SOPHIA UNIT 1 1.1 - FINANCIAL
ACCOUNTING & MANAGERIAL
ACCOUNTING EXAM Q&A
Tax Return - Answer-A form that an individual or business uses to report their annual
income to a taxing authority that determines their tax liability.
Whistleblower - Answer-A person who discloses unethical or illegal practices that are
occurring within an organization.
Which of the following is an example of an internal decision made using managerial
accounting information? - Answer-Whether to make or buy a product
An example of an internal user of financial information is __________. - Answer-
managers
Accounting - Answer-A measurement and communication process used to report on
the activities of profit-seeking business organizations and not-for-profit organizations.
Bookkeeping - 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. - Answer-
Owners and prospective owners, Creditors and lenders, Employees and their unions,
Customers, Governmental Units, and the General public.
Accounting System - Answer-An information system designed to provide relevant
financial information on the resources of a business and the effects of their use.
Annual Report - 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 - Answer-The organization of information that appears in
financial statements that are intended primarily for external use.
Financial Statements - 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) - 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? - Answer-Bank manager
ACCOUNTING & MANAGERIAL
ACCOUNTING EXAM Q&A
Tax Return - Answer-A form that an individual or business uses to report their annual
income to a taxing authority that determines their tax liability.
Whistleblower - Answer-A person who discloses unethical or illegal practices that are
occurring within an organization.
Which of the following is an example of an internal decision made using managerial
accounting information? - Answer-Whether to make or buy a product
An example of an internal user of financial information is __________. - Answer-
managers
Accounting - Answer-A measurement and communication process used to report on
the activities of profit-seeking business organizations and not-for-profit organizations.
Bookkeeping - 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. - Answer-
Owners and prospective owners, Creditors and lenders, Employees and their unions,
Customers, Governmental Units, and the General public.
Accounting System - Answer-An information system designed to provide relevant
financial information on the resources of a business and the effects of their use.
Annual Report - 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 - Answer-The organization of information that appears in
financial statements that are intended primarily for external use.
Financial Statements - 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) - 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? - Answer-Bank manager
