Final Exam Preparation Guidelines
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Questions and Answers

What type of decisions does managerial accounting primarily inform?

  • Tax reporting obligations
  • Government compliance issues
  • Long-term investment choices
  • Daily operational decisions (correct)
  • Which of the following best describes a characteristic of financial accounting?

  • Emphasizes daily transaction recording
  • Guides short-term operational strategy
  • Provides retrospective reports (correct)
  • Focuses on internal stakeholders
  • What is a common output of the audit discipline in accounting?

  • Sales forecasting reports
  • Tax strategy consultations
  • Financial statement verification (correct)
  • Investment recommendations
  • Which accounting discipline is most closely associated with compliance with laws and regulations?

    <p>Tax accounting (C)</p> Signup and view all the answers

    Which of the following stakeholders primarily utilizes information from managerial accounting?

    <p>Employees (B)</p> Signup and view all the answers

    What is the first step in human resource planning?

    <p>Prepare human resource inventory (D)</p> Signup and view all the answers

    Which of the following is NOT a part of performance appraisal?

    <p>Determine compensation (B)</p> Signup and view all the answers

    What does EVP stand for in HR management?

    <p>Employee Value Proposition (A)</p> Signup and view all the answers

    Which financing method is associated with secured loans?

    <p>Debt (B)</p> Signup and view all the answers

    What should be included in a transition plan during terminations?

    <p>Protecting assets (C)</p> Signup and view all the answers

    Which aspect of financial planning involves measuring performance against predetermined benchmarks?

    <p>KPI monitoring (D)</p> Signup and view all the answers

    What is the primary purpose of compliance audits?

    <p>To ensure adherence to regulations (D)</p> Signup and view all the answers

    What is required to bring to the final examination?

    <p>WatCard (A)</p> Signup and view all the answers

    Which financial statement focuses primarily on a company's profitability over a specific period?

    <p>Income Statement (B)</p> Signup and view all the answers

    If a student accidentally bubbles in two answers on the exam, what should they do?

    <p>Make it clear which one is the actual answer (B)</p> Signup and view all the answers

    When will the final examinations take place?

    <p>Throughout the week of the exam schedule (B)</p> Signup and view all the answers

    Which of the following best describes the matching principle in accounting?

    <p>Aligning expenses with the revenues they generate (C)</p> Signup and view all the answers

    What type of writing instrument is acceptable for the exam?

    <p>Black/blue pen or HB2 pencil (C)</p> Signup and view all the answers

    What type of information is typically included in a tax return?

    <p>Income, deductions, and credits (A)</p> Signup and view all the answers

    Which ratio indicates a company's ability to pay its short-term liabilities?

    <p>Current Ratio (C)</p> Signup and view all the answers

    Where can students find the room locations for the final exam?

    <p>Online a few days before the exam (B)</p> Signup and view all the answers

    Which key stakeholder is primarily interested in a company’s internal audit reports?

    <p>Management (A)</p> Signup and view all the answers

    What option should a student NOT select during the final exam?

    <p>Using a mobile phone (A)</p> Signup and view all the answers

    What is the recommended action if a student realizes they misbubbled answers?

    <p>Clearly mark the intended answer (B)</p> Signup and view all the answers

    In financial planning, what role does ratio analysis play?

    <p>It helps in making investment decisions. (B)</p> Signup and view all the answers

    What signifies that a student’s answer choice is the actual answer during the exam?

    <p>Clearly marking it after two bubbles (A)</p> Signup and view all the answers

    What is NOT stated as a preparation item for the final exam?

    <p>Pencil sharpener (B)</p> Signup and view all the answers

    Which of the following is an inappropriate action during the final examination?

    <p>Consulting with classmates (C)</p> Signup and view all the answers

    Which of the following plans rewards employees based on productivity and may involve bonuses or profit sharing?

    <p>Gain-sharing plans (B)</p> Signup and view all the answers

    What framework is utilized for analyzing competitive forces in an industry?

