TEST BANK|
Financial and Managerial Accounting:
| | |
Managerial Chapters, 7th Edition
| | |
(Miller-Nobles) Chapter 1-11
| |
,Chapter |M:1 Introduction |to |Managerial |Accounting
Learning |Objective |M:1-1
1) Managerial |accounting |focuses |on |providing |information |for |internal |planning |and |control.
|Answer: | TRUE
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
PE |Question |Type: | Concept
H2: | Why |Is |Managerial |Accounting |Important? |(H1)
2) Financial |accounting |prepares |reports |for |internal |purposes, |whereas |managerial |accounting |provides
|information |to |external |stakeholders.
Answer: | FALSE
Explanation: |The |reverse |is |true. |Financial |accounting |serves |external |stakeholder |information |needs|while
|managerial |accounting |serves |the |needs |of |managers |and |internal |staff.
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
PE |Question |Type: | Concept
H2: | Why |Is |Managerial |Accounting |Important? |(H1)
3) Financial |statements |prepared |for |investors |and |creditors |often |include |forward-looking |information
|because |they |make |decisions |based |on |a |company's |future |prospects.
Answer: | FALSE
Explanation: |Financial |statements |provide |mostly |historical |information; |relevant |and |faithfully|representative
|information |and |focused |on |the |past.
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
PE |Question |Type: | Concept
H2: | Why |Is |Managerial |Accounting |Important? |(H1)
4) Managerial |accounting |reporting |by |a |public |firm |is |required |to |follow |the |rules |of |GAAP.
|Answer: | FALSE
Explanation: |Managerial |accounting |information |is |not |guided |by |GAAP |but |rather |by |the |concept |of
|usefulness |to |management |for |decision |making |purposes.
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
PE |Question |Type: | Concept
,H2: | Why |Is |Managerial |Accounting |Important? |(H1)
5) Financial |reporting |is |typically |much |more |detailed |than |managerial |accounting.
|Answer: | FALSE
Explanation: |Financial |reporting |is |typically |less |detailed |than |managerial |accounting |information.
|Financial |accounting |reporting |is |usually |summary |reports, |prepared |primarily |on |the |company |as |a
|whole, |usually |on |a |quarterly |or |annual |basis.
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
PE |Question |Type: | Concept
H2: | Why |Is |Managerial |Accounting |Important? |(H1)
6) Managerial |accounting |provides |financial |statements |that |report |results |of |operations, |financial
|position, |and |cash |flows |both |to |managers |and |to |external |stockholders.
Answer: | FALSE
Explanation: | Managerial |accounting |provides |the |information |needed |to |plan |and |control |operations |and
|therefore |serves |the |information |needs |of |internal |parties |such |as |managers |and |staff.
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
PE |Question |Type: | Concept
H2: | Why |Is |Managerial |Accounting |Important? |(H1)
7) Which |of |the |following |is |a |focus |of |managerial |accounting?
A) to |generate |a |company's |financial |statements |for |tax |reporting
B) to |provide |information |to |business |managers |to |assist |them |in |controlling |their |businesses
C) to |provide |information |to |shareholders |to |assist |them |with |their |investment |decisions
D) to |ensure |that |the |reports |produced |for |internal |and |external |business |purposes |are |GAAP |compliant
|Answer: | B
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
PE |Question |Type: | Concept
H2: | Why |Is |Managerial |Accounting |Important? |(H1)
8) Which |of |the |following |statements |is |true |of |managerial |accounting?
A) The |external |stakeholders |of |a |company |are |the |primary |users |of |managerial |accounting.
B) Managerial |accounting |information |is |used |to |help |managers |plan, |direct |and |control |their |operations.
C) An |external |audit |by |an |independent |CPA |is |required |for |managerial |accounting |information.
D) Managerial |accounting |information |must |comply |with |Generally |Accepted |Accounting |Principles.
|Answer: | B
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
, PE |Question |Type: | Concept
H2: | Why |Is |Managerial |Accounting |Important? |(H1)
9) Managerial |accounting |information |for |a |company |is |primarily |used |by .
