Managerial Accounting

question 48

Multiple Choice

Managerial accounting

• A)is concerned with costing products.
• B)is governed by generally accepted accounting principles.
• C)pertains to the entity as a whole and is highly aggregated.
• D)places emphasis on special-purpose information.

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Definitions:

Return on Equity

A financial ratio that measures the profitability of a corporation in relation to stockholders’ equity, indicating how well a company uses investment funds to generate earnings growth.

Sales

The activity or business of selling products or services.

Expenses

Outflows of money or other valuable assets, incurred as a result of operating activities or in the pursuit of generating revenues.

Debts Incurred

Obligations or liabilities taken on during the course of financial transactions, often as a result of borrowing money or purchasing goods and services.