Test Bank for Horngren's Financial & Managerial Accounting, 7th Edition – Miller-Nobles

TEST BANK
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Financial and Managerial Accounting:
A A A




Managerial Chapters, 7th Edition
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(Miller-Nobles) Chapter 1-11
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,ChapterAM:1 IntroductionAtoAManagerialAAccounting

LearningAObjectiveAM:1-1

1) ManagerialAaccountingAfocusesAonAprovidingAinformationAforAinternalAplanningAandAcontrol.A
Answer:A TRUE
Diff:A1
LO:A M:1-1
AACSB:A ApplicationAofAknowledgeAA
ICPAAFunctional:A Reporting
PEAQuestionAType:A Concept
H2:A WhyAIsAManagerialAAccountingAImportant?A(H1)

2) FinancialAaccountingApreparesAreportsAforAinternalApurposes,AwhereasAmanagerialAaccountingAprovidesA
informationAtoAexternalAstakeholders.
Answer:A FALSE
Explanation:ATheAreverseAisAtrue.AFinancialAaccountingAservesAexternalAstakeholderAinformationAneedsAwhil
eAmanagerialAaccountingAservesAtheAneedsAofAmanagersAandAinternalAstaff.
Diff:A1
LO:A M:1-1
AACSB:A ApplicationAofAknowledgeAA
ICPAAFunctional:A Reporting
PEAQuestionAType:A Concept
H2:A WhyAIsAManagerialAAccountingAImportant?A(H1)

3) FinancialAstatementsApreparedAforAinvestorsAandAcreditorsAoftenAincludeAforward-
lookingAinformationAbecauseAtheyAmakeAdecisionsAbasedAonAaAcompany'sAfutureAprospects.
Answer:A FALSE
Explanation:AFinancialAstatementsAprovideAmostlyAhistoricalAinformation;ArelevantAandAfaithfullyArepresentativ
eAinformationAandAfocusedAonAtheApast.
Diff:A1
LO:A M:1-1
AACSB:A ApplicationAofAknowledgeAA
ICPAAFunctional:A Reporting
PEAQuestionAType:A Concept
H2:A WhyAIsAManagerialAAccountingAImportant?A(H1)

4) ManagerialAaccountingAreportingAbyAaApublicAfirmAisArequiredAtoAfollowAtheArulesAofAGAAP.A
Answer:A FALSE
Explanation:AManagerialAaccountingAinformationAisAnotAguidedAbyAGAAPAbutAratherAbyAtheAconceptAofAus
efulnessAtoAmanagementAforAdecisionAmakingApurposes.
Diff:A1
LO:A M:1-1
AACSB:A ApplicationAofAknowledgeAA
ICPAAFunctional:A Reporting
PEAQuestionAType:A Concept

,H2:A WhyAIsAManagerialAAccountingAImportant?A(H1)




5) FinancialAreportingAisAtypicallyAmuchAmoreAdetailedAthanAmanagerialAaccounting.A
Answer:A FALSE
Explanation:AFinancialAreportingAisAtypicallyAlessAdetailedAthanAmanagerialAaccountingAinformation.AFi
nancialAaccountingAreportingAisAusuallyAsummaryAreports,ApreparedAprimarilyAonAtheAcompanyAasAaAw
hole,AusuallyAonAaAquarterlyAorAannualAbasis.
Diff:A1
LO:A M:1-1
AACSB:A ApplicationAofAknowledgeAA
ICPAAFunctional:A Reporting
PEAQuestionAType:A Concept
H2:A WhyAIsAManagerialAAccountingAImportant?A(H1)

6) ManagerialAaccountingAprovidesAfinancialAstatementsAthatAreportAresultsAofAoperations,Afinancial
Aposition,AandAcashAflowsAbothAtoAmanagersAandAtoAexternalAstockholders.

Answer:A FALSE
Explanation:A ManagerialAaccountingAprovidesAtheAinformationAneededAtoAplanAandAcontrolAoperationsAan
dAthereforeAservesAtheAinformationAneedsAofAinternalApartiesAsuchAasAmanagersAandAstaff.
Diff:A1
LO:A M:1-1
AACSB:A ApplicationAofAknowledgeAA
ICPAAFunctional:A Reporting
PEAQuestionAType:A Concept
H2:A WhyAIsAManagerialAAccountingAImportant?A(H1)

