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Indicate whether each phrase is more descriptive of financial accounting or managerial accounting.
(a) May be subjective
Financial accounting
Managerial accounting
(b) Often used to obtain financing
Financial accounting
Managerial accounting
(c) Typically prepared quarterly or annually
Financial accounting
Managerial accounting
(d) May measure time or customer satisfaction
Financial accounting
Managerial accounting
(e) Future oriented
Financial accounting
Managerial accounting
(f) Has a greater emphasis on cost-benefit analysis
Financial accounting
Managerial accounting
(g) Keeps records of assets and liabilities
Financial accounting
Managerial accounting
(h) Highly aggregated statements
Financial accounting
Managerial accounting
(i) Must conform to external standards
Financial accounting
Managerial accounting
(j) Special-purpose reports
Financial accounting
Managerial accounting
(k) Decision-making tool
Financial accounting
Managerial accounting
(l) Income statement, balance sheet, and statement of cash flows
Financial accounting
Managerial accounting
Knowledge Check 01 What is the correct Journal entry for a company that issues $100,000 of raw material, which Includes $10,000 of Indirect material? Debit Work In Process $100,000 and credit Raw Materials Inventory $100,000 Debit Work In Process $90,000, debit Manufacturing Overhead $10,000, and credit Direct Materials $100,000 Debit Work In Process $90,000, debit Manufacturing Overhead $10,000, and credit Raw Materials Inventory $100,000 Debit Manufacturing Overhead $100,000 and credit Raw Materials Inventory Knowledge Check 02 What is the correct journal entry to record actual factory utilities cost as Incurred on account? Debit Work In Process and credit Manufacturing Overhead Debit Utilities Expense and credit Manufacturing Overhead Debit Manufacturing Overhead and credit Accounts Payable Debit Utilities Expense and credit Work In Process Knowledge Check 03 What Is the correct Journal entry to record applied manufacturing cost to Work In Process? Debit to Cost of Goods Sold Debit to Manufacturing Overhead Credit to Work In Process Credit to Manufacturing OverheadWhen materials are requisitioned from the Raw Materials O points Inventory they can be classified as either direct materials (which are traced directly to the job) or indirect materials (which are items so insignificant that they are not traced directly to a job and instead are included in manufacturing overhead). What is the journal entry made when the material is classified as direct material? * * O Debit Work in Process Inventory, Credit Direct Materials O Debit Direct Materials, Credit Raw Materials Inventory O Debit Direct Materials, Credit Raw Materials Inventory O Debit Work in Process Inventory, Credit Raw Materials Inventory Time cards are collected and it is determined that total 0 points labor (both direct and indirect) is $4,890. What journal entry would be made when the weekly payroll is recorded? O Debit Work in Process Inventory, Credit Factory Payroll O Debit Factory Payroll, Credit Cash or Wages Payable O Debit Work in Process Inventory, Credit Wages Payable O Debit Direct Labor, Credit Work in Process InventoryMatch the descriptions with the journal entry that is most closely associated with the data flow Debit Credit 1. Payroll process to GL/BR process: GL Manufacturing Overhead (tax on factory workers) FICA taxes payable employer tax accrual update General and administrative expense SUTA taxes payable 2. B/AR/CR process to GL/BR process: GL Selling expense FUTA taxes payable write-off update Debit Credit 3. B/AR/CR process to GL/BR process: GL invoice update Allowance for doubtful accounts Accounts receivable 4. Payroll process to GL/BR process: GL disbursement voucher update v Debit Credit 5. Payroll process to GL/BR process: GL tax deposit update Bad debt expense Allowance for doubtful accounts 6. B/AR/CR process to GL/BR process: GL V Debit Credit cash receipts update Accounts Receivable Sales 7. AP/CD process to GL/BR process: GL payable update v Debit Credit 8. AP/CD process to GL/BR process: GL Federal income tax withholding cash disbursements update Payroll Clearing State income tax withholding FICA tax withholdings payable 9. Payroll process to GL/BR process: GL labor distribution update Accrued payroll 10. B/AR/CR process to GL/BR process: GL *Debit Credit estimated bad debts updateDebit Credit estimated bad debts update Federal income tax withholding 11. OE/S process to GL/BR process: GL State income tax withholding inventory sales update FICA tax withholdings payable Cash 12. Purchasing process to GL/BR process: FICA taxes payable GL inventory received update SUTA taxes payable 13. IP process to GL/BR process: GL FUTA taxes payable variances (RM. DL, and MOH) updates Debit Credit Cash Accounts receivable Debit Credit Purchases Accounts payable Debit Credit Accounts payable Cash V Debit Credit Work in process (direct labor) Manufacturing overhead (indirect labor) Payroll clearing General and admin expense Selling expense
