Test Bank for Horngren's Financial & Managerial Accounting The Managerial Chapters, 7th edition by Tracie Miller-Nobles, Brenda Mattison Latest 2024 VERSION ISBN: 978-1292412320

,ChapteraM:1 IntroductionatoaManagerialaAccounting

LearningaObjectiveaM:1-1

1) Managerialaaccountingafocusesaonaprovidingainformationaforainternalaplanningaandacontrol.a
Answer:a TRUE
Diff:a1
LO:a M:1-1
AACSB:a ApplicationaofaknowledgeaAI
CPAaFunctional:a Reporting
PEaQuestionaType:a Concept
H2:a WhyaIsaManagerialaAccountingaImportant?a(H1)

2) Financialaaccountingapreparesareportsaforainternalapurposes,awhereasamanagerialaaccountingaprovidesai
nformationatoaexternalastakeholders.
Answer:a FALSE
Explanation:aTheareverseaisatrue.aFinancialaaccountingaservesaexternalastakeholderainformationaneedsawhile
amanagerialaaccountingaservesatheaneedsaofamanagersaandainternalastaff.

Diff:a1
LO:a M:1-1
AACSB:a ApplicationaofaknowledgeaAI
CPAaFunctional:a Reporting
PEaQuestionaType:a Concept
H2:a WhyaIsaManagerialaAccountingaImportant?a(H1)

3) Financialastatementsapreparedaforainvestorsaandacreditorsaoftenaincludeaforward-
lookingainformationabecauseatheyamakeadecisionsabasedaonaaacompany'safutureaprospects.
Answer:a FALSE
Explanation:aFinancialastatementsaprovideamostlyahistoricalainformation;arelevantaandafaithfullyarepresentativ
eainformationaandafocusedaonatheapast.
Diff:a1
LO:a M:1-1
AACSB:a ApplicationaofaknowledgeaAI
CPAaFunctional:a Reporting
PEaQuestionaType:a Concept
H2:a WhyaIsaManagerialaAccountingaImportant?a(H1)

4) ManagerialaaccountingareportingabyaaapublicafirmaisarequiredatoafollowathearulesaofaGAAP.a
Answer:a FALSE
Explanation:aManagerialaaccountingainformationaisanotaguidedabyaGAAPabutaratherabyatheaconceptaofause
fulnessatoamanagementaforadecisionamakingapurposes.
Diff:a1
LO:a M:1-1
AACSB:a ApplicationaofaknowledgeaAI
CPAaFunctional:a Reporting
PEaQuestionaType:a Concept

,H2:a WhyaIsaManagerialaAccountingaImportant?a(H1)




5) Financialareportingaisatypicallyamuchamoreadetailedathanamanagerialaaccounting.a
Answer:a FALSE
Explanation:aFinancialareportingaisatypicallyalessadetailedathanamanagerialaaccountingainformation.aFi
nancialaaccountingareportingaisausuallyasummaryareports,apreparedaprimarilyaonatheacompanyaasaaaw
hole,ausuallyaonaaaquarterlyaoraannualabasis.
Diff:a1
LO:a M:1-1
AACSB:a ApplicationaofaknowledgeaAI
CPAaFunctional:a Reporting
PEaQuestionaType:a Concept
H2:a WhyaIsaManagerialaAccountingaImportant?a(H1)

6) Managerialaaccountingaprovidesafinancialastatementsathatareportaresultsaofaoperations,afinanciala
position,aandacashaflowsabothatoamanagersaandatoaexternalastockholders.
Answer:a FALSE
Explanation:a Managerialaaccountingaprovidesatheainformationaneededatoaplanaandacontrolaoperationsaanda
thereforeaservesatheainformationaneedsaofainternalapartiesasuchaasamanagersaandastaff.
Diff:a1
LO:a M:1-1
AACSB:a ApplicationaofaknowledgeaAI
CPAaFunctional:a Reporting
PEaQuestionaType:a Concept
H2:a WhyaIsaManagerialaAccountingaImportant?a(H1)

