Determine the term being described or defined by the following statement: The area of accounting that refers to providing information to support internal management decisions.
Choose from the following terms:
| Financial accounting | Management accounting |
| Financial reporting | Financial statements |
| General-purpose assumption | Integrity |
| Internal control | Public accounting |
| Bookkeeping |
For each of the following managers, describe how managerial accounting could be used to satisfy strategic or operational objectives:
1. The vice president of the Information Systems Division of a bank.
2. A hospital administrator.
3. The chief executive officer of a food company. The food company is divided into three divisions: Nonalcoholic Beverages, Snack Foods, and Fast Food Restaurants.
4. The manager of the local campus copy shop.
Assume B Corporation has $450,000 of Ordinary income from its operations and $10,000 of interest received from its investments in bonds from Z firm. Also, it received $20,000 in dividends from an investment in stocks on Y Corporation, having ownership of 18% of that firm.
Find the Marginal Income.
Deeana, Henry, and Pat have equal ownership of My Business LLC which made a profit of $90,000 this year. Deeana and Henry have a 28% tax rate and Pat has a 15% rate. The company has a 20% tax rate. How much total taxes will be paid on Pat’s portion of the profit?
The primary user of management accounting information is a(n):
A) the controller.
B) a shareholder evaluating a stock investment.
C) bondholder.
D) external regulator.
