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1. Management accounting is a collective term for all persons responsible for making decisions in an organization. 2. Planning and controlling is one purpose of management accounting. 3. Performance evaluation refers to past activities, while planning involves future activities.

1. Management accounting is a collective term for all persons responsible for making decisions in an organization. 2. Planning and controlling is one purpose of management accounting. 3. Performance evaluation refers to past activities, while planning involves future activities.

FINANCIAL ACCOUNTING
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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TRUE or FALSE 1. Management accounting is a collective term for all persons responsible for making decisions in an organization. 2. Planning and controlling is one purpose of management accounting. 3. Performance evaluation refers to past activities, while planning involves future activities. 4. Controlling includes comparing actual performance with standard budget. 5. As a standard of ethical conduct, competence requires that management accountants refrain from disclosing confidential information. 6. The company controller's responsibilities include government reporting, planning and control, and credit and collection 7. Business transactions include both economic and non-economic transactions. 8. Accounting recognizes and reports both economic and non- economic transactions. 9. Assets are resources that the business uses to produce goods and services. 10. Liability accounts often have the word receivable in their title. 12. Net worth is determined by the owners' contribution of money to the business + revenues - expenses - owners' withdrawal. 13. Dividends are owners share in the profits of the business 14.Wage expense is a deduction to net worth 15. Mortgage payable is part of net worth. 16. Kitchen equipment bought on account is an asset. 17. Owner's withdrawal is cash invested by the owner. 18. For a service type of business, the revenues are called sales.
Transcribed Image Text:TRUE or FALSE 1. Management accounting is a collective term for all persons responsible for making decisions in an organization. 2. Planning and controlling is one purpose of management accounting. 3. Performance evaluation refers to past activities, while planning involves future activities. 4. Controlling includes comparing actual performance with standard budget. 5. As a standard of ethical conduct, competence requires that management accountants refrain from disclosing confidential information. 6. The company controller's responsibilities include government reporting, planning and control, and credit and collection 7. Business transactions include both economic and non-economic transactions. 8. Accounting recognizes and reports both economic and non- economic transactions. 9. Assets are resources that the business uses to produce goods and services. 10. Liability accounts often have the word receivable in their title. 12. Net worth is determined by the owners' contribution of money to the business + revenues - expenses - owners' withdrawal. 13. Dividends are owners share in the profits of the business 14.Wage expense is a deduction to net worth 15. Mortgage payable is part of net worth. 16. Kitchen equipment bought on account is an asset. 17. Owner's withdrawal is cash invested by the owner. 18. For a service type of business, the revenues are called sales.
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