D196- Principles of Financial and
Managerial Accounting Exam
Questions and Answers 100% Pass
bookkeeping - CORRECT ANSWER:-day to day keeping of transcations
steps of decision making - CORRECT ANSWER:-identify issue
gather information
identify alternatives
select option that most likely results in desired objective
accounting - CORRECT ANSWER:-analysis of events
record and report financial effects of business activities
where does capital come from (3) - CORRECT ANSWER:-investors
creditors(lenders)
business itself (from earnings retained)
2 main types of accounting - CORRECT ANSWER:-financial and managerial
,managerial accounting - CORRECT ANSWER:-gather and analysis of information
for internal use and decision making.
financial accounting - CORRECT ANSWER:-gather, report, analysis of
information for external users- investors and creditors. summary of a business
what does managerial accounting review - CORRECT ANSWER:-product cost,
breakeven analysis, budgeting, performance analysis, outsource production
what does financial accounting review - CORRECT ANSWER:-credit analysis,
financial health, estimate value of the company
examples of external financial reports for financial accounting - CORRECT
ANSWER:-annual report, financial statement, balance sheet, income statement,
statement of cash flow
balance sheet - CORRECT ANSWER:-reports assets and liabilities. basic.
list as of a point in time. as of today, as of yesterday
income statement - CORRECT ANSWER:-how much did you ,ake
period of time - from nov to jan
statement of cash flow - CORRECT ANSWER:-where did the cash come from
and where did the cash go
period of time - from nov to jan
, lender - CORRECT ANSWER:-lends money with intend to get it back plus
interest. need current income, existing obligations, existing assets, payroll stub, tax
return, monthly payments, bank stmts
investor - CORRECT ANSWER:-buys into your company. looks at if the business
is profitable, what they are buying, buying obligations, potential future projections
what forms will the manager of a business use - CORRECT ANSWER:-both
financial and managerial
fasb- what does it stand for, who are they and what do they do - CORRECT
ANSWER:-financial accounting standards board
private group, not govt agency, no legal authority, conducted of people from a
variety of business related backgrounds.
establishes financial accounting and reporting standards for private sector
companies
1 of the two boards that make up GAAP
gasb- what does it stand for, who are they, what do they do - CORRECT
ANSWER:-governmental accounting standards board
sets accounting and financial reporting standards for state and legal governments.
authority over financial reporting by government entities
1 of the two boards that make up GAAP
Managerial Accounting Exam
Questions and Answers 100% Pass
bookkeeping - CORRECT ANSWER:-day to day keeping of transcations
steps of decision making - CORRECT ANSWER:-identify issue
gather information
identify alternatives
select option that most likely results in desired objective
accounting - CORRECT ANSWER:-analysis of events
record and report financial effects of business activities
where does capital come from (3) - CORRECT ANSWER:-investors
creditors(lenders)
business itself (from earnings retained)
2 main types of accounting - CORRECT ANSWER:-financial and managerial
,managerial accounting - CORRECT ANSWER:-gather and analysis of information
for internal use and decision making.
financial accounting - CORRECT ANSWER:-gather, report, analysis of
information for external users- investors and creditors. summary of a business
what does managerial accounting review - CORRECT ANSWER:-product cost,
breakeven analysis, budgeting, performance analysis, outsource production
what does financial accounting review - CORRECT ANSWER:-credit analysis,
financial health, estimate value of the company
examples of external financial reports for financial accounting - CORRECT
ANSWER:-annual report, financial statement, balance sheet, income statement,
statement of cash flow
balance sheet - CORRECT ANSWER:-reports assets and liabilities. basic.
list as of a point in time. as of today, as of yesterday
income statement - CORRECT ANSWER:-how much did you ,ake
period of time - from nov to jan
statement of cash flow - CORRECT ANSWER:-where did the cash come from
and where did the cash go
period of time - from nov to jan
, lender - CORRECT ANSWER:-lends money with intend to get it back plus
interest. need current income, existing obligations, existing assets, payroll stub, tax
return, monthly payments, bank stmts
investor - CORRECT ANSWER:-buys into your company. looks at if the business
is profitable, what they are buying, buying obligations, potential future projections
what forms will the manager of a business use - CORRECT ANSWER:-both
financial and managerial
fasb- what does it stand for, who are they and what do they do - CORRECT
ANSWER:-financial accounting standards board
private group, not govt agency, no legal authority, conducted of people from a
variety of business related backgrounds.
establishes financial accounting and reporting standards for private sector
companies
1 of the two boards that make up GAAP
gasb- what does it stand for, who are they, what do they do - CORRECT
ANSWER:-governmental accounting standards board
sets accounting and financial reporting standards for state and legal governments.
authority over financial reporting by government entities
1 of the two boards that make up GAAP
