Basic Considerations in MAS

Question 1

Management Functions

Planning
Directing and Motivating
Controlling
Decision Making

Answer 1

Planning - plan, strategize, choose the best
Directing and Motivating - overseeing
Controlling - actual vs standard, correct deviation
Decision Making - all 3

Question 2

Management Accounting vs Financial Accounting

Users
Time
Standard
Whole or business segment
Focus

Answer 2

MA | FA
Users - internal | external
Time - projected | historical
Standard - management needs | GAAP
Whole or business segment - segment | whole
Focus - timeliness and relevance | objectiveness and preciseness

Question 3

Standards of Ethical Conflict

COCI

Answer 3

Competence - maintain professional expertise, perform duties in accordance to standard

Objectivity/Credibility - disclose all relevant information

Confidentiality

Integrity - avoid conflict of interest, don’t discredit the profession

Question 4

Resolution of Ethical Conflict

Answer 4

immediate superior except if that superior is involved
- if immediate superior is CEO = go to groups (audit committee, BOD)
- if you will go above immediate superior = MUST be with knowledge of that superior

dont go outside business UNLESS violation of law

Question 5

Chief Financial Officer

Answer 5

consists of Controller and Treasurer

Question 6

Controller Functions

GET PREP

Answer 6

Government reporting
Evaluating and consulting
Tax administration
Protection of assets
Reporting and interpreting
Economic appraisal
Planning and control

Question 7

Treasurer Functions

BIPISIC

Answer 7

Banking and custody
Investor relations
Provision of capital
Investments
Short-term financing
Insurance
Credit and collections