ACG 2021 Questions and Answers
Already Passed
Describe the main purpose of accounting.
The systematic process of recording, summarizing, and interpreting financial transactions.
Identify the key features of financial accounting.
Reports crafted for external users.
Must adhere to Gener...
ACG 2021 Questions and Answers
Already Passed
Describe the main purpose of accounting.
✔✔The systematic process of recording, summarizing, and interpreting financial transactions.
Identify the key features of financial accounting.
✔✔Reports crafted for external users.
✔✔Must adhere to Generally Accepted Accounting Principles (GAAP).
✔✔Reflects historical financial data.
✔✔Presents aggregated information.
Outline the characteristics of managerial accounting.
✔✔Information tailored for internal decision-makers.
✔✔Not bound by GAAP, allowing flexibility.
✔✔Focuses on future-oriented data.
✔✔Provides detailed and specific information.
✔✔Generated only if the benefit surpasses the cost.
1
,Who are the primary users of financial accounting information?
✔✔Investors and financial analysts.
✔✔Creditors and lenders.
✔✔Suppliers and customers.
Who are the primary users of managerial accounting information?
✔✔Senior management.
✔✔Marketing departments.
✔✔Production and operations teams.
What decisions are informed by financial accounting data?
✔✔Determining whether to buy or sell stock.
✔✔Deciding whether to extend credit.
✔✔Making purchasing and selling decisions.
What decisions are informed by managerial accounting data?
2
,✔✔Developing new business strategies.
✔✔Deciding on launching new products.
✔✔Managing operational activities.
What type of information is crucial for financial accounting?
✔✔Revenue and expense data.
✔✔Cash flow details.
✔✔Information on assets and liabilities.
What type of information is essential for managerial accounting?
✔✔Sales figures and cost analysis for products.
✔✔Performance metrics for different departments.
✔✔Budget reports and quality control assessments.
Name the Cash Flows:
1.) Cash receipts from sales
2) Cash payments for inventories
3
, 3) Lending to others
4) Cash payments of dividends
5) Cash receipts from dividends
6) Cash receipts from borrowing money
7) Cash payments for inventories
8) Cash receipts from stock
9) Cash payments for salaries
10) Collecting loans
11) Cash payments for longterm assets
12) Repaying debt
13) Cash payments for interest
14) Cash payments for expenses
15) Cash receipts from selling long term assets ✔✔1.) Operating
2) Operating
3) Investing
4) Financial
5) Operating
6) Financial
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