ACG 2071 Exam 1 Questions with Correct Answers

ACG 2071 Exam 1 Questions with Correct Answers


Question 1:
External Users Accounting Info
Answer:
Guided by rules, not flexible, historical, looks at company as a whole. (Shareholders, creditors,
potential investors, govt agencies.)


Question 2:
Internal Users Accounting Info
Answer:
No rules, flexible, looks at the future, segmented information. (Employees, managers)


Question 3:
Role of Managerial Accountant
Answer:
Analyze and interpret accounting information and assists management in the decision making
process


Question 4:
Planning Activities
Answer:
Develops company objectives and goals. Often use budgets and proforma statements.


Question 5:
Short-Term Planning
Answer:
Goals set for less that one year


Question 6:
Long-Term Planning
Answer:
Goals set for more than one year

, Question 7:
Directing Activities
Answer:
Decisions made by managers related to running the day to day operations of a business. Ex.
work schedules, pricing decisions, purcasing decisions and small decisions affecting customers.


Question 8:
Controlling Activities
Answer:
Makes sure goals are met. Monitors and evaluates organizational performance. Ex.
Performance reports which compares budgeted to actual information.


Question 9:
Professional Ethics
Answer:
Competence, Confidentiality, Integrity and Credibility


Question 10:
Sarbanes-Oxley Act
Answer:
Enacted to restore trust in publicly traded corporations after accounting scandals such as
Enron. Provides better oversight, management accountability, and auditor independence
regarding publicly traded companies.


Question 11:
Economy Shift
Answer:
Moving away from manufacturing to more service business


Question 12:
Globalization
Answer:
Creates more competition and opportunity