TEST BANKb
Financial and Managerial Accounting:
b b b
Managerial Chapters, 7th Edition
b b b
(Miller-Nobles) Chapter 1-11
b b
,Chapter bM:1 Introduction bto bManagerial bAccounting
Learning bObjective bM:1-1
1) Managerial baccounting bfocuses bon bproviding binformation bfor binternal bplanning band
bcontrol.bAnswer: b TRUE
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
PE bQuestion bType: b Concept
H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
2) Financial baccounting bprepares breports bfor binternal bpurposes, bwhereas bmanagerial baccounting
bprovidesbinformation bto bexternal bstakeholders.
Answer: b FALSE
Explanation: bThe breverse bis btrue. bFinancial baccounting bserves bexternal bstakeholder binformation bneeds
bwhile bmanagerial baccounting bserves bthe bneeds bof bmanagers band binternal bstaff.
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
PE bQuestion bType: b Concept
H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
3) Financial bstatements bprepared bfor binvestors band bcreditors boften binclude bforward-looking
binformationbbecause bthey bmake bdecisions bbased bon ba bcompany's bfuture bprospects.
Answer: b FALSE
Explanation: bFinancial bstatements bprovide bmostly bhistorical binformation; brelevant band bfaithfully
brepresentative binformation band bfocused bon bthe bpast.
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
PE bQuestion bType: b Concept
H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
4) Managerial baccounting breporting bby ba bpublic bfirm bis brequired bto bfollow bthe brules bof
bGAAP.bAnswer: b FALSE
Explanation: bManagerial baccounting binformation bis bnot bguided bby bGAAP bbut brather bby bthe bconcept
bofbusefulness bto bmanagement bfor bdecision bmaking bpurposes.
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
PE bQuestion bType: b Concept
,H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
5) Financial breporting bis btypically bmuch bmore bdetailed bthan bmanagerial
baccounting.bAnswer: b FALSE
Explanation: bFinancial breporting bis btypically bless bdetailed bthan bmanagerial baccounting
binformation. bFinancial baccounting breporting bis busually bsummary breports, bprepared bprimarily bon
bthe bcompany bas babwhole, busually bon ba bquarterly bor bannual bbasis.
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
PE bQuestion bType: b Concept
H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
6) Managerial baccounting bprovides bfinancial bstatements bthat breport bresults bof boperations,
bfinancialbposition, band bcash bflows bboth bto bmanagers band bto bexternal bstockholders.
Answer: b FALSE
Explanation: b Managerial baccounting bprovides bthe binformation bneeded bto bplan band bcontrol boperations
bandbtherefore bserves bthe binformation bneeds bof binternal bparties bsuch bas bmanagers band bstaff.
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
PE bQuestion bType: b Concept
H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
7) Which bof bthe bfollowing bis ba bfocus bof bmanagerial baccounting?
A) to bgenerate ba bcompany's bfinancial bstatements bfor btax breporting
B) to bprovide binformation bto bbusiness bmanagers bto bassist bthem bin bcontrolling btheir bbusinesses
C) to bprovide binformation bto bshareholders bto bassist bthem bwith btheir binvestment bdecisions
D) to bensure bthat bthe breports bproduced bfor binternal band bexternal bbusiness bpurposes bare bGAAP
bcompliantbAnswer: b B
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
PE bQuestion bType: b Concept
H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
8) Which bof bthe bfollowing bstatements bis btrue bof bmanagerial baccounting?
A) The bexternal bstakeholders bof ba bcompany bare bthe bprimary busers bof bmanagerial baccounting.
B) Managerial baccounting binformation bis bused bto bhelp bmanagers bplan, bdirect band bcontrol btheir
boperations.
C) An bexternal baudit bby ban bindependent bCPA bis brequired bfor bmanagerial baccounting binformation.
D) Managerial baccounting binformation bmust bcomply bwith bGenerally bAccepted bAccounting
bPrinciples.bAnswer: b B
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
, PE bQuestion bType: b Concept
H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
9) Managerial baccounting binformation bfor ba bcompany bis bprimarily bused bby .
