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.

a. Companies must follow GAAP 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 par¬
ties.

f. _systems are not restricted by GAAP 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.

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Budget Creditors Managerial accounting Planning Controlling Financial accounting Managers Shareholders