Changes to anything in the higher up corporate areas
Answer:
Role of management accounting :
1. provide internal information on operations
2. help in decision making
Utilization of management accounting principles
1. make or buy decisions
2. continuing or discontinuing of operations
Useful managerial Accounting Activities
1. planning
2. deciding on the alternative causes of action
Explanation:
Role of Management Accounting is to provide managers with information related to their operations.This includes the costs and revenue incurred, the deviations from the planned costs and revenue and profit targets.
This information would help to control costs and revenues or make certain decisions of continuing or discontinuing operating of a product or segment.
Thus managerial accounting activities that are useful are planning, deciding on the alternative causes of action, implementation, monitoring and control
Answer:
1 Jan 2021- Debit Investment $220 million, Credit Bank $201 million, Credit Discount received $19 million.
30 June 2021 Debit Bank $8,800,000 Credit Interest income $8,800,000
31 December Debit Bank $8,800,000 Credit Interest income $8,800,000
31 December 2021 Debit Fair value loss $10 million, Credit Investment $10 million.
Explanation:
Required: prepare journal entries.
interest income = 220 million *0.08 *6/12= $8,800,000
fair value gain or loss = opening fair value - fair value at the end of the year
= 220 million - 210 million
= $10 million
