Financial and Managerial Accounting

TEST BANK
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Financial and Managerial Accounting:
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Managerial Chapters, 7th Edition
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(Miller-Nobles) Chapter 1-11
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,ChaptersM:1 IntroductionstosManagerialsAccounting

LearningsObjectivesM:1-1

1) Managerialsaccountingsfocusessonsprovidingsinformationsforsinternalsplanningsandscon
trol.ssAnswer:s TRUE
Diff:s1
LO:ss M:1-1
AACSB:s Applicationsofsknowledg
es AICPAsFunctional:s Reporting
PEsQuestionsType:ss Concept
H2:ssWhysIssManagerialsAccountingsImportant?s(H1)

2) Financialsaccountingspreparessreportssforsinternalspurposes,swhereassmanagerialsaccountingspr
ovidess informationstosexternalsstakeholders.
Answer:ssFALSE
Explanation:sThesreversesisstrue.sFinancialsaccountingsservessexternalsstakeholdersinformationsneed
swhiles managerialsaccountingsservessthesneedssofsmanagerssandsinternalsstaff.
Diff:s1
LO:ss M:1-1
AACSB:s Applicationsofsknowledg
es AICPAsFunctional:s Reporting
PEsQuestionsType:ss Concept
H2:ssWhysIssManagerialsAccountingsImportant?s(H1)

3) Financialsstatementsspreparedsforsinvestorssandscreditorssoftensincludesforward-
lookingsinformations becausestheysmakesdecisionssbasedsonsascompany'ssfuturesprospects.
Answer:ssFALSE
Explanation:sFinancialsstatementssprovidesmostlyshistoricalsinformation;srelevantsandsfai
thfullys representativesinformationsandsfocusedsonsthespast.
Diff:s1
LO:ss M:1-1
AACSB:s Applicationsofsknowledg
es AICPAsFunctional:s Reporting
PEsQuestionsType:ss Concept
H2:ssWhysIssManagerialsAccountingsImportant?s(H1)

4) Managerialsaccountingsreportingsbysaspublicsfirmsissrequiredstosfollowsthesrulessofs
GAAP.ssAnswer:s FALSE
Explanation:sManagerialsaccountingsinformationsissnotsguidedsbysGAAPsbutsrathersbysthesconcep
tsofs usefulnessstosmanagementsforsdecisionsmakingspurposes.
Diff:s1
LO:ss M:1-1
AACSB:s Applicationsofsknowledg
es AICPAsFunctional:s Reporting
PEsQuestionsType:ss Concept

,H2:ssWhysIssManagerialsAccountingsImportant?s(H1)



5) Financialsreportingsisstypicallysmuchsmoresdetailedsthansmanagerialsaccoun
ting.ssAnswer:s FALSE
Explanation:s Financials reportings iss typicallys lesss detaileds thans managerials accountings inform
ation.s Financialsaccountingsreportingsissusuallyssummarysreports,spreparedsprimarilysonsthesc
ompanysassas whole,susuallysonsasquarterlysorsannualsbasis.
Diff:s1
LO:ss M:1-1
AACSB:s Applicationsofsknowledg
es AICPAsFunctional:s Reporting
PEsQuestionsType:ss Concept
H2:ssWhysIssManagerialsAccountingsImportant?s(H1)

6) Managerialsaccountingsprovidessfinancialsstatementssthatsreportsresultssofsoperations,sfin
ancials position,sandscashsflowssbothstosmanagerssandstosexternalsstockholders.
Answer:ssFALSE
Explanation:sManagerialsaccountingsprovidessthesinformationsneededstosplansandscontrolsoperations
sands thereforesservessthesinformationsneedssofsinternalspartiesssuchsassmanagerssandsstaff.
Diff:s1
LO:ss M:1-1
AACSB:s Applicationsofsknowledg
es AICPAsFunctional:s Reporting
PEsQuestionsType:ss Concept
H2:ssWhysIssManagerialsAccountingsImportant?s(H1)

