ACG 2071 CH.1 Questions with Verified
Correct Answers
manangerial accounting
process by which managers identify, analyze, measure, and interpret information
planning decisions
Managerial accountants set goals and lay out exactly how they intend to reach those goals
(usually long-term)
directing decisions
Managerial accountants make decisions about day-to-day nonsense (usually short-term)
Ex: Analyzing a sales report
controlling decisions
managerial accountants have to get a handle on the business i.e. compare what they expected
to happen to what actually happened
e.g. comparing budgeted and actual expenses
- post game
Purpose of information provided in financial accounting vs managerial
Financial: investing and/or lending
Managerial: making decisions, planning, directing, and controlling
who uses information in financial accounting vs managerial
Financial: external users
Managerial: Internal users (managers)
What kind of information gets created in in financial accounting vs managerial
, Financial: financial statements (balance sheet, etc..)
Managerial: internal reports
What is the format in which information is created in financial accounting vs
managerial
Financial: it's mostly governed by GAAP
Managerial: mostly governed by managers
what kind of information is provided in reports in financial accounting vs managerial
Financial: historical information (past)
Managerial: future (predicted information)
what matters to the users of the information in financial accounting vs managerial
Financial: its the verifiability of the information
Managerial: its the relevance of the information
when (at what frequency) are reports prepared in financial accounting vs managerial
Financial: quarterly or annually
Managerial: at the managers request
what gets analyzed in the reports in financial accounting vs managerial
Financial: the overall company (big picture)
Managerial: the segments of the company
what type of data gets analyzed in financial accounting vs managerial
Financial: purely quantitative info $$
Managerial: both quantitative and qualitive info
what are the requirements of the information in financial accounting vs managerial
Correct Answers
manangerial accounting
process by which managers identify, analyze, measure, and interpret information
planning decisions
Managerial accountants set goals and lay out exactly how they intend to reach those goals
(usually long-term)
directing decisions
Managerial accountants make decisions about day-to-day nonsense (usually short-term)
Ex: Analyzing a sales report
controlling decisions
managerial accountants have to get a handle on the business i.e. compare what they expected
to happen to what actually happened
e.g. comparing budgeted and actual expenses
- post game
Purpose of information provided in financial accounting vs managerial
Financial: investing and/or lending
Managerial: making decisions, planning, directing, and controlling
who uses information in financial accounting vs managerial
Financial: external users
Managerial: Internal users (managers)
What kind of information gets created in in financial accounting vs managerial
, Financial: financial statements (balance sheet, etc..)
Managerial: internal reports
What is the format in which information is created in financial accounting vs
managerial
Financial: it's mostly governed by GAAP
Managerial: mostly governed by managers
what kind of information is provided in reports in financial accounting vs managerial
Financial: historical information (past)
Managerial: future (predicted information)
what matters to the users of the information in financial accounting vs managerial
Financial: its the verifiability of the information
Managerial: its the relevance of the information
when (at what frequency) are reports prepared in financial accounting vs managerial
Financial: quarterly or annually
Managerial: at the managers request
what gets analyzed in the reports in financial accounting vs managerial
Financial: the overall company (big picture)
Managerial: the segments of the company
what type of data gets analyzed in financial accounting vs managerial
Financial: purely quantitative info $$
Managerial: both quantitative and qualitive info
what are the requirements of the information in financial accounting vs managerial
