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
