https://www.stuvia.com/user/papersprime
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
https://www.stuvia.com/user/papersprime
,https://www.stuvia.com/user/papersprime
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)
Financial accounting prepares reports for internal purposes,
2)
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
https://www.stuvia.com/user/papersprime
,https://www.stuvia.com/user/papersprime
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)
Managerial accounting reporting by a public firm is
4)
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
https://www.stuvia.com/user/papersprime
, https://www.stuvia.com/user/papersprime
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
https://www.stuvia.com/user/papersprime
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
https://www.stuvia.com/user/papersprime
,https://www.stuvia.com/user/papersprime
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)
Financial accounting prepares reports for internal purposes,
2)
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
https://www.stuvia.com/user/papersprime
,https://www.stuvia.com/user/papersprime
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)
Managerial accounting reporting by a public firm is
4)
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
https://www.stuvia.com/user/papersprime
, https://www.stuvia.com/user/papersprime
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
https://www.stuvia.com/user/papersprime
