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,cont
rol.,,Answer:, TRUE
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowledg
e, AICPA,Functional:, Reporting
PE,Question,Type:,, Concept
H2:,,Why,Is,Managerial,Accounting,Important?,(H1)
2) Financial,accounting,prepares,reports,for,internal,purposes,,whereas,managerial,accounting,pr
ovides, information,to,external,stakeholders.
Answer:,,FALSE
Explanation:,The,reverse,is,true.,Financial,accounting,serves,external,stakeholder,information,needs
while, managerial,accounting,serves,the,needs,of,managers,and,internal,staff.
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowledg
e, AICPA,Functional:, Reporting
PE,Question,Type:,, Concept
H2:,,Why,Is,Managerial,Accounting,Important?,(H1)
3) Financial,statements,prepared,for,investors,and,creditors,often,include,forward-
looking,information, because,they,make,decisions,based,on,a,company's,future,prospects.
Answer:,,FALSE
Explanation:,Financial,statements,provide,mostly,historical,information;,relevant,and,fait
hfully, representative,information,and,focused,on,the,past.
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowledg
e, AICPA,Functional:, Reporting
PE,Question,Type:,, Concept
H2:,,Why,Is,Managerial,Accounting,Important?,(H1)
4) Managerial,accounting,reporting,by,a,public,firm,is,required,to,follow,the,rules,of,G
AAP.,,Answer:, FALSE
Explanation:,Managerial,accounting,information,is,not,guided,by,GAAP,but,rather,by,the,concept
,of, usefulness,to,management,for,decision,making,purposes.
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowledg
e, AICPA,Functional:, Reporting
PE,Question,Type:,, Concept
,H2:,,Why,Is,Managerial,Accounting,Important?,(H1)
5) Financial,reporting,is,typically,much,more,detailed,than,managerial,account
ing.,,Answer:, FALSE
Explanation:, Financial, reporting, is, typically, less, detailed, than, managerial, accounting, inform
ation., Financial,accounting,reporting,is,usually,summary,reports,,prepared,primarily,on,the,co
mpany,as,a, whole,,usually,on,a,quarterly,or,annual,basis.
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowledg
e, AICPA,Functional:, Reporting
PE,Question,Type:,, Concept
H2:,,Why,Is,Managerial,Accounting,Important?,(H1)
6) Managerial,accounting,provides,financial,statements,that,report,results,of,operations,,fina
ncial, position,,and,cash,flows,both,to,managers,and,to,external,stockholders.
Answer:,,FALSE
Explanation:,Managerial,accounting,provides,the,information,needed,to,plan,and,control,operations,
and, therefore,serves,the,information,needs,of,internal,parties,such,as,managers,and,staff.
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowledg
e, 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?
A) to,generate,a,company's,financial,statements,for,tax,reporting
B) to,provide,information,to,business,managers,to,assist,them,in,controlling,their,businesses
C) to,provide,information,to,shareholders,to,assist,them,with,their,investment,decisions
D) to,ensure,that,the,reports,produced,for,internal,and,external,business,purposes,are,GAAP,comp
liant,,Answer:, B
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowledg
e, AICPA,Functional:, Reporting
PE,Question,Type:,, Concept
H2:,,Why,Is,Managerial,Accounting,Important?,(H1)
8) Which,of,the,following,statements,is,true,of,managerial,accounting?
A) The,external,stakeholders,of,a,company,are,the,primary,users,of,managerial,accounting.
B) Managerial,accounting,information,is,used,to,help,managers,plan,,direct,and,control,their,operatio
ns.
C) An,external,audit,by,an,independent,CPA,is,required,for,managerial,accounting,information.
D) Managerial,accounting,information,must,comply,with,Generally,Accepted,Accounting,Princi
ples.,,Answer:, B
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowledg
e, AICPA,Functional:, Reporting
, 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,to,make,their,investment,decisions
,,Answer:, C
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowle
dge, AICPA,Functional:, Reporti
ng
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,to,investors,needed,for,their,investment,decisions.
B) It,provides,future,focused,information,needed,for,managing,and,delegating,operations.
C) It,focuses,on,detailed,reports,for,parts,of,the,company,rather,than,the,whole,company.
D) It,focuses,on,planning,,directing,and,controlling,day-to-
day,operations.,,Answer:, A
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowle
dge, AICPA,Functional:, Reporti
ng
PE,Question,Type:,, Concept
H2:,,Why,Is,Managerial,Accounting,Important?,(H1)
11) Which,of,the,following,is,the,primary,focus,of,managerial,accounting?
A) providing,information,that,managers,need,to,make,operational,decisions
B) providing,historical,data,to,investors,and,creditors
C) providing,summarized,results,of,operations
D) providing,information,to,comply,with,laws,and,regulations,of,government,bod
ies,,Answer:, A
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowle
dge, AICPA,Functional:, Reporti
ng
PE,Question,Type:,, Concept
H2:,,Why,Is,Managerial,Accounting,Important?,(H1)
12) Which,of,the,following,is,the,primary,focus,of,financial,accounting?