    <p>Porter’s Five forces (A)</p> Signup and view all the answers

    Which leadership style is characterized by minimal direct supervision and allows employees to make decisions autonomously?

    <p>Free-Rein (B)</p> Signup and view all the answers

    Which type of ethical approach focuses on laws and regulations to guide corporate behavior?

    <p>Compliance-based ethics code (C)</p> Signup and view all the answers

    Which of the following is a component of Corporate Social Responsibility (CSR) that focuses on the impact of a company's operations on society?

    <p>Triple bottom line (A)</p> Signup and view all the answers

    What term refers to the various strategies businesses adopt to manage their relationship with stakeholders?

    <p>Pluralist approach (D)</p> Signup and view all the answers

    Which of the following has no relevance in evaluating a company's workforce development?

    <p>Corporate value proposition (D)</p> Signup and view all the answers

    What is a key factor in ensuring a balanced scorecard effectively measures an organization's performance?

    <p>Integration of different performance perspectives (D)</p> Signup and view all the answers

    What information should students expect to receive via email from the course manager before the final exam?

    <p>Breakdown of midterm averages by module (D)</p> Signup and view all the answers

    Where can students find the final exam room locations?

    <p>Online a few days before the exam (D)</p> Signup and view all the answers

    What is the main purpose of receiving midterm averages before the final exam?

    <p>To enable students to evaluate their study progress (D)</p> Signup and view all the answers

    What should students do if they accidentally choose more than one answer on their exam?

    <p>Ask the invigilator for guidance (B)</p> Signup and view all the answers

    What should students verify before attending their final examination?

    <p>They have the correct writing instrument (D)</p> Signup and view all the answers

    What is a primary ethical concern surrounding data breaches in companies like Facebook?

    <p>The impact on user trust and privacy (C)</p> Signup and view all the answers

    Which principle best represents the responsibilities companies have toward society?

    <p>Corporate Social Responsibility (B)</p> Signup and view all the answers

    How can businesses uphold ethical standards in their operations?

    <p>By implementing rigorous compliance requirements (C)</p> Signup and view all the answers

    What role does media play in shaping public perception about a company's ethical practices?

    <p>They highlight ethical breaches, influencing consumer trust (A)</p> Signup and view all the answers

    Which approach is commonly criticized for neglecting ethical implications in business strategy?

    <p>Profit Maximization Strategy (D)</p> Signup and view all the answers

    What is a primary ethical concern that arises when pharmaceutical companies pressure to release products early?

    <p>Inadequate product testing could lead to harmful side effects. (D)</p> Signup and view all the answers

    How does the 'tone from the top' influence corporate ethics?

    <p>It helps instill corporate values and ethical behavior throughout the organization. (C)</p> Signup and view all the answers

    What is a common ethical concern regarding companies' handling of data breaches?

    <p>Lack of transparency with stakeholders (D)</p> Signup and view all the answers

    Which principle best captures the ethical responsibilities companies hold toward society?

    <p>Commitment to stakeholder engagement (A)</p> Signup and view all the answers

    What obligation do pharmaceutical companies have towards stakeholders when introducing new drugs?

    <p>To consider the long-term societal impact of their pricing strategies. (A)</p> Signup and view all the answers

    What is the implication of Martin Shkreli's actions in relation to ethical business practices?

    <p>He demonstrated a commitment to maximizing shareholder value at the expense of ethics. (B)</p> Signup and view all the answers

    How do businesses typically uphold ethical standards in their operations?

    <p>Establishing comprehensive codes of conduct (A)</p> Signup and view all the answers

    Which of the following ethical considerations is most relevant when developing pricing strategies for pharmaceuticals?

    <p>Evaluating the ramifications on patient access to essential medications. (B)</p> Signup and view all the answers

    Which approach is often criticized for neglecting the ethical implications in business strategy?

    <p>Short-term profit maximization (D)</p> Signup and view all the answers

    What should a student expect to receive from the course manager before the final exam?

    <p>A breakdown of midterm averages by Module (D)</p> Signup and view all the answers

    Where can students typically find their final exam room locations?

