,ACCESS6Test6Bank6for6Financial6&6Managerial6Accounting620th6Edition6Willi
ams
Financial6&6Managerial6Accounting6Edition6206by6Williams
CORRECT6ANSWERS6ARE6LOCATED6IN6THE62ND6HALF6OF6THIS6DOC.
TRUE/FALSE6-6Write6'T'6if6the6statement6is6true6and6'F'6if6the6statement6is6false.
1) Managerial6accounting6information6is6designed6primarily6to6assist6investors6and6creditors6in
6deciding6how6to6allocate6scarce6resources.
⊚6 true
⊚6 false
2) Information6provided6to6decision6makers6in6an6organization6is6comprised6only6of6the
6accounting6information6generated6by6the6organization’s6information6system.
⊚6 true
⊚6 false
3) All6internal6control6systems6need6to6be6monitored.
⊚6 true
⊚6 false
4) A6data6analytics6system6is6the6integrated6management6of6core6business6processes6that6an
6organization6can6use6to6collect,6store,6manage,6and6interpret6data6across6a6wide6range6of
6business6activities.
⊚6 true
⊚6 false
5) Management6accounting6information6is6oriented6toward6the6future6while6financial6accounting
6information6is6historical6in6nature.
⊚6 true
⊚6 false
6) Return6on6investment6is6the6same6as6return6of6investment.
⊚6 true
⊚6 false
7) The6IRS6tax6return6is6one6of6the6primary6financial6statements.
⊚6 true
⊚6 false
8) External6users6of6accounting6information6have6a6financial6interest6in6an6entity6but6are6not
6involved6with6the6day-to-day6operations6of6the6enterprise.
⊚6 true
⊚6 false
Version61 1
mynursytest.store
,ACCESS6Test6Bank6for6Financial6&6Managerial6Accounting620th6Edition6Willi
ams
Financial6&6Managerial6Accounting6Edition6206by6Williams
9) The6tailoring6of6an6accounting6report6to6meet6the6needs6of6a6specific6decision6maker6is6more
6characteristic6of6financial6accounting6reports6than6of6management6accounting6reports.
⊚6 true
⊚6 false
10) The6annual6financial6statements6of6large6corporations6such6as6Microsoft6or6PepsiCo6need6not6
be6audited6by6independent6certified6public6accountants,6since6these6companies6maintain6large
6accounting6departments6as6part6of6their6organizations.
⊚6 true
⊚6 false
11) The6statement6of6financial6position6and6the6income6statement6are6one6and6the6same.
⊚6 true
⊚6 false
12) Investors6are6individuals6and6other6enterprises6that6have6provided6equity6to6the6reporting
6enterprise.
⊚6 true
⊚6 false
13) A6statement6of6cash6flows6depicts6the6way6profits6have6changed6during6a6designated6period.
⊚6 true
⊚6 false
14) Management6accounting6refers6to6the6preparation6and6use6of6accounting6information6designed
6to6meet6the6needs6of6decision6makers6outside6the6business6organization.
⊚6 true
⊚6 false
15) The6content6of6management6accounting6reports6needs6to6be6presented6in6conformity6with
6generally6accepted6accounting6principles.
⊚6 true
⊚6 false
16) One6purpose6of6generally6accepted6accounting6principles6is6to6make6accounting6information
6prepared6by6different6companies6more6comparable.
⊚6 true
⊚6 false
Version61 2
mynursytest.store
, ACCESS6Test6Bank6for6Financial6&6Managerial6Accounting620th6Edition6Willi
ams
Financial6&6Managerial6Accounting6Edition6206by6Williams
17) An6accounting6practice6can6become6a6"generally6accepted6accounting6principle"6through6
widespread6use,6even6if6the6practice6is6not6mentioned6in6the6official6pronouncements6of6the
6accounting6standard-setting6organizations.
⊚6 true
⊚6 false
18) The6Public6Company6Accounting6Oversight6Board6is6responsible6for6creating6and6promoting
6 International6Financial6Reporting6Standards.
⊚6 true
⊚6 false
19) Today,6the6most6authoritative6source6of6generally6accepted6accounting6principles6is6the
6American6Accounting6Association.
⊚6 true
⊚6 false
20) The6American6Institute6of6Certified6Public6Accountants6has6the6legal6authority6over6publicly
6held6corporations6to6enforce6compliance6with6generally6accepted6accounting6principles.
⊚6 true
⊚6 false
21) The6Securities6and6Exchange6Commission6is6instrumental6in6the6development6of6financial
6accounting6standards.
⊚6 true
⊚6 false
22) Financial6accounting6standards6issued6by6the6FASB6are6considered6generally6accepted
6accounting6principles.
⊚6 true
⊚6 false
23) Generally6accepted6accounting6principles6were6established6by6the6American6Accounting
6Association6in619346and6are6updated6annually6by6Congress.
⊚6 true
⊚6 false
24) The6CPA6examination6is6administered6by6the6General6Accounting6Office6of6the6U.S.
6Government.
