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

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,ChapterVM:1 IntroductionVtoVManagerialVAccounting

LearningVObjectiveVM:1-1

1) ManagerialVaccountingVfocusesVonVprovidingVinformationVforVinternalVplanningVandVcontro
l.VAnswer:V TRUE
Diff:V1
LO:V M:1-1
AACSB:V ApplicationVofVknowledgeVA
ICPAVFunctional:V Reporting
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PEVQuestionVType:V Concept
H2:V WhyVIsVManagerialVAccountingVImportant?V(H1)
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2) FinancialVaccountingVpreparesVreportsVforVinternalVpurposes,VwhereasVmanagerialVaccountingVprovide
sVinformationVtoVexternalVstakeholders.
Answer:V FALSE
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Explanation:VTheVreverseVisVtrue.VFinancialVaccountingVservesVexternalVstakeholderVinformationVneedsVwhi
leVmanagerialVaccountingVservesVtheVneedsVofVmanagersVandVinternalVstaff.
Diff:V1
LO:V M:1-1
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AACSB:V ApplicationVofVknowledgeVA
ICPAVFunctional:V Reporting
PEVQuestionVType:V Concept
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H2:V WhyVIsVManagerialVAccountingVImportant?V(H1) S
3) FinancialVstatementsVpreparedVforVinvestorsVandVcreditorsVoftenVincludeVforward-
lookingVinformationVbecauseVtheyVmakeVdecisionsVbasedVonVaVcompany'sVfutureVprospects.
Answer:V FALSE
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Explanation:VFinancialVstatementsVprovideVmostlyVhistoricalVinformation;VrelevantVandVfaithfullyVrepresentat
iveVinformationVandVfocusedVonVtheVpast.
Diff:V1
LO:V M:1-1
AACSB:V ApplicationVofVknowledgeVA
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ICPAVFunctional:V Reporting
PEVQuestionVType:V Concept
H2:V WhyVIsVManagerialVAccountingVImportant?V(H1)
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4) ManagerialVaccountingVreportingVbyVaVpublicVfirmVisVrequiredVtoVfollowVtheVrulesVofVGAA
P.VAnswer:V FALSE
Explanation:VManagerialVaccountingVinformationVisVnotVguidedVbyVGAAPVbutVratherVbyVtheVconceptVofVu
sefulnessVtoVmanagementVforVdecisionVmakingVpurposes.
Diff:V1
LO:V M:1-1
AACSB:V ApplicationVofVknowledgeVA
ICPAVFunctional:V Reporting
PEVQuestionVType:V Concept

,H2:V WhyVIsVManagerialVAccountingVImportant?V(H1)




5) FinancialVreportingVisVtypicallyVmuchVmoreVdetailedVthanVmanagerialVaccounting
.VAnswer:V FALSE
Explanation:VFinancialVreportingVisVtypicallyVlessVdetailedVthanVmanagerialVaccountingVinformation.V
FinancialVaccountingVreportingVisVusuallyVsummaryVreports,VpreparedVprimarilyVonVtheVcompanyVasV
aVwhole,VusuallyVonVaVquarterlyVorVannualVbasis.
Diff:V1
LO:V M:1-1
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AACSB:V ApplicationVofVknowledgeVA
ICPAVFunctional:V Reporting
PEVQuestionVType:V Concept
R
H2:V WhyVIsVManagerialVAccountingVImportant?V(H1)

6) ManagerialVaccountingVprovidesVfinancialVstatementsVthatVreportVresultsVofVoperations,Vfinanci
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alVposition,VandVcashVflowsVbothVtoVmanagersVandVtoVexternalVstockholders.
Answer:V FALSE
Explanation:V ManagerialVaccountingVprovidesVtheVinformationVneededVtoVplanVandVcontrolVoperationsVa
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ndVthereforeVservesVtheVinformationVneedsVofVinternalVpartiesVsuchVasVmanagersVandVstaff.
Diff:V1
LO:V M:1-1
AACSB:V ApplicationVofVknowledgeVA
ICPAVFunctional:V Reporting
E
PEVQuestionVType:V Concept
H2:V WhyVIsVManagerialVAccountingVImportant?V(H1)
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7) WhichVofVtheVfollowingVisVaVfocusVofVmanagerialVaccounting?
A) toVgenerateVaVcompany'sVfinancialVstatementsVforVtaxVreporting
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B) toVprovideVinformationVtoVbusinessVmanagersVtoVassistVthemVinVcontrollingVtheirVbusinesses
C) toVprovideVinformationVtoVshareholdersVtoVassistVthemVwithVtheirVinvestmentVdecisions
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D) toVensureVthatVtheVreportsVproducedVforVinternalVandVexternalVbusinessVpurposesVareVGAAPVcomplia
ntVAnswer:V B
Diff:V1
LO:V M:1-1
AACSB:V ApplicationVofVknowledgeVA
N
ICPAVFunctional:V Reporting
PEVQuestionVType:V Concept
H2:V WhyVIsVManagerialVAccountingVImportant?V(H1)

