Answer the following statements true (T) or false (F)
1. Managerial accounting focuses on providing information for internal planning and control.
2. Financial accounting prepares reports for internal purposes, whereas managerial accounting provides
information to external stakeholders.
3. Financial statements prepared for investors and creditors often include forward-looking information
because they make decisions based on a company's future prospects.
4. Managerial accounting reporting by a public firm is required to follow the rules of GAAP.
5. Planning requires managers to look to the future and establish goals for the business.
1. TRUE
2. FALSE
3. FALSE
4. FALSE
5. TRUE
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The production manager for the Coory soft drink company is considering the production of two kinds of soft drinks: regular (R) and diet (D). Two of her limited resources are production time (8 hours = 480 minutes per day) and syrup (1 of the ingredients),
limited to 675 gallons per day. To produce a regular case requires 2 minutes and 5 gallons of syrup, while a diet case needs 4 minutes and 3 gallons of syrup. Profits for regular soft drink are $3.00 per case and profits for diet soft drink are $2.00 per case. What is the objective function? A) MAX $2R + $4D B) MAX $3R + $2D C) MAX $3D + $2R D) MAX $4D + $2R
What is the purpose of an architectural control committee?
Pat, owner of Pat's Welding, LLC, would like to let someone else run the day to day operations while he continues to draw an income from the business. Because the business is an LLC, Pat will not have to be concerned about:
A. a reduction in the value of the company. B. seller financing. C. paying a brokerage fee. D. double taxation on his income.
A local partnership has assets of cash of $5,000 and a building recorded at $80,000. All liabilities have been paid. The partners' capital accounts are as follows Harry $40,000, Landers $30,000 and Waters $15,000. The partners share profits and losses 4:4:2.If the building is sold for $50,000, what amount should Waters receive in the final settlement?
A. $18,000. B. $5,000. C. $55,000. D. $9,000. E. $28,000.