ADMINISTRACIN FINANCIERA Y

CONTROL DE COSTOS

Resolver ejercicios del Self-Study del Cap.1, pgina

25.

1) Matching

Following is a list of the key terms and concepts introduced in the

chapter, along with a list of corresponding definitions. Match the
appropriate letter for the key term or concept to each definition
provided (items 110). Note that not all key terms and concepts
will be used.

a. Accounting

b. Entity

c. Financial accounting

d. Bookkeeping

e. Certified Public Accountant

f. Managerial accounting

g. Cost accounting

h. Certified Management Accountant

i. Auditing

j. Public accounting

k. Certified Internal Auditor

l. Generally accepted auditing standards

m.Cash flows

n. Controller

o. Independence
 p. Generally accepted accounting principles

q. Internal auditing

r. Securities and Exchange Commission

s. Financial Accounting Foundation

t. Financial Accounting Standards Board

u. FASB Accounting Standards Codification

v. Cost Accounting Standards Board

w. Governmental Accounting Standards Board

x. Accrual accounting

y. Integrity

z. Objectivity

a 1. The process of identifying, measuring, and communicating

economic information about an organization for the purpose of
making decisions or informed judgments.

_ x__ 2. Accounting that recognizes revenues and expenses as they

occur, even though cash receipts from revenues and cash
disbursements related to expenses may occur before or after the
event that causes revenue or expense recognition.

__i__ 3. The process of examining the financial statements of an entity

by an independent third party with the objective of expressing an
opinion about the fairness of the presentation of the entitys financial
position, results of operations, changes in financial position, and cash
flows.

__d _ 4. Procedures that are used to keep track of an entitys financial

transactions and to accumulate the results of its operations.

_ u__ 5. An advanced user-accessible computer application that has

systemized and reorganized many divergent elements of U.S. GAAP
into a single source.

__f__ 6. Accounting that is concerned with the use of economic and

financial information to plan and control the activities of an entity and
to support the management decision-making process.
_ b__ 7. An organization, individual, or group of organizations or
individuals for which accounting services are performed.

__r__ 8. A unit of the federal government that is responsible for

establishing regulations and ensuring that full disclosure is made to
investors about large companies and their securities traded in
interstate commerce.

__t__ 9. The body responsible for establishing U.S. generally accepted

accounting principles.

__o__ 10. The personal characteristic of honesty, including being

forthright in dealings and communications with others.

2) Multiple Choice For each of the following questions,

circle the best response.

1. Common examples of users of the accounting information

related to an organization include

a. the management of the organization.

b. investors and creditors.

c. employees.

d. the Securities and Exchange Commission.

e. all of the above.

2. As it relates to financial reporting, which of the following is not

required of an accounting entity?

a. A financial statement presenting the amount that the entity

expects to earn next year.

b. A financial statement presenting the financial position of

the entity at a point in time.

c. A financial statement presenting the results of the entitys

operations for a period of time.
 d. A financial statement summarizing the entitys cash flows
for a period of time.

3. In SFAC No. 8, which of the following ideas is not expressed?

a. Information largely reflects financial effects of past

transactions and events.

b. Financial information must always be accurate because it is

the only source of information available to decision makers.

c. The objectives of financial reporting stem primarily from the

needs of external users who lack the authority to demand
the information they want from management.

d. The objectives are directed toward the common interests of

many user groups, not just investors and creditors.

4. Which of the following ideas is expressed in SFAC No. 8?

a. Financial reporting is not an end in itself but is intended to

provide useful information to decision makers.

b. The objectives of financial reporting are subject to changes

in the economic, legal, political, and social environments.

c. Information pertains to business entities rather than

industries or the economy as a whole.

d. Approximate rather than exact measures must sometimes

be used.

e. All of these ideas are expressed in SFAC No. 8

5. Which of the following statements related to the origins and

traditions of auditing is the most appropriate description?

a. Auditing has always followed a codified set of rules

designed to detect and report fraud.
 b. Little judgment has traditionally been required on the
auditors part because either the numbers a firm reports
are correct or theyre not.

c. Auditing evolved as a response to the needs of absentee

owners of large corporations who had entrusted their
money with managers they could not directly control.

d. In the early 1920s auditors became unified in their efforts,

and generally accepted auditing procedures were
consistently followed to the point that financial statements
were considered quite reliable.

6. Examples of how investors, creditors, and others commonly

use reported earnings figures and the related information
about the elements of financial statements include all of the
following except

a. estimating the number of employees the firm will hire

during the next year.

b. evaluating managements past performance.

c. predicting future earnings.

d. assessing the risks of future cash flows.

e. all of the above are examples of how these data are used.