Managerial Accounting
The primary purpose of managerial accounting.
What is to provide internal managers with information for planning, controlling, and decision-making?
Revenue is recognized at this moment when control of a good transfers to the customer.
What is a single point in time?
The three types of inventory for a manufacturing company.
What are raw materials, work in process, and finished goods?
Meaning of “FOB shipping point.”
What is the buyer owns the goods once they leave the seller’s premises?
When a customer buys now and pays later, the amount owed is recorded in this account.
What is AR?
Product costs are recorded as inventory until this happens.
What is when the goods are sold?
Revenue can be recognized over time if the customer consumes the benefit of the seller’s work as it is performed.This type of cost varies in total but remains constant per unit.
What is one of the criteria for recognizing revenue over a period of time?
The formula for Cost of Goods Sold (COGS).
What is Beginning Inventory + Purchases – Ending Inventory?
Under a perpetual inventory system, when is COGS updated?
What is with each sale or return?
This contra-asset account is used to estimate future customer payments that won’t be collected.
What is Allowance for Uncollectible Accounts?
Examples of period costs.
What are selling expenses and administrative expenses?
Dropbox receives $120 for a 12-month plan. How much revenue should be recognized after one month?
What is $10 (one-twelfth of $120)?
The inventory cost method that assumes the oldest units are sold first.hat is FIFO (First-In, First-Out)?
What is FIFO (First-In, First-Out)?
Meaning of 2/10, n/30 purchase terms.
What is a 2% discount if paid within 10 days, full payment due in 30 days?
This expense account represents the cost of estimated future uncollectible accounts.
What is Bad Debt Expense?
The difference between direct and indirect costs.
What is that direct costs can be traced to a specific product, while indirect costs cannot be cost-effectively traced?
The contribution margin is used for this purpose.When a company sells multiple products or services in one contract, revenue must be allocated based on this measure.
What is the stand-alone selling price of each performance obligation?
When prices are rising, this method results in the highest ending inventory.
What is FIFO?
Effect of purchase returns on inventory and accounts payable.
What is both decrease?
When a specific customer’s account is written off, total assets and net income change in this way.
What is no change to total assets or net income?
The three main types of manufacturing costs.
What are direct materials, direct labor, and manufacturing overhead?
A company sells both equipment and installation services. To properly record revenue, it must identify and separate these.
What are performance obligations?
The LIFO conformity rule?
The rule requiring consistency between tax and financial reporting when using LIFO.
Under FOB destination, who pays for shipping?
What is the seller?
The amount expected to be collected from customers is known as this.
What is Net Accounts Receivable?