The Fact That Minnie Spends Most of Her Time Measuring

question 314

Multiple Choice

The fact that Minnie spends most of her time measuring costs and checking to see if departments are staying within their budgets suggests that she is often involved in

• A) auditing.
• B) managerial accounting.
• C) bookkeeping.
• D) departmental certification.

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Definitions:

Supplies Account

An account that tracks the cost of supplies used or on hand during an accounting period.

Inventory

The total amount of goods held by a company for the purpose of resale or production.

Adjusting Journal Entry

An accounting record made to amend the preliminary financial statements towards the accrual basis of accounting, ensuring all revenues and expenses are recorded in the correct period.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life.