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there is only one right answer among the answers. Which one of these is the right answer? with a brief explanation.

1-

MA stands for Managerial Accounting. FA, for Financial Accounting.

a) International Financial Reporting Standards (IFRS) and Generally Accepted Accounting practices disregard FA

b) Investors and lenders have a particular or superior interest in MA that they dont have in FA.

c) MA is historically older and FA was developed from MA

d) FA classifies costs according to behavior, while MA does it according to its traceability.

e) There is no legal standard for MA and the statements MA provides follow a different format.

f) MA accounts for Cost of Goods Sold account, while FA doesnt

2-

a) The materials used to manufacture a product are a cost and never become an expense.

b) All expenses have to be matched against revenue in an Income Statement, but costs have nothing to do with it.

c) The materials used to manufacture a product are a cost and their cost will become an expense when the product is sold.

d) Labor is always an expense and never a cost.

e) Sales revenue is calculated from both costs and expenses.

f) Labor minus expenses equals cost of goods sold at the end of the year.

3-

a) Service companies hold short term inventories of goods.

b) Manufacturing companies hold inventories, while merchant companies dont.

c) Inventory accounts list both the cost of acquisition of goods and administrative expenses.

d) Service companies accounting doesnt include any accounts for inventories. That of merchant companies does.

e) Manufacturing companies do not hold neither inventories of materiales nor inventories of finished goods.

f) In the manufacturing process, inventories of labor and work-in-process are essential.

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