Managerial Accounting Exam 1
Review Questions and Answers
Cash Inflows - -Activities which increase cash
- Cash Outflows - -Activities which decrease cash
- Operating Activities - -Is the result of everything you do in the Day to Day
Operations, includes current assets and liabilities
- Investing Activities - -Is the buying and selling of long term assets and
short term investments; Equipment, building, and property; long term assets
and liabilities
- Financing Activities - -Is anything that affects the liability side of the
balance sheet; How you get capital; long term and short term borrowing,
payment of dividends and the buying and selling of the company stock
- Ending Cash Balance - Beginning Cash Balance - -Change in Cash Flow=
What formula?
- Financial Accounting - -Concerned with reporting financial information to
external parties, such as stockholders, creditors, and regulators.
- Managerial Accounting - -Concerned with providing information to
managers for use within the organization.
- Budget - -A detailed plan for the future that is usually expressed in formal
quantitative terms.
- Performance report - -Compares budgeted data to actual data in an effort
to identify and learn from excellent performance and to identify and
eliminate sources of unsatisfactory performance.
- Strategy - -A "game plan" that enables a company to attract customers by
distinguishing itself from competitors
- Business Process - -A series of steps that are followed in order to carry out
some task in a business.
- Value Chain - -Consists of the major business functions that add value to a
company's products and services
Review Questions and Answers
Cash Inflows - -Activities which increase cash
- Cash Outflows - -Activities which decrease cash
- Operating Activities - -Is the result of everything you do in the Day to Day
Operations, includes current assets and liabilities
- Investing Activities - -Is the buying and selling of long term assets and
short term investments; Equipment, building, and property; long term assets
and liabilities
- Financing Activities - -Is anything that affects the liability side of the
balance sheet; How you get capital; long term and short term borrowing,
payment of dividends and the buying and selling of the company stock
- Ending Cash Balance - Beginning Cash Balance - -Change in Cash Flow=
What formula?
- Financial Accounting - -Concerned with reporting financial information to
external parties, such as stockholders, creditors, and regulators.
- Managerial Accounting - -Concerned with providing information to
managers for use within the organization.
- Budget - -A detailed plan for the future that is usually expressed in formal
quantitative terms.
- Performance report - -Compares budgeted data to actual data in an effort
to identify and learn from excellent performance and to identify and
eliminate sources of unsatisfactory performance.
- Strategy - -A "game plan" that enables a company to attract customers by
distinguishing itself from competitors
- Business Process - -A series of steps that are followed in order to carry out
some task in a business.
- Value Chain - -Consists of the major business functions that add value to a
company's products and services
