TEST BANK
Financial & Managerial Accounting for Decision
ST
Makers
Hanlon, Magee, Pfeiffer, Kulp, Dragoo
UV
────────────────────────────────────────────────────
5th Edition
IA
?_
AP
TEST BANK
PR
OV
ED
??
, TABLE OF CONTENTS
Test Bank: Financial & Managerial Accounting for Decision Makers, 5th Edition
By Hanlon, Magee, Pfeiffer, Kulp, Dragoo
ST
CHAPTER 1 Introducing Financial Accounting
CHAPTER 2 Constructing Financial Statements
UV
CHAPTER 3 Adjusting Accounts for Financial Statements
CHAPTER 4 Reporting and Analyzing Cash Flows
CHAPTER 5 Analyzing and Interpreting Financial Statements
CHAPTER 6 Reporting and Analyzing Revenues, Receivables, and Operating Income
IA
CHAPTER 7 Reporting and Analyzing Inventory
CHAPTER 8 Reporting and Analyzing Long-Term Operating Assets
?_
CHAPTER 9 Reporting and Analyzing Liabilities
Reporting and Analyzing Leases, Pensions, Income Taxes, and Commitments and
CHAPTER 10 Contingencies
AP
CHAPTER 11 Reporting and Analyzing Stockholders’ Equity
CHAPTER 12 Reporting and Analyzing Financial Investments
CHAPTER 13 Managerial Accounting: Tools for Decision-Making
CHAPTER 14 Cost Behavior, Activity Analysis, and Cost Estimation
PR
CHAPTER 15 Cost-Volume-Profit Analysis and Planning
CHAPTER 16 Using Relevant Costs and Differential Analysis for Decision-Making
CHAPTER 17 Product Costing: Job and Process Operations
OV
CHAPTER 18 Activity-Based Costing, Customer Profitability, and Activity-Based Management
CHAPTER 19 Additional Topics in Product Costing
CHAPTER 20 Decision-Making: Pricing and Product Cost Management
ED
CHAPTER 21 Operational Budgeting and Profit Planning
CHAPTER 22 Standard Costs and Performance Reports
Performance Measurement Using Segment Reporting, Transfer Pricing, and
CHAPTER 23 Balanced Scorecard
??
CHAPTER 24 Capital Budgeting Decisions
, Chapter 1
ST
Introducing Financial Accounting
UV
Learning Objectives – Coverage by question
Multiple Essay
True/False Choice Exercises Problems Questions
IA
LO1-1 Identify the users of
accounting information and
1, 2 1-3 1, 2 2, 5, 6
discuss the costs and benefits of
?_
disclosure. (p. 1-3)
LO1-2 Describe a company's
business activities and explain
how these activities are 3-6 4, 5 3 1, 6
AP
represented by the accounting
equation. (p. 1-7)
LO1-3 Introduce the four key
financial statements including the
balance sheet, income statement,
7-9 4, 6-11 4-11 1-5
PR
statement of stockholders' equity,
and statement of cash flows.
(p. 1-11)
LO1-4 Describe the institutions
that regulate financial accounting
OV
and their role in establishing 10-12 12, 19, 20 3, 4
generally accepted accounting
principles. (p. 1-16)
LO1-5 Compute two key ratios
that are commonly used to
ED
assess profitability and risk - 13, 14 13-18 13, 14
return on equity and the debt-to-
equity ratio. (p. 1-21)
LO1-6 Appendix 1A: Explain the
conceptual framework for 15, 16 21, 22 12 3, 5
??
financial reporting. (p. 1-25)
© Cambridge Business Publishers, 2024
, Chapter 1: Introducing Financial Accounting
ST
True/False
Topic: Cost and benefits of disclosure
LO: 1
UV
1. One reason companies are motivated to disclose financial information to external decision makers is
that it may lower financing and operating costs.
Answer: True
Rationale: For example, when a company applies for a loan, the bank uses the company’s financial
statements to help determine the appropriate interest rate. Without this financial information, a company
may have a higher cost of borrowing or not obtain the loan at all.
IA
Topic: Demand for accounting information
LO: 1
?_
2. Financial accounting is designed primarily for decision makers within the company.
Answer: False
Rationale: Financial accounting is designed primarily to provide information to decision makers outside
of the company, while managerial accounting is designed primarily for decision makers within the
company.
AP
Topic: Investing activities
LO: 2
3. Investing activities are the acquiring and disposing of liabilities that a company needs in order to finance
its operating activities.
PR
Answer: False
Rationale: Investing activities are the acquiring and disposing of assets that a company needs for the
production and sale of a company’s products and services.
OV
Topic: Accounting equation
LO: 2
4. Assets must always equal liabilities plus stockholders’ equity.
Answer: True
Rationale: The accounting equation is Assets = Liabilities + Stockholders’ Equity. This relation must
always stay in balance.
ED
??