⊚6 true
⊚6 false
Version61 3
mynursytest.store
ams
Financial6&6Managerial6Accounting6Edition6206by6Williams
CORRECT6ANSWERS6ARE6LOCATED6IN6THE62ND6HALF6OF6THIS6DOC.
TRUE/FALSE6-6Write6'T'6if6the6statement6is6true6and6'F'6if6the6statement6is6false.
1) Managerial6accounting6information6is6designed6primarily6to6assist6investors6and6creditors6in
6deciding6how6to6allocate6scarce6resources.
⊚6 true
⊚6 false
2) Information6provided6to6decision6makers6in6an6organization6is6comprised6only6of6the
6accounting6information6generated6by6the6organization’s6information6system.
⊚6 true
⊚6 false
3) All6internal6control6systems6need6to6be6monitored.
⊚6 true
⊚6 false
4) A6data6analytics6system6is6the6integrated6management6of6core6business6processes6that6an
6organization6can6use6to6collect,6store,6manage,6and6interpret6data6across6a6wide6range6of
6business6activities.
⊚6 true
⊚6 false
5) Management6accounting6information6is6oriented6toward6the6future6while6financial6accounting
6information6is6historical6in6nature.
⊚6 true
⊚6 false
6) Return6on6investment6is6the6same6as6return6of6investment.
⊚6 true
⊚6 false
7) The6IRS6tax6return6is6one6of6the6primary6financial6statements.
⊚6 true
⊚6 false
8) External6users6of6accounting6information6have6a6financial6interest6in6an6entity6but6are6not
6involved6with6the6day-to-day6operations6of6the6enterprise.
⊚6 true
⊚6 false
Version61 1
mynursytest.store
,ACCESS6Test6Bank6for6Financial6&6Managerial6Accounting620th6Edition6Willi
ams
Financial6&6Managerial6Accounting6Edition6206by6Williams
9) The6tailoring6of6an6accounting6report6to6meet6the6needs6of6a6specific6decision6maker6is6more
6characteristic6of6financial6accounting6reports6than6of6management6accounting6reports.
⊚6 true
⊚6 false
10) The6annual6financial6statements6of6large6corporations6such6as6Microsoft6or6PepsiCo6need6not6
be6audited6by6independent6certified6public6accountants,6since6these6companies6maintain6large
6accounting6departments6as6part6of6their6organizations.
⊚6 true
⊚6 false
11) The6statement6of6financial6position6and6the6income6statement6are6one6and6the6same.
⊚6 true
⊚6 false
12) Investors6are6individuals6and6other6enterprises6that6have6provided6equity6to6the6reporting
6enterprise.
⊚6 true
⊚6 false
13) A6statement6of6cash6flows6depicts6the6way6profits6have6changed6during6a6designated6period.
⊚6 true
⊚6 false
14) Management6accounting6refers6to6the6preparation6and6use6of6accounting6information6designed
6to6meet6the6needs6of6decision6makers6outside6the6business6organization.
⊚6 true
⊚6 false
15) The6content6of6management6accounting6reports6needs6to6be6presented6in6conformity6with
6generally6accepted6accounting6principles.
⊚6 true
⊚6 false
16) One6purpose6of6generally6accepted6accounting6principles6is6to6make6accounting6information
6prepared6by6different6companies6more6comparable.
⊚6 true
⊚6 false
Version61 2
mynursytest.store
, ACCESS6Test6Bank6for6Financial6&6Managerial6Accounting620th6Edition6Willi
ams
Financial6&6Managerial6Accounting6Edition6206by6Williams
17) An6accounting6practice6can6become6a6"generally6accepted6accounting6principle"6through6
widespread6use,6even6if6the6practice6is6not6mentioned6in6the6official6pronouncements6of6the
6accounting6standard-setting6organizations.
⊚6 true
⊚6 false
18) The6Public6Company6Accounting6Oversight6Board6is6responsible6for6creating6and6promoting
6 International6Financial6Reporting6Standards.
⊚6 true
⊚6 false
19) Today,6the6most6authoritative6source6of6generally6accepted6accounting6principles6is6the
6American6Accounting6Association.
⊚6 true
⊚6 false
20) The6American6Institute6of6Certified6Public6Accountants6has6the6legal6authority6over6publicly
6held6corporations6to6enforce6compliance6with6generally6accepted6accounting6principles.
⊚6 true
⊚6 false
21) The6Securities6and6Exchange6Commission6is6instrumental6in6the6development6of6financial
6accounting6standards.
⊚6 true
⊚6 false
22) Financial6accounting6standards6issued6by6the6FASB6are6considered6generally6accepted
6accounting6principles.
⊚6 true
⊚6 false
23) Generally6accepted6accounting6principles6were6established6by6the6American6Accounting
6Association6in619346and6are6updated6annually6by6Congress.
⊚6 true
⊚6 false
24) The6CPA6examination6is6administered6by6the6General6Accounting6Office6of6the6U.S.
6Government.
⊚6 true
⊚6 false
Version61 3
mynursytest.store
