Test Bank for Horngren's Financial & Managerial Accounting, The Financial Chapters, Global Edition 7th Edition by Tracie Miller-Nobles, Brenda Mattison

Test Bank for Horngren's Financial & ManagerialAccounting, The Financial
Chapters, 8th Edition by Tracie Miller-Nobles




Financial ;and ;Managerial ;Accounting: ;Financial ;Chapters, ;8e ;(Miller-
Nobles);Chapter ;F:1 Accounting ;and ;the ;Business ;Environment

Learning ;Objective ;F:1-1

1) Accounting ;is ;the ;information ;system ;that ;measures ;business ;activities, ;processes ;the ;information
;into;reports, ;and ;communicates ;the ;results ;to ;decision ;makers.
Answer:
; TRUE;Diffi: ;1
LO: ; F:1-1
AACSB: ; Application ;of
;knowledge;AICPA ;Functional:
; Measurement ;PE ;Question ;Type:
; Concept
H2: ; Why ;Is ;Accounting ;Important? ;(H1)

2) The ;knowledge ;of ;accounting ;is ;rarely ;used ;to ;help ;make ;business ;and ;personal ;financial
;decisions.;Answer: ; FALSE
Explanation: ;The ;knowledge ;of ;accounting ;is ;used ;daily ;to ;assist ;in ;making ;decisions ;for
;both;businesses ;and ;personal ;items.
Diffi: ;1
LO: ; F:1-1
AACSB: ; Application ;of
;knowledge;AICPA ;Functional:
; Measurement ;PE ;Question ;Type:
; Concept
H2: ; Why ;Is ;Accounting ;Important? ;(H1)

3) Accounting ;starts ;with ;economic ;activities ;that ;accountants ;review ;and ;evaluate ;using ;critical
;thinking;and ;judgment ;to ;create ;useful ;information ;that ;helps ;individuals ;make ;good ;decisions.
Answer:
; TRUE;Diffi: ;1
LO: ; F:1-1
AACSB: ; Application ;of
;knowledge;AICPA ;Functional:
; Measurement ;PE ;Question ;Type:
; Concept
H2: ; Why ;Is ;Accounting ;Important? ;(H1)

4) Accounting ;is ;referred ;to ;as ;the ;language ;of ;business ;because ;it ;is ;the ;method ;of
;communicating;business ;information ;to ;decision ;makers.

1

,Answer:
; TRUE;Diffi: ;1
LO: ; F:1-1
AACSB: ; Application ;of
;knowledge;AICPA ;Functional:
; Measurement ;PE ;Question ;Type:
; Concept
H2: ; Why ;Is ;Accounting ;Important? ;(H1)




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,5) A ;model ;called ;the was ;created ;to ;help ;students ;and ;the ;public ;understand ;what
;accounting;is.
A) Decision ;Making ;Model
B) Business ;Model
C) Pathways ;Vision ;Model
D) Cost
;Model;Answe
r: ;C ;Diffi: ;1
LO: ; F:1-1
AACSB: ; Application ;of
;knowledge;AICPA ;Functional:
; Measurement ;PE ;Question ;Type:
; Concept
H2: ; Why ;Is ;Accounting ;Important? ;(H1)

6) The ;Pathways ;Vision ;Model ;emphasizes ;that ;good ;decisions ;have ;an ;impact ;on
A) accounting ;judgments ;and ;economic ;activity.
B) accounting ;judgments ;only.
C) economic ;activity ;only.
D) neither ;accounting ;judgments ;nor ;economic
;activity.;Answer: ; A
Diffi: ;1
LO: ; F:1-1
AACSB: ; Application ;of
;knowledge;AICPA ;Functional:
; Measurement ;PE ;Question ;Type:
; Concept
H2: ; Why ;Is ;Accounting ;Important? ;(H1)

7) Managerial ;accounting ;focuses ;on ;providing ;information ;for ;external ;decision
;makers.;Answer: ; FALSE
Explanation: ;Managerial ;accounting ;focuses ;on ;providing ;information ;for ;internal ;decision
;makers.;Diffi: ;1
LO: ; F:1-1
AACSB: ; Application ;of
;knowledge;AICPA ;Functional:
; Measurement ;PE ;Question ;Type:
; Concept
H2: ; Decision ;Makers: ;The ;Users ;of ;Accounting ;Information

8) Investors ;primarily ;use ;managerial ;accounting ;information ;for ;decision-making
;purposes.;Answer: ; FALSE
Explanation: ;External ;users ;(investors) ;use ;financial ;accounting
;information.;Diffi: ;1
LO: ; F:1-1
AACSB: ; Application ;of
;knowledge;AICPA ;Functional:
; Measurement ;PE ;Question ;Type:
; Concept
3

, H2: ; Decision ;Makers: ;The ;Users ;of ;Accounting ;Information




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