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:

Post-Closing Trial Balance

A list of all accounts still open after closing entries are made, used to ensure that debits equal credits.

Capital

The wealth in the form of money or other assets owned by a person or organization, or available for a purpose such as starting a company or investing.

Purchases

The total cost of goods acquired by a company for resale or use in production during an accounting period.

Freight-In Account

An accounting term for the cost of transporting goods into a business, which is part of the cost of goods sold.