AFM 123 QUESTIONS WITH VERIFIED ANSWERS
Managerial Accounting - Answers - provides managers with essential information they
can use to run organizations
What are the 3 types of business organizations - Answers - 1. Service
2. Merchandising
3. Manufacturing
Strategy - Answers - Companies must develop a viable strategy to achieve their goals
and objectives and succeed in the market place
Planning - Answers - Planning involves selecting a course of action and specifying how
the action will be implemented
What is the first step in the planning operation? - Answers - You must identify the
alternatives and then select the one that does the best job
What is a budget? - Answers - it expresses a company's plans in quantitative terms and
are prepared annually, quarterly, or even monthly
Implementation - Answers - it involves carrying out day to day activities making short
term and long term decisions, organization, and allocating resources and managing
people
What is control? - Answers - it involves instituting procedures and then obtaining
feedback to ensure that all parts of the organization are functioning effectively and
moving toward overall company goals
Performance report - Answers - It compares budget results with actual results
Financial accounting - Answers - it provides information to shareholders, creditors, and
others outside the organization
Managerial accounting - Answers - it provides information for managers of an
organization who directly control its operations
What is the time horizon for financial accounting? - Answers - Historical
What is the time horizon for managerial accounting? - Answers - Historical and future
Does managerial accounting focus more verifiability or relevance? - Answers -
relevance
Managerial Accounting - Answers - provides managers with essential information they
can use to run organizations
What are the 3 types of business organizations - Answers - 1. Service
2. Merchandising
3. Manufacturing
Strategy - Answers - Companies must develop a viable strategy to achieve their goals
and objectives and succeed in the market place
Planning - Answers - Planning involves selecting a course of action and specifying how
the action will be implemented
What is the first step in the planning operation? - Answers - You must identify the
alternatives and then select the one that does the best job
What is a budget? - Answers - it expresses a company's plans in quantitative terms and
are prepared annually, quarterly, or even monthly
Implementation - Answers - it involves carrying out day to day activities making short
term and long term decisions, organization, and allocating resources and managing
people
What is control? - Answers - it involves instituting procedures and then obtaining
feedback to ensure that all parts of the organization are functioning effectively and
moving toward overall company goals
Performance report - Answers - It compares budget results with actual results
Financial accounting - Answers - it provides information to shareholders, creditors, and
others outside the organization
Managerial accounting - Answers - it provides information for managers of an
organization who directly control its operations
What is the time horizon for financial accounting? - Answers - Historical
What is the time horizon for managerial accounting? - Answers - Historical and future
Does managerial accounting focus more verifiability or relevance? - Answers -
relevance
