Since Cost Accounting Systems Provide Managers with Information Necessary to Manage

question 88

True/False

Since cost accounting systems provide managers with information necessary to manage operations,the information from cost accounting systems is not useful for external reporting purposes.

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Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjustments are made for accruals, deferrals, and other adjustments.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts in preparation for the next accounting period.

Financial Statements

Formal records that outline the financial activities and condition of a business, organization, or individual, commonly including the balance sheet, income statement, and cash flow statement.

Balance Sheet Columns

Columns typically found in a balance sheet used to report a company's financial position at a certain point in time, showing assets, liabilities, and shareholders' equity.