Test Bank for Horngren's Financial and Managerial Accounting: Managerial Chapters, 7th Edition (Miller-Nobles) | All Chapters 1-11 | Complete Q&A

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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,ChapteroM:1 IntroductionotooManagerialoAccounting

LearningoObjectiveoM:1-1

1) Managerialoaccountingofocusesoonoprovidingoinformationoforointernaloplanningoandocontrol.o
Answer:o TRUE
Diff:o1
LO:o M:1-1
AACSB:o ApplicationoofoknowledgeoAI
CPAoFunctional:o Reporting
PEoQuestionoType:o Concept
H2:o WhyoIsoManagerialoAccountingoImportant?o(H1)

2) Financialoaccountingopreparesoreportsoforointernalopurposes,owhereasomanagerialoaccountingoprovidesoi
nformationotooexternalostakeholders.
Answer:o FALSE
Explanation:oTheoreverseoisotrue.oFinancialoaccountingoservesoexternalostakeholderoinformationoneedsowhileo
managerialoaccountingoservesotheoneedsoofomanagersoandointernalostaff.
Diff:o1
LO:o M:1-1
AACSB:o ApplicationoofoknowledgeoAI
CPAoFunctional:o Reporting
PEoQuestionoType:o Concept
H2:o WhyoIsoManagerialoAccountingoImportant?o(H1)

3) Financialostatementsopreparedoforoinvestorsoandocreditorsooftenoincludeoforward-
lookingoinformationobecauseotheyomakeodecisionsobasedoonoaocompany'sofutureoprospects.
Answer:o FALSE
Explanation:oFinancialostatementsoprovideomostlyohistoricaloinformation;orelevantoandofaithfullyorepresentativ
eoinformationoandofocusedoonotheopast.
Diff:o1
LO:o M:1-1
AACSB:o ApplicationoofoknowledgeoAI
CPAoFunctional:o Reporting
PEoQuestionoType:o Concept
H2:o WhyoIsoManagerialoAccountingoImportant?o(H1)

4) ManagerialoaccountingoreportingobyoaopublicofirmoisorequiredotoofollowotheorulesoofoGAAP.o
Answer:o FALSE
Explanation:oManagerialoaccountingoinformationoisonotoguidedobyoGAAPobutoratherobyotheoconceptoofousef
ulnessotoomanagementoforodecisionomakingopurposes.
Diff:o1
LO:o M:1-1
AACSB:o ApplicationoofoknowledgeoAI
CPAoFunctional:o Reporting
PEoQuestionoType:o Concept

,H2:o WhyoIsoManagerialoAccountingoImportant?o(H1)




5) Financialoreportingoisotypicallyomuchomoreodetailedothanomanagerialoaccounting.o
Answer:o FALSE
Explanation:oFinancialoreportingoisotypicallyolessodetailedothanomanagerialoaccountingoinformation.oFi
nancialoaccountingoreportingoisousuallyosummaryoreports,opreparedoprimarilyoonotheocompanyoasoaowh
ole,ousuallyoonoaoquarterlyooroannualobasis.
Diff:o1
LO:o M:1-1
AACSB:o ApplicationoofoknowledgeoAI
CPAoFunctional:o Reporting
PEoQuestionoType:o Concept
H2:o WhyoIsoManagerialoAccountingoImportant?o(H1)

6) Managerialoaccountingoprovidesofinancialostatementsothatoreportoresultsoofooperations,ofinancialo
position,oandocashoflowsobothotoomanagersoandotooexternalostockholders.
Answer:o FALSE
Explanation:o Managerialoaccountingoprovidesotheoinformationoneededotooplanoandocontrolooperationsoando
thereforeoservesotheoinformationoneedsoofointernalopartiesosuchoasomanagersoandostaff.
Diff:o1
LO:o M:1-1
AACSB:o ApplicationoofoknowledgeoAI
CPAoFunctional:o Reporting
PEoQuestionoType:o Concept
H2:o WhyoIsoManagerialoAccountingoImportant?o(H1)

