ACCT.ACBSP.APC.03 - Business Forms ACCREDITING STANDARDS: ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Identify each of the following as either internal or external users of accounting information. Payroll Manager A. Bank B. Secretary C. President’s Internal Revenue Service D. Raw Material Vendors E. Social Security Administration F. Health Insurance Provider G. Managerial Accountant H. ANSWER: Internal A. External B. Internal C. External D. External E. External F. External G. Internal H. Moderate DIFFICULTY: Remembering Bloom’s: ACCT.WARD.16.01-01 - 01-01 LEARNING OBJECTIVES: ACCT.ACBSP.APC.01 - Purpose ACCREDITING STANDARDS: ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic What is the major difference between the objective of financial accounting and the objective of managerial accounting? The objective of financial accounting is to provide information for the ANSWER: decision-making needs of external users. The objective of managerial accounting is to provide information for internal users. Easy DIFFICULTY: Remembering Bloom’s: ACCT.WARD.16.01-01 - 01-01 LEARNING OBJECTIVES: ACCT.ACBSP.APC.01 - Purpose ACCREDITING STANDARDS: ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Give the major disadvantage of disregarding the cost concept and constantly revaluing assets based on
ACCREDITING STANDARDS: ACCT.ACBSP.APC.03 - Business Forms ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Identify each of the following as either internal or external users of accounting information. A. Payroll Manager B. Bank C. President’s Secretary D. Internal Revenue Service E. Raw Material Vendors F. Social Security Administration G. Health Insurance Provider H. Managerial Accountant ANSWER: A. Internal B. External C. Internal D. External E. External F. External G. External H. Internal DIFFICULTY: Moderate Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic What is the major difference between the objective of financial accounting and the objective of managerial accounting? ANSWER: The objective of financial accounting is to provide information for the decision-making needs of external users. The objective of managerial accounting is to provide information for internal users. DIFFICULTY: Easy Bloom’s: Remembering LEARNING OBJECTIVES: ACCT.WARD.16.01-01 - 01-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.01 - Purpose ACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Give the major disadvantage of disregarding the cost concept and constantly revaluing assets based on