Which of the Following Statements Is True Regarding Managerial Accounting

question 60

Multiple Choice

Which of the following statements is true regarding managerial accounting information?

• A)Managerial accounting information is audited by CPAs.
• B)Managerial accounting information emphasizes relevance.
• C)Managerial accounting information is prepared annually and quarterly.
• D)Managerial accounting information must be prepared in conformity with Generally Accepted Accounting Principles (GAAP).

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Definitions:

Perpetual

An inventory system in which the inventory records are updated continuously to reflect purchases, sales, and inventory on hand in real time.

LIFO Method

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

Inventory Ledger

A detailed record that tracks the quantities and costs of all types of inventory a company has in stock during a specific period.

Weighted-Average Method

Valuing of inventory where each item is assigned the same unit cost. This unit cost is found by dividing the cost of goods available for sale by the total number of units for sale.