BM 2 Unit 5 Flashcard

Front

Sierra, a managerial accountant for Pepsi, develops estimates of how much each department will spend in the upcoming year. What task of managerial accounting is she completing?

Back

budgeting

Front

For financial information to be comparable, it must also be: current, consistent, digital, private

Back

consistent

Front

A company looks at financial information and learns that it could save money by switching to a different Internet provider. This is an example of using financial information to:

Back

reduce expenses

Front

What types of financial information are most useful to businesses?

Back

timely and understandable

Front

When a business decides to pay a loan off early due to a cash surplus, how is this business using financial information?

Back

to manage debt

Front

A manager is most likely to use financial information when: deciding if resources are available to fund a new project.

Back

deciding if resources are available to fund a new project.

Front

Which is a way that businesses can use financial information?

Back

to identify trends

Front

Which is a factor that might cause a business to adjust its budget figures? Options: local elections, economic trends, sales procedures, operating policies

Back

economic trends

Front

What is the relationship between a business’s goals and its budget?

Back

Budgets translate a business’s goals into actual means for accomplishing them.

Front

To develop realistic budgets, existing businesses usually base their estimates on:

Back

past performance.