A) providing,information,that,managers,need,to,make,operational,decisions
B) providing,summarized,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,,and,divisi
ons,,Answer:, B
Diff:,1
LO:,, M:1-1
,
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,cont
rol.,,Answer:, TRUE
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowledg
e, AICPA,Functional:, Reporting
PE,Question,Type:,, Concept
H2:,,Why,Is,Managerial,Accounting,Important?,(H1)
2) Financial,accounting,prepares,reports,for,internal,purposes,,whereas,managerial,accounting,pr
ovides, information,to,external,stakeholders.
Answer:,,FALSE
Explanation:,The,reverse,is,true.,Financial,accounting,serves,external,stakeholder,information,needs
while, managerial,accounting,serves,the,needs,of,managers,and,internal,staff.
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowledg
e, AICPA,Functional:, Reporting
PE,Question,Type:,, Concept
H2:,,Why,Is,Managerial,Accounting,Important?,(H1)
3) Financial,statements,prepared,for,investors,and,creditors,often,include,forward-
looking,information, because,they,make,decisions,based,on,a,company's,future,prospects.
Answer:,,FALSE
Explanation:,Financial,statements,provide,mostly,historical,information;,relevant,and,fait
hfully, representative,information,and,focused,on,the,past.
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowledg
e, AICPA,Functional:, Reporting
PE,Question,Type:,, Concept
H2:,,Why,Is,Managerial,Accounting,Important?,(H1)
4) Managerial,accounting,reporting,by,a,public,firm,is,required,to,follow,the,rules,of,G
AAP.,,Answer:, FALSE
Explanation:,Managerial,accounting,information,is,not,guided,by,GAAP,but,rather,by,the,concept
,of, usefulness,to,management,for,decision,making,purposes.
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowledg
e, AICPA,Functional:, Reporting
PE,Question,Type:,, Concept
,H2:,,Why,Is,Managerial,Accounting,Important?,(H1)
5) Financial,reporting,is,typically,much,more,detailed,than,managerial,account
ing.,,Answer:, FALSE
Explanation:, Financial, reporting, is, typically, less, detailed, than, managerial, accounting, inform
ation., Financial,accounting,reporting,is,usually,summary,reports,,prepared,primarily,on,the,co
mpany,as,a, whole,,usually,on,a,quarterly,or,annual,basis.
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowledg
e, AICPA,Functional:, Reporting
PE,Question,Type:,, Concept
H2:,,Why,Is,Managerial,Accounting,Important?,(H1)
6) Managerial,accounting,provides,financial,statements,that,report,results,of,operations,,fina
ncial, position,,and,cash,flows,both,to,managers,and,to,external,stockholders.
Answer:,,FALSE
Explanation:,Managerial,accounting,provides,the,information,needed,to,plan,and,control,operations,
and, therefore,serves,the,information,needs,of,internal,parties,such,as,managers,and,staff.
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowledg
e, 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?
A) to,generate,a,company's,financial,statements,for,tax,reporting
B) to,provide,information,to,business,managers,to,assist,them,in,controlling,their,businesses
C) to,provide,information,to,shareholders,to,assist,them,with,their,investment,decisions
D) to,ensure,that,the,reports,produced,for,internal,and,external,business,purposes,are,GAAP,comp
liant,,Answer:, B
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowledg
e, AICPA,Functional:, Reporting
PE,Question,Type:,, Concept
H2:,,Why,Is,Managerial,Accounting,Important?,(H1)
8) Which,of,the,following,statements,is,true,of,managerial,accounting?
A) The,external,stakeholders,of,a,company,are,the,primary,users,of,managerial,accounting.
B) Managerial,accounting,information,is,used,to,help,managers,plan,,direct,and,control,their,operatio
ns.
C) An,external,audit,by,an,independent,CPA,is,required,for,managerial,accounting,information.
D) Managerial,accounting,information,must,comply,with,Generally,Accepted,Accounting,Princi
ples.,,Answer:, B
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowledg
e, AICPA,Functional:, Reporting
, 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,to,make,their,investment,decisions
,,Answer:, C
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowle
dge, AICPA,Functional:, Reporti
ng
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,to,investors,needed,for,their,investment,decisions.
B) It,provides,future,focused,information,needed,for,managing,and,delegating,operations.
C) It,focuses,on,detailed,reports,for,parts,of,the,company,rather,than,the,whole,company.
D) It,focuses,on,planning,,directing,and,controlling,day-to-
day,operations.,,Answer:, A
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowle
dge, AICPA,Functional:, Reporti
ng
PE,Question,Type:,, Concept
H2:,,Why,Is,Managerial,Accounting,Important?,(H1)
11) Which,of,the,following,is,the,primary,focus,of,managerial,accounting?
A) providing,information,that,managers,need,to,make,operational,decisions
B) providing,historical,data,to,investors,and,creditors
C) providing,summarized,results,of,operations
D) providing,information,to,comply,with,laws,and,regulations,of,government,bod
ies,,Answer:, A
Diff:,1
LO:,, M:1-1
AACSB:, Application,of,knowle
dge, AICPA,Functional:, Reporti
ng
PE,Question,Type:,, Concept
H2:,,Why,Is,Managerial,Accounting,Important?,(H1)
12) Which,of,the,following,is,the,primary,focus,of,financial,accounting?
A) providing,information,that,managers,need,to,make,operational,decisions
B) providing,summarized,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,,and,divisi
ons,,Answer:, B
Diff:,1
LO:,, M:1-1
