Cost Accounting Final

Management Accounting – -The branch of accounting concerned with providing management with information to facilitate planning and control
ROE DuPont Model – Net Income/Sales*Sales/Total Assets*Total Assets/Owners' Equity=
ROE=Profit Margin*Asset Turnover*Leverage
Multi-Step Income Statement – contains subtotals to highlight significant relationships. In addition to net income, it reports gross profit and operating income.
Matching Principle/Expense Recognition Principle – Prescribes expenses to be reported in the same period as the revenues that were earned as a result of the expenses.
9 – What step in the accounting process is Post Closing trial balance?
New owner of a check (Pay to the order of…..) – Special Endorsement
Sell at Split-off or Process Further – Management must decide if more profitable to incur and process products further in order to make a different product that can be sold for a higher price
SECTION 12: Culture–question 8 As presented in the Perfil section of the Cultura readings for Lección 2, the oldest university in Spain is…  
Faithful representation – Agreement between a measure and the phenomenon it purports to represent.
current liability – a debt due to be paid within one year or within the entity's operating cycle if the cycle is longer than a year.
historical cost concept – requires that an asset be recorded at the amount paid for it
Accrual basis – All transactions are recognised when they occur. They are reported in the financial statements of the period to which they relate.
account payable – liability created by a purchase on account
Posting – The process of recording information in the ledger is called
SECTION 12: Culture–questiоn 8 As presented in the Perfil sectiоn оf the Culturа reаdings for Lección 2, the oldest university in Spаin is…  
36. Accountants are responsible for measuring various operating, investing and financing activities. Which of the following correctly matches the activity with its type?
A. Investing – paying utilities for the month.
B. Investing – purchasing land.
C. Operating – paying dividends to stockholders.
D. Financing – selling equipment for cash. – B. Investing – purchasing land.
straight-line method – (cost- residual value)/ service life in years

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