ACCT 505 CHAPTER 1 SELFSTUDY QUIZ

ACCT 505 CHAPTER 1 SELFSTUDY QUIZ 1 CORRECT Managerial accounting is concerned with: A) reporting financial information to stockholders. B) reporting financial information to regulators. C) providing information for use within the organization. D) the financial consequences of past activities. Feedback: Managerial accounting is concerned with providing information to managers for use within the organization. 2 CORRECT Which of the following statements is not correct? A) A plan is always expressed in formal quantitative terms. B) Planning involves establishing goals and specifying how to achieve them. C) Controlling involves gathering feedback to ensure that the plan is being properly executed or modified as circumstances change. D) Decision making involves selecting a course of action from competing alternatives. Feedback: Plans include the goals established and information specifying how those goals will be achieved. As such, plans may or may not be expressed in formal quantitative terms. On the other hand, plans are often accompanied by a budget. A budget is a detailed plan for the future that is usually expressed in formal quantitative terms. 3 CORRECT A performance report: A) is part of the control process. B) compares budgeted data to actual data in an effort to identify excellent performance. C) is prepared to identify unsatisfactory performance. D) is all of the above. Feedback: Part of the control process includes preparing performance reports. A performance report compares budgeted data to actual data in an effort to highlight instances of excellent and unsatisfactory performance. 4 CORRECT Which of the following statements is not correct?