Acct 526 Final Study Guide Questions And Correct Answers

select the correct statement regarding the accrual basis of accounting {Ans: all of the above are correct! (A. accrual accounting is the process through which revenues and expenses are recognized before cash if exchanged. B. when accrual accounting is applied, revenue and expense items recognized in the current period may have cash consequences in a later period. C. revenue and expense items recognized in a past period may result in a cash receipts or payments that materialize in the current period.)}which of the following is generally the first step in preparing the master budget? {Ans: sales budget}which of the following are risks of outsourcing the production of a part? {Ans: all of these are risks of outsourcing! (Unscheduled price increase, unreliable delivery, unpredictable quality.)}cash flows are reported on the statement of cash flows in which of the following sequences? {Ans: operating, investing, financing}the practice of delegating authority and responsibility is referred to as {Ans: decentralization}in a revenue center, performance of the center manager is evaluated by {Ans: ability to generate sales revenue}