ACCT 212 Chapter 1: Notes_Chapter_1docx 19-20notes

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amramr328

25 Mar 2023

School

Liberty University

Department

Accounting

Course

ACCT 212

Professor

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Document Summary

Provides financial and nonfinancial information to an organization"s managers. Managers include employees in charge of a company"s divisions, head of marketing. Purpose: provide useful information to aid in 3 key managerial tasks: determining the costs of an organization"s products and services, planning future activities, comparing actual results to planned results. Managerial accounting system collects cost information and assigns it to an organization"s products and services. Cost information is important for many decisions that managers make. Involves gathering information about costs for planning and control decisions. Control: process of monitoring planning decisions and evaluating an organization"s activities and employees: feedback allows managers to revise their plans, measurements of actions and processes allows managers to take corrective actions to obtain better outcomes. Extensive rules (gaap) protects external users from false or misleading information in financial reports. Managers are responsible for preventing and detecting fraudulent activities in their companies.

Related Questions

Managerial accounting is different from financial accounting in that:

a. Managerial accounting is used extensively by investors, whereas financial accounting is used only by creditors.

b. Managerial accounting is mainly used to set stock prices.

c. Managerial accounting never includes nonmonetary information.

d. Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions.

e. Managerial accounting is more focused on the organization as a whole and financial accounting is more focused on the subdivisions of the organization.

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1.________ is the field of accounting that develops informationfor external parties such as stockholders, suppliers, banks andgovernmental regulatory bodies.

A) Auditing

B) Internal auditing

C) Management accounting

D) Financial accounting

Answer:

Financial reports prepared by financial accountants focus on________. Financial reports prepared by management accountantsfocus on ________

A) segments of the organization such as departments anddivisions; segments of the organization such as departments anddivisions

B) the organization as a whole; the organization as a whole

C) the organization as a whole; segments of the organizationsuch as departments and divisions

D) segments of the organization such as departments anddivisions; the organization as a whole

Answer:

What are accounting systems?

A) The process used to streamline production processes

B) The process used to generate performance measures

C) Formal mechanisms for gathering, organizing and communicatinginformation about an organization's activities

D) none of the above

Answer:

A(n) ________ is a review to determine whether the policies andprocedures specified by top management have been implemented bylower managers.

A) management audit

B) internal audit

C) internal control

D) internal accounting control

Answer:

A budget ________.

A) is a quantitative expression of a plan of action

B) provides feedback by comparing actual results with plannedresults

C) includes deviations from planned results

D) ignores areas that are presumed to be running smoothly

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Select the correct statement regardingmanagerial and financial accounting.

		Users of managerial accounting information desire more detailedaccounting reports than do users of financial accountinginformation.
		Both managerial and financial accounting use economic andphysical data in addition to financial data.
		Financial accounting is less regulated than managerialaccounting.
		Timeliness is more important in financial accounting than inmanagerial accounting

ACCT 212 Chapter 1: Notes_Chapter_1docx 19-20notes

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