ACG 2071 Exam Questions with Correct Answers

ACG 2071 Exam Questions with Correct Answers


Question 1:
Users of information
Answer:
Financial: external; gov.t regulators, creditors, stockholders Managerial: internal; managers


Question 2:
purpose of information
Answer:
Financial: help external user making investing and lending decisionsManagerial: help managers
plan, direct and control operations and make decisions


Question 3:
primary product
Answer:
Financial: financial statementsManagerial: variety of useful internal reports


Question 4:
reporting format
Answer:
Financial: GAAPManagerial: whatever is useful


Question 5:
focus (basis) of information
Answer:
Financial: historical focus Managerial: future focus


Question 6:
characteristic of information
Answer:
Financial: reliable and objective Managerial: relevant

,Question 7:
reporting unit
Answer:
Financial: company as a whole Managerial: segments/divisions


Question 8:
reporting frequency
Answer:
Financial: annually and quarterly Managerial: as needed


Question 9:
verification of information
Answer:
Financial: CPAs audit the dataManagerial: no formal audit, the company's internal audit team
may review


Question 10:
requirement of information
Answer:
Financial: required by SEC Managerial: not required


Question 11:
impact on employee behavior
Answer:
Financial: adequacy of disclosure is more important than behavioral implications Managerial:
management carefully answers behavioral implications


Question 12:
sustainability
Answer:
ability to meet the needs of the present without compromising the ability of future generations
to meet their own needs


Question 13:
3 pillars of sustainability
Answer:
social environmental economic

, Question 14:
The triple bottom line recognizes that a company's performances should be viewed in terms of
the following three items
Answer:
profits (economic) people (social)
planet (environmental)


Question 15:
Managerial accounting provides information that helps managers fulfill their three primary
responsibilities
Answer:
planning
directing controlling


Question 16:
planning
Answer:
setting goals and objectives for the company and determining how to achieve them


Question 17:
directing
Answer:
overseeing the company's day-to-day operations


Question 18:
controlling
Answer:
evaluating the results of business operations against the plan and making adjustments to keep
the company moving towards its goals


Question 19:
3 types of companies
Answer:
service merchandising manufacturing