8) WhichVofVtheVfollowingVstatementsVisVtrueVofVmanagerialVaccounting?
A) TheVexternalVstakeholdersVofVaVcompanyVareVtheVprimaryVusersVofVmanagerialVaccounting.
B) ManagerialVaccountingVinformationVisVusedVtoVhelpVmanagersVplan,VdirectVandVcontrolVtheirVoperations.
C) AnVexternalVauditVbyVanVindependentVCPAVisVrequiredVforVmanagerialVaccountingVinformation.
D) ManagerialVaccountingVinformationVmustVcomplyVwithVGenerallyVAcceptedVAccountingVPrinciples.V
Answer:V B
Diff:V1
LO:V M:1-1
AACSB:V ApplicationVofVknowledgeVA
ICPAVFunctional:V Reporting

, PEVQuestionVType:V Concept
H2:V WhyVIsVManagerialVAccountingVImportant?V(H1)

9) ManagerialVaccountingVinformationVforVaVcompanyVisVprimarilyVusedVby .
A) itsVcustomersVtoVunderstandVtheVpricingVofVtheVproduct
B) itsVcreditorsVtoVunderstandVtheVcredibilityVofVtheVbusiness
C) itsVemployeesVtoVplan,VdirectVandVcontrolVoperations
D) itsVinvestorsVtoVmakeVtheirVinvestmentVdecision
sVAnswer:V C
Diff:V1
LO:V M:1-1
E
AACSB:V ApplicationVofVknowledgeVA
ICPAVFunctional:V Reporting
R
PEVQuestionVType:V Concept
H2:V WhyVIsVManagerialVAccountingVImportant?V(H1)

10) WhichVofVtheVfollowingVstatementsVisVtrueVofVfinancialVaccounting?
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A) ItVprovidesVinformationVtoVinvestorsVneededVforVtheirVinvestmentVdecisions.
B) ItVprovidesVfutureVfocusedVinformationVneededVforVmanagingVandVdelegatingVoperations.
C) ItVfocusesVonVdetailedVreportsVforVpartsVofVtheVcompanyVratherVthanVtheVwholeVcompany.
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D) ItVfocusesVonVplanning,VdirectingVandVcontrollingVday-to-
dayVoperations.VAnswer:V A
Diff:V1
LO:V M:1-1
E
AACSB:V ApplicationVofVknowledgeVA
ICPAVFunctional:V Reporting
PEVQuestionVType:V Concept
S
H2:V WhyVIsVManagerialVAccountingVImportant?V(H1) R
11) WhichVofVtheVfollowingVisVtheVprimaryVfocusVofVmanagerialVaccounting?
A) providingVinformationVthatVmanagersVneedVtoVmakeVoperationalVdecisions
B) providingVhistoricalVdataVtoVinvestorsVandVcreditors
C) providingVsummarizedVresultsVofVoperations
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D) providingVinformationVtoVcomplyVwithVlawsVandVregulationsVofVgovernmentVbodie
sVAnswer:V A
Diff:V1
LO:V M:1-1
N
AACSB:V ApplicationVofVknowledgeVA
ICPAVFunctional:V Reporting
PEVQuestionVType:V Concept
H2:V WhyVIsVManagerialVAccountingVImportant?V(H1)

12) WhichVofVtheVfollowingVisVtheVprimaryVfocusVofVfinancialVaccounting?
A) providingVinformationVthatVmanagersVneedVtoVmakeVoperationalVdecisions
B) providingVsummarizedVinformationVonVoperationalVresultsVtoVinvestorsVandVcreditors
C) providingVinformationVtoVmanagersVtoVassistVinVplanning,VdirectingVandVcontrollingVoperations
D) providingVhighlyVdetailedVinformationVonVproductVlines,Vregions,VandVdivisions
VAnswer:V B

Diff:V1
LO:V M:1-1
AACSB:V ApplicationVofVknowledge