7) Whichaofatheafollowingaisaaafocusaofamanagerialaaccounting?
A) toagenerateaaacompany'safinancialastatementsaforataxareporting
B) toaprovideainformationatoabusinessamanagersatoaassistathemainacontrollingatheirabusinesses
C) toaprovideainformationatoashareholdersatoaassistathemawithatheirainvestmentadecisions
D) toaensureathatatheareportsaproducedaforainternalaandaexternalabusinessapurposesaareaGAAPacomplianta
Answer:a B
Diff:a1
LO:a M:1-1
AACSB:a ApplicationaofaknowledgeaAI
CPAaFunctional:a Reporting
PEaQuestionaType:a Concept
H2:a WhyaIsaManagerialaAccountingaImportant?a(H1)

8) Whichaofatheafollowingastatementsaisatrueaofamanagerialaaccounting?
A) Theaexternalastakeholdersaofaaacompanyaareatheaprimaryausersaofamanagerialaaccounting.
B) Managerialaaccountingainformationaisausedatoahelpamanagersaplan,adirectaandacontrolatheiraoperations.
C) AnaexternalaauditabyaanaindependentaCPAaisarequiredaforamanagerialaaccountingainformation.
D) ManagerialaaccountingainformationamustacomplyawithaGenerallyaAcceptedaAccountingaPrinciples.aA
nswer:a B
Diff:a1
LO:a M:1-1
AACSB:a ApplicationaofaknowledgeaAI
CPAaFunctional:a Reporting

, PEaQuestionaType:a Concept
H2:a WhyaIsaManagerialaAccountingaImportant?a(H1)

9) Managerialaaccountingainformationaforaaacompanyaisaprimarilyausedaby .
A) itsacustomersatoaunderstandatheapricingaofatheaproduct
B) itsacreditorsatoaunderstandatheacredibilityaofatheabusiness
C) itsaemployeesatoaplan,adirectaandacontrolaoperations
D) itsainvestorsatoamakeatheirainvestmentadecisions
aAnswer:a C

Diff:a1
LO:a M:1-1
AACSB:a ApplicationaofaknowledgeaAI
CPAaFunctional:a Reporting
PEaQuestionaType:a Concept
H2:a WhyaIsaManagerialaAccountingaImportant?a(H1)

10) Whichaofatheafollowingastatementsaisatrueaofafinancialaaccounting?
A) Itaprovidesainformationatoainvestorsaneededaforatheirainvestmentadecisions.
B) Itaprovidesafutureafocusedainformationaneededaforamanagingaandadelegatingaoperations.
C) Itafocusesaonadetailedareportsaforapartsaofatheacompanyaratherathanatheawholeacompany.
D) Itafocusesaonaplanning,adirectingaandacontrollingaday-to-
dayaoperations.aAnswer:a A
Diff:a1
LO:a M:1-1
AACSB:a ApplicationaofaknowledgeaAI
CPAaFunctional:a Reporting
PEaQuestionaType:a Concept
H2:a WhyaIsaManagerialaAccountingaImportant?a(H1)

11) Whichaofatheafollowingaisatheaprimaryafocusaofamanagerialaaccounting?
A) providingainformationathatamanagersaneedatoamakeaoperationaladecisions
B) providingahistoricaladataatoainvestorsaandacreditors
C) providingasummarizedaresultsaofaoperations
D) providingainformationatoacomplyawithalawsaandaregulationsaofagovernmentabodiesa
Answer:a A
Diff:a1
LO:a M:1-1
AACSB:a ApplicationaofaknowledgeaAI
CPAaFunctional:a Reporting
PEaQuestionaType:a Concept
H2:a WhyaIsaManagerialaAccountingaImportant?a(H1)

12) Whichaofatheafollowingaisatheaprimaryafocusaofafinancialaaccounting?
A) providingainformationathatamanagersaneedatoamakeaoperationaladecisions
B) providingasummarizedainformationaonaoperationalaresultsatoainvestorsaandacreditors
C) providingainformationatoamanagersatoaassistainaplanning,adirectingaandacontrollingaoperations
D) providingahighlyadetailedainformationaonaproductalines,aregions,aandadivisionsa
Answer:a B
Diff:a1
LO:a M:1-1
AACSB:a Applicationaofaknowledge