UTA Accounting 2302 Exam 1 UPDATED
ACTUAL Exam Questions and CORRECT
Answers
What is managerial accounting? - CORRECT ANSWER - the process of identifying,
measuring, analyzing, interpreting and communicating information for the pursuit of an
organization's goals
Managers' three primary responsibilities - CORRECT ANSWER - Planning
Directing
Controlling
How managerial accounting fits in - CORRECT ANSWER - Managerial accounting
building blocks
Determining unit cost
Making decisions
Planning
Controlling and evaluating
Differences between managerial accounting and financial accounting - CORRECT
ANSWER - The difference between financial and managerial accounting. ... In general,
financial accounting refers to the aggregation of accounting information into financial
statements, while managerial accounting refers to the internal processes used to account for
business transactions
Role of management accountants - CORRECT ANSWER - collecting, recording and
reporting financial data from several units of an organization, observe and analyze their budget
and suggest their funding and allocation.
How can accounting help solve the business issue, event, or problem? - CORRECT
ANSWER - Management accounting always begins with some relevant business issue that
,management is facing or some economic event that occurred in the past or might occur in the
future. Management accounting is used to shed light on the issue and direct management's path.
What are the "gray areas"? - CORRECT ANSWER - assumptions, estimates, measurement
choices, and judgment calls might impact the information that is used for decision making?
Because of the gray areas and judgment involved, accounting numbers are rarely as precise as
they may seem.
What are the implications for the business if the accounting information used in
the decision is "wrong"? - CORRECT ANSWER - 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 or too low? Would estimates that are "off" in one direction be worse
than the other direction?
how does accounting relate to entrepreneurs - CORRECT ANSWER - If you are planning
to be an entrepreneur, you'll first want to know if your business idea makes financial sense. How
high will volume have to be for your business to at least break even? How high will it have to be
for your business to earn the level of profit that you want to achieve?
how does accounting relate to business management - CORRECT ANSWER - if you are
planning to be a general business manager, not a day will go by in which you don't consider the
financial ramifications of your 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 how costly every activity within the company is to perform and have specific
strategies in hand for controlling and reducing those costs.
how does accounting relate to marketing and sales - CORRECT ANSWER - If you are
planning to be in marketing and sales, your marketing strategy, assumptions, and predictions will
be the driving force behind the company's entire budget. As a result, you will be intimately
involved with developing the budget. Product-line profitability reports will show you which
products are most profitable and will guide your decisions about which products to emphasize.
how does accounting relate to - CORRECT ANSWER - Even if you are planning to be a
nurse, engineer, musician, or fashion designer, the information you learn in this course will be of
, consequence to you. All organizations, including nonprofits and governmental agencies, use cost
and revenue information to guide their plans, actions, and decisions.
Chief Operating Officer (COO) - CORRECT ANSWER - the position responsible for
overseeing the company's operations
Chief Financial Officer (CFO) - CORRECT ANSWER - a high-level corporate executive
who manages a firm's finances and reports directly to the company's chief executive officer or
president
Treasurer - CORRECT ANSWER - employee responsible for the management of a
company's cash
Controller - CORRECT ANSWER - oversees taxes, cost accounting, financial accounting
and data processing
Internal audit department - CORRECT ANSWER - The cashier deposits checks for
Benedek Incorporated and also prepares payments to vendors. Of the following, who is BEST
able to reconcile the bank statement to Benedek's records on a regular basis
Audit Committee - CORRECT ANSWER - the outside, independent board of director
members responsible for financial reporting, regulatory compliance, internal control, and hiring
and overseeing internal and external auditors
Institute of Management Accountants (IMA) - CORRECT ANSWER - the professional
organization that promotes the advancement of the management accounting profession
Certified Management Accountant (CMA) - CORRECT ANSWER - a professional
accountant who has met certain educational and experience requirements, passed a qualifying
exam, and been certified by the Institute of Certified Management Accountants
IMA's Statement of Ethical Professional Practice - CORRECT ANSWER - Competence
ACTUAL Exam Questions and CORRECT
Answers
What is managerial accounting? - CORRECT ANSWER - the process of identifying,
measuring, analyzing, interpreting and communicating information for the pursuit of an
organization's goals
Managers' three primary responsibilities - CORRECT ANSWER - Planning
Directing
Controlling
How managerial accounting fits in - CORRECT ANSWER - Managerial accounting
building blocks
Determining unit cost
Making decisions
Planning
Controlling and evaluating
Differences between managerial accounting and financial accounting - CORRECT
ANSWER - The difference between financial and managerial accounting. ... In general,
financial accounting refers to the aggregation of accounting information into financial
statements, while managerial accounting refers to the internal processes used to account for
business transactions
Role of management accountants - CORRECT ANSWER - collecting, recording and
reporting financial data from several units of an organization, observe and analyze their budget
and suggest their funding and allocation.
