Test bank for horngren s managerial chapters accounting 7th edition by tracie miller nobles

TEST
BANK
Financial and Managerial
Accounting:

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

,Chapter M:1 Introduction to Managerial Accounting

Learning Objective M:1-1

1) Managerial accounting focuses on providing information for internal planning
and control.
Answer TRU
:Diff: 1 E
LO: M:1-1
AACSB: Application of
knowledge AICPA Functional:
Reporting
PE Question Type: Concept
H2: Why Is Managerial
Accounting Important? (H1)

2) Financial accounting prepares reports for internal purposes, whereas managerial
Answer:FALS
accounting
E provides information to external stakeholders.
Explanation: The reverse is true. Financial accounting serves external stakeholder
information needswhile managerial accounting serves the needs of managers and internal
staff.
Diff: 1
LO: M:1-1
AACSB: Application of
knowledge AICPA Functional:
Reporting
PE Question Type: Concept
H2: Why Is Managerial
Accounting Important? (H1)
Answer:FALS
3) Financial
E statements prepared for investors and creditors often include forward-looking
Explanation: Financial statements provide mostly historical information; relevant
information because they make decisions based on a company's future prospects.
and faithfully representative information and focused on the past.
Diff: 1
LO: M:1-1
AACSB: Application of
knowledge AICPA Functional:
Reporting
PE Question Type: Concept
H2: Why Is Managerial
Accounting Important? (H1)
Answer FALS
4) Managerial
:Explanation:
E accounting
Managerial accounting information is not guided by GAAP but rather by
reporting by a public firm
the concept of usefulness to management for decision making purposes.
is required to follow the
Diff: 1
rules of GAAP.
LO: M:1-1
AACSB: Application of
knowledge AICPA Functional:
Reporting
PE Question Type: Concept

,H2: Why Is Managerial Accounting
Important? (H1)



5) Financial reporting is typically much more detailed than managerial
accounting.
Answer FALS
: E
Explanation: Financial reporting is typically less detailed than managerial accounting
information. Financial accounting reporting is usually summary reports, prepared
primarily on the company as a whole, usually on a quarterly or annual basis.
Diff: 1
LO: M:1-1
AACSB: Application of
knowledge AICPA Functional:
Reporting
PE Question Type: Concept
H2: Why Is Managerial
Accounting Important? (H1)

6) Managerial accounting provides financial statements that report results of
Answer:FALS
operations,
E financial
Explanation: position,
Managerial and cash
accounting flows both
provides to managers
the information and to
needed toexternal
plan and control
stockholders.
operations and therefore serves the information needs of internal parties such as
managers and staff.
Diff: 1
LO: M:1-1
AACSB: Application of
knowledge AICPA Functional:
Reporting
PE Question Type: Concept
H2: Why Is Managerial
Accounting Important? (H1)

7) Which of the following
is a focus of managerial
accounting?
Answer B
A) to generate a
:
Diff: 1
company's financial
LO: M:1-1
statements for tax
AACSB: Application of
reporting
knowledge AICPA Functional:
B) to provide information
Reporting
to business managers
PE Question Type: Concept
to assist them in
H2: Why Is Managerial
controlling their
Accounting Important? (H1)
businesses
C)
8) to provide
Which information
of the following
statements is true to
to shareholders of
assist them
managerial with their
accounting?
A) investment
The externaldecisions
Answer
D) to B
ensure thatofthe
stakeholders a
: reports
company are the for
Diff: 1 produced
LO:internal
M:1-1 and
primary usersexternal
of
business
AACSB: purposes
Application
managerial of are
accounting.
GAAP compliant
knowledge AICPA Functional:
B) Managerial accounting
Reporting
information is used to
help managers plan,
direct and control their
operations.
C) An external audit by an
independent CPA is
required for managerial
accounting information.
D) Managerial accounting
information must

, PE Question Type: Concept
H2: Why Is Managerial Accounting Important? (H1)

9) Managerial accounting information for a company is primarily used by
.
A) its customers to understand the pricing of the product
B) its creditors to understand the credibility of the business
C) its employees to plan, direct and control operations
D) its investors
Answer C to make their investment decisions
:
Diff: 1
LO: M:1-1
AACSB: Application of
knowledge AICPA Functional:
Reporting
PE Question Type: Concept
H2: Why Is Managerial
Accounting Important? (H1)

10) Which of the following
statements is true of
financial accounting?
A) It provides information
Answer A
to investors needed for
: their
Diff: 1 investment
LO:decisions.
M:1-1
AACSB: Application of
B) It provides future
knowledge AICPA Functional:
focused information
Reporting
needed for managing
PE Question Type: Concept
and delegating
H2: Why Is Managerial
operations.
Accounting Important? (H1)
C) It focuses on detailed
11)reports
Which for parts
of the of the
following
company rather
is the primary focus ofthan
the wholeaccounting?
managerial company.
D) It focuses on planning,
A) providing information
Answer A
directing and
that managers need to
: controlling
Diff: 1
make day-to-day
operational
LO:operations.
M:1-1
decisions
AACSB: Application of
B) providing historical data
knowledge AICPA Functional:
to investors and
Reporting
creditors
PE Question Type: Concept
C) providing summarized
H2: Why Is Managerial
results of
Accounting operations
Important? (H1)
D) providing information to
12)comply
Which with laws
of the and
following
regulations of
is the primary focus of
government
financial bodies
accounting?
A) providing information
Answer B
that managers need to
: make
Diff: 1 operational
LO:decisions
M:1-1
AACSB: Application of
B) providing summarized
knowledge
information on
operational results to
investors and creditors
C) providing information to
managers to assist in
planning, directing and
controlling operations
D) providing highly
detailed information on

product lines, regions,