23-24 Management Control

Quiz 1 (10 minutes)

BBA Group :

Full Name:

1. [2 pts] Which of the following is true? (Choose all of the correct answers) [ bd ]

(a) Managers are not interested in financial accounting information.

(b) Management Accounting does not need to follow GAAP/IFRS standards.
(c) Managers are not interested in past information of the firm.
(d) Auditors do not review management accounting information.
(e) Management accounting does not contain information on competitors.

2. [5pts] Fill in the blanks.

Financial Accounting Managerial Accounting

Communicate an organization’s financial

Purpose of Helps managers make decisions to fulfill
position to investors, banks, regulators,
Information an organization’s goals
and other outside parties

Primary Users External users Managers of the organization

Rules of
F/S prepared in accordance with GAAP / IFRS Do not have to follow GAAP / IFRS but are
measurement
and be certified by external auditors based on cost-benefit analyses
and reporting

Hourly to 15 / 20 years, with financial and

Time span and Annual and quarterly financial reports,
nonfinancial reports on products, departments,
type of reports primarily on the company as a whole
and strategies

Time focus Historical perspective Future emphasis

Behavioral Manager’s compensation is based

Influence the behavior of managers & employees
implications on reported financial results.

3. [3pts] What is the accrual basis of accounting? Explain in less than 3 sentences.

Accrual basis accounting recognizes business revenue and matching expenses when they are generated, not
when cash actually changes hands.

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