Question

1.________ is the field of accounting that develops information for external parties such as stockholders, suppliers, banks and governmental regulatory bodies.

A) Auditing

B) Internal auditing

C) Management accounting

D) Financial accounting

Answer:

Financial reports prepared by financial accountants focus on ________. Financial reports prepared by management accountants focus on ________

A) segments of the organization such as departments and divisions; segments of the organization such as departments and divisions

B) the organization as a whole; the organization as a whole

C) the organization as a whole; segments of the organization such as departments and divisions

D) segments of the organization such as departments and divisions; the organization as a whole

Answer:

What are accounting systems?

A) The process used to streamline production processes

B) The process used to generate performance measures

C) Formal mechanisms for gathering, organizing and communicating information about an organization's activities

D) none of the above

Answer:

A(n) ________ is a review to determine whether the policies and procedures specified by top management have been implemented by lower managers.

A) management audit

B) internal audit

C) internal control

D) internal accounting control

Answer:

A budget ________.

A) is a quantitative expression of a plan of action

B) provides feedback by comparing actual results with planned results

C) includes deviations from planned results

D) ignores areas that are presumed to be running smoothly

Answer 1

• All working forms part of the answer
• Financial Accounting is the field of accounting that develops information for external parties such as stockholders, suppliers, banks and governmental regulatory bodies.

Correct answer: D) Financial accounting

Financial Accounting leads to the preparation of Financial Statements which are used by external parties.

• Financial reports prepared by financial accountants focus on the organization as a whole, Financial reports prepared by management accountants focus on segments of the organization such as departments and divisions .

Correct answer: C) the organization as a whole; segments of the organization such as departments and divisions

        Balance Sheets and Income Statements are prepared for the entire company or organisations,

• What are accounting systems?

Correct Answer: D) none of the above

Because, accounting system is a system of recording monetary transactions related to business and preparing financial data based on those record.

• A management audit is a review to determine whether the policies and procedures specified by top management have been implemented by lower managers.

Correct Answer: A) management audit

• A budget is a quantitative expression of a plan of action.

Correct answer: A) is a quantitative expression of a plan of action

Budgets are prepared taking into account quantitative data that is expected to be in future course of action plan. Example: how many units are to be produced in coming period.