Test bank for horngren s managerial chapters accounting 7th edition by Miller-Nobles

TEST BANK
Financial and Managerial Accounting:

Managerial Chapters, 7th Edition

(Miller-Nobles) Chapter 1-11

,ChaptervyM:1 IntroductionvytovyManagerialvyAccounting

LearningvyObjectivevyM:1-1

1) Managerialvyaccountingvyfocusesvyonvyprovidingvyinformationvyforvyinternalvyplanningv
yandvycontrol.vyvyAnswer:vy TRUE
Diff:vy1
LO:vyvy M:1-1
AACSB:vy Applicationvyofvyknowle
dgev y AICPAvyFunctional:vy Report
ing
PEvyQuestionvyType:vyvy Concept
H2:vyvy WhyvyIsvyManagerialvyAccountingvyImportant?vy(H1)

2) Financialvyaccountingvypreparesvyreportsvyforvyinternalvypurposes,vywhereasvymanagerialvyacco
untingvyprovidesv y informationvytovyexternalvystakeholders.
Answer:vyvyFALSE
Explanation:vyThevyreversevyisvytrue.vyFinancialvyaccountingvyservesvyexternalvystakeholdervyinforma
tionvyneedswhilev y managerialvyaccountingvyservesvythevyneedsvyofvymanagersvyandvyinternalvystaff
.
Diff:vy1
LO:vyvy M:1-1
AACSB:vy Applicationvyofvyknowle
dgev y AICPAvyFunctional:vy Report
ing
PEvyQuestionvyType:vyvy Concept
H2:vyvy WhyvyIsvyManagerialvyAccountingvyImportant?vy(H1)

3) Financialvystatementsvypreparedvyforvyinvestorsvyandvycreditorsvyoftenvyincludevyforward-
lookingvyinformationv y becausevytheyvymakevydecisionsvybasedvyonvyavycompany'svyfuturevyprosp
ects.
Answer:vyvyFALSE
Explanation:vyFinancialvystatementsvyprovidevymostlyvyhistoricalvyinformation;vyrelevantvy
andvyfaithfullyv y representativevyinformationvyandvyfocusedvyonvythevypast.
Diff:vy1
LO:vyvy M:1-1
AACSB:vy Applicationvyofvyknowle
dgev y AICPAvyFunctional:vy Report
ing
PEvyQuestionvyType:vyvy Concept
H2:vyvy WhyvyIsvyManagerialvyAccountingvyImportant?vy(H1)

4) Managerialvyaccountingvyreportingvybyvyavypublicvyfirmvyisvyrequiredvytovyfollowvyth
evyrulesvyofvyGAAP.vyvyAnswer:vy FALSE
Explanation:vyManagerialvyaccountingvyinformationvyisvynotvyguidedvybyvyGAAPvybutvyrathervyby
vythevyconceptvyofv y usefulnessvytovymanagementvyforvydecisionvymakingvypurposes.
Diff:vy1
LO:vyvy M:1-1
AACSB:vy Applicationvyofvyknowle
dgev y AICPAvyFunctional:vy Report
ing
PEvyQuestionvyType:vyvy Concept

,H2:vyvy WhyvyIsvyManagerialvyAccountingvyImportant?vy(H1)



5) Financialvyreportingvyisvytypicallyvymuchvymorevydetailedvythanvymanagerial
vyaccounting.vyvyAnswer:vy FALSE
Explanation:v y Financialv y reportingv y isv y typicallyv y lessv y detailedv y thanv y managerialv y accou
ntingv y information.v y Financialvy accountingvy reportingvy isvy usuallyvy summaryvy reports,vy prep
aredvy primarilyvy onvy thevycompanyvyasvy av y whole,vyusuallyvyonvyavyquarterlyvyorvyannualvyb
asis.
Diff:vy1
LO:vyvy M:1-1
AACSB:vy Applicationvyofvyknowle
dgev y AICPAvyFunctional:vy Report
ing
PEvyQuestionvyType:vyvy Concept
H2:vyvy WhyvyIsvyManagerialvyAccountingvyImportant?vy(H1)

6) Managerialvyaccountingvyprovidesvyfinancialvystatementsvythatvyreportvyresultsvyofvyoperat
ions,vyfinancialv y position,vyandvycashvyflowsvybothvytovymanagersvyandvytovyexternalvystockh
olders.
Answer:vyvyFALSE
Explanation:vyManagerialvyaccountingvyprovidesvythevyinformationvyneededvytovyplanvyandvycontrolvy
operationsvyandv y thereforevyservesvythevyinformationvyneedsvyofvyinternalvypartiesvysuchvyasvymana
gersvyandvystaff.
Diff:vy1
LO:vyvy M:1-1
AACSB:vy Applicationvyofvyknowle
dgev y AICPAvyFunctional:vy Report
ing
PEvyQuestionvyType:vyvy Concept
H2:vyvy WhyvyIsvyManagerialvyAccountingvyImportant?vy(H1)

7) Whichvyofvythevyfollowingvyisvyavyfocusvyofvymanagerialvyaccounting?
A) tovygeneratevyavycompany'svyfinancialvystatementsvyforvytaxvyreporting
B) tovyprovidevyinformationvytovybusinessvymanagersvytovyassistvythemvyinvycontrollingvytheirvybusinesse
s
C) tovyprovidevyinformationvytovyshareholdersvytovyassistvythemvywithvytheirvyinvestmentvydecisions
D) tovyensurevythatvythevyreportsvyproducedvyforvyinternalvyandvyexternalvybusinessvypurposesvyarev
yGAAPvycompliantvyvyAnswer:vy B
Diff:vy1
LO:vyvy M:1-1
AACSB:vy Applicationvyofvyknowle
dgev y AICPAvyFunctional:vy Report
ing
PEvyQuestionvyType:vyvy Concept
H2:vyvy WhyvyIsvyManagerialvyAccountingvyImportant?vy(H1)

8) Whichvyofvythevyfollowingvystatementsvyisvytruevyofvymanagerialvyaccounting?
A) Thevyexternalvystakeholdersvyofvyavycompanyvyarevythevyprimaryvyusersvyofvymanagerialvyaccounti
ng.
B) Managerialvyaccountingvyinformationvyisvyusedvytovyhelpvymanagersvyplan,vydirectvyandvycontrolvyt
heirvyoperations.

, C) AnvyexternalvyauditvybyvyanvyindependentvyCPAvyisvyrequiredvyforvymanagerialvyaccountingvyinfor
mation.
D) ManagerialvyaccountingvyinformationvymustvycomplyvywithvyGenerallyvyAcceptedvyAccountin
gvyPrinciples.vyvyAnswer:vy B
Diff:vy1
LO:vyvy M:1-1
AACSB:vy Applicationvyofvyknowle
dgev y AICPAvyFunctional:vy Report
ing