TEST BANK
Financial and Managerial Accounting: Managerial
Chapters, 7th Edition
By Miller and Nobles all Chapter 1-11 fully covered
ChaptereM:1 IntroductionetoeManagerialeAccounting
LearningeObjectiveeM:1-1
,1) Managerialeaccountingefocuseseoneprovidingeinformationeforeinternaleplanningeandecontrol.eA
nswer:e TRUE
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
2) Financialeaccountingepreparesereportseforeinternalepurposes,ewhereasemanagerialeaccountingeprovidesei
nformationetoeexternalestakeholders.
Answer:e FALSE
Explanation:eTheereverseeisetrue.eFinancialeaccountingeserveseexternalestakeholdereinformationeneedsewhilee
managerialeaccountingeservesetheeneedseofemanagerseandeinternalestaff.
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
3) Financialestatementsepreparedeforeinvestorseandecreditorseofteneincludeeforward-
lookingeinformationebecauseetheyemakeedecisionsebasedeoneaecompany'sefutureeprospects.
Answer:e FALSE
Explanation:eFinancialestatementseprovideemostlyehistoricaleinformation;erelevanteandefaithfullyerepresentative
einformationeandefocusedeonetheepast.
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
4) ManagerialeaccountingereportingebyeaepublicefirmeiserequiredetoefollowetheeruleseofeGAAP.eA
nswer:e FALSE
Explanation:eManagerialeaccountingeinformationeisenoteguidedebyeGAAPebuteratherebyetheeconcepteofeusefu
lnessetoemanagementeforedecisionemakingepurposes.
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
,H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
5) Financialereportingeisetypicallyemuchemoreedetailedethanemanagerialeaccounting.eA
nswer:e FALSE
Explanation:eFinancialereportingeisetypicallyelessedetailedethanemanagerialeaccountingeinformation.eFin
ancialeaccountingereportingeiseusuallyesummaryereports,epreparedeprimarilyeonetheecompanyeaseaewhol
e,eusuallyeoneaequarterlyeoreannualebasis.
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
6) Managerialeaccountingeprovidesefinancialestatementsethatereporteresultseofeoperations,efinanciale
position,eandecasheflowsebothetoemanagerseandetoeexternalestockholders.
Answer:e FALSE
Explanation:e Managerialeaccountingeprovidesetheeinformationeneededetoeplaneandecontroleoperationseandet
hereforeeservesetheeinformationeneedseofeinternalepartiesesucheasemanagerseandestaff.
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
7) Whicheofetheefollowingeiseaefocuseofemanagerialeaccounting?
A) toegenerateeaecompany'sefinancialestatementseforetaxereporting
B) toeprovideeinformationetoebusinessemanagersetoeassistethemeinecontrollingetheirebusinesses
C) toeprovideeinformationetoeshareholdersetoeassistethemewithetheireinvestmentedecisions
D) toeensureethatetheereportseproducedeforeinternaleandeexternalebusinessepurposeseareeGAAPecomplianteA
nswer:e B
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
8) Whicheofetheefollowingestatementseisetrueeofemanagerialeaccounting?
A) Theeexternalestakeholderseofeaecompanyeareetheeprimaryeuserseofemanagerialeaccounting.
B) Managerialeaccountingeinformationeiseusedetoehelpemanagerseplan,edirecteandecontroletheireoperations.
C) AneexternaleauditebyeaneindependenteCPAeiserequiredeforemanagerialeaccountingeinformation.
D) ManagerialeaccountingeinformationemustecomplyewitheGenerallyeAcceptedeAccountingePrinciples.eA
nswer:e B
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
, PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
9) Managerialeaccountingeinformationeforeaecompanyeiseprimarilyeusedeby .
A) itsecustomersetoeunderstandetheepricingeofetheeproduct
B) itsecreditorsetoeunderstandetheecredibilityeofetheebusiness
C) itseemployeesetoeplan,edirecteandecontroleoperations
D) itseinvestorsetoemakeetheireinvestmentedecisionse
Answer:e C
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
10) Whicheofetheefollowingestatementseisetrueeofefinancialeaccounting?
A) Iteprovideseinformationetoeinvestorseneededeforetheireinvestmentedecisions.
B) Iteprovidesefutureefocusedeinformationeneededeforemanagingeandedelegatingeoperations.
C) Itefocuseseonedetailedereportseforepartseofetheecompanyeratherethanetheewholeecompany.
D) Itefocuseseoneplanning,edirectingeandecontrollingeday-to-
dayeoperations.eAnswer:e A
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
11) Whicheofetheefollowingeisetheeprimaryefocuseofemanagerialeaccounting?
A) providingeinformationethatemanagerseneedetoemakeeoperationaledecisions
B) providingehistoricaledataetoeinvestorseandecreditors
C) providingesummarizederesultseofeoperations
D) providingeinformationetoecomplyewithelawseanderegulationseofegovernmentebodieseA
nswer:e A
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
12) Whicheofetheefollowingeisetheeprimaryefocuseofefinancialeaccounting?
