UTA Accounting 2302 Exam 1 Questions with
Correct Answers.
What is managerial accounting? - ANS the process of identifying, measuring, analyzing,
interpreting and communicating information for the pursuit of an organization's goals
Managers' three primary responsibilities - ANS Planning
Directing
Controlling
How managerial accounting fits in - ANS Managerial accounting building blocks
Determining unit cost
Making decisions
Planning
Controlling and evaluating
Differences between managerial accounting and financial accounting - ANS The
difference between financial and managerial accounting. ... In general, financial
accounting refers to the aggregation of accounting information into financial statements,
while managerial accounting refers to the internal processes used to account for
business transactions
Role of management accountants - ANS collecting, recording and reporting financial
data from several units of an organization, observe and analyze their budget and
suggest their funding and allocation.
How can accounting help solve the business issue, event, or problem? - ANS
Management accounting always begins with some relevant business issue that
management is facing or some economic event that occurred in the past or might occur
in the future. Management accounting is used to shed light on the issue and direct
management's path.
What are the "gray areas"? - ANS assumptions, estimates, measurement choices, and
judgment calls might impact the information that is used for decision making? Because
of the gray areas and judgment involved, accounting numbers are rarely as precise as
they may seem.
What are the implications for the business if the accounting information used in
The decision is "wrong"? - ANS Because of the gray areas, it's difficult to say that
accounting information is ever "wrong." However, judgment in these gray areas could
lead to financial estimates that are on the high side or on the low side. What are the
consequences of numbers that are too high or too low? Would estimates that are "off" in
one direction be worse than the other direction?
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, How does accounting relate to entrepreneurs - ANS If you are planning to be an
entrepreneur, you'll first want to know if your business idea makes financial sense. How
high will volume have to be for your business to at least break even? How high will it
have to be for your business to earn the level of profit that you want to achieve?
How does accounting relate to business management - ANS if you are planning to be a
general business manager, not a day will go by in which you don't consider the financial
ramifications of your decisions. You'll need to have a firm grasp on the costs of
obtaining or manufacturing every product you sell and/or every service you deliver.
You'll also want to understand how costly every activity within the company is to perform
and have specific strategies in hand for controlling and reducing those costs.
How does accounting relate to marketing and sales - ANS If you are planning to be in
marketing and sales, your marketing strategy, assumptions, and predictions will be the
driving force behind the company's entire budget. As a result, you will be intimately
involved with developing the budget. Product-line profitability reports will show you
which products are most profitable and will guide your decisions about which products
to emphasize.
how does accounting relate to - ANS Even if you are planning to be a nurse, engineer,
musician, or fashion designer, the information you learn in this course will be of
consequence to you. All organizations, including nonprofits and governmental agencies,
use cost and revenue information to guide their plans, actions, and decisions.
Chief Operating Officer (COO) - ANS the position responsible for overseeing the
company's operations
Chief Financial Officer (CFO) - ANS a high-level corporate executive who manages a
firm's finances and reports directly to the company's chief executive officer or president
Treasurer - ANS employee responsible for the management of a company's cash
Controller - ANS oversees taxes, cost accounting, financial accounting and data
processing
Internal audit department - ANS The cashier deposits checks for Benedict Incorporated
and also prepares payments to vendors. Of the following, who is BEST able to reconcile
the bank statement to Bender’s records on a regular basis?
Audit Committee - ANS the outside, independent board of director members responsible
for financial reporting, regulatory compliance, internal control, and hiring and overseeing
internal and external auditors
Institute of Management Accountants (IMA) - ANS the professional organization that
promotes the advancement of the management accounting profession
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Correct Answers.
What is managerial accounting? - ANS the process of identifying, measuring, analyzing,
interpreting and communicating information for the pursuit of an organization's goals
Managers' three primary responsibilities - ANS Planning
Directing
Controlling
How managerial accounting fits in - ANS Managerial accounting building blocks
Determining unit cost
Making decisions
Planning
Controlling and evaluating
Differences between managerial accounting and financial accounting - ANS The
difference between financial and managerial accounting. ... In general, financial
accounting refers to the aggregation of accounting information into financial statements,
while managerial accounting refers to the internal processes used to account for
business transactions
Role of management accountants - ANS collecting, recording and reporting financial
data from several units of an organization, observe and analyze their budget and
suggest their funding and allocation.
How can accounting help solve the business issue, event, or problem? - ANS
Management accounting always begins with some relevant business issue that
management is facing or some economic event that occurred in the past or might occur
in the future. Management accounting is used to shed light on the issue and direct
management's path.
What are the "gray areas"? - ANS assumptions, estimates, measurement choices, and
judgment calls might impact the information that is used for decision making? Because
of the gray areas and judgment involved, accounting numbers are rarely as precise as
they may seem.
What are the implications for the business if the accounting information used in
The decision is "wrong"? - ANS Because of the gray areas, it's difficult to say that
accounting information is ever "wrong." However, judgment in these gray areas could
lead to financial estimates that are on the high side or on the low side. What are the
consequences of numbers that are too high or too low? Would estimates that are "off" in
one direction be worse than the other direction?
P a g e 1 | 11
, How does accounting relate to entrepreneurs - ANS If you are planning to be an
entrepreneur, you'll first want to know if your business idea makes financial sense. How
high will volume have to be for your business to at least break even? How high will it
have to be for your business to earn the level of profit that you want to achieve?
How does accounting relate to business management - ANS if you are planning to be a
general business manager, not a day will go by in which you don't consider the financial
ramifications of your decisions. You'll need to have a firm grasp on the costs of
obtaining or manufacturing every product you sell and/or every service you deliver.
You'll also want to understand how costly every activity within the company is to perform
and have specific strategies in hand for controlling and reducing those costs.
How does accounting relate to marketing and sales - ANS If you are planning to be in
marketing and sales, your marketing strategy, assumptions, and predictions will be the
driving force behind the company's entire budget. As a result, you will be intimately
involved with developing the budget. Product-line profitability reports will show you
which products are most profitable and will guide your decisions about which products
to emphasize.
how does accounting relate to - ANS Even if you are planning to be a nurse, engineer,
musician, or fashion designer, the information you learn in this course will be of
consequence to you. All organizations, including nonprofits and governmental agencies,
use cost and revenue information to guide their plans, actions, and decisions.
Chief Operating Officer (COO) - ANS the position responsible for overseeing the
company's operations
Chief Financial Officer (CFO) - ANS a high-level corporate executive who manages a
firm's finances and reports directly to the company's chief executive officer or president
Treasurer - ANS employee responsible for the management of a company's cash
Controller - ANS oversees taxes, cost accounting, financial accounting and data
processing
Internal audit department - ANS The cashier deposits checks for Benedict Incorporated
and also prepares payments to vendors. Of the following, who is BEST able to reconcile
the bank statement to Bender’s records on a regular basis?
Audit Committee - ANS the outside, independent board of director members responsible
for financial reporting, regulatory compliance, internal control, and hiring and overseeing
internal and external auditors
Institute of Management Accountants (IMA) - ANS the professional organization that
promotes the advancement of the management accounting profession
P a g e 2 | 11
