Sophia Unit 1 1.1 - Financial Accounting &
Managerial Accounting UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Which of the following is an example of an internal decision made using managerial accounting
information? - CORRECT ANSWER -Whether to make or buy a product
An example of an internal user of financial information is __________. - CORRECT
ANSWER -managers
Accounting - CORRECT ANSWER -A measurement and communication process used to
report on the activities of profit-seeking business organizations and not-for-profit organizations.
Bookkeeping - CORRECT ANSWER -A process that records the routine economic
activities of a business.
The external users of accounting information fall into six groups, each of which has different
interests in the company and seeks answers to unique questions. - CORRECT ANSWER -
Owners and prospective owners, Creditors and lenders, Employees and their unions, Customers,
Governmental Units, and the General public.
Accounting System - CORRECT ANSWER -An information system designed to provide
relevant financial information on the resources of a business and the effects of their use.
Annual Report - CORRECT ANSWER -A document that contains a company's financial
statements; the independent auditor's opinion as to the fairness of the financial statements; as
well as information about the company's activities, products, and plans.
Financial Accounting - CORRECT ANSWER -The organization of information that
appears in financial statements that are intended primarily for external use.
, Financial Statements - CORRECT ANSWER -Formal reports providing information on a
company's financial position, cash inflows and outflows, and the results of operations.
Generally Accepted Accounting Principles (GAAP) - CORRECT ANSWER -Accounting
standards that are developed and applied by accounting professionals.
Which of the following roles is an example of an external user of financial information? -
CORRECT ANSWER -Bank manager
Managerial Accounting - CORRECT ANSWER -The internal use of financial and
nonfinancial information by an organization's managers for the purpose of controlling or
directing a company or one of its many segments.
Which of the following is an example of a manager's planning activity? - CORRECT
ANSWER -Developing long-term strategies to achieve the company's goals
Which of the following is an example of a line position that would use managerial information
about the production process related to providing goods and services? - CORRECT
ANSWER -Chief operating officer
Managers are responsible for efficiency, which is defined as __________. - CORRECT
ANSWER -using the least amount of resources to complete the work
Effectiveness - CORRECT ANSWER -The ability to produce a desired result.
Organizational Chart - CORRECT ANSWER -A chart that shows the relationship between
departments and divisions, and the managers that are responsible for each section.
Board of Directors - CORRECT ANSWER -Individuals who are elected by the
stockholders of a company for the purpose of developing strategic goals.
Managerial Accounting UPDATED
ACTUAL Exam Questions and CORRECT
Answers
Which of the following is an example of an internal decision made using managerial accounting
information? - CORRECT ANSWER -Whether to make or buy a product
An example of an internal user of financial information is __________. - CORRECT
ANSWER -managers
Accounting - CORRECT ANSWER -A measurement and communication process used to
report on the activities of profit-seeking business organizations and not-for-profit organizations.
Bookkeeping - CORRECT ANSWER -A process that records the routine economic
activities of a business.
The external users of accounting information fall into six groups, each of which has different
interests in the company and seeks answers to unique questions. - CORRECT ANSWER -
Owners and prospective owners, Creditors and lenders, Employees and their unions, Customers,
Governmental Units, and the General public.
Accounting System - CORRECT ANSWER -An information system designed to provide
relevant financial information on the resources of a business and the effects of their use.
Annual Report - CORRECT ANSWER -A document that contains a company's financial
statements; the independent auditor's opinion as to the fairness of the financial statements; as
well as information about the company's activities, products, and plans.
Financial Accounting - CORRECT ANSWER -The organization of information that
appears in financial statements that are intended primarily for external use.
, Financial Statements - CORRECT ANSWER -Formal reports providing information on a
company's financial position, cash inflows and outflows, and the results of operations.
Generally Accepted Accounting Principles (GAAP) - CORRECT ANSWER -Accounting
standards that are developed and applied by accounting professionals.
Which of the following roles is an example of an external user of financial information? -
CORRECT ANSWER -Bank manager
Managerial Accounting - CORRECT ANSWER -The internal use of financial and
nonfinancial information by an organization's managers for the purpose of controlling or
directing a company or one of its many segments.
Which of the following is an example of a manager's planning activity? - CORRECT
ANSWER -Developing long-term strategies to achieve the company's goals
Which of the following is an example of a line position that would use managerial information
about the production process related to providing goods and services? - CORRECT
ANSWER -Chief operating officer
Managers are responsible for efficiency, which is defined as __________. - CORRECT
ANSWER -using the least amount of resources to complete the work
Effectiveness - CORRECT ANSWER -The ability to produce a desired result.
Organizational Chart - CORRECT ANSWER -A chart that shows the relationship between
departments and divisions, and the managers that are responsible for each section.
Board of Directors - CORRECT ANSWER -Individuals who are elected by the
stockholders of a company for the purpose of developing strategic goals.
