Accounting exam 1 Answers – Flashcards
Unlock all answers in this set
Unlock answersquestion
Main characteristics of data is that it must be reliable and objective.
answer
Financial
question
Reports are prepared as needed
answer
Managerial
question
Not governed by legal requirements
answer
Managerial
question
Primary users are external
answer
Financial
question
Focused on the future
answer
Managerial
question
Reporting is based mainly on the company has a whole
answer
Financial
question
Reports are usually prepared quarterly and annually
answer
Financial
question
Information is verified by external auditors
answer
Financial
question
Focused on the past
answer
Financial
question
Main characteristic of data is that it must be relevant
answer
Managerial
question
Reports tend to be prepared for the parts of the organization rather than the whole organization
answer
Managerial
question
Primary users are internal
answer
Managerial
question
Governed by GAAP or IFRS
answer
Financial
question
Invest company funda
answer
Treasurer
question
Issue company stock & bonds
answer
Treasurer
question
Report to the audit committee of the board of directors and to an senior executive
answer
Internal auditing department
question
Ensure company's internal controls are functioning properly
answer
Internal auditing department
question
Check to make sure that company risk management procedures are being followed
answer
Internal auditing department
question
Prepares tax returns
answer
Controller
question
Performing cash counts at branch offices
answer
Controller
question
Prepare journal entries
answer
Controller
question
Create an analysis about whether to lease or buy a delivery truck
answer
Controller
question
Calculate cost of product
answer
Controller
question
Work with various departments in preparing operating budgets for upcoming year
answer
Controller
question
Oversee accounts payable
answer
Controller
question
Accountants work more in organizations than in
answer
CPA firms
question
Magazine
answer
Strategic finance
question
__ systems report on various segments it business units of the company.
answer
Managerial accounting
question
When managers evaluate the company's performance compared to the plan, they are performing the ____ role of management
answer
Controlling
question
Information on a company's past performance is provided to external parties by _____
answer
Financial accounting
question
_____ systems are chosen by comparing the cost versus the benefits of the system and are not restricted by GAAP or IFRS
answer
managerial accounting
question
CPAs audit the _____ statements of public companies
answer
Financial accounting
question
Financial accounting develops reports for external parties such as _____ and ______
answer
Creditors and shareholders
question
Companies must follow GAAP or IFRS in their _____
answer
Financial accounting systems
question
Decision makers inside the company are _____
answer
Managers
question
Choosing goals and the means to achieve them is the ____ function of management
answer
Planning
question
SEC examiner
answer
Financial accounting information
question
Bookkeeping department
answer
Financial accounting information
question
Division controller
answer
Both financial and managerial accounting information
question
External auditor
answer
Financial accounting information
question
Loan officer at the company's bank
answer
Financial accounting information
question
State tax agency auditor
answer
Financial accounting information
question
Board of directors
answer
Both financial and managerial accounting information
question
Manager of the service department
answer
Managerial accounting information
question
Wall Street analyst
answer
Financial accounting information
question
Internal auditor
answer
Both financial and managerial accounting information
question
Potential investors
answer
Financial accounting information
question
Current stockholders
answer
Financial accounting information
question
Reporter from the Wall Street journal
answer
Financial accounting information
question
Regional division managers
answer
Managerial accounting information
question
Service company
answer
Sell intangible goods. No inventory
question
Merchandising company
answer
Resell tangible products they buy from suppliers. Single inventory
question
Manufacturing companies
answer
Convert raw materials into finished goods. 3 kinds of inventory
question
Cost of a prime time TV ad featuring the new logo
answer
Marketing
question
Salary of engineers who are redesigning the printers on and off switch
answer
Design
question
Depreciation in Roseville, California, plant
answer
Production
question
Depreciation on delivery vehicles
answer
Distribution
question
Transportation cost to deliver to retailer
answer
Distribution
question
Cost of a customer support center website
answer
Customer service
question
Plant managers salary
answer
Production
question
Purchase of plastic used in printer casings
answer
Production
question
Depreciation on research lab
answer
Research and development
question
Sales commissions
answer
Period cost
question
Cost of steel tubing used to make bicycle frames
answer
Product cost
question
Cost of oil fused to lubricate the bicycle cables
answer
Production cost
question
Indirect costs cannot be directly traced to a
answer
Cost object
question
____ include the costs of all resources used throughout the value chain
answer
Total costs
question
GAAP requires to use only ____ for inventory reported on external financial statements.
answer
Inventoriable product costs
question
May include health insurance and stuff
answer
Fringe benefits
question
Cost of transforming direct materials into finished goods
answer
Conversion costs
question
Include marketing and customer service costs
answer
Period costs
question
Forever material plus direct labor equals
answer
Prime costs
question
Total fixed cost+ total variable costs=
answer
Total product costs
question
Total product costs/ current year's produced units=
answer
Current average product cost per unit
question
Total fixed costs/ current year's produced units=
answer
Current fixed cost per unit
question
Forecasted total variable costs+ total foxed costs=
answer
Forecasted total product costs
