Chapter 1, Problem 1.11AE

Define key terms (Learning Objectives 1 & 2)

Complete the following statements with one of the terms listed here. You may use a term more than once, and some terms may not be used at all.

Budget	Creditors	Managerial accounting	Planning
Controlling	Financial accounting	Managers	Shareholders

1.

1. a. Information on a company’s past performance is provided to external parties by _____.
2. b. _____systems are chosen by comparing the costs versus the benefits of the system and are not restricted by GAAP (or International Financial Reporting Standards, IFRS, in the case of companies headquartered in many countries outside of the United States).
3. c. _____systems report on various segments or business units of the company.
4. d. Financial accounting develops reports for external parties such as _____and _____.
5. e. When managers evaluate the company’s performance compared to the plan, they are performing the _____role of management.
6. f. CPAs audit the _____statements of public companies.
7. g. Companies must follow GAAP (or International Financial Reporting Standards. IRFS, in the case of companies headquartered in many countries outside of the United States) in their _____systems.
8. h. Choosing goals and the means to achieve them is the _____function of management.
9. i. Decision makers inside a company are the _____.