Flexibility of Practice When Applied to Managerial Accounting Means That

question 148

Multiple Choice

Flexibility of practice when applied to managerial accounting means that:

• A)The information must be presented in electronic format so that it is easily changed.
• B)Managers must be willing to accept the information as the accountants present it to them,rather than in the format they ask for.
• C)Managerial accountants must be on call twenty-four hours a day.
• D)Managerial accounting systems differ across companies depending on the nature of the business and the arrangement of its internal operations.
• E)Managers must be flexible with information provided in varying forms and using inconsistent measures.

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to allocate revenues and expenses to the period in which they actually occurred.

Total Assets

The sum of all owned resources that have economic value and can be converted into cash, which appear on a company's balance sheet.

Accrued Expenses

Expenses that have been incurred but not yet paid, recognized in the financial statements before the cash transactions occur.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.