A) its |customers |to |understand |the |pricing |of |the |product
B) its |creditors |to |understand |the |credibility |of |the |business
C) its |employees |to |plan, |direct |and |control |operations
D) its |investors |to |make |their |investment |decisions
|Answer: | C
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
PE |Question |Type: | Concept
H2: | Why |Is |Managerial |Accounting |Important? |(H1)
10) Which |of |the |following |statements |is |true |of |financial |accounting?
A) It |provides |information |to |investors |needed |for |their |investment |decisions.
B) It |provides |future |focused |information |needed |for |managing |and |delegating |operations.
C) It |focuses |on |detailed |reports |for |parts |of |the |company |rather |than |the |whole |company.
D) It |focuses |on |planning, |directing |and |controlling |day-to-day |operations.
|Answer: | A
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
PE |Question |Type: | Concept
H2: | Why |Is |Managerial |Accounting |Important? |(H1)
11) Which |of |the |following |is |the |primary |focus |of |managerial |accounting?
A) providing |information |that |managers |need |to |make |operational |decisions
B) providing |historical |data |to |investors |and |creditors
C) providing |summarized |results |of |operations
D) providing |information |to |comply |with |laws |and |regulations |of |government |bodies
|Answer: | A
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
PE |Question |Type: | Concept
H2: | Why |Is |Managerial |Accounting |Important? |(H1)
12) Which |of |the |following |is |the |primary |focus |of |financial |accounting?
A) providing |information |that |managers |need |to |make |operational |decisions
B) providing |summarized |information |on |operational |results |to |investors |and |creditors
C) providing |information |to |managers |to |assist |in |planning, |directing |and |controlling |operations
D) providing |highly |detailed |information |on |product |lines, |regions, |and |divisions
|Answer: | B
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
Financial and Managerial Accounting:
| | |
Managerial Chapters, 7th Edition
| | |
(Miller-Nobles) Chapter 1-11
| |
,Chapter |M:1 Introduction |to |Managerial |Accounting
Learning |Objective |M:1-1
1) Managerial |accounting |focuses |on |providing |information |for |internal |planning |and |control.
|Answer: | TRUE
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
PE |Question |Type: | Concept
H2: | Why |Is |Managerial |Accounting |Important? |(H1)
2) Financial |accounting |prepares |reports |for |internal |purposes, |whereas |managerial |accounting |provides
|information |to |external |stakeholders.
Answer: | FALSE
Explanation: |The |reverse |is |true. |Financial |accounting |serves |external |stakeholder |information |needs|while
|managerial |accounting |serves |the |needs |of |managers |and |internal |staff.
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
PE |Question |Type: | Concept
H2: | Why |Is |Managerial |Accounting |Important? |(H1)
3) Financial |statements |prepared |for |investors |and |creditors |often |include |forward-looking |information
|because |they |make |decisions |based |on |a |company's |future |prospects.
Answer: | FALSE
Explanation: |Financial |statements |provide |mostly |historical |information; |relevant |and |faithfully|representative
|information |and |focused |on |the |past.
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
PE |Question |Type: | Concept
H2: | Why |Is |Managerial |Accounting |Important? |(H1)
4) Managerial |accounting |reporting |by |a |public |firm |is |required |to |follow |the |rules |of |GAAP.
|Answer: | FALSE
Explanation: |Managerial |accounting |information |is |not |guided |by |GAAP |but |rather |by |the |concept |of
|usefulness |to |management |for |decision |making |purposes.
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
PE |Question |Type: | Concept
,H2: | Why |Is |Managerial |Accounting |Important? |(H1)
5) Financial |reporting |is |typically |much |more |detailed |than |managerial |accounting.
|Answer: | FALSE
Explanation: |Financial |reporting |is |typically |less |detailed |than |managerial |accounting |information.
|Financial |accounting |reporting |is |usually |summary |reports, |prepared |primarily |on |the |company |as |a
|whole, |usually |on |a |quarterly |or |annual |basis.
