chapter one smartbook

Question 1

Who are the users of managerial accounting information?

Answer 1

Internal users

Question 2

Match the Terms:

Managerial Accounting
Financial Accounting

Global information on the company as a whole
Local information on subunits of the organization

Answer 2

Managerial Accounting: Local information on subunits of the organization

Financial Accounting: Global information on the company as a whole

Question 3

The organization responsible for regulating financial reporting is the blank

Answer 3

SEC

Question 4

Accounting that reports on what is expected to happen in the future is referred to as blank accounting

Answer 4

Managerial

Question 5

Match the Terms:

Managerial Accounting
Financial Accounting

Answer 5

Managerial Accounting: No regulation by any authority

Financial Accounting: Regulation by SEC, FASB and other determiners of GAAP

Question 6

Who are the users of financial accounting information?

Answer 6

External Users

Question 7

Which of the following are included in the cost of manufacturing a product?

Answer 7

Materials, labor, and overhead

Question 8

At what level is information aggregated in managerial accounting?

Answer 8

Local on subunits of the organization

Question 9

When a company pays cash for manufacturing costs, total assets blank​.

Answer 9

do not change

Question 10

Accounting that reports what happened in the past is referred to as blank (financial/managerial) accounting.

Answer 10

financial

Question 11

If a company incurs $4,000 in manufacturing costs to produce 200 units, what is the average cost per unit?

Answer 11

$20: $4,000 ÷ 200 units = $20

Question 12

How is managerial accounting regulated?

Answer 12

No formal regulation, limited by the value-added principle

Question 13

Salaries of production workers are recorded to inventory because the cost blank​.

Answer 13

is associated with producing inventory, not earning revenue

Question 14

Which of the following costs are not included in the cost of manufacturing a product? (Select all that apply.)

Answer 14

Marketing
Administrative
Research and development

Question 15

Paying salaries and administrative costs with cash results in which of the following? (Select all that apply.)

Answer 15

• Decreases cash
• Decreases stockholders’ equity.
• Decreases net income.

Question 16

When a company pays cash for manufacturing costs such as labor, material, or overhead, how does recording that cost affect total assets?

Answer 16

The transaction does not affect total assets.

Question 17

Recognizing depreciation on manufacturing assets results in which of the following? Assume the company has not sold the inventory yet (Select all that apply.)

Answer 17

• No effect on net income.

- No effect on total assets.

Question 18

If a company incurs $2,000 in manufacturing costs to produce 1,000 units, what is the average cost per unit?

Answer 18

$2,000/1,000 units= $2

Question 19

Salaries of production workers are not expensed because they blank​.

Answer 19

are associated with producing inventory, not earning revenue

Question 20

Paying administrative salaries with cash affects which of the following financial statements? (Select all that apply.)

Answer 20

• Total assets on the balance sheet
• Total stockholders’ equity on the balance sheet
• Income statement

Question 21

When a company pays cash for manufacturing costs, total assets blank​.

Answer 21

do not change

Question 22

Selling inventory for cash affects which of the following financial statements? Assume inventory is sold for more than it cost to produce. (Select all that apply.)

Answer 22

• Inventory reported on the balance sheet
• Income statement
• Total stockholders’ equity on the balance sheet

Question 23

Recognizing depreciation on manufacturing assets affects which of the following financial statements?

Answer 23

Inventory reported on the balance sheet

Question 24

If a company incurs $4,000 in manufacturing costs to produce 200 units, what is the average cost per unit?

Answer 24

$4,000 ÷ 200 units = $20

Question 25

Indirect costs _blank​_.

Answer 25

cannot be cost-effectively traced to products

Question 26

Salaries of production workers are recorded to inventory because the cost _blank​_.

Answer 26

is associated with producing inventory, not earning revenue

Question 27

Paying administrative salaries with cash results in which of the following? (Select all that apply.)

Question 28

Paying administrative salaries with cash results in which of the following? (Select all that apply.)

Answer 28

- The transaction does not affect liabilities. - Decreases total assets. - Decreases net income. - Decreases stockholders' equity.

Question 29

Recognizing depreciation on manufacturing assets results in which of the following? Assume the company has not sold the inventory yet (Select all that apply.)

Answer 29

- No effect on net income. | - No effect on total assets

Question 30

What is corporate governance?

Answer 30

set of relationships between the board of directors, management, shareholders, auditors, and other stakeholders that determine how a company is operated.

Question 31

Costs that cannot be traced to a product or service in a cost-effective manner are called _blank​_ costs.

Answer 31

Indirect

Question 32

Production workers' salaries are not expensed because the cash paid to the workers is used to produce inventory.

Answer 32

True

Question 33

Motives for managers to manipulate financial statement information include _blank​_.

Answer 33

- increased compensation and bonuses | - increased stock prices

Question 34

Paying administrative salaries with cash affects which of the following financial statements? (Select all that apply.)

Answer 34

- Total assets on the balance sheet - Income statement - Total stockholders' equity on the balance sheet

Question 35

Selling inventory for cash affects which of the following financial statements? Assume inventory is sold for more than it cost to produce. (Select all that apply.)

Answer 35

- Total stockholders' equity on the balance sheet - Income statement - Inventory reported on the balance sheet

Question 36

The set of relationships between the board of directors, management, shareholders, auditors, and other stakeholders that determine how a company is operated is referred to as what?

Answer 36

corporate governance

Question 37

Which of the following are expected of IMA members? (Select all that apply.)

Answer 37

- Resolution of Ethical Conflict - Competence - Confidentiality - Integrity - Credibility

Question 38

Costs that cannot be traced to a product or service in a cost-effective manner are called *blank* costs

Answer 38

indirect (or overhead or manufacturing overhead)

Question 39

Which of the following is not one of the components of the fraud triangle?

Answer 39

Honesty

Question 40

Motives for managers to manipulate financial statement information include _blank​_.

Answer 40

- Decreases stockholders' equity. - Decreases cash. - Decreases net income.

Question 41

Which of the following are required by the Sarbanes Oxley Act? (Select all that apply)

Answer 41

- CEO and CFO must certify financial statements. | - CEO and CFO are responsible for the establishment and enforcement of a strong set of internal controls.

Question 42

Selling inventory for cash results in which of the following? Assume inventory is sold for more than it cost to produce. (Select all that apply.)

Answer 42

- Decreases inventory. - Increases net income. - Increases stockholders' equity. - Increases cash. - The transaction does not affect liabilities.

Question 43

Identify the three elements of the fraud triangle.

Answer 43

Opportunity Pressure Rationalization

Question 44

SOX requires which individuals to certify in writing they have reviewed a company's financial reports and the reports present fairly the company’s financial status?

Answer 44

- Chief Executive Officer (CEO) | - Chief Financial Officer (CFO)

Question 45

Selling inventory for cash results in which of the following? Assume the inventory is sold for more than it cost to produce. (Select all that apply.)