Session 1 Exercises module 1.pdf

BIM Managerial Accounting AC11, Spring 2023 79 AVENUE DE LA REPUBLIQUE – 75543 PARIS CEDEX 11 – TEL. 01 49 23 20 60 Session 1 Financial Accounting The context of financial information EXERCISES...

BIM Managerial Accounting AC11, Spring 2023 79 AVENUE DE LA REPUBLIQUE – 75543 PARIS CEDEX 11 – TEL. 01 49 23 20 60 Session 1 Financial Accounting The context of financial information EXERCISES 1  BIM Managerial Accounting AC11, Spring 2023 Exercises Exercises in bold mandatory. 1. What is accounting? 2. What is the difference between management accounting (cost accounting) and financial accounting (general accounting)? 3. Which of the following statements regarding the objectives of financial accounting is INCORRECT? a) Financial accounting has the primary purpose of providing information to shareholders in order for them to be able to assess the financial situation of a company. b) The numbers of financial accounting can in some countries be used as the legal basis for calculating certain obligations, such as dividends for example. c) Financial accounting has the primary purpose of providing information to the tax authorities in order for them to be able to calculate corporate taxes. d) The financial accounting information can be used as evidence in case of litigation, for example to detect fraud. 4. Which are the two main external user groups of financial accounting information? What type of information are they interested in? 5. Who are the internal users of financial accounting information and what dilemma do they create? 6. Complete the following text: The main objective of is to provide information to or lenders which is useful for. In order to achieve this objective the financial information has to meet certain quality criteria which are: comparability , comparability , relative and. 2  BIM Managerial Accounting AC11, Spring 2023 7. In which part of the financial statements (balance sheet, income statement, cash flow statement) can you find the following information? a) The amount of cash flow used for investments during one period b) The level of debt of the company c) The performance of the company for a given period d) The profit of the company for a given period e) The cash flow generated by the operations of the company during one period f) The way how funds that the company raised are used g) The amount of cash flow provided by financing activities of the company during one period 3