Ch 1 M-A Flashcards

1
Q

Accounting information system (AIS)

A

A transaction-processing system that captures financial data resulting from accounting transactions within a company

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2
Q

Financial accounting

A

The area of accounting concerned primarily with the preparation and use of financial statements by creditors, investors, and other users outside the company

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3
Q

Managerial accounting

A

The area of accounting concerned primarily with generating financial and non-financial information for use by managers in their decision-making roles within a company

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4
Q

External users

A

Stockholders, potential investors, creditors, government taxing agencies, regulators, suppliers, customers, and other outside the company

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5
Q

Stakeholder

A

Any person or group that either affects or is affected by the company’s actions and decisions. Includes both external and internal users

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6
Q

What type of information do external users need?

A

Stockholders and potential investors want information to help them analyze the current and future profitability of an organization

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7
Q

What three parts primary activities are managers involved in?

A

planning, operating, and controlling

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8
Q

Internal users

A

Individual employees, teams, departments, regions, top management, and other insider the company - often referred to as managers

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9
Q

Planning

A

The development of both the short-term (operational) and long-term (strategic) objectives and goals of an organization and the identification of the resources needed to achieve them

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10
Q

Operational planning

A

The development of short-term objectives and goals (typically, those to be achieved in less than one year).

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11
Q

Strategic planning

A

Addresses long-term questions of how an organization positions and distinguishes itself from competitors

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12
Q

Operating activities

A

The day-to-day operations of a business

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13
Q

Controlling activities

A

The motivation and monitoring of employees and the evaluation of people and other resources used in the operation of the organization

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14
Q

Operations and production function

A

Produces the product or services that an organization sells to its customers

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15
Q

Marketing function

A

Involved with the process of developing, pricing, promoting, and distributing goods and services sold to customer

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16
Q

Finance function

A

Responsible for managing the financial resources of the organization

17
Q

Human resource function

A

Concerned with the utilization of human resources to help an organization reach its goals

18
Q

Decision making

A

The process of identifying alternative course of action and selecting an appropriate alternative in a given decision-making situation

19
Q

Relevant costs

A

Costs which differ among alternatives

20
Q

Sunk costs

A

Costs that have already been incurred

21
Q

Opportunity costs

A

The benefits forgone by choosing one alternative over another

22
Q

Ethics programs

A

Company programs or policies created for the express purpose of establishing and maintaining an ethical business environment

23
Q

Data

A

Reports such as financial statements, customer lists, and inventory records

24
Q

Information

A

Data that have been organized, processed, and summarized