Management Accounting Refers to the Preparation and Use of Accounting

question 46

True/False

Management accounting refers to the preparation and use of accounting information designed to meet the needs of decision makers outside the business organization.

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Definitions:

Withholding Allowance Certificate

A form used by employees to indicate their tax status to employers, determining how much federal income tax to withhold from their earnings.

Form W-4

A U.S. tax form used by employees to indicate their tax situation to their employer, determining the amount of taxes withheld from their paycheck.

Known Liabilities

Obligations that are quantifiable, and the company is aware of, including debts and other financial responsibilities that appear on the balance sheet.

Employee Earnings Report

A detailed record that shows the amount of money an employee has earned over a particular period, including wages, bonuses, and deductions.