The Field of Accounting That Depends on Generally Accepted Accounting

question 34

Multiple Choice

The field of accounting that depends on generally accepted accounting principles (GAAP) is called

• A)cost accounting.
• B)financial accounting.
• C)managerial accounting.
• D)responsibility accounting.
• E)international accounting.

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Definitions:

Raw Materials Purchases

The total cost incurred by a company to buy the raw materials needed for production.

Standard Costs

Standard costs are predetermined costs of manufacturing a single unit or a number of units of a product during a specific period under assumed conditions.

Kilos

A metric unit of measure for mass, equivalent to one thousand grams or approximately 2.20462 pounds.

Cash Account

An account that records all cash transactions, including cash receipts and cash payments, within a business.