CH 1 vocab

Question 1

Define Chief executive officer (CEO)

Answer 1

The highest ranking executive in an organization. The CEO is responsible for carrying out the policies of the board of directors on a day to day basis

Question 2

Define Chief Financial officer ( CFO)

Answer 2

The person in an organization who oversees all accounting and finance functions

Question 3

Define Chief internal auditor (CIA)

Answer 3

The person in an organization who oversees the internal audit function.

Question 4

Define Control decisions

Answer 4

Decisions related to motivating, monitoring , and evaluating performance

Question 5

Define Controller

Answer 5

The person in an organization who manages the day to day accounting and issues guidance concerning corporate accounting policies

Question 6

Define Decision

Answer 6

Choosing an option from a set of options to achieve a goal

Question 7

Define Decision framework

Answer 7

A four step process that consists of specifying the decision goals, identifying available options, evaluating these options, and then selecting the option that best meets the decisions maker’s goals

Question 8

Define financial accouting

Answer 8

Accounting information system that aims to meet the needs of decision makers outside the organziation

Question 9

Define Goals

Answer 9

Objectives that decision makers try to achieve

Question 10

Define managerial accounting

Answer 10

accounting information system that aims to meet the needs of decision makers inside an organization

Question 11

Define Opportunity Cost

Answer 11

The value of the next best option

Question 12

Define Organization

Answer 12

A group of individuals engaged in a collectively beneficial mission

Question 13

Define Organization chart

Answer 13

A graphical representation of the hierarchical relations among positions in an organization

Question 14

Define Planning decisions

Answer 14

Decisions about acquiring and using resources to deliver products and services to customers

Question 15

Define Shareholder value

Answer 15

The long run expected wealth potential of an organization to its shareholders

Question 16

Define Treasurer

Answer 16

The person in an organization who manages cash flows and serves as the contact point for banks, bondholders, and other creditors.

Question 17

Define Value

Answer 17

The benefits less the costs of a decision option. Businesses often measure this as the incremental profit or cash flow associated with an option relative to “business as usual”( not doing anything.