WGU Managerial Accounting – Questions With Step-by-
Step Solutions
Managerial accounting applies to all types of businesses, including service,
merchandising, and manufacturing, as well as to all forms of business
organizations.
True
False Right Ans - True
Financial and managerial accounting are similar in that both
produce general-purpose reports.
deal with the economic events of an enterprise.
have the same primary users.
have reports that are prepared quarterly and annually. Right Ans - deal
with the economic events of an enterprise.
Managerial accounting applies to each of the following types of businesses
except
manufacturing firms.
service firms.
managerial accounting applies to all types of firms.
merchandising firms. Right Ans - managerial accounting applies to all
types of firms.
Managerial accounting information is generally prepared for
regulatory agencies.
managers.
,stockholders.
creditors. Right Ans - managers.
Managerial accounting does not encompass
profit planning.
calculating product cost.
calculating earnings per share.
determining cost behavior. Right Ans - calculating earnings per share.
Managerial accounting is applicable to
service entities.
manufacturing entities.
not-for-profit entities.
all of these. Right Ans - all of these.
Management accountants would not
assist in budget planning.
prepare reports primarily for external users.
determine cost behavior. Right Ans - prepare reports primarily for
external users.
Internal reports must be communicated
annually.
daily.
,monthly.
as needed. Right Ans - as needed.
Which of the following statements about internal reports is not true?
Internal reports may discuss prospective events.
Most internal reports are summarized rather than detailed.
The content of internal reports may extend beyond the double-
entry accounting system.
Internal reports may show all amounts at market values. Right Ans - Most
internal reports are summarized rather than detailed.
Which of the following statements is true about managerial accounting?
It is primarily for internal users such as stockholders and
managers.
It must be prepared using generally accepting accounting
principles.
It pertains to a business as a whole.
It provides more detailed information than financial accounting
does. Right Ans - It provides more detailed information than financial
accounting
does.
Justin Bleeber has prepared the following list of statements about managerial
accounting, financial accounting, and the functions of management.
Identify each statement as true or false.
1. Financial accounting focuses on providing information to internal users.
Right Ans - False
, Justin Bleeber has prepared the following list of statements about managerial
accounting, financial accounting, and the functions of management.
Identify each statement as true or false.
2. Staff positions are directly involved in the company's primary revenue-
generating activities. Right Ans - False
Justin Bleeber has prepared the following list of statements about managerial
accounting, financial accounting, and the functions of management.
Identify each statement as true or false.
3.Preparation of budgets is part of financial accounting. Right Ans - False
Justin Bleeber has prepared the following list of statements about managerial
accounting, financial accounting, and the functions of management.
Identify each statement as true or false.
4.Managerial accounting applies only to merchandising and manufacturing
companies. Right Ans - False
Justin Bleeber has prepared the following list of statements about managerial
accounting, financial accounting, and the functions of management.
Identify each statement as true or false.
5.Both managerial accounting and financial accounting deal with many of the
same economic events. Right Ans - True
Justin Bleeber has prepared the following list of statements about managerial
accounting, financial accounting, and the functions of management.
Identify each statement as true or false.
6.Managerial accounting reports are prepared only quarterly and annually.
Right Ans - False
Step Solutions
Managerial accounting applies to all types of businesses, including service,
merchandising, and manufacturing, as well as to all forms of business
organizations.
True
False Right Ans - True
Financial and managerial accounting are similar in that both
produce general-purpose reports.
deal with the economic events of an enterprise.
have the same primary users.
have reports that are prepared quarterly and annually. Right Ans - deal
with the economic events of an enterprise.
Managerial accounting applies to each of the following types of businesses
except
manufacturing firms.
service firms.
managerial accounting applies to all types of firms.
merchandising firms. Right Ans - managerial accounting applies to all
types of firms.
Managerial accounting information is generally prepared for
regulatory agencies.
managers.
,stockholders.
creditors. Right Ans - managers.
Managerial accounting does not encompass
profit planning.
calculating product cost.
calculating earnings per share.
determining cost behavior. Right Ans - calculating earnings per share.
Managerial accounting is applicable to
service entities.
manufacturing entities.
not-for-profit entities.
all of these. Right Ans - all of these.
Management accountants would not
assist in budget planning.
prepare reports primarily for external users.
determine cost behavior. Right Ans - prepare reports primarily for
external users.
Internal reports must be communicated
annually.
daily.
,monthly.
as needed. Right Ans - as needed.
Which of the following statements about internal reports is not true?
Internal reports may discuss prospective events.
Most internal reports are summarized rather than detailed.
The content of internal reports may extend beyond the double-
entry accounting system.
Internal reports may show all amounts at market values. Right Ans - Most
internal reports are summarized rather than detailed.
Which of the following statements is true about managerial accounting?
It is primarily for internal users such as stockholders and
managers.
It must be prepared using generally accepting accounting
principles.
It pertains to a business as a whole.
It provides more detailed information than financial accounting
does. Right Ans - It provides more detailed information than financial
accounting
does.
Justin Bleeber has prepared the following list of statements about managerial
accounting, financial accounting, and the functions of management.
Identify each statement as true or false.
1. Financial accounting focuses on providing information to internal users.
Right Ans - False
, Justin Bleeber has prepared the following list of statements about managerial
accounting, financial accounting, and the functions of management.
Identify each statement as true or false.
2. Staff positions are directly involved in the company's primary revenue-
generating activities. Right Ans - False
Justin Bleeber has prepared the following list of statements about managerial
accounting, financial accounting, and the functions of management.
Identify each statement as true or false.
3.Preparation of budgets is part of financial accounting. Right Ans - False
Justin Bleeber has prepared the following list of statements about managerial
accounting, financial accounting, and the functions of management.
Identify each statement as true or false.
4.Managerial accounting applies only to merchandising and manufacturing
companies. Right Ans - False
Justin Bleeber has prepared the following list of statements about managerial
accounting, financial accounting, and the functions of management.
Identify each statement as true or false.
5.Both managerial accounting and financial accounting deal with many of the
same economic events. Right Ans - True
Justin Bleeber has prepared the following list of statements about managerial
accounting, financial accounting, and the functions of management.
Identify each statement as true or false.
6.Managerial accounting reports are prepared only quarterly and annually.
Right Ans - False
