MANAGERIAL ACCOUNTING FOR DECISION
MAKERS HANLON COMPREHENSIVE STUDY
QUESTIONS AND ANSWERS
◉ Bookkeeping.
Answer: the preservation of a systematic, quantitative record of an
activity
◉ accounting system.
Answer: used by a business to handle routine bookkeeping tasks and
to structure the information so it can be used to evaluate the
performance and financial status of the business
◉ Accounting information.
Answer: Info that is intended to be useful in making decisions about
the future.
◉ The balance sheet, the income statement, and the statement of
cashflows.
Answer: What are the three primary financial statements?
◉ External Users.
,Answer: Who is financial accounting information primarily prepared
for and used by?
◉ Managerial Accounting.
Answer: the name given to accounting systems designed for internal
users
◉ Balance Sheet.
Answer: Reports a company's assets, liabilities, and owners' equity
◉ Income Statement.
Answer: reports the amount of net income earned by a company
during a period
◉ Net income.
Answer: the excess of a company's revenues over its expenses
◉ statement of cash flows.
Answer: reports the amount of cash collected and paid out by a
company in the following three types of activities: operating,
investing, and financing
◉ FASB.
, Answer: Which private body establishes accounting rules in the U.S.?
◉ Financial Accounting Standards Board (FASB).
Answer: a private body established and supported by the joint
efforts of the U.S. business community, financial analysts, and
practicing accountants
◉ The Securities and Exchange Commission (SEC).
Answer: the organization that regulates U.S. stock exchanges and
seeks to create a fair information environment in which investors
can buy and sell stocks without fear that companies are hiding or
manipulating financial data
◉ American Institute of Certified Public Accountants (AICPA).
Answer: the professional organization of certified public
accountants (CPAs) in the United States
◉ Public Company Accounting Oversight Board (PCAOB).
Answer: the organization that inspects the audit practices of
registered audit firms and has statutory authority to investigate
questionable audit practices and to impose sanctions such as
barring an audit firm from auditing SEC-registered companies
◉ Internal Revenue Service (IRS).
MAKERS HANLON COMPREHENSIVE STUDY
QUESTIONS AND ANSWERS
◉ Bookkeeping.
Answer: the preservation of a systematic, quantitative record of an
activity
◉ accounting system.
Answer: used by a business to handle routine bookkeeping tasks and
to structure the information so it can be used to evaluate the
performance and financial status of the business
◉ Accounting information.
Answer: Info that is intended to be useful in making decisions about
the future.
◉ The balance sheet, the income statement, and the statement of
cashflows.
Answer: What are the three primary financial statements?
◉ External Users.
,Answer: Who is financial accounting information primarily prepared
for and used by?
◉ Managerial Accounting.
Answer: the name given to accounting systems designed for internal
users
◉ Balance Sheet.
Answer: Reports a company's assets, liabilities, and owners' equity
◉ Income Statement.
Answer: reports the amount of net income earned by a company
during a period
◉ Net income.
Answer: the excess of a company's revenues over its expenses
◉ statement of cash flows.
Answer: reports the amount of cash collected and paid out by a
company in the following three types of activities: operating,
investing, and financing
◉ FASB.
, Answer: Which private body establishes accounting rules in the U.S.?
◉ Financial Accounting Standards Board (FASB).
Answer: a private body established and supported by the joint
efforts of the U.S. business community, financial analysts, and
practicing accountants
◉ The Securities and Exchange Commission (SEC).
Answer: the organization that regulates U.S. stock exchanges and
seeks to create a fair information environment in which investors
can buy and sell stocks without fear that companies are hiding or
manipulating financial data
◉ American Institute of Certified Public Accountants (AICPA).
Answer: the professional organization of certified public
accountants (CPAs) in the United States
◉ Public Company Accounting Oversight Board (PCAOB).
Answer: the organization that inspects the audit practices of
registered audit firms and has statutory authority to investigate
questionable audit practices and to impose sanctions such as
barring an audit firm from auditing SEC-registered companies
◉ Internal Revenue Service (IRS).
