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3 years ago

8

The only skill required of managerial accountants is that they have a solid knowledge of both financial and managerial accountin

g.

1 answer:

abruzzese [7]3 years ago

8 0

Answer:

False

Explanation:

we could see the following difference between Managerial and Financial accounting

Managerial Accounting

Primary User: Internal
Purpose of Information: To help managers make decisions
Focus: Segments
Frequency: As needed
Auditing: Not subject to audit
Required: No
Time Frame Focused:Future

Managerial Accounting

Primary User: External
Purpose of Information: To help investor and creditor make decisions
Focus: Entire organization as a whole
Frequency: Quarterly and annually
Auditing: Publicly held companies are audited
Required: Required by GAAP, SEC, IRS, and others
Time Frame Focused: Past (historical transactions)

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3 years ago

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Answer:

1. Once a month, the sales department sends sales invoices to the accounting department to be recorded.

⇒ documentation procedures

Unless all of the company's sales take place only once a month, sales should be recorded as soon as possible. Accounting records must be as precise and accurate as possible, and they must be processed on time. Stacking invoices makes no sense, since sales might be on cash or the collection period might be very short. Who holds the money until the sales records are made?

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3 years ago

On January 1, 2014, P Company purchased an 80% interest in S Company for $616,800, at which time S Company had retained earnings

Illusion [34]

Answer:

For the year ended December 31, 2014, we have:

Controlling interest in consolidated net income = $76,560

Noncontrolling interest in consolidated net income = $19,140

Explanation:

This can be calculated as follows:

Net income of S Company = $95,700

Controlling interest percentage = P Company percentage interest in S Company = 80%

Noncontrolling interest percentage = 100% - Controlling interest percentage = 100% - 80% = 20%

Therefore, we have:

Controlling interest in consolidated net income of S Company = Controlling interest percentage * Net income of S Company = 80% * $95,700 = $76,560

Noncontrolling interest in consolidated net income of S Company = Noncontrolling interest percentage * Net income of S Company = 20% * $95,700 = $19,140

Therefore, for the year ended December 31, 2014, we have:

Controlling interest in consolidated net income = $76,560

Noncontrolling interest in consolidated net income = $19,140

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2 years ago