ACC 312 EXAM 1 REVIEW QUESTIONS
Financial Vs. Managerial
What is the purpose of their information? - Answers - Financial: to communicate firm's
financial position to outside parties
Managerial: to help all types of internal managers make decisions and planning
Financial Vs. Managerial
Who are their primary users? - Answers - Financial: outside parties
Managerial: internal managers
Financial Vs. Managerial
What is their focus? - Answers - Financial: past-orientated... investors want to judge
from what happened
Managerial: future-orientated from the past
Financial Vs. Managerial
What guidance of measurement and reporting governs them? - Answers - Financial:
GAAP or IFRS... created by FASB
Managerial: whatever the manager wants
Financial Vs. Managerial
What are the time spans of their reports? - Answers - Financial: likely quarterly or
annually (as per the SEC or other requirements)
Managerial: any time period needed (by hour, shift, day, week, etc.)
Financial Vs. Managerial
What do the reports focus on regarding the company? - Answers - Financial: reports
focus on the enterprise in its entirety
Managerial: reports focus on subunits within the org.
, (Ex: departments, divisions, geographical regions, product lines, etc.)
What are the 5 major objectives of accounting? - Answers - 1. Providing info for
decision making and planning
2. Assisting managers to direct and control operational activities
- Directing = running the org. on a daily basis
- Controlling = ensuring org. operates in the intended manner and achieves its goals
3. Motivating managers and other employees toward the org.'s goals
4. Measuring the performance of employees within the org.
5. Assessing org.'s competitive position, and working with other managers to ensure
org.'s long-run competitiveness in its industry
- EX: The balanced scorecard
What 4 things do management teams do everyday? - Answers - 1. Decision-Making
2. Planning
3. Directly operational activities
4. Controlling
What is the Balanced Scorecard? - Answers - a tool used to asses competitive position
and ensure long-term competitiveness with financial and nonfinancial performance
measures
What are the three categories of cost? - Answers - 1. Timing... Product or Period Cost
Financial Vs. Managerial
What is the purpose of their information? - Answers - Financial: to communicate firm's
financial position to outside parties
Managerial: to help all types of internal managers make decisions and planning
Financial Vs. Managerial
Who are their primary users? - Answers - Financial: outside parties
Managerial: internal managers
Financial Vs. Managerial
What is their focus? - Answers - Financial: past-orientated... investors want to judge
from what happened
Managerial: future-orientated from the past
Financial Vs. Managerial
What guidance of measurement and reporting governs them? - Answers - Financial:
GAAP or IFRS... created by FASB
Managerial: whatever the manager wants
Financial Vs. Managerial
What are the time spans of their reports? - Answers - Financial: likely quarterly or
annually (as per the SEC or other requirements)
Managerial: any time period needed (by hour, shift, day, week, etc.)
Financial Vs. Managerial
What do the reports focus on regarding the company? - Answers - Financial: reports
focus on the enterprise in its entirety
Managerial: reports focus on subunits within the org.
, (Ex: departments, divisions, geographical regions, product lines, etc.)
What are the 5 major objectives of accounting? - Answers - 1. Providing info for
decision making and planning
2. Assisting managers to direct and control operational activities
- Directing = running the org. on a daily basis
- Controlling = ensuring org. operates in the intended manner and achieves its goals
3. Motivating managers and other employees toward the org.'s goals
4. Measuring the performance of employees within the org.
5. Assessing org.'s competitive position, and working with other managers to ensure
org.'s long-run competitiveness in its industry
- EX: The balanced scorecard
What 4 things do management teams do everyday? - Answers - 1. Decision-Making
2. Planning
3. Directly operational activities
4. Controlling
What is the Balanced Scorecard? - Answers - a tool used to asses competitive position
and ensure long-term competitiveness with financial and nonfinancial performance
measures
What are the three categories of cost? - Answers - 1. Timing... Product or Period Cost
