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Entering transactions into the journal is called posting.
It is not necessary to ascertain the portion of ending Work in Process Inventory
applicable to direct materials costs versus conversion costs.
Noncash investing and financing transactions, such as the exchange of a long-term asset
for a long-term liability, represent significant investing and financing activities and are
reflected in a separate schedule as part of the statement of cash flows.
The present value of a bond is always less than the face value of the bond.
Cost-volume-profit analysis cannot be used to estimate a targeted profit for service
businesses.
Traditional environments emphasize functional departments that tend to group similar
activities together.
The overall guideline or limit for management accounting information is that the report
or analysis must be meaningful and must answer the questions or issues under review.
Variable costing is a method of reporting that deals only with a manager's controllable
costs, variable costs.
In the accounting cycle, closing entries are prepared before adjusting entries.
Interest on a six-month, 7 percent, $2,000 note is calculated by multiplying $2,000 x
7/100 x 6/12.
