Ch 1 on Lab

Question 1

Help creditors make lending decisions

Answer 1

Financial accounting

Question 2

Summary reports prepared quarterly or annually

Answer 2

Financial accounting

Question 3

Is not required to follow GAAP

Answer 3

Managerial Accounting

Question 4

Helps in planning, directing, and controlling operations

Answer 4

Managerial Accounting

Question 5

Has focus on the future

Answer 5

Managerial Accounting

Question 6

Which is not a characteristic of management accounting​ information?

A.Emphasizes the external financial statements

B.Provides detailed information about individual parts of the company

C.Emphasizes relevance

D.Focuses on the future

Answer 6

A.Emphasizes the external financial statements

Question 7

World-class businesses use which of these systems to integrate all of a​ company’s worldwide​ functions, departments, and data into a single​ system?

A.Cost standards

B.Enterprise resource planning

C.Just-in-time management

D.Items​ a, b, and c are correct.

Answer 7

B.Enterprise resource planning

Question 8

Helps investors make investment decisions.

Answer 8

Financial accounting

Question 9

B.Provides detailed reports on parts of the company.

Answer 9

Managerial Accounting

Question 10

c.Helps in planning and controlling operations.

Answer 10

Managerial Accounting

Question 11

d.Reports must follow Generally Accepted Accounting Principles (GAAP).

Answer 11

Financial accounting

Question 12

e.Reports audited annually by independent certified public accountants.

Answer 12

Financial accounting

Question 13

1. A philosophy designed to integrate all organizational areas in order to provide customers with superior products and services while meeting organizational objectives. Requires improving quality and eliminating defects and waste.

Answer 13

Total quality management

Question 14

.

2. Use of the Internet for business functions such as sales and customer service. Enables companies to reach customers around the world.

Answer 14

E-commerce

Question 15

3.Evaluating a company’s performance by its economic, social, and environmental impact.

Answer 15

Triple bottom line

Question 16

.

4.Software system that integrates all of a company’s functions, departments, and data into a single system.

Answer 16

Enterprise resource planning

Question 17

5. A system in which a company produces products just when they are needed to satisfy needs. Suppliers deliver materials when they are needed to begin production, and finished units are completed at the right time for delivery to customers.

Answer 17

Just in Time

Question 18

a. Providing earnings information to your brother before it is publicly announced violates the___________ standard.

Answer 18

Confidentiality

Question 19

b. Stealing from your employer is a violation of the
___________ standard.

Answer 19

Integrity

Question 20

c. Skipping continuing education sessions could violate the requirement to maintain professional ___________. If your company paid for you to attend the​ conference, skipping the sessions also violates the ________ standard.

Answer 20

1. Competence
2. Integrity

Question 21

d. Failing to read the specifications of the software package before purchasing it violates the __________ standard.

Answer 21

Competence

Question 22

e. Failing to provide top management with detailed job description information violates the __________ standard. If you did not provide the information because you fear losing your position also violates the ________ standard.

Answer 22

1. Credibility
2. Integrity

Question 23

a. Accounting systems that must follow GAAP

Answer 23

Financial

Question 24

B. External parties for whom financial accounting reports are prepared.

Answer 24

Creditors and stockholders

Question 25

C. The role managers play when they are monitoring day-to-day operations and keeping the company on track.

Answer 25

Controlling

Question 26

D. Internal decision makers.

Answer 26

Managers

Question 27

e. Accounting system that provides information on a company’s past performance.

Answer 27

Financial

Question 28

f. Accounting system not restricted by GAAP.

Answer 28

Managerial

Question 29

g. The management function that involves choosing goals and deciding how to achieve them.

Answer 29

Planning

Question 30

a. A management system that focuses on maintaining lean inventories
while producing products as needed by the customer.

Answer 30

Just in Time

Question 31

b. A philosophy designed to integrate all organizational areas in order to
provide customers with superior products and services while meeting organizational objectives.

Answer 31

Total quality management

Question 32

c. Integrates all of a company’s functions, departments, and data into a
Enterprise resource planning single system.

Answer 32

Enterprise resource planning ERP

Question 33

d. Adopted by firms to conduct business on the Internet.

Answer 33

E-commerce

Question 34

Today’s business environment is characterized by

A. global competition.

B. time-based competition.

C. a shift towards a service economy.

D. Items​ a, b, and c are correct.

Answer 34

D. Items a, B, and C are correct