Brief Exercises

25. Accounting Information at Sportswear Company. Refer to the dialogue between the president

and accountant at Sportswear Company presented at the beginning of the chapter. Why can't

the president find information for each product line (hats and jerseys) in the financial

statements? Who within the company typically provides this type of information?

26. Financial Versus Managerial Accounting. Maria is the loan officer at a local bank that lends

money to Old Town Market, a small grocery store. She requests several quarterly financial

reports on an ongoing basis to assess the store's ability to repay the loan. Provide one example

of a financial accounting report and two examples of managerial accounting reports that Maria

might request.

27. Planning and Control. Two college graduates recently started a Web page design firm. The first

month was just completed, and the owners are in the process of comparing budgeted revenues

and expenses with actual revenues and expenses for the month. Would this be considered part

of the planning function or the control function? Explain.