Which of the Following Statements Is True of Lean Accounting

question 125

Multiple Choice

Which of the following statements is true of lean accounting?

• A) It is much complex than traditional product costing.
• B) It does not always compute costs for individual products.
• C) It omits recording some of the journal entries relating to the stages from the purchase of direct materials to the sale of finished goods.
• D) It compares value stream costs against costs that include costs of all purchased materials.

Acquire the ability to calculate stockholders' equity, total liabilities, and total assets after adjusting entries.

Learn the impacts of not making necessary adjusting entries on net income, assets, liabilities, and stockholders' equity.

Understand how to initially record deferrals and their subsequent adjustment.

Know the effects of adjusting entries on pretax income and net income.

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Definitions:

Planning

The process of setting objectives and outlining the methods or steps to achieve them within a specified timeframe.

Informational Report

An informational report is a document designed to convey data and information to its reader without an expectation for immediate action, usually structured to inform or update.

Geographic Unit

An area defined by geographical boundaries for the purpose of analysis, management, or description.

Borrowed Information

Information or ideas that are taken from another source, which must be appropriately credited to avoid plagiarism.