D196-Principles of Financial & Managerial Accounting Questions and Answers Rated A

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D196-Principles of Financial & Managerial Accounting Questions and Answers Rated A Absolute Cell Reference ✔✔A cell reference that remains constant when a formula is pasted into a new cell Ac... count ✔✔An accounting record in which the results of transactions accumulated; shows increases, decreases, and a balance. Accounting ✔✔A system for providing quantitative, financial information about economic entities that is useful for making sound economic decisions. Accounting provides the means of recording and communicating business activities and the results of those activities. Accounting Cycle ✔✔The procedure for analyzing, recording, summarizing, and reporting the transactions of a business. Accounting Equation ✔✔An algebraic equation that expresses the relationship between assets (resources), liabilities (obligations), and owner's equity (net assets, or the residual interest in a business after all liabilities have been met): Assets = Liabilities + Owners' Equity. Accounting System ✔✔Equity. The procedures and processes used by a business to analyze transactions, handle routine bookkeeping tasks, and structure information so it can be used to evaluate the performance and health of the business. Activity-based Costing (ABC) ✔✔A method of attributing overhead costs to products based on measurable factors that relate to activities that create overhead costs. Actual Manufacturing Overhead ✔✔Manufacturing costs other than direct materials and direct labor. American Institute of Certified Public Accountants arli (AICPA) ✔✔A professional organization for CPAS in which membership is voluntary. Annual Report ✔✔A document that summarizes the results of operations and financial status of a company for the past year and outlines future plans. Applied Manufacturing Overhead ✔✔The amount of the manufacturing overhead that is assigned to the goods produced. This is usually done by using a predetermined annual overhead rate. Comparative Financial Statements ✔✔Financial statements that include information for both the current year and preceding year(s) that are prepared for users to identify any significant changes in particular items. Contribution Margin ✔✔The difference between total sales and variable costs; the portion of sales revenue available to cover fixed costs and provide a profit. Contribution Margin (formula) ✔✔Sales Revenue - Variable cost Contribution Margin per Unit (formula) ✔✔Sales per unit - Variable cost per unit Contribution Margin Ratio (formula) ✔✔Contribution Margin per unit/sales per unit Net Income Formula ✔✔Revenues - Expenses Variable Cost Ratio (formula) ✔✔Variable cost per unit/sales per unit Break Even in Units ✔✔fixed costs / contribution margin per unit break even in dollars ✔✔Fixed cost/contribution margin ratio Target Net Income (formula) ✔✔(Fixed cost + target income) / contribution margin per unit What is the C-V-P equation (basic formula) ✔✔Sales Revenue - Variable Cost - Fixed Cost = Profit Controllable Costs ✔✔Costs over which a manager has direct authority and can change. Controlling ✔✔Tracking the actual performance of a company. Cost Accountant ✔✔An accountant who is specially trained to prepare and analyze accounting information for internal decision-making. Cost Behavior ✔✔The way a cost is affected by changes in activity levels. Cost Center ✔✔An organizational unit in which a manager has control over and is held accountable for cost performance. Cost Center ✔✔An organizational unit in which a manager has control over and is held accountable for cost performance. Cost drivers are ✔✔A numerical measure used to reflect the amount of a specific cost that is associated with a particular activity. Cost Objects ✔✔An output of a business, such as a product, service, or division. cost pool ✔✔Total cost being generated by a specific overhead cost activity. Cost Variance ✔✔A difference between the actual cost and the budgeted cost. Cost of Goods Manufactured Statement ✔✔A schedule supporting the income statement that summarizes the total cost of goods manufactured and transferred out of the work-inprocess inventory account during a period. These costs include direct materials, direct labor, and applied manufacturing overhead. Cost of Goods Sold Statement ✔✔A statement that sums the cost of goods sold for an accounting period based on the cost of goods sold formula. Cost-volume-profit (C-V-P) Analysis ✔✔Techniques for determining how changes in revenues, costs, and level of activity affect the profitability of an organization. Current Assets ✔✔Cash and other assets that are expected to be converted to cash within a y [Show More]

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