Question

Match each term or phrase with its correct description by writing the appropriate letter in the blank:

……….   Business objectives or mission

………. Management accounting

……….   Income Statement

……….   Long-term planning

……….   Accounting

……….   Accountability

……….   Reliability

……….   Maximising business wealth

……….   Financial accounting

……….   Control

1.A process and system for collecting, analysing and communicating economic information

2.Financial information provided to, and useful for, a broad range of users, including managers and others

3.General statements of the business’ aim, typically being long-term and reflecting the attitudes of owners and managers

4.The accounting report that shows by how much the business’ wealth increased or decreased over a particular time period

5.Agreeing to undertake (or refrain from) certain actions, and then reporting on your compliance with the agreement

6.Compelling events to conform to a pre-determined plan

7.Information provided to managers to assist them in the day-to-day running of a business

8.Making decisions that increase business value

9.Accounting information has this quality when it is free from material error or bias

10.A procedure for specifying how business objectives will be achieve over a stated planning horizon

Answer 1

Business objectives or mission	General statements of the business’ aim, typically being long-term and reflecting the attitudes of owners and managers
Management accounting	Information provided to managers to assist them in the day-to-day running of a business
Income Statement	The accounting report that shows by how much the business’ wealth increased or decreased over a particular time period
Long-term planning	A procedure for specifying how business objectives will be achieve over a stated planning horizon
Accounting	A process and system for collecting, analysing and communicating economic information
Accountability	Agreeing to undertake (or refrain from) certain actions, and then reporting on your compliance with the agreement
Reliability	Accounting information has this quality when it is free from material error or bias
Maximising business wealth	Making decisions that increase business value
Financial accounting	Financial information provided to, and useful for, a broad range of users, including managers and others
Control	Compelling events to conform to a pre-determined plan