A) its bcustomers bto bunderstand bthe bpricing bof bthe bproduct
B) its bcreditors bto bunderstand bthe bcredibility bof bthe bbusiness
C) its bemployees bto bplan, bdirect band bcontrol boperations
D) its binvestors bto bmake btheir binvestment
bdecisionsbAnswer: b C
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
PE bQuestion bType: b Concept
H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
10) Which bof bthe bfollowing bstatements bis btrue bof bfinancial baccounting?
A) It bprovides binformation bto binvestors bneeded bfor btheir binvestment bdecisions.
B) It bprovides bfuture bfocused binformation bneeded bfor bmanaging band bdelegating boperations.
C) It bfocuses bon bdetailed breports bfor bparts bof bthe bcompany brather bthan bthe bwhole bcompany.
D) It bfocuses bon bplanning, bdirecting band bcontrolling bday-to-day
boperations.bAnswer: b A
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
PE bQuestion bType: b Concept
H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
11) Which bof bthe bfollowing bis bthe bprimary bfocus bof bmanagerial baccounting?
A) providing binformation bthat bmanagers bneed bto bmake boperational bdecisions
B) providing bhistorical bdata bto binvestors band bcreditors
C) providing bsummarized bresults bof boperations
D) providing binformation bto bcomply bwith blaws band bregulations bof bgovernment
bbodiesbAnswer: b A
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
PE bQuestion bType: b Concept
H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
12) Which bof bthe bfollowing bis bthe bprimary bfocus bof bfinancial baccounting?
A) providing binformation bthat bmanagers bneed bto bmake boperational bdecisions
B) providing bsummarized binformation bon boperational bresults bto binvestors band bcreditors
C) providing binformation bto bmanagers bto bassist bin bplanning, bdirecting band bcontrolling boperations
D) providing bhighly bdetailed binformation bon bproduct blines, bregions, band
bdivisionsbAnswer: b B
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
Financial and Managerial Accounting:
b b b
Managerial Chapters, 7th Edition
b b b
(Miller-Nobles) Chapter 1-11
b b
,Chapter bM:1 Introduction bto bManagerial bAccounting
Learning bObjective bM:1-1
1) Managerial baccounting bfocuses bon bproviding binformation bfor binternal bplanning band
bcontrol.bAnswer: b TRUE
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
PE bQuestion bType: b Concept
H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
2) Financial baccounting bprepares breports bfor binternal bpurposes, bwhereas bmanagerial baccounting
bprovidesbinformation bto bexternal bstakeholders.
Answer: b FALSE
Explanation: bThe breverse bis btrue. bFinancial baccounting bserves bexternal bstakeholder binformation bneeds
bwhile bmanagerial baccounting bserves bthe bneeds bof bmanagers band binternal bstaff.
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
PE bQuestion bType: b Concept
H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
3) Financial bstatements bprepared bfor binvestors band bcreditors boften binclude bforward-looking
binformationbbecause bthey bmake bdecisions bbased bon ba bcompany's bfuture bprospects.
Answer: b FALSE
Explanation: bFinancial bstatements bprovide bmostly bhistorical binformation; brelevant band bfaithfully
brepresentative binformation band bfocused bon bthe bpast.
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
PE bQuestion bType: b Concept
H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
4) Managerial baccounting breporting bby ba bpublic bfirm bis brequired bto bfollow bthe brules bof
bGAAP.bAnswer: b FALSE
Explanation: bManagerial baccounting binformation bis bnot bguided bby bGAAP bbut brather bby bthe bconcept
bofbusefulness bto bmanagement bfor bdecision bmaking bpurposes.
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
PE bQuestion bType: b Concept
,H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
5) Financial breporting bis btypically bmuch bmore bdetailed bthan bmanagerial
baccounting.bAnswer: b FALSE
Explanation: bFinancial breporting bis btypically bless bdetailed bthan bmanagerial baccounting
binformation. bFinancial baccounting breporting bis busually bsummary breports, bprepared bprimarily bon
bthe bcompany bas babwhole, busually bon ba bquarterly bor bannual bbasis.