© Cambridge Business Publishers, 2024
Test Bank, Chapter 1
Financial & Managerial Accounting for Decision
ST
Makers
Hanlon, Magee, Pfeiffer, Kulp, Dragoo
UV
────────────────────────────────────────────────────
5th Edition
IA
?_
AP
TEST BANK
PR
OV
ED
??
, TABLE OF CONTENTS
Test Bank: Financial & Managerial Accounting for Decision Makers, 5th Edition
By Hanlon, Magee, Pfeiffer, Kulp, Dragoo
ST
CHAPTER 1 Introducing Financial Accounting
CHAPTER 2 Constructing Financial Statements
UV
CHAPTER 3 Adjusting Accounts for Financial Statements
CHAPTER 4 Reporting and Analyzing Cash Flows
CHAPTER 5 Analyzing and Interpreting Financial Statements
CHAPTER 6 Reporting and Analyzing Revenues, Receivables, and Operating Income
IA
CHAPTER 7 Reporting and Analyzing Inventory
CHAPTER 8 Reporting and Analyzing Long-Term Operating Assets
?_
CHAPTER 9 Reporting and Analyzing Liabilities
Reporting and Analyzing Leases, Pensions, Income Taxes, and Commitments and
CHAPTER 10 Contingencies
AP
CHAPTER 11 Reporting and Analyzing Stockholders’ Equity
CHAPTER 12 Reporting and Analyzing Financial Investments
CHAPTER 13 Managerial Accounting: Tools for Decision-Making
CHAPTER 14 Cost Behavior, Activity Analysis, and Cost Estimation
PR
CHAPTER 15 Cost-Volume-Profit Analysis and Planning
CHAPTER 16 Using Relevant Costs and Differential Analysis for Decision-Making
CHAPTER 17 Product Costing: Job and Process Operations
OV
CHAPTER 18 Activity-Based Costing, Customer Profitability, and Activity-Based Management
CHAPTER 19 Additional Topics in Product Costing
CHAPTER 20 Decision-Making: Pricing and Product Cost Management
ED
CHAPTER 21 Operational Budgeting and Profit Planning
CHAPTER 22 Standard Costs and Performance Reports
Performance Measurement Using Segment Reporting, Transfer Pricing, and
CHAPTER 23 Balanced Scorecard
??
CHAPTER 24 Capital Budgeting Decisions
, Chapter 1
ST
Introducing Financial Accounting
UV
Learning Objectives – Coverage by question
Multiple Essay
True/False Choice Exercises Problems Questions
IA
LO1-1 Identify the users of
accounting information and
1, 2 1-3 1, 2 2, 5, 6
discuss the costs and benefits of
?_
disclosure. (p. 1-3)
LO1-2 Describe a company's
business activities and explain
how these activities are 3-6 4, 5 3 1, 6
AP
represented by the accounting
equation. (p. 1-7)
LO1-3 Introduce the four key
financial statements including the
balance sheet, income statement,
7-9 4, 6-11 4-11 1-5
PR
statement of stockholders' equity,
and statement of cash flows.
(p. 1-11)
LO1-4 Describe the institutions
that regulate financial accounting
OV
and their role in establishing 10-12 12, 19, 20 3, 4
generally accepted accounting
principles. (p. 1-16)
LO1-5 Compute two key ratios
that are commonly used to
ED
assess profitability and risk - 13, 14 13-18 13, 14
return on equity and the debt-to-
equity ratio. (p. 1-21)
LO1-6 Appendix 1A: Explain the
conceptual framework for 15, 16 21, 22 12 3, 5
??
financial reporting. (p. 1-25)
© Cambridge Business Publishers, 2024
, Chapter 1: Introducing Financial Accounting
ST
True/False
Topic: Cost and benefits of disclosure
LO: 1
UV
1. One reason companies are motivated to disclose financial information to external decision makers is
that it may lower financing and operating costs.
Answer: True
Rationale: For example, when a company applies for a loan, the bank uses the company’s financial
statements to help determine the appropriate interest rate. Without this financial information, a company
may have a higher cost of borrowing or not obtain the loan at all.
IA
Topic: Demand for accounting information
LO: 1
?_
2. Financial accounting is designed primarily for decision makers within the company.
Answer: False
Rationale: Financial accounting is designed primarily to provide information to decision makers outside
of the company, while managerial accounting is designed primarily for decision makers within the
company.
AP
Topic: Investing activities
LO: 2
3. Investing activities are the acquiring and disposing of liabilities that a company needs in order to finance
its operating activities.
PR
Answer: False
Rationale: Investing activities are the acquiring and disposing of assets that a company needs for the
production and sale of a company’s products and services.
OV
Topic: Accounting equation
LO: 2
4. Assets must always equal liabilities plus stockholders’ equity.
Answer: True
Rationale: The accounting equation is Assets = Liabilities + Stockholders’ Equity. This relation must
always stay in balance.
ED
??
© Cambridge Business Publishers, 2024
Test Bank, Chapter 1
