Exam (elaborations)
Accounting for Decision Making and Control
- Course
- Institution
- Book
Accounting for Decision Making and Control
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
More summaries for
-
Accounting for Decision Making and Control
-
Accounting for Decision Making and Control
Seller
Follow
kushboopatel6867
Content preview
Solutions Manual For Accounting for Decision Making andControl 10th Edition By Jerold Zimmerman 9781259969492
ALL Chapters .
Why is accounting the language of business? - ANSWER: it is widely used to describe
all types of business activity, like costs
What role does accounting information play in making economic decisions? -
ANSWER: 1. Economic activities describing the accounting process,
2. Assumptions and measurement techniques used to portray accounting
information, and
3. Reported results most relevant in making decisions.
financial accoutning - ANSWER: information that describes
1. financial resources,
2. priorities, and
3. economic entities (something existing by itself) primarily used by external decision
makers, such as investors and creditors.
management accounting - ANSWER: accounting information used to
1. assist managers in operating the business
What is the objective in financial and managerial accounting? - ANSWER: provide
individuals who use and prepare accounting with a basic understanding of financial
and managerial accounting
What are 3 similarities between management accounting information and financial
accounting information? - ANSWER: 1. Use of judgment required,
2. Info prepared should be subject to the system of internal control, and
3. both are related to tax accounting
What is the primary objective about accounting? - ANSWER: to provide information
that is useful for decision-making purposes
Why is accounting a means to an end? - ANSWER: primary role is to make decisions
in the business, and the end is used to determine the availability of accounting
information.
What is accounting information? - ANSWER: Means by which we measure and
communicate economic events.
Why is financial accounting often called "General-purpose" accounting information?
- ANSWER: Because it's used for so many different purposes in the business
, Why do managers use management accounting information? - ANSWER: So that
they can:
1. Set the overall goals of the company,
2. Evaluate how well the department and individuals are doing,
3. Decide if it is necessary to introduce a new line of production, and
4. make all types of management decisions.
What do businesses do in regards to accounting? - ANSWER: Provide information
useful in making credit decisions, like assessing the amount, timing, and uncertainty
of future cash flows. Also learn about the the enterprise's economic resources,
claims to resources, and changes to claims in resources.
What are most important characteristics of external financial accounting? - ANSWER:
1. Means to an end,
2. Historical in nature
3. Results in approximate measures of activity (good judgment required),
4. Based on a general-purpose assumption- useful for multiple user groups),
5. Financial statements are sub points of financial reports,
6. Usefulness enhanced via explanation- inexact numbers used to report the
accounting information
What characteristic do the information systems have in common? - ANSWER: Meet
the organization's needs for accounting information in a timely manner.
What are the 5 elements of internal control? - ANSWER: 1. Control environment-
sets the overall tone of an organization, and is the foundation for all of the other
elements of internal control,
2. Risk assessment-
a. Identifying,
b. analyzing, and
c. managing risks that pose a threat to the organization
3. Control activities- policies and procedures the managers put in place in order to
address the risks involved in the risk assessment process,
4. Information and communication- developing information systems to
inform/communicate operational, financial, and compliant-info needed to run the
business
5. Monitoring activities- this allows the company to assess the effectiveness of the
system of internal control over time
Why is accounting valuable to the enterprise? - ANSWER: 1. Achieving goals,
2. Achieving objectives,
3. Achieving mission
4. Testing past performance and future decisions,
5. Evaluating and rewarding decision-making purposes.
Important characteristics of internal accounting information are what? - ANSWER: 1.
Timeliness,
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller kushboopatel6867. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $17.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
72964 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now