    <p>In the exam schedule linked online a few days before (A)</p> Signup and view all the answers

    What is NOT advisable for students to do during the final examination?

    <p>Use unauthorized writing instruments (D)</p> Signup and view all the answers

    What is the primary purpose of receiving midterm average breakdowns?

    <p>To assist in planning final exam preparation (C)</p> Signup and view all the answers

    What action should a student take if they realize they have misbubbled answers on the exam?

    <p>Notify the invigilator immediately for assistance (C)</p> Signup and view all the answers

    What is a principal concern regarding social media companies' management of user data?

    <p>Preventing unauthorized access to personal information (A)</p> Signup and view all the answers

    Which principle is critically examined in discussions about corporate social responsibility?

    <p>Impact of operations on societal well-being (D)</p> Signup and view all the answers

    How does public perception influence the ethical practices of a corporation?

    <p>It can compel companies to adopt better ethical standards. (C)</p> Signup and view all the answers

    What is a common ethical dilemma faced by businesses regarding product releases?

    <p>Balancing innovation with customer safety and reliability (A)</p> Signup and view all the answers

    What factor significantly affects the ethical culture within an organization?

    <p>The behavior and attitudes of senior leadership (B)</p> Signup and view all the answers

    What ethical concern is commonly associated with data breaches in companies like Facebook?

    <p>Inadequate protection of personal data (C)</p> Signup and view all the answers

    Which principle best illustrates the social responsibilities companies have towards their stakeholders?

    <p>Stakeholder Theory (A)</p> Signup and view all the answers

    How does a company's 'tone from the top' affect its ethical practices?

    <p>It can influence employee behavior and corporate culture (B)</p> Signup and view all the answers

    What is a major criticism of the approach that emphasizes profit maximization in business strategy?

    <p>It tends to prioritize short-term gains over long-term sustainability (A)</p> Signup and view all the answers

    What is a key distinction between legal and ethical standards?

    <p>Legal standards can exist without ethical considerations. (D)</p> Signup and view all the answers

    Which of the following best describes a compliance-based ethics code?

    <p>Utilizes adherence to regulations to ensure ethical behavior. (C)</p> Signup and view all the answers

    When assessing a business's social responsibility efforts, what is most commonly measured?

    <p>The return on investment from ethical initiatives. (C)</p> Signup and view all the answers

    Which scenario illustrates something that is legal but potentially unethical?

    <p>Using aggressive marketing tactics that manipulate consumer behavior. (A)</p> Signup and view all the answers

    In ethical decision making, which of the following questions is most pertinent?

    <p>What will be the public's perception of this decision? (B)</p> Signup and view all the answers

    Flashcards

    Managerial Accounting

    Focuses on internal management decisions, using reports like daily, weekly, and monthly sales reports.

    Financial Accounting

    Provides financial information to external stakeholders for decision-making.

    Audit Accounting

    Independent examination of financial records to ensure accuracy and compliance.

    Tax Accounting

    Deals with tax calculations and planning for individuals and businesses.

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    Consulting & Advisory

    Provides expert advice and problem-solving for businesses.

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    Final Exam

    The final assessment for a course at the University of Waterloo.

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    WatCard

    University of Waterloo student ID card.

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    Exam Schedule

    A list of exam times and locations.

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    Black/Blue Pen or HB2 Pencil

    Required writing tools for the exam.

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    Multiple Bubbles

    Marking multiple choices with two or more bubbles accidentally.

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    Business Model Canvas

    A strategic management tool used to describe and analyze the business model of a company.

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    Exam Location

    The physical space where the exam is held.

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    Last Class Review

    A summary of the topics covered in the previous class.

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    Exam Resources

    Information about the exam located at a specific site (https://odyssey.uwaterloo.ca/teaching/schedule).

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    Final Exam Office Hours

    When the exam instructors are available for questions about the exam.

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    Debt Financing

    Raising funds by borrowing money from external sources, like banks or investors.

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    Equity Financing

    Raising funds by selling ownership shares of the company to investors.

