ACCT 201 KU Exam 1 questions with
complete solutions passed
Managerial Accounting Definition - correct answer ✔✔- Generation and analysis of relevant
information to support managers' strategic decision-making activities.
- Helps managers do their jobs more efficiently and effectively.
- Financial and non-financial data from operations is processed by decision makers, then leads
to a decision and action.
Manager's Four Primary Roles - correct answer ✔✔1. Planning
2. Controlling
3. Evaluating
4. Decision Making
Planning - correct answer ✔✔- Set goals and objectives. Determine specific roadmap for
achieving these goals using budgets usually.
- Long term: referred to as STRATEGIC PLANNING, establishes the direction in which a company
wishes to go. 5-10 year period.
- Short term: referred to as OPERATIONAL PLANNING, translates long term strategy to a plan to
be completed within a year.
Controlling - correct answer ✔✔- Oversee the company's daily operations using various
managerial accounting reports.
- If something is wrong, take action to fix it, either as it occurs or hourly during the day.
Evaluating - correct answer ✔✔- Review results of daily operations against the plan using
performance evaluation tools.
, - Motivate employees to want to help achieve the strategic plan of the company.
- Evaluate the plan, the progress, and the employees.
Decision Making - correct answer ✔✔- Must choose between available alternatives in every
step using cost-benefit analysis.
- Using data to make decisions best for the company.
Financial vs Managerial Acct - correct answer ✔✔- Primary Users
- Purpose
- Accounting Product
- Basis of Info
- Business Unit
Primary Users and Purpose - correct answer ✔✔- Financial: statements are meant to show
external users the financial health of the company. Primarily shareholders, creditors.
- Managerial: reports benefits the internal users only for decision making about the company.
Not available to be viewed by the public, unlike financial reports.
Lack of Mandated Rules - correct answer ✔✔- Financial: GAAP gives rules and standards for
reports, so that the external users can find them to be trustworthy. Given out quarterly or
annually.
- Managerial: No rules of how the information should be presented or what information should
be shown. Actually not required at all, but most companies do it for their own good. Usually
daily reports about day to day operations.
Business Unit - correct answer ✔✔- Financial: statements show a big picture of the financial
health of the company as a whole. Consolidated.
- Managerial: Information on the reports is more focused on small segments of the company.
(certain clothing, certain sizes, etc)
complete solutions passed
Managerial Accounting Definition - correct answer ✔✔- Generation and analysis of relevant
information to support managers' strategic decision-making activities.
- Helps managers do their jobs more efficiently and effectively.
- Financial and non-financial data from operations is processed by decision makers, then leads
to a decision and action.
Manager's Four Primary Roles - correct answer ✔✔1. Planning
2. Controlling
3. Evaluating
4. Decision Making
Planning - correct answer ✔✔- Set goals and objectives. Determine specific roadmap for
achieving these goals using budgets usually.
- Long term: referred to as STRATEGIC PLANNING, establishes the direction in which a company
wishes to go. 5-10 year period.
- Short term: referred to as OPERATIONAL PLANNING, translates long term strategy to a plan to
be completed within a year.
Controlling - correct answer ✔✔- Oversee the company's daily operations using various
managerial accounting reports.
- If something is wrong, take action to fix it, either as it occurs or hourly during the day.
Evaluating - correct answer ✔✔- Review results of daily operations against the plan using
performance evaluation tools.
, - Motivate employees to want to help achieve the strategic plan of the company.
- Evaluate the plan, the progress, and the employees.
Decision Making - correct answer ✔✔- Must choose between available alternatives in every
step using cost-benefit analysis.
- Using data to make decisions best for the company.
Financial vs Managerial Acct - correct answer ✔✔- Primary Users
- Purpose
- Accounting Product
- Basis of Info
- Business Unit
Primary Users and Purpose - correct answer ✔✔- Financial: statements are meant to show
external users the financial health of the company. Primarily shareholders, creditors.
- Managerial: reports benefits the internal users only for decision making about the company.
Not available to be viewed by the public, unlike financial reports.
Lack of Mandated Rules - correct answer ✔✔- Financial: GAAP gives rules and standards for
reports, so that the external users can find them to be trustworthy. Given out quarterly or
annually.
- Managerial: No rules of how the information should be presented or what information should
be shown. Actually not required at all, but most companies do it for their own good. Usually
daily reports about day to day operations.
Business Unit - correct answer ✔✔- Financial: statements show a big picture of the financial
health of the company as a whole. Consolidated.
- Managerial: Information on the reports is more focused on small segments of the company.
(certain clothing, certain sizes, etc)
