EXAM 1

Question 1

Financial Accounting

Answer 1

External, Help users make investing and lending decisions
Income Statements, State of Retained Earnings, Balance sheet, State of Cash Flows.
SEC

Question 2

Managerial

Answer 2

Internal, Helps managers plan direct and control business operations, various reports.

Question 3

What does Financial Accounting Follow?

Answer 3

Follow GAAP/IFRS

Question 4

What does Managerial Follow?

Answer 4

Whatever Management wants

Question 5

What do we look for in Financial Accounting?

Answer 5

Historical, Past,

Reliable and Objective

Question 6

What do we look for in Managerial?

Answer 6

Future decisions

Numbers are Relevant

Question 7

What are the Business Unit In Financial Accounting?

Answer 7

Company as a whole

Question 8

What are the Business Unit in Managerial?

Answer 8

Sagments

Question 9

What are the Frequency of Financial?

Answer 9

Quarterly and anually

Question 10

What are the frequency of Managerial?

Answer 10

As needed

Question 11

What are the Verifications of Financial Accounting?

Answer 11

Audit by Independent CPA

Question 12

What are the Varifications of Managerial?

Answer 12

Some internal audit

Question 13

3 Basic Management Functions

Answer 13

Planning, Directing, COntrolling

Question 14

Planning

Answer 14

Set goals & create budget

Question 15

Directing

Answer 15

Put plan into action

Question 16

Controlling

Answer 16

Budget vs. actual

Question 17

Sarbanas- Oxlay Act of 2002

Answer 17

Management increased responsibility and review internal controls.
Stiffor penalties of fines for fraud
Emphasizes importance of character

Question 18

IMA- Statement of Ethical Professional Practice 4 Standards

Answer 18

1) Maintain professional competence
2) Pressure Confidentiality of info
3) Uphold their Integrity ( being honest and doing the right thing)
4) Credibility