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
PE bQuestion bType: b Concept
H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
6) Managerial baccounting bprovides bfinancial bstatements bthat breport bresults bof boperations,
bfinancialbposition, band bcash bflows bboth bto bmanagers band bto bexternal bstockholders.
Answer: b FALSE
Explanation: b Managerial baccounting bprovides bthe binformation bneeded bto bplan band bcontrol boperations
bandbtherefore bserves bthe binformation bneeds bof binternal bparties bsuch bas bmanagers band bstaff.
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
PE bQuestion bType: b Concept
H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
7) Which bof bthe bfollowing bis ba bfocus bof bmanagerial baccounting?
A) to bgenerate ba bcompany's bfinancial bstatements bfor btax breporting
B) to bprovide binformation bto bbusiness bmanagers bto bassist bthem bin bcontrolling btheir bbusinesses
C) to bprovide binformation bto bshareholders bto bassist bthem bwith btheir binvestment bdecisions
D) to bensure bthat bthe breports bproduced bfor binternal band bexternal bbusiness bpurposes bare bGAAP
bcompliantbAnswer: b B
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
PE bQuestion bType: b Concept
H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
8) Which bof bthe bfollowing bstatements bis btrue bof bmanagerial baccounting?
A) The bexternal bstakeholders bof ba bcompany bare bthe bprimary busers bof bmanagerial baccounting.
B) Managerial baccounting binformation bis bused bto bhelp bmanagers bplan, bdirect band bcontrol btheir
boperations.
C) An bexternal baudit bby ban bindependent bCPA bis brequired bfor bmanagerial baccounting binformation.
D) Managerial baccounting binformation bmust bcomply bwith bGenerally bAccepted bAccounting
bPrinciples.bAnswer: b B
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
, PE bQuestion bType: b Concept
H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
9) Managerial baccounting binformation bfor ba bcompany bis bprimarily bused bby .
A) its bcustomers bto bunderstand bthe bpricing bof bthe bproduct
B) its bcreditors bto bunderstand bthe bcredibility bof bthe bbusiness
C) its bemployees bto bplan, bdirect band bcontrol boperations
D) its binvestors bto bmake btheir binvestment
bdecisionsbAnswer: b C
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
PE bQuestion bType: b Concept
H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
10) Which bof bthe bfollowing bstatements bis btrue bof bfinancial baccounting?
A) It bprovides binformation bto binvestors bneeded bfor btheir binvestment bdecisions.
B) It bprovides bfuture bfocused binformation bneeded bfor bmanaging band bdelegating boperations.
C) It bfocuses bon bdetailed breports bfor bparts bof bthe bcompany brather bthan bthe bwhole bcompany.
D) It bfocuses bon bplanning, bdirecting band bcontrolling bday-to-day
boperations.bAnswer: b A
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
PE bQuestion bType: b Concept
H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
11) Which bof bthe bfollowing bis bthe bprimary bfocus bof bmanagerial baccounting?
A) providing binformation bthat bmanagers bneed bto bmake boperational bdecisions
B) providing bhistorical bdata bto binvestors band bcreditors
C) providing bsummarized bresults bof boperations
D) providing binformation bto bcomply bwith blaws band bregulations bof bgovernment
bbodiesbAnswer: b A
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
bAICPA bFunctional: b Reporting
PE bQuestion bType: b Concept
H2: b Why bIs bManagerial bAccounting bImportant? b(H1)
12) Which bof bthe bfollowing bis bthe bprimary bfocus bof bfinancial baccounting?
A) providing binformation bthat bmanagers bneed bto bmake boperational bdecisions
B) providing bsummarized binformation bon boperational bresults bto binvestors band bcreditors
C) providing binformation bto bmanagers bto bassist bin bplanning, bdirecting band bcontrolling boperations
D) providing bhighly bdetailed binformation bon bproduct blines, bregions, band
bdivisionsbAnswer: b B
Diff: b1
LO: b M:1-1
AACSB: b Application bof bknowledge