How can accounting help solve the business issue, event, or problem? - CORRECT
ANSWER - Management accounting always begins with some relevant business issue that
,management is facing or some economic event that occurred in the past or might occur in the
future. Management accounting is used to shed light on the issue and direct management's path.
What are the "gray areas"? - CORRECT ANSWER - assumptions, estimates, measurement
choices, and judgment calls might impact the information that is used for decision making?
Because of the gray areas and judgment involved, accounting numbers are rarely as precise as
they may seem.
What are the implications for the business if the accounting information used in
the decision is "wrong"? - CORRECT ANSWER - 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 or too low? Would estimates that are "off" in one direction be worse
than the other direction?
how does accounting relate to entrepreneurs - CORRECT ANSWER - If you are planning
to be an entrepreneur, you'll first want to know if your business idea makes financial sense. How
high will volume have to be for your business to at least break even? How high will it have to be
for your business to earn the level of profit that you want to achieve?
how does accounting relate to business management - CORRECT ANSWER - if you are
planning to be a general business manager, not a day will go by in which you don't consider the
financial ramifications of your 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 how costly every activity within the company is to perform and have specific
strategies in hand for controlling and reducing those costs.
how does accounting relate to marketing and sales - CORRECT ANSWER - If you are
planning to be in marketing and sales, your marketing strategy, assumptions, and predictions will
be the driving force behind the company's entire budget. As a result, you will be intimately
involved with developing the budget. Product-line profitability reports will show you which
products are most profitable and will guide your decisions about which products to emphasize.
how does accounting relate to - CORRECT ANSWER - Even if you are planning to be a
nurse, engineer, musician, or fashion designer, the information you learn in this course will be of
, consequence to you. All organizations, including nonprofits and governmental agencies, use cost
and revenue information to guide their plans, actions, and decisions.
Chief Operating Officer (COO) - CORRECT ANSWER - the position responsible for
overseeing the company's operations
Chief Financial Officer (CFO) - CORRECT ANSWER - a high-level corporate executive
who manages a firm's finances and reports directly to the company's chief executive officer or
president
Treasurer - CORRECT ANSWER - employee responsible for the management of a
company's cash
Controller - CORRECT ANSWER - oversees taxes, cost accounting, financial accounting
and data processing
Internal audit department - CORRECT ANSWER - The cashier deposits checks for
Benedek Incorporated and also prepares payments to vendors. Of the following, who is BEST
able to reconcile the bank statement to Benedek's records on a regular basis
Audit Committee - CORRECT ANSWER - the outside, independent board of director
members responsible for financial reporting, regulatory compliance, internal control, and hiring
and overseeing internal and external auditors
Institute of Management Accountants (IMA) - CORRECT ANSWER - the professional
organization that promotes the advancement of the management accounting profession
Certified Management Accountant (CMA) - CORRECT ANSWER - a professional
accountant who has met certain educational and experience requirements, passed a qualifying
exam, and been certified by the Institute of Certified Management Accountants
IMA's Statement of Ethical Professional Practice - CORRECT ANSWER - Competence
