Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Managerial Accounting > Chapter 1 > Flashcards

Chapter 1 Flashcards

1
Q

Identify managers four primary responsibilities

A

Planning

Directing

Controlling

Decision Making

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What does planning involve?

A

Setting goals and objectives

-Determining how to achieve them

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Directing pertains to overseeing what?

A

A company’s day-to-day operations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What does controlling involve?

A

Evaluating the results of business operations against the plan and making adjustments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

TRUE or FALSE

Management engages in decision making while it plans, directs and controls operations

A

TRUE

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Managerial versus Financial Accounting:

Who Are the Primary Users of the Information?

A

MA - Internal users such as Managers

FA - External users such as creditors, shareholders, government regulators

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Managerial versus Financial Accounting:

What is the purpose of the information?

A

MA - Help managers in business operations and decision making

FA - Help external users make investing and lending decisions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Managerial versus Financial Accounting:

What is the primary accounting product?

A

MA - Any internal accounting report deemed worthwhile by management

FA - Financial statements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Managerial versus Financial Accounting:

What must be included in the report and how must it be formatted?

A

MA - Management determines what it wants to report. Only prepared when the benefit is expected to exceed the cost to prepare the report

FA - Standards are chosen between IFRS (international financial reporting standards) or ASPE (Accounting standards for Private Enterprises)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Managerial versus Financial Accounting:

What is the underlying basis of the information?

A

MA - Focuses on the future, and provides info on external and internal transactions

FA - Based on historical transactions with external parties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Managerial versus Financial Accounting:

What information characteristic is emphasized?

A

MA - The data must be relevant

FA - the data must be reliable and objective

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Managerial versus Financial Accounting:

What business unit is the report about?

A

MA - Segments of the business (i.e departments, products, geographical regions)

FA - the company as a whoe

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Managerial versus Financial Accounting:

How often are the reports prepared?

A

MA - Depends on managers needs. Some can be daily, wheras some may only be produced once

FA- Annually and Quarterly

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Managerial versus Financial Accounting:

Does anyone verify the information?

A

MA- No independend audits. Company may have internal auditors

FA - Independent certified public accountants audit the annual financial statements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Managerial versus Financial Accounting:

Is the information required by an outside group/goverment agency?

A

MA - No

FA - Yes, each province has a securities commission that required publically traded companies to issue annual audited financial statements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Managerial versus Financial Accounting:

Is there any concern over how the reports will affect employee behaviour?

A

MA - Yes, management carefully considers begavioural implications when designeing the managerial accounting system

FA - The primary concern is about adequacy of disclosure

17
Q

Shareholders elect a _________ to oversee the company

A

board of directors

18
Q

An organizations baord only meets periodically, so it hires a ______ to manage on a daily basis

A

CEO (chief executive officer)

19
Q

What other executives does the CEO hire?

A

COO (chief operating officer) and CFO (chief financial officer)

20
Q

The treasurer and controller report directly to the ____

A

CFO

21
Q

Click to review some of the important results of the SOX regulations

A

CEO/CFO take responsibility for the company’s financial statements, internal control system, and procedures for financial reporting

Audit commitee must be independent and should include a financial expert

New requirements for public accounting firsm, including limited non-audit services for audit clients and periodic quality review

Stiffer imprison,emt and monetary fines for white collar crimes

22
Q

As a result of globalization, many companies have recently moved to adopt what reporting standard for publically traded companies?

A

International Financial Reporting Standard (IFRS)

23
Q

____ uses a coding system to tag aspects of financial data. It also allows companies ot release information in a format that is eddiciently accessed, sorted and analyzed.

A

Extensible Business Reporting Language (XBRL)

Managerial Accounting (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions