Managerial Accounting Assignment

Running head: MANAGERIAL ACCOUNTING
Managerial Accounting
Name of the Student:
Name of the University:
Authors Note:

MANAGERIAL ACCOUNTING
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Table of Contents
Question I: Multiple Choice.......................................................................................................2
Question II:.................................................................................................................................3
Question III:...............................................................................................................................5
a. Calculating the amount of cash paid for insurance by Creative Company in 2016:..............5
b. Calculating the income statement for the year:......................................................................5
c. Calculating the amount of net working capital:.....................................................................5
d. Calculating the supplies purchased during the year:..............................................................6
Question IV:...............................................................................................................................6
Bibliography:..............................................................................................................................7

MANAGERIAL ACCOUNTING
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Question I: Multiple Choice
1. Answer is option E (The cash basis of accounting is consistent with GAAP)
2. Answer is option A (Accrual Basis Accounting)
3. Answer is option D (Office supplies expenses for the year 250 – 50 = 200)
4. Answer is option B
Particulars Value
Supplies purchased Closing + Purchases - Opening
Supplies purchased 400 + 3100 - 600
Supplies purchased 2900
5. Answer is option A (1, 6, 7, 8, 9, 14)
6. Answer is option B (liability on the balance sheet)
7. Answer is option A (120,000 / 4 = 30,000)
8. Answer is option C (Current portion of long-term debt: $200,000, Long-term debt:
$800,000)
9. Answer is option C (Deposited amount = 20500-4000 - (20500*2%) - (20500*2%) =
14,565)
10. Answer is option D (Is known obligation of an uncertain amount)
11. Answer is option A (Warranties)