taken in order to insure the risk of loss of life of…

Q: Terms were 4/10 EOM FOB Boston.

A: Discounts help to get early payments. While the seller loses a small percent of the amount, he can…

Q: During August, Tyson Company sold 5,400 units and reported the following income statement: Sales…

A: Cost volume profit analysis is the technique used by management for decision-making. The methods…

Q: The Bradford Company issued 12% bonds, dated January 1, with a face amount of $87 million on January…

A: BOND Bond is a Financial Securities which is Generally Issued by the Corporation's, Government…

Q: (Related to Checkpoint 3.2) (Review of financial statements) A scrambled list of accounts from the…

A: Income Statement :— It is one of the financial statement that shows profitability, total revenue and…

Q: (f) On February 26, Houghton shipped goods to a customer under terms FOB destination. The invoice…

A: FOB (Freight on Board) Destination seems to be a shipment terminology that signifies the supplier…

Q: Adriana's income last year was $56,700. If Medicare is taxed at a rate of $1.45 tax per $100 earned,…

A: Medicare Tax is tax paid on the portion of medicare. It is used to provide health insurance to older…

Q: Question 4 1 Computing Bond Issue Price Abbington Inc. issues $140,000 of 9% bonds that pay interest…

A: Time value of money :— According to this concept, value of money in present day is greater than the…

Q: A partial listing of costs incurred at Archut Corporation during September appears below: Direct…

A: Manufacturing overhead is a type of operating expense that is unrelated to a facility's production.…

Q: Company X has a June 30th year-end. On 1 July 20X5 company X issued £40 million 10% convertible loan…

A: Diluted Earnings per share - commonly known as Diluted EPS. Diluted EPS emerges from EPS being…

Q: • If the ending balance in accounts payable increases from one period to the next, which of the…

A: Accounts payable is the current liability that is required to be paid within a year. Purchases made…

Q: oped Cookware Inc. (CCI) designs, manufactures and sells high-end cookware to the culinary industry…

A: Shareholder Equity - Equity held by shareholders refers to the sum that a company's founders have…

Q: Novak Corp. has the following securities (all purchased in 2023) in its investment portfolio on…

A: Journal entries refers to the entries which are made at the end of the period or year and it records…

Q: 8. The Supplies account shows a balance of $2,500 on December 31, 2021 before adjustments. A…

A: Golden Rules of Accounting: Account Debit Credit Personal Accounts The Receiver The…

Q: Newtown Inc., manufactures and sells two products: Product U5 and Product X2. The company has an…

A: ACTIVITY BASED COSTING Activity Based Costing is a Powerful tool for measuring performance.…

Q: On April 2 a corporation purchased for cash 7,000 shares of its own $10 par common stock at $28 per…

A: Apr, 2 Treasury Stock $196,000 Cash $196,000

Q: Perkasa Catering Sdn Bhd entered into a business agreement with Teguh Canopy Sdn Bhd in January…

A: Company is an Artificial Person created by law which has enjoy a separate legal status from its…

Q: For Items 33-37: During 2020, Igado Corporation needed cash and use receivable to generate cash.…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: View Ch 1 LO 9^J10^J11 In-class Saved H Exercise 1-24B Preparing financial statements and…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: Next Level Prepare the correct balance sheet. All the necessary information is provided. (Hint: It…

A: A comparative balance sheet is a side-by-side comparison of the entire balance sheet report of a…

Q: Use the information in the adjusted trial balance presented below to calculate current assets for Ta…

A: Current Assets are the assets which is realised within the operating cycle of the company or…

Q: Compute conversion costs given the following data: direct materials, $351,300; direct labor,…

A: Conversion costs are those costs which are incurred to convert the raw materials into finished…

Q: Analyzing Interest-Bearing and Noninterest-Bearing Notes Consider the following three separate…

A: A note payable is a form of a promissory note. On this note, one party has promised to pay the other…