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    Employee Value Proposition (EVP)

    What a company offers employees in return for their work, including compensation, benefits, and career growth opportunities.

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    Golden Handshake

    A financial package offered to an employee upon termination of employment, often with a lump sum payment and benefits.

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    Performance Appraisal

    A formal process of evaluating an employee's performance against pre-set standards.

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    Financial Planning

    The process of using financial information to make decisions about the future operations and investments of a business.

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    Financial Statements

    Key documents that summarize a company's financial performance and position.

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    Ratio Analysis

    Evaluating a company's financial performance using ratios derived from its financial statements, like the current ratio or debt-to-equity ratio.

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    Cash Flow Statement

    A financial statement that tracks the movement of cash both into and out of a business over a period of time.

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    Income Statement

    A financial statement that reports a company's revenues and expenses over a specific period, revealing its profitability.

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    Balance Sheet

    A financial statement that presents a snapshot of a company's assets, liabilities, and equity at a particular point in time.

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    Accounting Disciplines

    Different areas within accounting focusing on distinct roles and responsibilities, like tax, compliance, and consulting.

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    Compliance - Audit

    The process of verifying financial information against established standards and regulations to ensure accuracy and adherence to rules.

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    Profit-sharing plans

    A compensation system where employees receive a share of the company's profits, typically based on a pre-determined formula.

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    Gain-sharing plans

    A compensation system where employees are rewarded for improvements in productivity, efficiency, or cost reduction.

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    Cost-of-living allowance (COLA)

    A regular payment adjustment that compensates employees for increases in the cost of living.

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    Stock options

    The right to buy shares of company stock at a predetermined price, often granted as part of an employee compensation package.

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    Balanced scorecard

    A performance management tool that uses multiple perspectives (financial, customer, internal processes, learning and growth) to assess a company's success.

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    PESTEL analysis

    A framework for analyzing the external environment of a company, considering political, economic, social, technological, environmental, and legal factors.

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    Porter's Five Forces

    A framework for analyzing the competitive forces within an industry, including rivalry, new entrants, substitutes, buyers, and suppliers.

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    SMART Goals

    Goals that are Specific, Measurable, Achievable, Relevant, and Time-bound.

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    Module Average

    The average mark you've received in each section of a course. This is often provided to students in an email by the course manager.

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    Multiple Choice Exam

    An exam format with questions that have multiple answers to choose from, typically one correct option.

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    Course Manager

    The person responsible for running the course and providing administrative support to students.

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    Midterm Averages Breakdown

    A detailed report showing the student's average mark for each section (module) of the course up to the midterm exam.

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    Learn Rough to Detailed

    A study strategy that begins with a general overview of the material and gradually dives into specific details.

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    Ethics

    A set of moral principles that guide behavior and decision-making. It involves deciding what is right and wrong in various situations.

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    Social Responsibility

    The idea that businesses have a responsibility to consider the impact of their actions on society and the environment. It involves being ethical, sustainable, and contributing to the well-being of communities.

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    What is Facebook's ethical responsibility?

    Facebook, like any company, has an ethical responsibility to protect user privacy and data security. This includes taking steps to prevent misuse of personal information and ensuring transparency in data practices.

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    What is the ethical issue in the Cambridge Analytica case?

    Cambridge Analytica used personal data collected from Facebook users without their informed consent to target political campaigns. This raised ethical concerns about data privacy, manipulation, and the impact on elections.

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    How can companies be ethical in the digital age?

    Companies can be ethical in the digital age by being transparent about data collection and usage practices, respecting user privacy, and protecting data from breaches. They should also consider the social and environmental impacts of their technology.

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    Data Privacy

    The right of individuals to control how their personal information is collected, used, and shared.

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    Ethical Concerns

    Issues that raise questions about right and wrong behavior. This can involve data breaches, privacy violations, or unfair practices.

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    Digital Ethics

    The set of ethical principles applied to the use of technology and the internet, including data privacy, transparency, and responsible AI.

