Question

1)One of the usual differences between financial and managerial accounting is the time dimension of the information reported.

Select one:

True

False

2)Any unrealized gain or loss on available-for-sale securities is reported on the income statement in the other gain or loss section.

Select one:

True

False

3)Long-term investments in available-for-sale securities are reported at market value on the balance sheet.

Select one:

True

False

4)An indirect benefit of total quality management and just-in-time manufacturing is the improvement in the quality of management and the products and services offered.

Select one:

True

False

Answer 1

1) Solution: True

Explanation: The financial and managerial accounting differs on the time dimension of the reported information.

2) Solution: False

Explanation: Any unrealized gain or loss on available-for-sale securities would be excluded from net income. They will be reported as part of OCI (Other comprehensive income)

3) Solution: False

Explanation: The available-for-sale securities would not reported at market value; instead will be shown at fair value

4) Solution: True

Explanation: The total quality management applies for the improvement in quality to all aspects of activities in business. The just-in-time manufacturing system encourages faster setups thus resulting in reduced costs and more efficiency with the better quality of raw materials and finished goods