Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 1, Problem 1EA
Indicate whether each statement describes financial accounting or
- The information is directed at external users who are making decisions pertaining to investing, extending credit, and other decisions.
- The principal users are the organization’s managers.
- The key focus is on the entity as a whole.
- The rules and principles are very flexible.
- The information gathered is usually available after an independent audit has been completed.
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Indicate whether each statement describes financial accounting or managerial accounting.A. The information is directed at external users who are making decisions pertaining to investing,extending credit, and other decisions.B. The principal users are the organization’s managers.C. The key focus is on the entity as a whole.D. The rules and principles are very flexible.E. The information gathered is usually available after an independent audit has been completed.
. Indicate whether each statement describes financial accounting or managerial accounting.
The information is directed at external users who are making decisions pertaining to investing, extending credit, and other decisions.
The principal users are the organization’s managers.
The key focus is on the entity as a whole.
The rules and principles are very flexible.
The information gathered is usually available after an independent audit has been completed.
2. Identify the following as True or False:
Managerial accounting reports must comply with the rules set in place by the FASB.
Financial accounting reports are typically general-purpose reports.
Financial accounting reports pertain to the entity as a whole, whereas managerial accounting focuses more on subunits of the organization.
The main users of the financial accounting information are the internal users.
Managerial reports are prepared on an as-needed basis.
Financial accounting reports often must be audited at least annually…
1. Indicate whether each of the following statements describes financial accounting or managerial accounting.
The information is directed at external users who are making decisions pertaining to investing, extending credit, and other decisions?
The principal users are the organization’s managers?
The key focus is on the entity as a whole?
The rules and principles are very flexible?
The information gathered is usually available after an independent audit has been completed?
Chapter 1 Solutions
Principles of Accounting Volume 2
Ch. 1 - The managers of an organization are responsible...Ch. 1 - Management accountants help the management of an...Ch. 1 - Which of the following is a primary aspect of the...Ch. 1 - During the control function, the measurements...Ch. 1 - Which of the following is false regarding...Ch. 1 - Managerial accounting produces information: to...Ch. 1 - Management accounting: emphasizes special-purpose...Ch. 1 - Internal users of accounting information would not...Ch. 1 - External users of accounting information would...Ch. 1 - Which of the following statements is incorrect?...
Ch. 1 - The stockholders of a company are: the owners...Ch. 1 - The controller of a corporation: reports to the...Ch. 1 - The Certified Financial Analyst (CFA)...Ch. 1 - The Certified Management Accountant (CMA)...Ch. 1 - Which of the following terms means the ability to...Ch. 1 - Which of the following terms means knowing how a...Ch. 1 - What is the law that protects investors from...Ch. 1 - What year was the Sarbanes-Oxley Act enacted? 2007...Ch. 1 - When a representative of an organization gives...Ch. 1 - The law that specifically prohibits payments to...Ch. 1 - Which of the following is not a step in the...Ch. 1 - Which of the following is not an objective used in...Ch. 1 - Which of the following is not true regarding...Ch. 1 - A companys attempts to utilize sustainable...Ch. 1 - A process that is often linked to Six Sigma and is...Ch. 1 - An inventory system that organizations use to...Ch. 1 - A quality control program that depends on multiple...Ch. 1 - Carlita believes an important part of the planning...Ch. 1 - What are some activities and tasks a manager might...Ch. 1 - If there are deviations from the stated goals and...Ch. 1 - Explain how managerial accountants help managers...Ch. 1 - How do the subject matter of reports and the...Ch. 1 - What is the purpose of management accounting?Ch. 1 - Who are the primary users of the information...Ch. 1 - What are the key differences between financial...Ch. 1 - Other than accounting skills, what six qualities...Ch. 1 - Explain how having more than one of the accounting...Ch. 1 - Briefly discuss the chain of command for someone...Ch. 1 - According to the information available at...Ch. 1 - According to the information on management...Ch. 1 - What other professional business organizations...Ch. 1 - How can having a bonus system based purely on...Ch. 1 - What led to the United States Congress passing the...Ch. 1 - What is an enterprise resource planning (ERP)...Ch. 1 - Describe what is meant by the term balanced in the...Ch. 1 - What is corporate social responsibility, and who...Ch. 1 - Indicate whether each statement describes...Ch. 1 - Identify the following as True or False:...Ch. 1 - Define each of these users of accounting...Ch. 1 - Discuss what information would be most useful for...Ch. 1 - Taylor Speedy has prepared the following list of...Ch. 1 - Match the term with the description:Ch. 1 - After the passage of the Sarbanes-Oxley Act in...Ch. 1 - Indicate whether each of the following statements...Ch. 1 - Match each lean business method to the best...Ch. 1 - For each of the activities listed, choose the...Ch. 1 - Look up the definitions for the following terms:...Ch. 1 - Indicate whether the statement describes reporting...Ch. 1 - Identify the following as true or false: Financial...Ch. 1 - Companies need to report both monetary and...Ch. 1 - Marvin has been thinking about the fields of...Ch. 1 - Match the term with the description.Ch. 1 - The Foreign Corrupt Practices Act (FC PA) was...Ch. 1 - Indicate whether each of the following statements...Ch. 1 - Table 1.3 shows how different areas within the...Ch. 1 - There are individuals who are under the impression...Ch. 1 - Think about the organization chart in Figure 1.7....Ch. 1 - Controversy tends to surround the topic of...
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Similar questions
- Which one of the following components of internal control over financial reporting sets the tone for the organization? a. Risk assessment. b. Control environment. c. Information and communication. d. Monitoring.arrow_forwardA system that establishes financial accountability for operating segments within an organization is called _______. A. a financial statement B. an internal control system C. responsibility accounting D. centralizationarrow_forwardSuppose you are tasked to construct and evaluate complex financial statements, including those relating to group accounts, to show an organization's financial position and performance. How do SASB standards relate to your task?arrow_forward
- Financial accounting follows Generally Accepted Acccounting Principles (GAAP), while managerial accounting Select one: O a. develops financial statements for external users O b. often has the financial information audited O c. is concerned with collecting data of historical nature O d. develops reports primarily prepared for internal use and help management make informed operational decisions.arrow_forwardWhich of the following adequately describes Management Accounting? It is the process of identifying, measuring and: a. analysing financial information b. accumulating information developed for external users c. analysing information d. accumulating information developed for managersarrow_forwardWhich of the following is not a function of an Accounting information system? Select one: a. The supply of information useful for making decisions. b. The efficient and effective collection and storage of data concerning an organizations financial activities. c.The determining and evaluating of alternative courses of action d. The implementation of controls to accurately record and process dataarrow_forward
- Indicate which of the following statements are moredescriptive of management accounting than of financialaccounting. (More than one answer may be appropriate.)a. Recognized standards are used for presentation. b. Information is tailored to the needs of individual deci-sion makers.arrow_forwardAssess the accounting function within the organization in the context of regulatory and ethical constraints.arrow_forwardWhich of the following is not a function of an Accounting Information System? a.The efficient and effective collection and storage of data concerning an organization’s financial activities b.The supply of information useful for making decisions c.The determining and evaluating of alternative courses of action d.The implementation of controls to accurately record and process data.arrow_forward
- The most general and most important objective of financial reporting is to: A. Provide useful information for decision making B. Ensure management objectives are met C. Safeguard the company's assets D. Keep information summarized, simplified and condensed Reset Selectionarrow_forwardExplain and give example of the following Management Reports Procedures Activities: Financial Statementsarrow_forwardInternal Controls should be created with focus on which aspect of the organization? All of the Above Operational Reporting Financial Reporting Compliance Reportingarrow_forward
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