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    Ethics in Business

    The application of moral principles to business decisions and actions. It involves considering what is right and wrong, fair and unfair, in the context of business operations.

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    Tone from the top

    The idea that a company's ethical culture starts with its leaders. When leaders demonstrate ethical behavior, it sets the tone for employees to follow.

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    Stakeholder Obligation

    The responsibility businesses have to consider the interests of all stakeholders, including customers, employees, investors, and society.

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    Ethical Considerations in Drug Development

    Pharmaceutical companies must navigate ethical dilemmas in developing and releasing new drugs, such as balancing the pressure to release quickly with the need for thorough testing and fair pricing.

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    What is an ethical dilemma?

    A situation where there is no easy or clear-cut answer to what is the right thing to do. It involves a conflict between different values or principles.

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    Module Breakdown Email

    An email from your course manager that provides details about your performance in each module of the course up to the midterm.

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    Rough to Detailed Learning

    A study strategy that starts with a general overview of the material and gradually dives into specific details.

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    Ethical Dilemma

    A situation where there's no easy answer on what's right. It involves a clash between different moral values.

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    Cambridge Analytica Case

    A major ethical breach where personal data was collected from Facebook users without consent and used to target political campaigns.

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    Legal vs. Ethical

    While laws dictate what's permissible, ethics involve moral principles about what's right and wrong. Something can be legal but unethical, or ethical but illegal.

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    Good Ethics = Good Business

    Ethical behavior builds trust, loyalty, and a positive reputation for a business, attracting customers, investors, and talent. This leads to long-term success.

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    Compliance vs. Integrity

    Compliance-based ethics focuses on adhering to rules and regulations, while integrity-based ethics emphasizes internal values and the right thing to do.

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    Ethical Dilemma Questions

    When facing a complex moral choice, ask yourself: 1. What are the facts? 2. Who are affected? 3. What are the potential consequences of each option?

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    Corporate Social Responsibility (CSR)

    CSR is a business's commitment to operating ethically and sustainably, considering its impact on society, the environment, and its stakeholders.

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    Study Notes

    Last Class Review Reminders

    • Mock Exam: A mock exam is available to help prepare for the final exam. It consists of short answer and multiple-choice questions.
    • Mock Exam Marks: The mock exam is out of 75 marks with 25 marks for short answer and 50 for multiple-choice.
    • Marking Criteria: Only multiple-choice questions will be marked. Short answer questions will not be evaluated. The exam is graded out of 50 marks.
    • Final Examination: Bring a valid student ID, black/blue pen, or HB2 pencil.
    • Answering Multiple-choice Questions: If bubbling in two choices, clearly indicate the correct answer to avoid mistakes.
    • Final Exam Schedule: Check the Waterloo Centre website for the exam schedule.
    • Final Exam Materials: Look for information about the final exam beforehand to verify what materials are accepted.
    • Final Exam Location: Ensure you check the availability of the location of the exam.
    • Final Examination Format: The final exam will consist of 85 multiple choice questions, with approximately 4 questions per modules 1 to 6 and 12 for modules 7-11.
    • Final Exam - Short Answer Questions: There will be 11-short answer questions, drawn exclusively from Modules 7-11 content.
    • Additional Office Hours: Additional office hours have been scheduled for exam assistance. Consult the schedule regarding times, dates and duration.

    Lululemon Business Discussion Questions

    • Business Discussion Questions: The questions were related to Lululemon in conjunction with the sale and buy analysis of goods, services, or products related to the company.

