Chapter 1, Problem 7EYCT

Financial accounting provides information for managers and other internal users. Select one: True False

Accounting True or False 1. A manager could be held criminally liable for the misdeeds of the company. 2. It is not important for people to save for retirement when they can collect Social Security. 3. Effectiveness and efficiency mean the same thing. 4. Older workers are slower and costlier than young workers.

The objectives of financial Statements include _________     A. None of the choices are correct     B. to demonstrate compliance with environmental protection Laws   C.  to assist investors and creditors in investing and lending decision   D. to measure the efficiency of the organization   E.  to prevent managerial fraud

Question:Prepare a reflection paper that incorporates your answers to the following independent questions:  1. What problems can you foresee if a business manager does not have a basic knowledge of accounting? 2. The owner of a company asks you if he can charge all his personal expenses to his business. He said that he owns the company anyway. Explain to the business owner the business entity assumption and the ethical considerations of his idea. 3. After examining the financial statements, the owner of a small business expressed surprise that the firm's cash balance had decreased during the month even though there was substantial net income. Do you think this owner is right to expect the cash to increase because of a substantial net income? Why or why not?   4. Jiffy  Trading runs  10  branches and pays for a  variety of expenses.    Anna,  the  Accounts Payable  Clerk of  Jiffy  Trading writes the checks for each supplier and the  Accounting Manager signs the checks. Anna decided she…

Direction: Answer the following statement, write T if the statement is true and F if the statement is false. 1. Financial statements are useless to a person who does not know how to interpret the information contained in the report. 2. When making business decisions, an entrepreneur will need various sources of information. A major source of information is financial statements. 3. A comparison of the information from one period to another is called vertical analysis. 4. An analysis of the interrelationships of information in a single period, expressed as percentages of a common denominator is called horizontal analysis. 5. Entity A reported inventory balances of P100 and P50 in 2020 and 2021, respectively. In a horizontal analysis, a financial statement user would conclude that Entity A's inventory has increased by 50% from 2020 to 2021. 6. In 2020, Entity A reported sales of P100 and profit of P20. In a vertical analysis, a financial statements user would conclude that Entity A was…

answer these questions: step 1; Why do managers/accountants need to behave ethically? Explain. Step 2: Describe thestrengths and weaknesses of an accountant for icecream business. would they be good accountants?step 3:Compare and contrast manual accounting with computerized accounting, How are theydifferent?

How could the presentation  of financial information  pose an ethical dilemma to a business professional who is attempting to meet the demands of users who are interested in similar information?

D1. You read that there is no generally accepted definition of ‘earnings management’. Using your accounting knowledge, your own research and textbook reading to define, describe, and analyze: When will earnings management be acceptable? When will earnings management become a fraud? Fraudulent earnings management is often identified by two adjectives. What are the two adjectives?

You are required to prepare a reflection paper that incorporates your answers to the following questions: 1. Besides earning a profit, what other objectives might a business have? How can Accounting play an important role in these objectives? 2. A new manager of a retail company suggests that the company should prepare its Statement of Profit or Loss on the basis of cash receipts and cash expenditures (except for the acquisition of fixed assets, such as plant and equipment). He argues that managers, investors, creditors, and others are more interested in cash receipts and disbursements than in accrual-based accounting. Do you think he is correct? Explain. 3. The manager of your company told you to go out to the warehouse and count merchandise inventory. He said that owner is coming for a meeting next week and the manager wanted to put on a good show. He asked you to make the inventory higher by counting the first and last row twice. The higher ending inventory will result in higher…