Q: short-term investments

A: Journal entries are the starting point of preparing financial statements. They let you prepare…

Q: Exploit media has three members: WACS Partners, Elyse O'Reily, and Encounter Newspaper, LLC. On…

A: As per the Honor code of Bartleby we are bound to given the answer of first three sub part only,…

Q: Use the information provided for Harding Company to answer the question that follow. Harding Company…

A: Working capital is the amount required by a firm to run its day to day business operation. Working…

Q: Sunland Company reported the following information for a three-year period: Ending inventory Sales…

A: Inventory Turnover :— It is calculated by dividing cost of goods sold by average inventory. Days…

Q: Joey Legoria Corporation Company Cash and Receivables $57,000 $30,000 Inventory 160,000 350,000…

A: Note Hi! Thank you for the question as per the honor code, we are allowed to answer first question…

Q: Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented…

A: Overhead cost is the cost incurred by the company indirectly on the production process. It involves…

Q: Tarnish Industries produces miniature models of farm equipment. These collectibles are in great…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Rizal Company had the following balances at December 31, 2022: Cash in checking account Cash in…

A: The sum of all cash and other assets that the business entities can quickly converted into cash is…

Q: Rajiv acquired $20 worth of bitcoin in 2017 using an automatic teller machine that converted cash to…

A: Ans. Rajiv can answer “No” to the Form 1040 question about the use of virtual currency. If his only…

Q: Job 602 Job 603 a. b. 39,300 36,300 Balance, April 30 47,500 Factory overhead-indirect materials…

A: Materials One of the main costing elements that requires for the production process are classified…

Q: Q5. Use the following information about the calendar-year cash flows of MacArthur Company to prepare…

A: Cash flow is statement which shows cash in and cash out of a company for a specific period time.…

Q: Madison Corp. has a hurdle rate/required rate of return of 9%. Operating Average income $115,000…

A: The residual income is the amount of income earned in excess as compared to minimum required return…

Q: You are an auditor of the company ABC. During the audit of the accounting statements it is found…

A: Introduction A person that has the ability to analyze financial information, verify their integrity,…

Q: Gregg Corp. reported revenue of $1,450,000 in its cash basis income statement for the year ended…

A: Cash basis of accounting is a system where transactions are recorded when cash is received or paid.…

Q: imon and Yuri are two accountants for a large financial firm. When trying to devise a long-term…

A: Financial information are all those information which relate to financial activities and performance…

Q: Part 3 of 4 - Solve: If the seller invested $2,750,000 to produce this increased service level, what…

A: Return on investment (ROI) is one of the performance indicators used to assess an investment's…

Q: - Direct materials used. Direct labor used 3 3 A company that uses job order costing reports the…

A: Working note : Calculation of overhead : Overhead = 60% of direct material cost Overhead for Job 1…

Q: Tasty Bakery applies overhead based on direct labor costs. The company reports the following costs…

A: The overhead rate is calculated as overhead Applied divided by direct labor cost. The overhead is…

Q: st .fhm K The following information is needed to reconcile the cash balance for Gourmet Catering…

A: Bank Reconciliation Statement :— It is a document that reconcile balance as per bank statement with…

Q: 8. On 15 January, Anthony paid the salaries of his employees for one month in the amount of P35 000.…

A: The sales, expenses, and profits of a company are shown on an income statement over time. It also…

Q: How much was money lost worldwide in all 3 cases, Enron, Lehman and Satyam?

A: Accounting scandals refers to the business scandals that arise from the International manipulation…

Q: Prepare all the necessary journal entries.

A: A petty cash fund is the fund which is used by the company for the expenses and daily expenditures…

Q: Discuss well about the exchange Rate Mechanisms of currencies; what does it mean “Independent…

A: Answer:- Currency meaning:- The public uses currency, an officially recognized type of money, for…

Q: Tom and Jerry both took out loans for $600.00 on 2011-01-14. Both loans mature on 2011-07-11 and…

A: A day-count convention is a methodology to calculate the amount of interest on debt securities.…

Q: federal income tax.