A) providingeinformationethatemanagerseneedetoemakeeoperationaledecisions
B) providingesummarizedeinformationeoneoperationaleresultsetoeinvestorseandecreditors
C) providingeinformationetoemanagersetoeassisteineplanning,edirectingeandecontrollingeoperations
D) providingehighlyedetailedeinformationeoneproductelines,eregions,eandedivisionseA
nswer:e B
Diff:e1
LO:e M:1-1
AACSB:e Applicationeofeknowledge
Financial and Managerial Accounting: Managerial
Chapters, 7th Edition
By Miller and Nobles all Chapter 1-11 fully covered
ChaptereM:1 IntroductionetoeManagerialeAccounting
LearningeObjectiveeM:1-1
,1) Managerialeaccountingefocuseseoneprovidingeinformationeforeinternaleplanningeandecontrol.eA
nswer:e TRUE
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
2) Financialeaccountingepreparesereportseforeinternalepurposes,ewhereasemanagerialeaccountingeprovidesei
nformationetoeexternalestakeholders.
Answer:e FALSE
Explanation:eTheereverseeisetrue.eFinancialeaccountingeserveseexternalestakeholdereinformationeneedsewhilee
managerialeaccountingeservesetheeneedseofemanagerseandeinternalestaff.
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
3) Financialestatementsepreparedeforeinvestorseandecreditorseofteneincludeeforward-
lookingeinformationebecauseetheyemakeedecisionsebasedeoneaecompany'sefutureeprospects.
Answer:e FALSE
Explanation:eFinancialestatementseprovideemostlyehistoricaleinformation;erelevanteandefaithfullyerepresentative
einformationeandefocusedeonetheepast.
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
4) ManagerialeaccountingereportingebyeaepublicefirmeiserequiredetoefollowetheeruleseofeGAAP.eA
nswer:e FALSE
Explanation:eManagerialeaccountingeinformationeisenoteguidedebyeGAAPebuteratherebyetheeconcepteofeusefu
lnessetoemanagementeforedecisionemakingepurposes.
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
,H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
5) Financialereportingeisetypicallyemuchemoreedetailedethanemanagerialeaccounting.eA
nswer:e FALSE
Explanation:eFinancialereportingeisetypicallyelessedetailedethanemanagerialeaccountingeinformation.eFin
ancialeaccountingereportingeiseusuallyesummaryereports,epreparedeprimarilyeonetheecompanyeaseaewhol
e,eusuallyeoneaequarterlyeoreannualebasis.
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
6) Managerialeaccountingeprovidesefinancialestatementsethatereporteresultseofeoperations,efinanciale
position,eandecasheflowsebothetoemanagerseandetoeexternalestockholders.
Answer:e FALSE
Explanation:e Managerialeaccountingeprovidesetheeinformationeneededetoeplaneandecontroleoperationseandet
hereforeeservesetheeinformationeneedseofeinternalepartiesesucheasemanagerseandestaff.
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
7) Whicheofetheefollowingeiseaefocuseofemanagerialeaccounting?
A) toegenerateeaecompany'sefinancialestatementseforetaxereporting
B) toeprovideeinformationetoebusinessemanagersetoeassistethemeinecontrollingetheirebusinesses
C) toeprovideeinformationetoeshareholdersetoeassistethemewithetheireinvestmentedecisions
D) toeensureethatetheereportseproducedeforeinternaleandeexternalebusinessepurposeseareeGAAPecomplianteA
nswer:e B
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
8) Whicheofetheefollowingestatementseisetrueeofemanagerialeaccounting?
A) Theeexternalestakeholderseofeaecompanyeareetheeprimaryeuserseofemanagerialeaccounting.
B) Managerialeaccountingeinformationeiseusedetoehelpemanagerseplan,edirecteandecontroletheireoperations.
C) AneexternaleauditebyeaneindependenteCPAeiserequiredeforemanagerialeaccountingeinformation.
D) ManagerialeaccountingeinformationemustecomplyewitheGenerallyeAcceptedeAccountingePrinciples.eA
nswer:e B
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
, PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
9) Managerialeaccountingeinformationeforeaecompanyeiseprimarilyeusedeby .
A) itsecustomersetoeunderstandetheepricingeofetheeproduct
B) itsecreditorsetoeunderstandetheecredibilityeofetheebusiness
C) itseemployeesetoeplan,edirecteandecontroleoperations
D) itseinvestorsetoemakeetheireinvestmentedecisionse
Answer:e C
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
10) Whicheofetheefollowingestatementseisetrueeofefinancialeaccounting?
A) Iteprovideseinformationetoeinvestorseneededeforetheireinvestmentedecisions.
B) Iteprovidesefutureefocusedeinformationeneededeforemanagingeandedelegatingeoperations.
C) Itefocuseseonedetailedereportseforepartseofetheecompanyeratherethanetheewholeecompany.
D) Itefocuseseoneplanning,edirectingeandecontrollingeday-to-
dayeoperations.eAnswer:e A
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
11) Whicheofetheefollowingeisetheeprimaryefocuseofemanagerialeaccounting?
A) providingeinformationethatemanagerseneedetoemakeeoperationaledecisions
B) providingehistoricaledataetoeinvestorseandecreditors
C) providingesummarizederesultseofeoperations
D) providingeinformationetoecomplyewithelawseanderegulationseofegovernmentebodieseA
nswer:e A
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)
12) Whicheofetheefollowingeisetheeprimaryefocuseofefinancialeaccounting?
A) providingeinformationethatemanagerseneedetoemakeeoperationaledecisions
B) providingesummarizedeinformationeoneoperationaleresultsetoeinvestorseandecreditors
C) providingeinformationetoemanagersetoeassisteineplanning,edirectingeandecontrollingeoperations
D) providingehighlyedetailedeinformationeoneproductelines,eregions,eandedivisionseA
nswer:e B
Diff:e1
LO:e M:1-1
AACSB:e Applicationeofeknowledge
