Managerial Accounting

question 51

Multiple Choice

Managerial accounting:

• A) focuses only on historical data.
• B) is governed by GAAP.
• C) focuses primarily on the needs of personnel within the organization.
• D) provides information for parties external to the organization.
• E) focuses on financial statements and other financial reports.

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Definitions:

Merchandise Inventory

Goods held by a company for the purpose of sale to customers in the ordinary course of business.

Accounts Payable

Money owed by a company to its suppliers or creditors for goods and services received.

Total Liabilities

The cumulative amount of all debts and financial obligations a company owes to outside parties.

Accounts Receivable

Receivables from clients to a corporation for merchandise or services that have been supplied but remain unpaid.