Chapter 1: Overview of managerial
accounting
What is the purpose of managerial accounting? - correct answer--Provides useful information
to users within the organization
-focuses on projecting future operations
-Is not bound by the eternal rules of GAAP (however does use them sometimes)
What is the purpose of financial accounting - correct answer--to provide useful information to
external decision makers-investors, creditors, etc
-focuses on reporting past operations
-bound by GAAP
issuing a quarterly earnings report to investors - correct answer-financial
determining the cost of producing a product - correct answer-managerial
calculating a breakeven point - correct answer-managerial
preparing a report for the securities and exchange commission - correct answer-financial
preparing a sales budget - correct answer-managerial
preparing a statement of cashflow in accordance with the generally accepted accounting
principles - correct answer-financial
choosing among competing capital projects using net present value analysis - correct
answer-managerial
3 things that managerial accountants do - correct answer-1. plan
2. Controlling
3. Decision Making
3 types of business entities - correct answer-1. Manufacturing
2. Merchandising
3. Service
What type of business entity is:
1. Exxon mobil co.
2. Southwest Airlines
3. Cosco
4. Walmart
5. Hershey Co
6. Boston consulting Group - correct answer-1. manufacturing
2. service
accounting
What is the purpose of managerial accounting? - correct answer--Provides useful information
to users within the organization
-focuses on projecting future operations
-Is not bound by the eternal rules of GAAP (however does use them sometimes)
What is the purpose of financial accounting - correct answer--to provide useful information to
external decision makers-investors, creditors, etc
-focuses on reporting past operations
-bound by GAAP
issuing a quarterly earnings report to investors - correct answer-financial
determining the cost of producing a product - correct answer-managerial
calculating a breakeven point - correct answer-managerial
preparing a report for the securities and exchange commission - correct answer-financial
preparing a sales budget - correct answer-managerial
preparing a statement of cashflow in accordance with the generally accepted accounting
principles - correct answer-financial
choosing among competing capital projects using net present value analysis - correct
answer-managerial
3 things that managerial accountants do - correct answer-1. plan
2. Controlling
3. Decision Making
3 types of business entities - correct answer-1. Manufacturing
2. Merchandising
3. Service
What type of business entity is:
1. Exxon mobil co.
2. Southwest Airlines
3. Cosco
4. Walmart
5. Hershey Co
6. Boston consulting Group - correct answer-1. manufacturing
2. service
