UTA Accounting 2302 Exam 1 with answers

UTA Accounting 2302 Exam 1 with
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answers


What is managerial accounting? - CORRECT ANSWERS
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✔✔the process of identifying, measuring, analyzing,
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interpreting and communicating information for the |\ |\ |\ |\ |\ |\



pursuit of an organization's goals
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Managers' three primary responsibilities - CORRECT
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ANSWERS ✔✔Planning |\




Directing
Controlling


How managerial accounting fits in - CORRECT ANSWERS
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✔✔Managerial accounting building blocks |\ |\ |\




Determining unit cost |\ |\




Making decisions |\




Planning
Controlling and evaluating |\ |\




Differences between managerial accounting and financial
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accounting - CORRECT ANSWERS ✔✔The difference
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between financial and managerial accounting. ... In
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,general, financial accounting refers to the aggregation of
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accounting information into financial statements, while |\ |\ |\ |\ |\ |\



managerial accounting refers to the internal processes |\ |\ |\ |\ |\ |\ |\



used to account for business transactions
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Role of management accountants - CORRECT ANSWERS
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✔✔collecting, recording and reporting financial data from |\ |\ |\ |\ |\ |\ |\



several units of an organization, observe and analyze
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their budget and suggest their funding and allocation.
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How can accounting help solve the business issue, event,
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or problem? - CORRECT ANSWERS ✔✔Management
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accounting always begins with some relevant business |\ |\ |\ |\ |\ |\ |\



issue that management is facing or some economic event
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that occurred in the past or might occur in the future.
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Management accounting is used to shed light on the issue |\ |\ |\ |\ |\ |\ |\ |\ |\



and direct management's path.
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What are the "gray areas"? - CORRECT ANSWERS
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✔✔assumptions, estimates, measurement choices, and |\ |\ |\ |\ |\



judgment calls might impact the information that is used
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for decision making? Because of the gray areas and
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judgment involved, accounting numbers are rarely as|\ |\ |\ |\ |\ |\ |\



precise as they may seem. |\ |\ |\ |\




What are the implications for the business if the
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accounting information used in |\ |\ |\

, the decision is "wrong"? - CORRECT ANSWERS
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✔✔Because of the gray areas, it's difficult to say that |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



accounting information is ever "wrong." However, |\ |\ |\ |\ |\ |\



judgment in these gray areas could lead to financial |\ |\ |\ |\ |\ |\ |\ |\ |\



estimates that are on the high side or on the low side. |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



What are the consequences of numbers that are too high
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or too low? Would estimates that are "off" in one direction
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be worse than the other direction?
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how does accounting relate to entrepreneurs - CORRECT
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ANSWERS ✔✔If you are planning to be an entrepreneur, |\ |\ |\ |\ |\ |\ |\ |\ |\



you'll first want to know if your business idea makes
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financial sense. How high will volume have to be for your
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business to at least break even? How high will it have to
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be for your business to earn the level of profit that you
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want to achieve? |\ |\




how does accounting relate to business management -
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CORRECT ANSWERS ✔✔if you are planning to be a |\ |\ |\ |\ |\ |\ |\ |\ |\



general business manager, not a day will go by in which
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you don't consider the financial ramifications of your
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decisions. You'll need to have a firm grasp on the costs of |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\ |\



obtaining or manufacturing every product you sell and/or |\ |\ |\ |\ |\ |\ |\ |\



every service you deliver. You'll also want to understand
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how costly every activity within the company is to
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perform and have specific strategies in hand for |\ |\ |\ |\ |\ |\ |\ |\



controlling and reducing those costs. |\ |\ |\ |\