E1-17B Define key terms (Learning Objectives 1 & 2)

Complete the following statements with one of the terms listed here. You may use a term more than once, and some terms may not be used at all.

Budget Controlling Creditors Financial accounting Managerial accounting Managers Planning Shareholders

a. U.S. companies must follow GAAP or IFRS in their ________ systems.

b. Financial accounting develops reports for external parties such as ________ and ________.

c. When managers evaluate the company’s performance compared to the plan, they are performing the ________ role of management.

d. ________ are decision makers inside a company.

e. ________ provides information on a company’s past performance to external parties.

f. ________ systems are not restricted by GAAP or IFRS but are chosen by comparing the costs versus the benefits of the system.
g. Choosing goals and the means to achieve them is the ________ function of management.
h. ________ systems report on various segments or business units of the company.
i. ________ statements of public companies are audited annually by CPAs.