Accounting Chapter 2 Questions - Accounting Chapter 2...

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Accounting Chapter 2 Questions 2.1) Describe the three major activities of a manager. Planning  involves establishing a basic strategy, selecting a course of action,  and specifying how the action will be implemented.  Directing and  motivating  involves mobilizing people to carry out plans and run routine  operations.  Controlling  involves ensuring that the plan is actually carried  out and is appropriately modified as circumstances change. 2.2) What are the four steps in the planning and control cycle? The  planning and control cycle  involves the smooth flow of management  activities from planning through directing and motivating, controlling, and  then back to planning again. All of these activities involve decision making,  which is the hub around which the other activities revolve. 2.3) What are the major differences between financial and managerial  accounting? Financial Accounting Managerial Accounting User External persons who  make financial decisions Managers who plan for  and control  organizations Time Focus Historical perspective Future emphasis Verifiability vs.  Relevance Emphasis on verifiability Emphasis on relevance  for planning and control Precision vs. Timeliness Emphasis on precision Emphasis on timeliness Subject Primary focus is the  whole organization Focuses on segments of  an organization GAAP Must follow GAAP and  prescribed formats
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This note was uploaded on 05/02/2011 for the course ACCT 2033 taught by Professor Kay during the Spring '11 term at The University of Texas at San Antonio- San Antonio.

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Accounting Chapter 2 Questions - Accounting Chapter 2...

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