Financial and Managerial Accounting: Managerial Chapters,

TEST BANK
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FINANCIAL AND MANAGERIAL ACCOUNTING:
S S S




MANAGERIAL CHAPTERS, 7TH EDITION
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(MILLER-NOBLES) CHAPTER 1-11
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CHAPTER M:1
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, INTRODUCTION TO MANAGERIAL ACCOUNTING
s s s



LearningsObjectivesM:1-1

1) Managerialsaccountingsfocusessonsprovidingsinformationsforsinternalsplanningsandscontrol.sA
nswer:s TRUE
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)

2) Financialsaccountingspreparessreportssforsinternalspurposes,swhereassmanagerialsaccountingsprovidessin
formationstosexternalsstakeholders.
Answer:s FALSE
Explanation:sThesreversesisstrue.sFinancialsaccountingsservessexternalsstakeholdersinformationsneedsswhile
smanagerialsaccountingsservessthesneedssofsmanagerssandsinternalsstaff.
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)

3) Financialsstatementsspreparedsforsinvestorssandscreditorssoftensincludesforward-
lookingsinformationsbecausestheysmakesdecisionssbasedsonsascompany'ssfuturesprospects.
Answer:s FALSE
Explanation:sFinancialsstatementssprovidesmostlyshistoricalsinformation;srelevantsandsfaithfullysrepresentativ
esinformationsandsfocusedsonsthespast.
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)

4) ManagerialsaccountingsreportingsbysaspublicsfirmsissrequiredstosfollowsthesrulessofsGAAP.sA
nswer:s FALSE
Explanation:sManagerialsaccountingsinformationsissnotsguidedsbysGAAPsbutsrathersbysthesconceptsofsuseful
nessstosmanagementsforsdecisionsmakingspurposes.
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept

,H2:s WhysIssManagerialsAccountingsImportant?s(H1)



5) Financialsreportingsisstypicallysmuchsmoresdetailedsthansmanagerialsaccounting.sA
nswer:s FALSE
Explanation:sFinancialsreportingsisstypicallyslesssdetailedsthansmanagerialsaccountingsinformation.sFin
ancialsaccountingsreportingsissusuallyssummarysreports,spreparedsprimarilysonsthescompanysassaswhol
e,susuallysonsasquarterlysorsannualsbasis.
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)

6) Managerialsaccountingsprovidessfinancialsstatementssthatsreportsresultssofsoperations,sfinancialsp
osition,sandscashsflowssbothstosmanagerssandstosexternalsstockholders.
Answer:s FALSE
Explanation:s Managerialsaccountingsprovidessthesinformationsneededstosplansandscontrolsoperationssandsth
ereforesservessthesinformationsneedssofsinternalspartiesssuchsassmanagerssandsstaff.
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)

7) Whichsofsthesfollowingsissasfocussofsmanagerialsaccounting?
A) tosgeneratesascompany'ssfinancialsstatementssforstaxsreporting
B) tosprovidesinformationstosbusinesssmanagersstosassiststhemsinscontrollingstheirsbusinesses
C) tosprovidesinformationstosshareholdersstosassiststhemswithstheirsinvestmentsdecisions
D) tosensuresthatsthesreportssproducedsforsinternalsandsexternalsbusinessspurposessaresGAAPscompliantsA
nswer:s B
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)

8) Whichsofsthesfollowingsstatementssisstruesofsmanagerialsaccounting?
A) Thesexternalsstakeholderssofsascompanysaresthesprimarysuserssofsmanagerialsaccounting.
B) Managerialsaccountingsinformationsissusedstoshelpsmanagerssplan,sdirectsandscontrolstheirsoperations.
C) AnsexternalsauditsbysansindependentsCPAsissrequiredsforsmanagerialsaccountingsinformation.
D) ManagerialsaccountingsinformationsmustscomplyswithsGenerallysAcceptedsAccountingsPrinciples.sAns
wer:s B
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting

, PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)

9) Managerialsaccountingsinformationsforsascompanysissprimarilysusedsby .
A) itsscustomersstosunderstandsthespricingsofsthesproduct
B) itsscreditorsstosunderstandsthescredibilitysofsthesbusiness
C) itssemployeesstosplan,sdirectsandscontrolsoperations
D) itssinvestorsstosmakestheirsinvestmentsdecisionss
Answer:s C
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)

10) Whichsofsthesfollowingsstatementssisstruesofsfinancialsaccounting?
A) Itsprovidessinformationstosinvestorssneededsforstheirsinvestmentsdecisions.
B) Itsprovidessfuturesfocusedsinformationsneededsforsmanagingsandsdelegatingsoperations.
C) Itsfocusessonsdetailedsreportssforspartssofsthescompanysrathersthanstheswholescompany.
D) Itsfocusessonsplanning,sdirectingsandscontrollingsday-to-
daysoperations.sAnswer:s A
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)

11) Whichsofsthesfollowingsissthesprimarysfocussofsmanagerialsaccounting?
A) providingsinformationsthatsmanagerssneedstosmakesoperationalsdecisions
B) providingshistoricalsdatastosinvestorssandscreditors
C) providingssummarizedsresultssofsoperations
D) providingsinformationstoscomplyswithslawssandsregulationssofsgovernmentsbodiessA
nswer:s A
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)

12) Whichsofsthesfollowingsissthesprimarysfocussofsfinancialsaccounting?
A) providingsinformationsthatsmanagerssneedstosmakesoperationalsdecisions
B) providingssummarizedsinformationsonsoperationalsresultsstosinvestorssandscreditors
C) providingsinformationstosmanagersstosassistsinsplanning,sdirectingsandscontrollingsoperations
D) providingshighlysdetailedsinformationsonsproductslines,sregions,sandsdivisionssA
nswer:s B
Diff:s1
LO:s M:1-1
AACSB:s Applicationsofsknowledge