________ Accounting Is Information Directed to External Users, Such as Stockholders

question 25

Multiple Choice

________ accounting is information directed to external users, such as stockholders, banks, and suppliers; in contrast _____ accounting is used internally by the CEO, CFO, controller, budget officers, etc.

• A) Management; financial
• B) External; management
• C) Financial; internal
• D) Financial; management

Explain the role and functions of the Federal Reserve System and its structure, including the Federal Reserve District Banks.

Understand the impact of Federal Reserve policies on the banking system and the overall economy, including the money supply, interest rates, and inflation.

Describe the significance of federal funds, discount rate, and the role of secondary reserves in banks' liquidity management.

Analyze the effects of monetary policy actions on the economy, including those intended to address recessions and inflations.

---

Definitions:

Variances

The differences between planned or expected financial outcomes and the actual financial outcomes.

Fixed Overhead

The portion of overhead costs that remains constant regardless of the level of production or business activity.

Direct Labor

The labor costs directly tied to the production of goods or services, such as wages paid to employees who physically produce a product.

Raw Material

Fundamental components and elements employed at the beginning of the manufacturing or production process.