Managerial Accounting free essay sample

The ability to meet short-term obligations and to efficiently generate revenues is called: Liquidity and Efficiency 3. The ability to generate future revenues and meet long-term obligations is referred to as: Solvency 4. The ability to provide financial rewards sufficient to attract and retain financing is called: Profitability 5. The ability to generate positive market expectations is called: Market Prospects 6. Standards for comparisons in financial statement analysis include: Intra-company, Competitor, Industry, Guidelines 7. The comparison of a companys financial condition and performance across time is known as: Horizontal Analysis 8. A companys sales in 2004 were $ and in 2005 were $. Using 2004 as the base year, the sales trend percent for 2005 is: Analysis Period amount/Base Period Amount x100 9. One of several ratios that reflects solvency includes the: Debt-to-equity ratio 10. Current assets divided by current liabilities is the: Current Ration 11. Ch. 18Managerial accounting is different from financial accounting in that: (users and decision makers, purpose of info, flexibility of practice, timeliness of information, time decision, focus of information, nature of information) 12. Planning   involves establishing and specifying goals how to achieve them. involves gathering   to ensure Controlling feedback that the plan is being properly executed or modified as circumstances change. Decision making   involves selecting a course of action from competing alternatives. Forward-looking Perspective †¢ Budgeting systems turn managers’ perspectives forward. A forward-looking perspective enables   gaps managers to be in a better position to exploit. It also enables them to anticipate   and take steps risks to eliminate or reduce their severity. Forward Looking Perspective Practical example: Failure to anticipate problems Phil Harrison, President of Sony Computer Entertainment FORCED TO STEP DOWN Forward Looking Perspective Practical example: Ability to exploit opportunities HUGE PROFITS â€Å"Yesterday is history, tomorrow is a mystery, but today is a gift. That is why it is called the present .