MBA 621 - CHAPTER 1 HANDOUT EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026

MBA 621 - CHAPTER 1 HANDOUT EXAM QUESTIONS ANSWERED CORRECTLY LATEST UPDATE 2026 What is financial accounting? - Answers 1. Concerned with reporting financial information to external parties 2. Emphasizes the financial consequences of past transactions of past transactions, objectivity and verifiability, precision, and companywide performance 3. Mandatory for external reports, and it needs to comply with rules, such as GAAP and IFRS What is managerial accounting? - Answers 1. concerned with providing info to managers within the organization 2. emphasizes decisions affecting the future, relevance, timeliness, and segment performance 3. not mandatory, but does need to comply with external rules What is the role of management? - Answers 1. guide the organization towards a goal 2. proper well-informed decisions 3. identify courses of action and choose among them 4. make decisions while it plans, directs, and controls operations What kind of information does management need? - Answers 1. future goals of the company 2. relevant information 3. information about smaller units 4. needs information more than just once a year What is decision making? - Answers involves making a selection among competing alternatives What is planning? - Answers Setting goals and objectives What is directing? - Answers overseeing day-to-day operations What is controlling? - Answers evaluating results of operations Planning, directing, controlling: management creates a sales budget for the upcoming quarter - Answers planning planning, directing, controlling: the store manager posts the employee time schedule for the next week so that employees know when they are working - Answers directing planning, directing, controlling: management is designing a new sales incentive program for the upcoming year - Answers planning planning, directing, controlling: top management selects a location for a new store - Answers planning planning, directing, controlling: the manager of service department investigates why the actual hours spent on a recent repair job exceeded the standard for that type of repair by more than 20% - Answers controlling Managerial, financial, both: board of directors - Answers both managerial, financial, or both: manager of service department - Answers managerial managerial, financial, or both: wall street analyst - Answers financial managerial, financial, or both: internal auditor - Answers both managerial, financial, or both: potential investors - Answers financial managerial, financial, or both: current stockholders - Answers financial managerial, financial, or both: reporter from wall street journal - Answers financial managerial, financial, or both: regional division managers - Answers managerial managerial, financial, or both: SEC examiner - Answers financial managerial, financial, or both: bookkeeping department - Answers financial managerial, financial, or both: division controller - Answers both managerial, financial, or both: external auditor (local accounting firm) - Answers financial managerial, financial, or both: loan officer - Answers financial managerial, financial, or both: state tax agency auditor - Answers financial How has changing technology impacted managerial accountants? - Answers computers have taken over routine mechanical accounting tasks which frees up time Which ethical standard: You tell your brother that your company will report earnings significantly above financial analyst's estimates. - Answers Confidentiality Which ethical standard: You see that other employees take home office supplies for personal use. As an intern, you do the same thing, assuming that this is a perk. - Answers Integrity Which ethical standard: At a conference on e-commerce, you skip the afternoon session and go sightseeing. - Answers integrity and competence