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
PE |Question |Type: | Concept
H2: | Why |Is |Managerial |Accounting |Important? |(H1)
6) Managerial |accounting |provides |financial |statements |that |report |results |of |operations, |financial
|position, |and |cash |flows |both |to |managers |and |to |external |stockholders.
Answer: | FALSE
Explanation: | Managerial |accounting |provides |the |information |needed |to |plan |and |control |operations |and
|therefore |serves |the |information |needs |of |internal |parties |such |as |managers |and |staff.
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
PE |Question |Type: | Concept
H2: | Why |Is |Managerial |Accounting |Important? |(H1)
7) Which |of |the |following |is |a |focus |of |managerial |accounting?
A) to |generate |a |company's |financial |statements |for |tax |reporting
B) to |provide |information |to |business |managers |to |assist |them |in |controlling |their |businesses
C) to |provide |information |to |shareholders |to |assist |them |with |their |investment |decisions
D) to |ensure |that |the |reports |produced |for |internal |and |external |business |purposes |are |GAAP |compliant
|Answer: | B
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
PE |Question |Type: | Concept
H2: | Why |Is |Managerial |Accounting |Important? |(H1)
8) Which |of |the |following |statements |is |true |of |managerial |accounting?
A) The |external |stakeholders |of |a |company |are |the |primary |users |of |managerial |accounting.
B) Managerial |accounting |information |is |used |to |help |managers |plan, |direct |and |control |their |operations.
C) An |external |audit |by |an |independent |CPA |is |required |for |managerial |accounting |information.
D) Managerial |accounting |information |must |comply |with |Generally |Accepted |Accounting |Principles.
|Answer: | B
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
, PE |Question |Type: | Concept
H2: | Why |Is |Managerial |Accounting |Important? |(H1)
9) Managerial |accounting |information |for |a |company |is |primarily |used |by .
A) its |customers |to |understand |the |pricing |of |the |product
B) its |creditors |to |understand |the |credibility |of |the |business
C) its |employees |to |plan, |direct |and |control |operations
D) its |investors |to |make |their |investment |decisions
|Answer: | C
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
PE |Question |Type: | Concept
H2: | Why |Is |Managerial |Accounting |Important? |(H1)
10) Which |of |the |following |statements |is |true |of |financial |accounting?
A) It |provides |information |to |investors |needed |for |their |investment |decisions.
B) It |provides |future |focused |information |needed |for |managing |and |delegating |operations.
C) It |focuses |on |detailed |reports |for |parts |of |the |company |rather |than |the |whole |company.
D) It |focuses |on |planning, |directing |and |controlling |day-to-day |operations.
|Answer: | A
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
PE |Question |Type: | Concept
H2: | Why |Is |Managerial |Accounting |Important? |(H1)
11) Which |of |the |following |is |the |primary |focus |of |managerial |accounting?
A) providing |information |that |managers |need |to |make |operational |decisions
B) providing |historical |data |to |investors |and |creditors
C) providing |summarized |results |of |operations
D) providing |information |to |comply |with |laws |and |regulations |of |government |bodies
|Answer: | A
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
|AICPA |Functional: | Reporting
PE |Question |Type: | Concept
H2: | Why |Is |Managerial |Accounting |Important? |(H1)
12) Which |of |the |following |is |the |primary |focus |of |financial |accounting?
A) providing |information |that |managers |need |to |make |operational |decisions
B) providing |summarized |information |on |operational |results |to |investors |and |creditors
C) providing |information |to |managers |to |assist |in |planning, |directing |and |controlling |operations
D) providing |highly |detailed |information |on |product |lines, |regions, |and |divisions
|Answer: | B
Diff: |1
LO: | M:1-1
AACSB: | Application |of |knowledge