    Accounting Disciplines

    • Managerial Accounting: Key stakeholders include Internal Management. Types of information include daily, weekly, monthly reports (e.g., sales, production). Key decisions include strategy and direction, short and long term, buy vs. lease decisions, and breakeven/monitoring variances.
    • Financial Accounting: Key stakeholders include external parties like Lenders, Creditors, Investors, and Government/Regulators. Information comprises quarterly or annual financial statements and annual reports. Examples of decisions include lending, investing, meeting covenants, or other regulatory matters.
    • Audit Accounting: Key stakeholders consist of Lenders, creditors, investors, and Government/ Regulators. The types of information include audit reports and internal audits. Decisions include lending, investments, licenses and monitoring controls.
    • Tax Accounting: Key stakeholders include Government and Management. Types of information are tax returns and related reporting, and tax opinions. Decisions consist of tax planning, charging/collecting taxes, grant eligibility and maintaining credits/incentives.
    • Consulting & Advisory Accounting: Key stakeholders are those seeking to solve specific problems. Types of information consist of research reports, and opinions to recommend solutions. Examples of decisions span investments, valuations, expansion, buy/sell processes, and hiring.

    Accounting Key Themes

    • Financial statements: Includes 3 Financial statements, Cash flow, income statement, balance sheet, accrual analysis (v. cash matching) and expense-to-revenue matching principles.
    • Ratio Analysis: Current ratio, acid test, debt to owners' equity, EPS, ROS, ROE and inventory turnover ratio analysis.

    Financial Planning

    • Financial Planning: Short and long-term forecasting, capital budgeting, operating (master) budget, and cash budget. These elements interlink with financial controls for effective feedback loops.

    Financial Management Key Themes

    • Financial Management Themes: Source of funds, operations, equity financing, and debt financing.
    • Debt Terminology: Include interest rates, repayment, debt securities, covenants, and terminology related to debt.

    HR Management Key Themes

    • Human Resource Planning: Steps in Human Resource Planning include: preparing a human resource inventory, preparing job analysis, assessing future human resource demand, assessing future human resource supply, and establishing a strategic plan.
    • Employee Value Proposition: EVP stands for Employee value proposition, which encompasses the golden handshake and terminations within the organization.
    • Legal Considerations: Aspects of the position and role include legal considerations, transition plans, and considerations for protecting assets.
    • Performance Appraisal: Establishing and communicating standards, evaluating performance, discussing results, corrective action/next steps and subsequent procedures.
    • Pay Systems: Types include salary, hourly wage/daywork, piecework system, commission plans, bonus plans, profit-sharing plans, gain-sharing plans, cost-of-living allowances (COLAs), and stock options.

    Management & Leadership

    • POLC: Planning, Organizing, Leading, Controlling
    • PESTEL: Political, Economic, Social, Technological, Environmental, Legal factors.
    • Porter's Five Forces: Bargaining power of suppliers and buyers, threat of new entrants, and threat of substitutes.
    • SMART Goals: Specific, Measurable, Achievable, Relevant, Time-bound goals
    • SWOT: Strengths, Weaknesses, Opportunities, Threats analysis
    • Balanced Scorecard: Framework to measure performance.
    • Management Skills: Technical, human relations, and technical skills.
    • Leadership Styles: Autocratic, Democratic, Participative and Free-Rein (laissez-faire).

    Ethics & Social Responsibility Key Themes

    • Ethics of Justice vs. Ethics of Care: Differentiating principles that guide decision-making.
    • Ethics Checklist: A framework for assessing actions.
    • Legal Compliance: Adherence to legal frameworks.
    • Balanced Approach: A reasoned perspective; including feeling and sense of responsibility.
    • Social Audit: Measures the company's performance according to social values.
    • Triple Bottom Line: Balancing economic, environmental, and social factors.
    • Compliance-based vs. Integrity-based Ethics Code: Contrasting approaches to ethics.
    • Corporate Philanthropy: Charitable activities of a company.
    • Corporate Social Initiatives: Actions to benefit social good.
    • Corporate Responsibility: Accounting for the environmental impact/responsibility of organizations and their effects on society.
    • Corporate Policy: Guidelines for conducting business ethically.
    • Strategic vs. Pluralist Approaches to CSR: Different perspectives on how a corporation should engage in corporate social responsibility (CSR).

    Studying That Suits You

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    Description

    Prepare for your final exam with these essential reminders and guidelines. This mock exam consists of both short answer and multiple-choice questions, designed to help you get ready. Be sure to check the final exam schedule and required materials for a successful exam experience.

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