Into to CMA Quiz

Helps creditors to make lending decisions.

• Cost and Management Accounting

• Financial Accounting

Is not required to follow Generally Accepted Accounting

Principles (GAAP).

• Cost and Management Accounting

• Financial Accounting

Has a focus on the future.

• Cost and Management Accounting

• Financial Accounting

Summary reports prepared quarterly or annually.

• Cost and Management Accounting

• Financial Accounting

Cost and management accounting uses monetary events only.

• True

• False

Financial Accounting summarizes data for the entire organization.

• True

• False

Helps in planning and controlling operations.

• Cost and Management Accounting

• Financial Accounting

Financial accounting:

• focuses on the future and includes activities such as preparing next year's operating budget

• must comply with GAAP (generally accepted accounting principles)

• reports include detailed information on the various operating segments of the business such as

  product lines or departments

• is prepared for the use of department heads and other employees

Cost and management accounting is more flexible than Financial Accounting.

• TRUE

• FALSE

The main purpose of cost Accounting is to_______

• Maximize profits

• Help in inventory

• Provide information to management for decision making

• Aid in the fixation of Selling price