ACCO 295 – Which of the following is an internal

Subject: General Questions / General General Questions
Introduction – Managerial Accounting (ACCO 295) Asignación #1 MULTIPLE CHOICE

1. Which of the following is an internal user of a company’s financial information?

a. company treasurer
b. stockholder in the company
c. bank lending to the company
d. Union

2. Which characteristic applies more to financial accounting than to managerial accounting?
a. primarily segmented reports
b. primarily quantitative information
c. internal decision focus
d. statement format determined by company information needs

3. One of the ways managerial accounting differs from financial accounting is that managerial accounting
a. is bound by generally accepted accounting principles.
b. classifies information in different ways.
c. does not use financial statements.
d. deals only with economic events.

4. The organization that presently has the primary responsibility to establish generally accepted
accounting principles that are applicable to the financial statements of entities in the private sector of
the U.S. is the
a. Accounting Principles Board
b. Securities and Exchange Commission
c. Financial Accounting Standards Board
d. Committee on Accounting Procedure

5. The four major financial statements of a corporation consist of the
a. income statement, balance sheet, statement of cash flows and statement of changes in
stockholders’ equity
b. balance sheet, statement of cash flows, statement of retained earnings, and income
c. income statement, statement of cash flows, statement of owners’ equity, and balance sheet
d. statement of cash flows, balance sheet, income statement, and statement of capital equity

ACCO 295 (Asignación #1) –

6. Managerial accounting differs from financial accounting in that it is
a. more concerned with the future.
b. more concerned with segments of a company.
c. less constrained by rules and regulations.
d. all of the above.

7. The framework for the model of business reporting includes all of the following, except
a. financial and nonfinancial data
b. independent analysis of the financial data
c. forward-looking information
d. information about management and shareholders

8. The financial statement that would be most useful in evaluating a company’s financial flexibility is the
a. balance sheet
b. income statement
c. statement of owners’ equity
d. statement of retained earnings

9. Which accounts are increased with debits?
a. Cost of Goods Sold, Capital Stock, Assets
b. Dividends, Revenue, Liabilities
c. Assets, Cost of Goods Sold, Dividends Distributed
d. Liabilities, Capital Stock, Revenue

10. Managerial accounting is similar to financial accounting in that
a. both are governed by generally accepted accounting principles.
b. both deal with economic events.
c. both concentrate on historical costs.
d. both classify reported information in the same way.

11. Going from 1938 to the present, which is the correct sequence of accounting rule-making bodies?

12. The Securities and Exchange Commission has the legal authority to prescribe accounting principles
and reporting practices for
a. all companies issuing publicly traded securities
b. all companies issuing any type of securities
c. all companies
d. all corporations

13. Generally accepted accounting principles are
a. income tax regulations of the Internal Revenue Service.
b. standards that indicate how to report economic events.
c. theories that are based on physical laws of the universe.
d. principles that have been proven correct by academic researchers.

14. The basic accounting equation may be expressed as
a. Assets = Equities.
b. Assets – Liabilities = Owner’s Equity.
c. Assets = Liabilities + Owner’s Equity.
d. all of these. 15. Planning and control are
a. different names for the same thing.
b. the basic functions of management.
c. described equally well by the terms "decision making" and "performance evaluation."
d. exemplified by, respectively, financial statements and budgeting.

ACCO 295 (Asignación #1)
1-3 PROBLEM 1. Listed below are 12 characteristics of accounting, some of which are more closely related to financial
accounting, while others are related to managerial accounting.
____ 1. Focuses on external users. ____ 2. Uses a present and future time frame. ____ 3. Uses qualitative and quantitative data. ____ 4. Reports are concerned primarily with the total company. ____ 5. Is governed by GAAP. ____ 6. Focuses on internal users. ____ 7. Uses report formats prescribed by GAAP. ____ 8. Reports are concerned with individual departments. ____ 9. Uses quantitative data. ____ 10. Is governed by the internal needs of a company. ____ 11. Uses report formats best suited for the specific decisions being made. ____ 12. Uses an historical time frame. Required:
Indicate which characteristic is financial and which is managerial by placing an (f) or an (m) in the
space provided. 1-4 Indicate in the space provided by each item whether it would appear on the Income Statement
(IS), Balance Sheet (BS), or Owner’s Equity Statement (OE):
a. ____ Service Revenue g. ____ Accounts Receivable b. ____ Utilities Expense h. ____ James, Capital c. ____ Cash i. ____ Equipment d. ____ Accounts Payable j. ____ Advertising Expense e. ____ Office Supplies k. ____ James, Drawing f. ____ Wage Expense l. ____ Notes Payable

ACCO 295 (Asignación #1)

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