TEST BANK For Financial and Managerial Accounting: Managerial Chapters, 7th Edition (Miller-Nobles) All 1-11 Chapters Covered ,Latest Edition

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Financial and Managerial Accounting:

Managerial Chapters, 7th Edition

(Miller-Nobles) Chapter 1-11

,ChaptereM:1 IntroductionetoeManagerialeAccounting

LearningeObjectiveeM:1-1

1) Managerialeaccountingefocuseseoneprovidingeinformationeforeinternaleplanningeandecontrol.eAns
wer: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,ewhereasemanagerialeaccountingeprovideseinfo
rmationetoeexternalestakeholders.
Answer:e FALSE
Explanation:eTheereverseeisetrue.eFinancialeaccountingeserveseexternalestakeholdereinformationeneedsewhileema
nagerialeaccountingeservesetheeneedseofemanagerseandeinternalestaff.
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;erelevanteandefaithfullyerepresentativeei
nformationeandefocusedeonetheepast.
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)

4) ManagerialeaccountingereportingebyeaepublicefirmeiserequiredetoefollowetheeruleseofeGAAP.eAns
wer:e FALSE
Explanation:eManagerialeaccountingeinformationeisenoteguidedebyeGAAPebuteratherebyetheeconcepteofeusefuln
essetoemanagementeforedecisionemakingepurposes.
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept

,H2:e WhyeIseManagerialeAccountingeImportant?e(H1)




5) Financialereportingeisetypicallyemuchemoreedetailedethanemanagerialeaccounting.eAn
swer:e FALSE
Explanation:eFinancialereportingeisetypicallyelessedetailedethanemanagerialeaccountingeinformation.eFinan
cialeaccountingereportingeiseusuallyesummaryereports,epreparedeprimarilyeonetheecompanyeaseaewhole,eusu
allyeoneaequarterlyeoreannualebasis.
Diff:e1
LO:e M:1-1
AACSB:e ApplicationeofeknowledgeeAI
CPAeFunctional:e Reporting
PEeQuestioneType:e Concept
H2:e WhyeIseManagerialeAccountingeImportant?e(H1)

6) Managerialeaccountingeprovidesefinancialestatementsethatereporteresultseofeoperations,efinancialepo
sition,eandecasheflowsebothetoemanagerseandetoeexternalestockholders.
Answer:e FALSE
Explanation:e Managerialeaccountingeprovidesetheeinformationeneededetoeplaneandecontroleoperationseandethe
reforeeservesetheeinformationeneedseofeinternalepartiesesucheasemanagerseandestaff.
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) toeensureethatetheereportseproducedeforeinternaleandeexternalebusinessepurposeseareeGAAPecomplianteAns
wer: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.eAns
wer: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) itseinvestorsetoemakeetheireinvestmentedecisionseA
nswer: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) providingeinformationetoecomplyewithelawseanderegulationseofegovernmentebodieseAns
wer: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,eandedivisionseAns
wer:e B
Diff:e1
LO:e M:1-1
AACSB:e Applicationeofeknowledge