Understanding Accounting Standards and Analysis in Business

School: Ashford University - Course: ACC 291T - Subject: Accounting

Submission Score: 175 / 175 (100.00%) Grade Time:Apr 03 at 07:25 Submitted On:Apr 03 at 07:25 1.Why is it important that FINANCIAL accounting provide a common set of standards that are used by all companies in preparing their financial statements? oTo provide standardized data used in computing government statistics oTo serve the competitive needs of companies working to uniquely serve specif markets oSo that outsiders can compare financial reports coming from many different co oSo that income taxes can be collected in a fair and equitable fashion FEEDBACK 11 / 11 (100.0%) 2.Why don't all companies use the same MANAGERIAL accounting systems? oThe systems must serve the competitive needs of companies working to uniqu in specific markets. oThe systems must provide different sets of financial statements; some compan with both an income statement and a balance sheet. oThe systems are based on publicly available data which are posted in different different industries. oThe systems are required to provide government data once per year, and the o are often based on different seasons. FEEDBACK 11 / 11 (100.0%) 3.Which of the following is a better description of MANAGERIAL accounting than it is of FINANCIAL accounting? oStandardized across companies oEmphasizes compliance with generally accepted accounting principles oCompares planned and actual results oUsed primarily by investors and creditors

oFocuses on the preparation of the balance sheet, income statement, and statem FEEDBACK 11 / 11 (100.0%) 4.Which of the following is more true of MANAGERIAL accountingsystemsthan it is of FINANCIAL accountingsystems? oRules established by the FASB. oHave substantial competitive value. oPrimarily based on the statement of cash flows. oBased on debits and credits. oUse only historical information. FEEDBACK 11 / 11 (100.0%) 5.Which ONE of the following questions is related to BREAKEVEN ANALYSIS (also called cost-volume-profit analysis)? oWhen do product costs appear as an expense on the income statement? oHow much will net income be if sales next year decrease by 20%? oHow large is the manufacturing overhead cost compared to the sum of the dire costs? oWas the actual cost higher or lower than the budgeted cost? FEEDBACK 11 / 11 (100.0%) 6.Sheryl Company operates a factory in which pickled olives are prepared and packaged. Of course, in making her product, Sheryl must purchase a lot of olives. Sheryl has purchased her olives from the same supplier for 15 years. For the purpose of doing a cost-volume-profit analysis, what kind of cost is Sheryl's cost of purchasing olives? oFixed oAdministrative oIndirect