A: The IRS warrants every taxpayer to clear their tax dues on time. However, various exemptions and…

Question

Which statement regarding management
accounts is true?
1. Management accounts are
used by managers within the
organization.
2.
3.
4.
Management accounts are
governed by standards and
conventions.
Management accounts will be
used by shareholders to
compare one company against
another.
Management accounts are
prepared for parties external to
the organization.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following are affected by the quality of an organization’s internal controls? a. Reliability of financial data. b. Ability of management to make informed business decisions. c. Ability of the organization to remain ¡n business. d. All of the above. e. Only a and c.
Performance measures are only useful if _______. A. there are both controllable and uncontrollable factors to evaluate managers B. manager reward systems are designed by the chief financial officer prior to implementation C. all of the measures used are accounting numbers D. there is a baseline against which to compare the measured results
Which of the following is not a reason for decentralizing? a. Training and motivating managers b. Unmasking inefficiencies in subdivisions of an overall profitable company c. Allowing top management to focus on strategic decision making d. Allowing top management to make all key operating decisions throughout the company e. All of these.
Managers in decentralized organizations make decisions relating to all of the following except_______. A. the companys stock price B. equipment purchases C. personnel D. prices to charge customers
When managerial accountants design an evaluation system that is based on criteria for which a manager is responsible, and it is structured to encourage managers to make decisions that will meet the goals of the company as well as their own personal job goals, the framework used is _______. A. a controllable factors framework B. an uncontrollable factors framework C. a strategic plan framework D. a responsibility accounting framework
What should an organization do if performance measures change? A. Make sure that the manager being evaluated is aware of the measurement change, as this may affect his or her decision-making. B. Make sure that the manager benefits without the corporation also benefitting. C. Make sure that there are significant overriding opportunities for each manager, if the manager is unaware of the change. D. Obtain customer surveys on the change before communicating the change to the manager.
Which of the following statements is incorrect? The practice of management accounting is fairly flexible. The information gathered from management accounting is not required by law. Management accounting focuses mainly on the internal user. Reports produced using management accounting must follow GAAP.
ORGANIZATION STRUCTURE AND SPAN OF CONTROL Refer to the organization charts labeled Structure A and Structure B in the figure for problem 12. Required a. For the organizational structure A, describe the 1. advantages and disadvantages of this structure. 2. impact of the resulting span of control. 3. effect of the organizational structure on employee behavior. b. For the flat organizational structure B, describe the 1. advantages and disadvantages of that organizational structure. 2. impact of the resulting span of control. 3. effect of the organizational structure on employee behavior. c. When determining the appropriate span of control for a company, discuss the factors that should be considered.
Components of the organization that are demotivating for purposes of performance management are known as ______. A. business goals B. strategic plans C. uncontrollable factors D. incentives
ORGANIZATION STRUCTURE AND SPAN OF CONTROL Refer to the organization charts labeled Structure A and Structure B in the figure for problem 11. Required a. For organizational structure A, describe the 1. advantages and disadvantages of this structure. 2. impact of the resulting span of control. 3. possible effect on employee behavior. b. For organizational structure B, describe the 1. advantages and disadvantages of this structure. 2. impact of the resulting span of control. 3. effect on employee behavior. c. When determining the appropriate span of control, discuss the factors that should be considered.
The controller should be a member of the top management staff. Do you agree or disagree? Explain.
What are the components of internal control per COSO’s Internal Control—Integrated Framework? a. Organizational structure, management philosophy, planning, risk assessment, and control activities. b. Control environment, risk assessment, control activities, information and communication, and monitoring. c. Risk assessment, control structure, backup facilities, responsibility accounting, and natural laws. d. Legal environment of the firm, management philosophy, organizational structure, control activities, and control assessment.