Financial Accounting: Financial accounting is related with areas which includes activities like preparation of financial statements, analysis, external auditing, regulations, consulting, planning for goals, criminal investigation etc. Managerial Accounting : Managerial accounting is related with areas which include activities like general accounting, cost accounting, budgeting, internal auditing, consulting, controller, treasurer, strategy etc. Tax Accounting: Tax accounting is related with areas which include activities like preparations of tax returns, planning taxes, regulation of taxes, and investigation of taxes. Everything related to taxes, gets covered in tax accounting. To identify: The area of accounting that is most involved in the following responsibilities − Internal auditing External auditing Cost accounting Budgeting Enforcing tax laws Planning transactions to minimize taxes Preparing external financial statements Analysing external financial reports

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Answer 1

Question

Process of recording, summarizing, and analyzing financial information to prepare financial statements, and making them available to stakeholders, thereby enabling them to make an informed decision about the company. Financial reporting is an extension of financial accounting that deals with the presentation of financial information in accordance with the requirements of prescribed accounting standards.

Chapter 1, Problem 3E

To determine

Concept Introduction:

Financial Accounting:

Financial accounting is related with areas which includes activities like preparation of financial statements, analysis, external auditing, regulations, consulting, planning for goals, criminal investigation etc.

Managerial Accounting:

Managerial accounting is related with areas which include activities like general accounting, cost accounting, budgeting, internal auditing, consulting, controller, treasurer, strategy etc.

Tax Accounting:

Tax accounting is related with areas which include activities like preparations of tax returns, planning taxes, regulation of taxes, and investigation of taxes. Everything related to taxes, gets covered in tax accounting.

To identify:

The area of accounting that is most involved in the following responsibilities −

Internal auditing

External auditing

Cost accounting

Budgeting

Enforcing tax laws

Planning transactions to minimize taxes

Preparing external financial statements

Analysing external financial reports

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Please make a trial balance, adjusted trial balance, Income statement. end balance ,owners equity statement, Balance sheet , Cash flow statement ,Cash end balance

Activity Based Costing - practice problem Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced, and overhead costs of $89,500 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities 1. Materials handling 2. Machine setups Cost Drivers Number of requisitions Number of setups Total cost $35,000 27,500 3. Quality inspections Number of inspections 27,000 $89.500 The cost driver volume for each product was as follows: Cost Drivers Instruments Gauge Total Number of requisitions 400 600 1,000 Number of setups 200 300 500 Number of inspections 200 400 600 Insructions (a) Determine the overhead rate for each activity. (b) Assign the manufacturing overhead costs for April to the two products using activity-based costing.

Bodhi Company has three cost pools and two doggie products (leashes and collars). The activity cost pool of ordering has the cost drive of purchase orders. The activity cost pool of assembly has a cost driver of parts. The activity cost pool of supervising has the cost driver of labor hours. The accumulated data relative to those cost drivers is as follows: Expected Use of Estimated Cost Drivers by Product Cost Drivers Overhead Leashes Collars Purchase orders $260,000 70,000 60,000 Parts 400,000 300,000 500,000 Labor hours 300,000 15,000 10,000 $960,000 Instructions: (a) Compute the activity-based overhead rates. (b) Compute the costs assigned to leashes and collars for each activity cost pool. (c) Compute the total costs assigned to each product.

Answer 2

Question

Process of recording, summarizing, and analyzing financial information to prepare financial statements, and making them available to stakeholders, thereby enabling them to make an informed decision about the company. Financial reporting is an extension of financial accounting that deals with the presentation of financial information in accordance with the requirements of prescribed accounting standards.

Chapter 1, Problem 3E

To determine

Concept Introduction:

Financial Accounting:

Financial accounting is related with areas which includes activities like preparation of financial statements, analysis, external auditing, regulations, consulting, planning for goals, criminal investigation etc.

Managerial Accounting:

Managerial accounting is related with areas which include activities like general accounting, cost accounting, budgeting, internal auditing, consulting, controller, treasurer, strategy etc.

Tax Accounting:

Tax accounting is related with areas which include activities like preparations of tax returns, planning taxes, regulation of taxes, and investigation of taxes. Everything related to taxes, gets covered in tax accounting.

To identify:

The area of accounting that is most involved in the following responsibilities −

Internal auditing

External auditing

Cost accounting

Budgeting

Enforcing tax laws

Planning transactions to minimize taxes

Preparing external financial statements

Analysing external financial reports

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 3

Question

Process of recording, summarizing, and analyzing financial information to prepare financial statements, and making them available to stakeholders, thereby enabling them to make an informed decision about the company. Financial reporting is an extension of financial accounting that deals with the presentation of financial information in accordance with the requirements of prescribed accounting standards.

Chapter 1, Problem 3E

To determine

Concept Introduction:

Financial Accounting:

Financial accounting is related with areas which includes activities like preparation of financial statements, analysis, external auditing, regulations, consulting, planning for goals, criminal investigation etc.

Managerial Accounting:

Managerial accounting is related with areas which include activities like general accounting, cost accounting, budgeting, internal auditing, consulting, controller, treasurer, strategy etc.

Tax Accounting:

Tax accounting is related with areas which include activities like preparations of tax returns, planning taxes, regulation of taxes, and investigation of taxes. Everything related to taxes, gets covered in tax accounting.

To identify:

The area of accounting that is most involved in the following responsibilities −

Internal auditing

External auditing

Cost accounting

Budgeting

Enforcing tax laws

Planning transactions to minimize taxes

Preparing external financial statements

Analysing external financial reports

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Process of recording, summarizing, and analyzing financial information to prepare financial statements, and making them available to stakeholders, thereby enabling them to make an informed decision about the company. Financial reporting is an extension of financial accounting that deals with the presentation of financial information in accordance with the requirements of prescribed accounting standards.

Chapter 1, Problem 3E

To determine