Greg Is the Finance Manager of Magical Messages Corp

question 10

Multiple Choice

Greg is the finance manager of Magical Messages Corp. a communication and information technology corporation. His department is working on enforcing some financial controls on the organization. Greg assigns different tasks to his team members. Stacey's task is to give him a present financial picture of the company. Pete's task is to give him the values of various items the company owns. Julio's task is to give him a report on the amount the company owes to various creditors. Finally, Gretchen's task is to prepare a report on the amount accruing to the corporation's owners. On which of the following would Pete be working?

• A)balance sheet
• B)assets
• C)liabilities
• D)stockholders' equity
• E)profit and loss statement

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Definitions:

Conversion Costs

Combined costs of direct labor and manufacturing overheads incurred to convert raw materials into finished products.

FIFO Method

An inventory valuation method where the first items acquired are the first ones sold, used to calculate the cost of goods sold and ending inventory.

Direct Materials Costs

The expenses incurred for raw materials that are directly involved in the manufacturing of products.

FIFO Method

A stock rotation system where the oldest stock (first in) is used or sold first (first out).