Quiz 1 Basic Concepts

Quiz 1

Basic concepts

ACCT 1162-5483

INTRO TO MANAGERIAL ACCOUNTING

Sales are a component of cash flow statement.

False (correct answer)

Planning, control and decision making are parts of managements’ functions.

True

Managerial accounting should use generally accepted accounting principles (GAAP) to prepare income statement and cash flow

False

According to US GAAP, Assets are part income statements and classified with respect to their liquidity.

True

Positive accounting theories deal with what questions.

False

The standards of ethics for accountants and auditors only include statements about confidentiality and objectivity.

False

Financial accounting should use statistics to support managers decisions’ making.

False

Net income equals to operating income less interests paid.

False.

Normative accounting theories deal with how questions.

False

Accounting is defined as a process to keep companies’ records.

False

Sales are a component of balance sheet statement.

False

Financial accounting follows logics for all reporting’s matters.

False

Managerial accounting follows generally accepted accounting principles in all terms.

False

Positive accounting theories deal with why and how questions.

True

Assets equals to current assets and current liabilities.

False

Normative accounting theories deal with why questions.

False

Financial accounting should use detailed reports to support managers’ decision making.

False

Managerial accounting follows generally accepted accounting principles in all terms.

False

Positive accounting theories deal with why and how questions.

True

Assets equals to current assets and current liabilities.

False

Normative accounting theories deal with why questions.

False

Financial accounting should use detailed reports to support managers’ decision making.

False

The standards of ethics include statements about competence, confidentiality, integrity and objectivity.

True

Managerial accounting uses detailed reports to support manager’s decision making.

True

Financial accounting should use statistics to support managers’ decision making.

False

Financial accounting follows accountants' rules and guides for all internal decision making.

False