1) Which one of the following statements is not true?< a) Financial accounting reports are used by investors to make investment decisions while cost and management accounting reports are used by managers to make business decisions. b) Financial accounting summarizes accounting transactions while cost and management accounting presents a detailed analysis of costs, selling prices and any other information required by an entity's management. c) Financial accounting reports report on what has happened while management accounting reports focus on current activity and future projections. d) Financial accounting reports have an internal user focus while management accounting reports are focused on external users of accounting information.

1) Which one of the following statements is not true?< a) Financial accounting reports are used by investors to make investment decisions while cost and management accounting reports are used by managers to make business decisions. b) Financial accounting summarizes accounting transactions while cost and management accounting presents a detailed analysis of costs, selling prices and any other information required by an entity's management. c) Financial accounting reports report on what has happened while management accounting reports focus on current activity and future projections. d) Financial accounting reports have an internal user focus while management accounting reports are focused on external users of accounting information.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

2. Multiple choices, please choose one of the correct choices
1) Which one of the following statements is not true?
a) Financial accounting reports are used by investors to make investment
decisions while cost and management accounting reports are used by
managers to make business decisions.
b) Financial accounting summarizes accounting transactions while cost and
management accounting presents a detailed analysis of costs, selling prices
and any other information required by an entity's management.<
c) Financial accounting reports report on what has happened while
management accounting reports focus on current activity and future
projections.
d) Financial accounting reports have an internal user focus while
management accounting reports are focused on external users of
accounting information.<
2) What kind of cost does the table represent?
Output
Cost
5,000.00
12,000.00
a) Semi-variable Cost
b) Fixed Cost
c) Variable Cost
30,000.00
55,000.00
90,000.00
✔
e
A
3) The form and content of both financial and cost and management accounting
reports is highly regulated.<
a) TRUE
b) FALSE<
4) A company operates a piecework payment system but also guarantees its
employees a minimum of 70% of a time-based rate of pay that is based on £15
per hour for an 8 hour day. 12 minutes is the standard time per unit of output.
Piecework is paid at £10 per standard hour. If an employee produces 65 units in
8 hours on a particular day, the gross pay is:
a) £84.00<
b) £91.00<
c) £130.00<
d) £80.00<

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