The Text Identifies Six Ways to Classify the Major Differences

question 87

Multiple Choice

The text identifies six ways to classify the major differences between Management and Financial Accounting.The statement "Past oriented (reports on 2011 performance prepared in 2012) " is an example of which of the following classes?

• A)purpose of information
• B)primary users
• C)focus and emphasis
• D)rules of measurement and reporting
• E)time span and type of reports

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Definitions:

Accounts Payable

The total sum a business must pay to its suppliers or creditors for products and services obtained on credit.

Inventory

Goods and materials that a business holds for the ultimate goal of resale, production, or utilization in manufacturing.

Receivable Turnover

A financial metric indicating how efficiently a company collects revenue from its credit customers by measuring the number of times average accounts receivable are collected during a period.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.