7) Whichoofotheofollowingoisoaofocusoofomanagerialoaccounting?
A) toogenerateoaocompany'sofinancialostatementsoforotaxoreporting
B) tooprovideoinformationotoobusinessomanagersotooassistothemoinocontrollingotheirobusinesses
C) tooprovideoinformationotooshareholdersotooassistothemowithotheiroinvestmentodecisions
D) tooensureothatotheoreportsoproducedoforointernaloandoexternalobusinessopurposesoareoGAAPocomplianto
Answer:o B
Diff:o1
LO:o M:1-1
AACSB:o ApplicationoofoknowledgeoAI
CPAoFunctional:o Reporting
PEoQuestionoType:o Concept
H2:o WhyoIsoManagerialoAccountingoImportant?o(H1)

8) Whichoofotheofollowingostatementsoisotrueoofomanagerialoaccounting?
A) Theoexternalostakeholdersoofoaocompanyoareotheoprimaryousersoofomanagerialoaccounting.
B) Managerialoaccountingoinformationoisousedotoohelpomanagersoplan,odirectoandocontrolotheirooperations.
C) AnoexternaloauditobyoanoindependentoCPAoisorequiredoforomanagerialoaccountingoinformation.
D) ManagerialoaccountingoinformationomustocomplyowithoGenerallyoAcceptedoAccountingoPrinciples.oA
nswer:o B
Diff:o1
LO:o M:1-1
AACSB:o ApplicationoofoknowledgeoAI
CPAoFunctional:o Reporting

, PEoQuestionoType:o Concept
H2:o WhyoIsoManagerialoAccountingoImportant?o(H1)

9) Managerialoaccountingoinformationoforoaocompanyoisoprimarilyousedoby .
A) itsocustomersotoounderstandotheopricingoofotheoproduct
B) itsocreditorsotoounderstandotheocredibilityoofotheobusiness
C) itsoemployeesotooplan,odirectoandocontrolooperations
D) itsoinvestorsotoomakeotheiroinvestmentodecisionso
Answer:o C
Diff:o1
LO:o M:1-1
AACSB:o ApplicationoofoknowledgeoAI
CPAoFunctional:o Reporting
PEoQuestionoType:o Concept
H2:o WhyoIsoManagerialoAccountingoImportant?o(H1)

10) Whichoofotheofollowingostatementsoisotrueoofofinancialoaccounting?
A) Itoprovidesoinformationotooinvestorsoneededoforotheiroinvestmentodecisions.
B) Itoprovidesofutureofocusedoinformationoneededoforomanagingoandodelegatingooperations.
C) Itofocusesoonodetailedoreportsoforopartsoofotheocompanyoratherothanotheowholeocompany.
D) Itofocusesoonoplanning,odirectingoandocontrollingoday-to-
dayooperations.oAnswer:o A
Diff:o1
LO:o M:1-1
AACSB:o ApplicationoofoknowledgeoAI
CPAoFunctional:o Reporting
PEoQuestionoType:o Concept
H2:o WhyoIsoManagerialoAccountingoImportant?o(H1)

11) Whichoofotheofollowingoisotheoprimaryofocusoofomanagerialoaccounting?
A) providingoinformationothatomanagersoneedotoomakeooperationalodecisions
B) providingohistoricalodataotooinvestorsoandocreditors
C) providingosummarizedoresultsoofooperations
D) providingoinformationotoocomplyowitholawsoandoregulationsoofogovernmentobodieso
Answer:o A
Diff:o1
LO:o M:1-1
AACSB:o ApplicationoofoknowledgeoAI
CPAoFunctional:o Reporting
PEoQuestionoType:o Concept
H2:o WhyoIsoManagerialoAccountingoImportant?o(H1)

12) Whichoofotheofollowingoisotheoprimaryofocusoofofinancialoaccounting?
A) providingoinformationothatomanagersoneedotoomakeooperationalodecisions
B) providingosummarizedoinformationoonooperationaloresultsotooinvestorsoandocreditors
C) providingoinformationotoomanagersotooassistoinoplanning,odirectingoandocontrollingooperations
D) providingohighlyodetailedoinformationoonoproductolines,oregions,oandodivisionsoA
nswer:o B
Diff:o1
LO:o M:1-1
AACSB:o Applicationoofoknowledge