Module 1 Business Information Flashcards
1
Q
ACCURATE information is?
A
- Accurate
- Complete
- Cost-benefical
- User-targeted
- Reliable
- Appropriate
- Timley
- Easy to use
2
Q
Internal users of managment information?
A
- The board of directors
- Management with functional responsibilities
- Section leaders
- Employees
3
Q
External users of managment information?
A
- Suppliers
- Customers
- Government agencies such as HMRC
- Providers of finance
4
Q
Internal sources of management information
A
- Financial accounting information extracted from software
- Internal documentation such as emails
- Documents which track progress of a project
- A stock management system
5
Q
External sources of management information
A
- Customers
- Suppliers
- The government
- Consultants
- Other business’ systems which are shared with yours
- The internet
- Social media
6
Q
How is managment information communicated?
A
- Voice over internet protocol
- Instant messaging
- Bulletin boards
- Microsoft Teams or other file-sharing software
- Screen sharing
- Blogs, Vlogs and online talks
7
Q
Key characteristics of management accounts
A
- Provides management information to the internal stakeholders
- Planning, Control, Decision-making & Peformance evaluation
- No statutory requirement
- Highly detailed and are disaggregated into different departments
- Management accounts incorporate non-monetary amounts
- Can show both a historical record and future plans
8
Q
Key characteristics of financial statements
A
- Provides management information to external stakeholders
- Stakeholders to assess ROI, ability to offer discounts, ability to repay debt and tax incurred
- CA 2006 requires companies incorporated to provide financial statments
- Follow formats laid out in the CA 2006 or IFRS
- Not as detailed and are often aggregated to show the entity on the whole
- Include mostly monetary amounts
- Report historical monetary amounts only
9
Q
A
