WSU Accounting 231 Exam 1 Questions
with complete solution || LATEST
UPDATE 2026
Prolouge -CORRECTANSWER
What is financial and managerial accounting and how do they differ? -
CORRECTANSWER Financial accounting is concerned with reporting financial
information to external parties such as stockholders and creditors. Managerial
accounting provides information to managers for use within the organization.
What are the six business management perspectives described in "Beyond the
Numbers?" -CORRECTANSWER Ethics, strategic management, enterprise risk
management, corporate social responsibility, process management, and leadership
perspective.
What is the ethics perspective? -CORRECTANSWER It is vitally important that
business be conducted within an ethical framework that builds and sustains trust.
What is the strategic management perspective? -CORRECTANSWER A "game plan"
that enables a company to attract customers by distinguishing itself from competitors.
, What is the enterprise risk management perspective? -CORRECTANSWER A process
used by a company to identify the risks and develop responses to them that enable it to
be reasonably assured of meeting it's goals.
What is the corporate social responsibility perspective? -CORRECTANSWER To serve
other stakeholders such as customers, competitors, employees, human rights
advocates etc. whose interests are tied to the company's performance.
What is the process management perspective? -CORRECTANSWER Series of steps
that are followed in order to carry out some task in a business.
What is the leadership perspective? -CORRECTANSWER To unite the behaviors of
their fellow employees around two common themes- pursuit strategic goals and making
optimal decisions.
Chapter 1 -CORRECTANSWER
What is a direct cost? -CORRECTANSWER Costs that can be easily traced to a unit of
product or other cost object.
(Ex: direct materials and direct labor).
What is an indirect cost? -CORRECTANSWER Costs that cannot be easily traced to a
unit of product or other cost object.
with complete solution || LATEST
UPDATE 2026
Prolouge -CORRECTANSWER
What is financial and managerial accounting and how do they differ? -
CORRECTANSWER Financial accounting is concerned with reporting financial
information to external parties such as stockholders and creditors. Managerial
accounting provides information to managers for use within the organization.
What are the six business management perspectives described in "Beyond the
Numbers?" -CORRECTANSWER Ethics, strategic management, enterprise risk
management, corporate social responsibility, process management, and leadership
perspective.
What is the ethics perspective? -CORRECTANSWER It is vitally important that
business be conducted within an ethical framework that builds and sustains trust.
What is the strategic management perspective? -CORRECTANSWER A "game plan"
that enables a company to attract customers by distinguishing itself from competitors.
, What is the enterprise risk management perspective? -CORRECTANSWER A process
used by a company to identify the risks and develop responses to them that enable it to
be reasonably assured of meeting it's goals.
What is the corporate social responsibility perspective? -CORRECTANSWER To serve
other stakeholders such as customers, competitors, employees, human rights
advocates etc. whose interests are tied to the company's performance.
What is the process management perspective? -CORRECTANSWER Series of steps
that are followed in order to carry out some task in a business.
What is the leadership perspective? -CORRECTANSWER To unite the behaviors of
their fellow employees around two common themes- pursuit strategic goals and making
optimal decisions.
Chapter 1 -CORRECTANSWER
What is a direct cost? -CORRECTANSWER Costs that can be easily traced to a unit of
product or other cost object.
(Ex: direct materials and direct labor).
What is an indirect cost? -CORRECTANSWER Costs that cannot be easily traced to a
unit of product or other cost object.
