ACCT Chapter 1

Question 1

Information on a company’s past performance is provided to external parties by

Answer 1

Financial Accounting

Question 2

__________ systems are chosen by comparing the costs versus the benefits of the system and are not restricted by GAAP (or International Financial Reporting Standards, IFRS, in the case of companies headquartered in many countries outside of the United States).

Answer 2

Managerial Accounting

Question 3

_______ systems report on various segments or business units of the company.

Answer 3

Managerial Accounting

Question 4

Financial accounting develops reports for external parties such as

Answer 4

Creditors & Shareholders

Question 5

When managers evaluate the company’s performance compared to the plan, they are performing the ________ role of management.

Answer 5

Controlling

Question 6

CPAs audit the ______ statements of public companies.

Answer 6

Financial Accounting

Question 7

Companies must follow GAAP (or International Financial Reporting Standards, IRFS, in the case of companies headquartered in many countries outside of the United States) in their _____ systems.

Answer 7

Financial Accounting

Question 8

Choosing goals and the means to achieve them is the ____ function of management.

Answer 8

Planning