Chapter 1

Question 1

What are a Manager’s Duties?

Answer 1

1. Planning
2. Directing and Motivating
3. Controlling
4. Decision Making
5. Budgeting

Question 2

What is the role of Managerial Accounting?

Answer 2

to assist managers by providing them with relevant information to improve their decision making process

Question 3

What are the characteristics of Financial Accounting?

Answer 3

External users
Emphasis on past performance
Emphasis on objectivity and verifiability
Emphasis on precision
Summary reports
Must follow GAAP/IFRS
Mandatory for external reporting

Question 4

What are the characteristics of Managerial Accounting?

Answer 4

Internal users
Emphasis on future performance
Emphasis on relevance
Emphasis on timeliness
Detailed reports
No GAAP/IFRS
Not mandatory