ACG 5026 EXAM 1 QUESTION AND ANSWERS ALREADY GRADED A+
LATEST UPDATE!!!!
What is Accounting? - (ANSWER)The process of recording, summarizing, and analyzing financial
transactions
Characteristics of Financial Accounting - (ANSWER)General purpose reports for users outside the
organization.
Must conform to GAAP
Historic in nature
Summarized information
Characteristics of Managerial Accounting - (ANSWER)Information for managers inside the organization to
use
Can be creative (no GAAP)
Future oriented information
Highly detailed information
Generation depends upon the benefit exceeding the cost of the information
Financial Accounting Decision Makers? - (ANSWER)Investors and analysts
Creditors
,ACG 5026 EXAM 1 QUESTION AND ANSWERS ALREADY GRADED A+
LATEST UPDATE!!!!
Suppliers and customers
Managerial Accounting Decision Makers? - (ANSWER)Top management
Marketing teams
Production and operations
What Decisions are Made? (Financial Accounting) - (ANSWER)Buy or sell stock?
Lend or not?
Purchase/sell goods or not?
What Decisions are Made? (Managerial Accounting) - (ANSWER)Develop new strategy?
Launch a new product or not?
Manage operations
What Information is Needed? (Financial Accounting) - (ANSWER)Sales and costs
Cash in and cash out
Assets and liabilities
, ACG 5026 EXAM 1 QUESTION AND ANSWERS ALREADY GRADED A+
LATEST UPDATE!!!!
What Information is Needed? (Managerial Accounting) - (ANSWER)Product sales and costs
Department performance
Budgets and quality reports
Three forms of Business Ownership - (ANSWER)Corporation
Sole Proprietorship
Partnership
What is a corporation? - (ANSWER)A legal entity with A large number of owners or shareholders not
involved in managing day-to-day operations of the company
Corporate Advantages - (ANSWER)Limited liability
Ability to raise capital
Ability to separate ownership from management
Ease of transferability of ownership
Corporate Disadvantages - (ANSWER)Double taxation (corporate profits and dividends/capital gains
Paperwork and formalities
LATEST UPDATE!!!!
What is Accounting? - (ANSWER)The process of recording, summarizing, and analyzing financial
transactions
Characteristics of Financial Accounting - (ANSWER)General purpose reports for users outside the
organization.
Must conform to GAAP
Historic in nature
Summarized information
Characteristics of Managerial Accounting - (ANSWER)Information for managers inside the organization to
use
Can be creative (no GAAP)
Future oriented information
Highly detailed information
Generation depends upon the benefit exceeding the cost of the information
Financial Accounting Decision Makers? - (ANSWER)Investors and analysts
Creditors
,ACG 5026 EXAM 1 QUESTION AND ANSWERS ALREADY GRADED A+
LATEST UPDATE!!!!
Suppliers and customers
Managerial Accounting Decision Makers? - (ANSWER)Top management
Marketing teams
Production and operations
What Decisions are Made? (Financial Accounting) - (ANSWER)Buy or sell stock?
Lend or not?
Purchase/sell goods or not?
What Decisions are Made? (Managerial Accounting) - (ANSWER)Develop new strategy?
Launch a new product or not?
Manage operations
What Information is Needed? (Financial Accounting) - (ANSWER)Sales and costs
Cash in and cash out
Assets and liabilities
, ACG 5026 EXAM 1 QUESTION AND ANSWERS ALREADY GRADED A+
LATEST UPDATE!!!!
What Information is Needed? (Managerial Accounting) - (ANSWER)Product sales and costs
Department performance
Budgets and quality reports
Three forms of Business Ownership - (ANSWER)Corporation
Sole Proprietorship
Partnership
What is a corporation? - (ANSWER)A legal entity with A large number of owners or shareholders not
involved in managing day-to-day operations of the company
Corporate Advantages - (ANSWER)Limited liability
Ability to raise capital
Ability to separate ownership from management
Ease of transferability of ownership
Corporate Disadvantages - (ANSWER)Double taxation (corporate profits and dividends/capital gains
Paperwork and formalities
