MANAGEMENT ACCOUNTING QUESTIONS AND ANSWERS 100% CORRECT.

MANAGEMENT ACCOUNTING QUESTIONS AND ANSWERS 100% CORRECT. Managerial Accounting - CORRECT ANSWER-A field of accounting that provides economic and financial information for managers and other internal users Similarities - CORRECT ANSWER-Both deal with economic events of a business Both require that economic events be quantified and communicated to interested parties Internal Users - CORRECT ANSWER-Officers and managers used for managerial accounting External Users - CORRECT ANSWER-Shareholders, creditors and regulators used for financial accounting Frequency of reports - CORRECT ANSWER-Management: whenever needed Financial: Quarterly and annually Purpose of Report - CORRECT ANSWER-General purpose: Financial Special purpose: Management Content of Reports - CORRECT ANSWER-Financial: pertains to business as a whole highly aggregated (condensed) limited to double entry accounting and cost data GAAP Managerial: pertains to the subunits of a business very detailed extends beyond double entry accounting to any relevant data standard is relevance to decsions Verification process - CORRECT ANSWER-Financial: Audited by CPA Management: No indepentdent audits Management Functions - CORRECT ANSWER-Planning Directing Controlling Planning - CORRECT ANSWER-Future Oriented - Looking ahead Establish objectives such as Maximize short-term profit and market share Commit to environmental protection Contributing to social programs Key Objective: Add value to the business Value measured by trading price of stock and by potential selling price of the company Directing - CORRECT ANSWER-Coordinate diverse activities and human resources Implement planned objectives Provide incentives to motivate employees Hire and train employees including executives