FULL TEST BANK for Fundamental Financial
Accounting Concepts: 2024 Release by
Christopher Edmonds
All Chapters Covered 1-14| Verified Q&As for
Exam Preparations| A+ GRADED
All Answers are at the End of Each Chapter
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, Chapter 01: An Introduction to Accounting
1) Which of the following items are representative of managerial accounting?
Note: Check all that apply.
A) Financial statement in accordance with GAAP
B) Monthly sales reports used internally to allocate funds to divisions
C) Quarterly financial information sent to investors
D) Audited financial statements submitted to bankers with credit application
E) Budget projections used to make logistic decisions
2) Which of the following costs are not included in the cost of manufacturing a product?
Note: Check all that apply.
A) Marketing
B) Production workers' wages
C) Factory janitor's wages
D) CEO salary
E) Depreciation on manufacturing equipment
3) Which of the following is considered a downstream cost?
Note: Check all that apply.
A) Research and development
B) Production wages
C) Advertising cost
D) Warranty cost
E) Cost of internet in manufacturing plant
4) Which of the following are examples of inventory holding costs?
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Note: Check all that apply.
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A) Cost of warehouse space
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,B) Cost of shipping inventory to customers
C) Research and development cost
D) Cost of supervising inventory
E) Inventory spoilage cost
5) Ashley Bradshaw is the manager of one department in a large store. In this capacity, which of the
following kinds of information would she be interested in?
A) Economic data
B) Financial data
C) Nonfinancial data
D) Financial, economic, and nonfinancial data
6) All of the following are features of managerial accounting except:
A) information is provided primarily to insiders such as managers.
B) information includes economic and non-financial data as well as financial data.
C) information is characterized by objectivity, reliability, consistency, and accuracy.
D) information is reported continuously with a present or future orientation.
7) Choose the answer that is not a distinguishing characteristic of financial accounting information.
A) It is global information that reflects the performance of the whole company.
B) It is focused primarily on the future.
C) It is more concerned with financial data than physical or economic data.
D) It is more highly regulated than managerial accounting information.
8) Managerial accounting information is limited or restricted by which of the following authorities or
principles?
A) Securities and Exchange Commission
B) Generally Accepted Accounting Principles
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C) Managerial Accounting Standards Board
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, D) Value-Added Principle
9) Select the incorrect statement regarding the relationship between type of user and type of information.
A) Middle managers need more nonfinancial, or operational data than do senior executives.
B) Assembly line supervisors need more immediate feedback on performance than do senior
executives.
C) Senior executives need less aggregated information than do lower-level managers.
D) Senior executives use general economic information as well as financial information.
10) Which group would use managerial accounting data of XY Company?
A) Stockholders
B) Managers
C) Executives
D) Both managers and executives
E) All of the groups would use managerial accounting data
11) Which of the following is a feature of managerial accounting information?
A) Information is not distributed to the public
B) Information reports on the company as a whole
C) Information is focused on the past
D) Information is reported annually
12) Select the correct statement regarding managerial and financial accounting.
A) Users of managerial accounting information desire greater aggregation than do users of financial
accounting information.
B) Both managerial and financial accounting use economic and physical data in addition to financial
data.
C) Financial accounting is more highly regulated than managerial accounting.
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D) Timeliness is more important in financial accounting than in managerial accounting.
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Accounting Concepts: 2024 Release by
Christopher Edmonds
All Chapters Covered 1-14| Verified Q&As for
Exam Preparations| A+ GRADED
All Answers are at the End of Each Chapter
Ar
ch
Do
1
c
, Chapter 01: An Introduction to Accounting
1) Which of the following items are representative of managerial accounting?
Note: Check all that apply.
A) Financial statement in accordance with GAAP
B) Monthly sales reports used internally to allocate funds to divisions
C) Quarterly financial information sent to investors
D) Audited financial statements submitted to bankers with credit application
E) Budget projections used to make logistic decisions
2) Which of the following costs are not included in the cost of manufacturing a product?
Note: Check all that apply.
A) Marketing
B) Production workers' wages
C) Factory janitor's wages
D) CEO salary
E) Depreciation on manufacturing equipment
3) Which of the following is considered a downstream cost?
Note: Check all that apply.
A) Research and development
B) Production wages
C) Advertising cost
D) Warranty cost
E) Cost of internet in manufacturing plant
4) Which of the following are examples of inventory holding costs?
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Note: Check all that apply.
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A) Cost of warehouse space
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2
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,B) Cost of shipping inventory to customers
C) Research and development cost
D) Cost of supervising inventory
E) Inventory spoilage cost
5) Ashley Bradshaw is the manager of one department in a large store. In this capacity, which of the
following kinds of information would she be interested in?
A) Economic data
B) Financial data
C) Nonfinancial data
D) Financial, economic, and nonfinancial data
6) All of the following are features of managerial accounting except:
A) information is provided primarily to insiders such as managers.
B) information includes economic and non-financial data as well as financial data.
C) information is characterized by objectivity, reliability, consistency, and accuracy.
D) information is reported continuously with a present or future orientation.
7) Choose the answer that is not a distinguishing characteristic of financial accounting information.
A) It is global information that reflects the performance of the whole company.
B) It is focused primarily on the future.
C) It is more concerned with financial data than physical or economic data.
D) It is more highly regulated than managerial accounting information.
8) Managerial accounting information is limited or restricted by which of the following authorities or
principles?
A) Securities and Exchange Commission
B) Generally Accepted Accounting Principles
Ar
C) Managerial Accounting Standards Board
ch
Do
3
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, D) Value-Added Principle
9) Select the incorrect statement regarding the relationship between type of user and type of information.
A) Middle managers need more nonfinancial, or operational data than do senior executives.
B) Assembly line supervisors need more immediate feedback on performance than do senior
executives.
C) Senior executives need less aggregated information than do lower-level managers.
D) Senior executives use general economic information as well as financial information.
10) Which group would use managerial accounting data of XY Company?
A) Stockholders
B) Managers
C) Executives
D) Both managers and executives
E) All of the groups would use managerial accounting data
11) Which of the following is a feature of managerial accounting information?
A) Information is not distributed to the public
B) Information reports on the company as a whole
C) Information is focused on the past
D) Information is reported annually
12) Select the correct statement regarding managerial and financial accounting.
A) Users of managerial accounting information desire greater aggregation than do users of financial
accounting information.
B) Both managerial and financial accounting use economic and physical data in addition to financial
data.
C) Financial accounting is more highly regulated than managerial accounting.
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D) Timeliness is more important in financial accounting than in managerial accounting.
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Do
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