7) WhichAofAtheAfollowingAisAaAfocusAofAmanagerialAaccounting?
A) toAgenerateAaAcompany'sAfinancialAstatementsAforAtaxAreporting
B) toAprovideAinformationAtoAbusinessAmanagersAtoAassistAthemAinAcontrollingAtheirAbusinesses
C) toAprovideAinformationAtoAshareholdersAtoAassistAthemAwithAtheirAinvestmentAdecisions
D) toAensureAthatAtheAreportsAproducedAforAinternalAandAexternalAbusinessApurposesAareAGAAPAcomplian
tAAnswer:A B
Diff:A1
LO:A M:1-1
AACSB:A ApplicationAofAknowledgeAA
ICPAAFunctional:A Reporting
PEAQuestionAType:A Concept
H2:A WhyAIsAManagerialAAccountingAImportant?A(H1)

8) WhichAofAtheAfollowingAstatementsAisAtrueAofAmanagerialAaccounting?
A) TheAexternalAstakeholdersAofAaAcompanyAareAtheAprimaryAusersAofAmanagerialAaccounting.
B) ManagerialAaccountingAinformationAisAusedAtoAhelpAmanagersAplan,AdirectAandAcontrolAtheirAoperations.
C) AnAexternalAauditAbyAanAindependentACPAAisArequiredAforAmanagerialAaccountingAinformation.
D) ManagerialAaccountingAinformationAmustAcomplyAwithAGenerallyAAcceptedAAccountingAPrinciples.A
Answer:A B
Diff:A1
LO:A M:1-1
AACSB:A ApplicationAofAknowledgeAA
ICPAAFunctional:A Reporting

, PEAQuestionAType:A Concept
H2:A WhyAIsAManagerialAAccountingAImportant?A(H1)

9) ManagerialAaccountingAinformationAforAaAcompanyAisAprimarilyAusedAby .
A) itsAcustomersAtoAunderstandAtheApricingAofAtheAproduct
B) itsAcreditorsAtoAunderstandAtheAcredibilityAofAtheAbusiness
C) itsAemployeesAtoAplan,AdirectAandAcontrolAoperations
D) itsAinvestorsAtoAmakeAtheirAinvestmentAdecision
sAAnswer:A C
Diff:A1
LO:A M:1-1
AACSB:A ApplicationAofAknowledgeAA
ICPAAFunctional:A Reporting
PEAQuestionAType:A Concept
H2:A WhyAIsAManagerialAAccountingAImportant?A(H1)

10) WhichAofAtheAfollowingAstatementsAisAtrueAofAfinancialAaccounting?
A) ItAprovidesAinformationAtoAinvestorsAneededAforAtheirAinvestmentAdecisions.
B) ItAprovidesAfutureAfocusedAinformationAneededAforAmanagingAandAdelegatingAoperations.
C) ItAfocusesAonAdetailedAreportsAforApartsAofAtheAcompanyAratherAthanAtheAwholeAcompany.
D) ItAfocusesAonAplanning,AdirectingAandAcontrollingAday-to-
dayAoperations.AAnswer:A A
Diff:A1
LO:A M:1-1
AACSB:A ApplicationAofAknowledgeAA
ICPAAFunctional:A Reporting
PEAQuestionAType:A Concept
H2:A WhyAIsAManagerialAAccountingAImportant?A(H1)

11) WhichAofAtheAfollowingAisAtheAprimaryAfocusAofAmanagerialAaccounting?
A) providingAinformationAthatAmanagersAneedAtoAmakeAoperationalAdecisions
B) providingAhistoricalAdataAtoAinvestorsAandAcreditors
C) providingAsummarizedAresultsAofAoperations
D) providingAinformationAtoAcomplyAwithAlawsAandAregulationsAofAgovernmentAbodiesA
Answer:A A
Diff:A1
LO:A M:1-1
AACSB:A ApplicationAofAknowledgeAA
ICPAAFunctional:A Reporting
PEAQuestionAType:A Concept
H2:A WhyAIsAManagerialAAccountingAImportant?A(H1)

12) WhichAofAtheAfollowingAisAtheAprimaryAfocusAofAfinancialAaccounting?
A) providingAinformationAthatAmanagersAneedAtoAmakeAoperationalAdecisions
B) providingAsummarizedAinformationAonAoperationalAresultsAtoAinvestorsAandAcreditors
C) providingAinformationAtoAmanagersAtoAassistAinAplanning,AdirectingAandAcontrollingAoperations
D) providingAhighlyAdetailedAinformationAonAproductAlines,Aregions,AandAdivisionsA
Answer:A B
Diff:A1
LO:A M:1-1
AACSB:A ApplicationAofAknowledge