Activity 1.

The study of the overview of management accounting is indeed pre-requisite

to understand more in depth topics. It is a very complicated and highly scientific
document which requires content and teaching expertise including knowledge outside
the classroom and school.

Based from the discussion of the basic management accounting and the learning
exercises that you have done, please feel free to write your arguments or lessons
learned below. I have indicated my arguments or lessons learned.

1. Financial Accounting, Management Accounting and Cost Accounting are three

related branches of accounting.
PROBLEM 1-1 MULTIPLE CHOICE (ACP)

1. Accounting is a service activity and its function is to provide quantitative information,

primarily financial in nature, about economic entities, that is intended to be useful in making
economic decision. This accounting definition is given by
a. Accounting Standards Council
b. AICPA Committee on Accounting Terminology
c. American Accounting Association
d. Board of Accountancy
2. All of the following describe accounting, except
a. A service activity.
b. An information system
c. A universal language of business
d. An exact science rather than art
3. The important points made in the definition of accounting include all of the following, except
a. Accounting information is quantitative.
b. Accounting information is both quantitative and qualitative.
c. Accounting information is financial in nature.
d. Accounting information is useful in decision making.
4. This accounting process is the recognition or non-recognition of business activities as
accountable events.
a. Identifying
b. Measuring
c. Communicating
d. Reporting
5. The events that affect the entity and in which other entities participate are known as
a. Internal events
b. External events
c. Current events
d. Obligating events