7) Whichsofsthesfollowingsissasfocussofsmanagerialsaccounting?
A) tosgeneratesascompany'ssfinancialsstatementssforstaxsreporting
B) tosprovidesinformationstosbusinesssmanagersstosassiststhemsinscontrollingstheirsbusinesses
C) tosprovidesinformationstosshareholdersstosassiststhemswithstheirsinvestmentsdecisions
D) tosensuresthatsthesreportssproducedsforsinternalsandsexternalsbusinessspurposessaresGAAPscom
pliantssAnswer:s B
Diff:s1
LO:ss M:1-1
AACSB:s Applicationsofsknowledg
es AICPAsFunctional:s Reporting
PEsQuestionsType:ss Concept
H2:ssWhysIssManagerialsAccountingsImportant?s(H1)

8) Whichsofsthesfollowingsstatementssisstruesofsmanagerialsaccounting?
A) Thesexternalsstakeholderssofsascompanysaresthesprimarysuserssofsmanagerialsaccounting.
B) Managerialsaccountingsinformationsissusedstoshelpsmanagerssplan,sdirectsandscontrolstheirsoperati
ons.
C) AnsexternalsauditsbysansindependentsCPAsissrequiredsforsmanagerialsaccountingsinformation.
D) ManagerialsaccountingsinformationsmustscomplyswithsGenerallysAcceptedsAccountingsPrinci
ples.ssAnswer:s B
Diff:s1
LO:ss M:1-1
AACSB:s Applicationsofsknowledg
es AICPAsFunctional:s Reporting

, PEsQuestionsType:ss Concept
H2:ssWhysIssManagerialsAccountingsImportant?s(H1)

9) Managerialsaccountingsinformationsforsascompanysissprimarilysusedsby .
A) itsscustomersstosunderstandsthespricingsofsthesproduct
B) itsscreditorsstosunderstandsthescredibilitysofsthesbusiness
C) itssemployeesstosplan,sdirectsandscontrolsoperations
D) itssinvestorsstosmakestheirsinvestmentsdecision
sssAnswer:s C
Diff:s1
LO:ss M:1-1
AACSB:s Applicationsofsknowle
dges AICPAsFunctional:s Reporti
ng
PEsQuestionsType:ss Concept
H2:ssWhysIssManagerialsAccountingsImportant?s(H1)

10) Whichsofsthesfollowingsstatementssisstruesofsfinancialsaccounting?
A) Itsprovidessinformationstosinvestorssneededsforstheirsinvestmentsdecisions.
B) Itsprovidessfuturesfocusedsinformationsneededsforsmanagingsandsdelegatingsoperations.
C) Itsfocusessonsdetailedsreportssforspartssofsthescompanysrathersthanstheswholescompany.
D) Itsfocusessonsplanning,sdirectingsandscontrollingsday-to-
daysoperations.ssAnswer:s A
Diff:s1
LO:ss M:1-1
AACSB:s Applicationsofsknowle
dges AICPAsFunctional:s Reporti
ng
PEsQuestionsType:ss Concept
H2:ssWhysIssManagerialsAccountingsImportant?s(H1)

11) Whichsofsthesfollowingsissthesprimarysfocussofsmanagerialsaccounting?
A) providingsinformationsthatsmanagerssneedstosmakesoperationalsdecisions
B) providingshistoricalsdatastosinvestorssandscreditors
C) providingssummarizedsresultssofsoperations
D) providingsinformationstoscomplyswithslawssandsregulationssofsgovernmentsbo
diesssAnswer:s A
Diff:s1
LO:ss M:1-1
AACSB:s Applicationsofsknowle
dges AICPAsFunctional:s Reporti
ng
PEsQuestionsType:ss Concept
H2:ssWhysIssManagerialsAccountingsImportant?s(H1)

12) Whichsofsthesfollowingsissthesprimarysfocussofsfinancialsaccounting?
A) providingsinformationsthatsmanagerssneedstosmakesoperationalsdecisions
B) providingssummarizedsinformationsonsoperationalsresultsstosinvestorssandscreditors
C) providingsinformationstosmanagersstosassistsinsplanning,sdirectingsandscontrollingsoperations
D) providingshighlysdetailedsinformationsonsproductslines,sregions,sandsdivisi
onsssAnswer:s B
Diff:s1
LO:ss M:1-1