TEST BANK gl
Financial and Managerial Accounting:
gl gl gl
Managerial Chapters, 7th Edition
gl gl
gl
(Miller-Nobles) Chapter 1-11
gl gl
,ChapterglM:1 IntroductiongltoglManagerialglAccounting
LearningglObjectiveglM:1-1
1) Managerialglaccountingglfocusesglonglprovidingglinformationglforglinternalglplanningglandgl
control.glglAnswer:g l TRUE
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowled
geg l AICPAglFunctional:g l Reporting
PEglQuestionglType:glgl Concept
H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
2) Financialglaccountingglpreparesglreportsglforglinternalglpurposes,glwhereasglmanagerialglaccounting
providesg l informationgltoglexternalglstakeholders.
gl
Answer:glglFALSE
Explanation:glTheglreverseglisgltrue.glFinancialglaccountingglservesglexternalglstakeholderglinformationgln
eedswhileg l managerialglaccountingglservesgltheglneedsglofglmanagersglandglinternalglstaff.
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowled
geg l AICPAglFunctional:g l Reporting
PEglQuestionglType:glgl Concept
H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
3) Financialglstatementsglpreparedglforglinvestorsglandglcreditorsgloftenglincludeglforward-
lookingglinformationg l becausegltheyglmakegldecisionsglbasedglonglaglcompany'sglfutureglprospects.
Answer:glglFALSE
Explanation:glFinancialglstatementsglprovideglmostlyglhistoricalglinformation;glrelevantglandgl
faithfullyg l representativeglinformationglandglfocusedglongltheglpast.
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowled
geg l AICPAglFunctional:g l Reporting
PEglQuestionglType:glgl Concept
H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
4) Managerialglaccountingglreportingglbyglaglpublicglfirmglisglrequiredgltoglfollowgltheglrulesgl
ofglGAAP.glglAnswer:g l FALSE
Explanation:glManagerialglaccountingglinformationglisglnotglguidedglbyglGAAPglbutglratherglbygltheglco
nceptglofg l usefulnessgltoglmanagementglforgldecisionglmakingglpurposes.
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowled
geg l AICPAglFunctional:g l Reporting
PEglQuestionglType:glgl Concept
,H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
5) Financialglreportingglisgltypicallyglmuchglmoregldetailedglthanglmanagerialglacc
ounting.glglAnswer:g l FALSE
Explanation:g l Financialg l reportingg l isg l typicallyg l lessg l detailedg l thang l managerialg l accountingg
l information.g l Financialgl accountinggl reportinggl isgl usuallygl summarygl reports,gl preparedgl prim
arilygl ongl theglcompanyglasgl ag l whole,glusuallyglonglaglquarterlyglorglannualglbasis.
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowled
geg l AICPAglFunctional:g l Reporting
PEglQuestionglType:glgl Concept
H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
6) Managerialglaccountingglprovidesglfinancialglstatementsglthatglreportglresultsglofgloperations,glf
inancialg l position,glandglcashglflowsglbothgltoglmanagersglandgltoglexternalglstockholders.
Answer:glglFALSE
Explanation:glManagerialglaccountingglprovidesgltheglinformationglneededgltoglplanglandglcontrolgloperati
onsglandg l thereforeglservesgltheglinformationglneedsglofglinternalglpartiesglsuchglasglmanagersglandglstaff
.
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowled
geg l AICPAglFunctional:g l Reporting
PEglQuestionglType:glgl Concept
H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
7) Whichglofgltheglfollowingglisglaglfocusglofglmanagerialglaccounting?
A) toglgenerateglaglcompany'sglfinancialglstatementsglforgltaxglreporting
B) toglprovideglinformationgltoglbusinessglmanagersgltoglassistglthemglinglcontrollinggltheirglbusinesses
C) toglprovideglinformationgltoglshareholdersgltoglassistglthemglwithgltheirglinvestmentgldecisions
D) toglensureglthatgltheglreportsglproducedglforglinternalglandglexternalglbusinessglpurposesglareglGAAPgl
compliantglglAnswer:g l B
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowled
geg l AICPAglFunctional:g l Reporting
PEglQuestionglType:glgl Concept
H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
8) Whichglofgltheglfollowingglstatementsglisgltrueglofglmanagerialglaccounting?
A) Theglexternalglstakeholdersglofglaglcompanyglaregltheglprimaryglusersglofglmanagerialglaccounting.
B) Managerialglaccountingglinformationglisglusedgltoglhelpglmanagersglplan,gldirectglandglcontrolgltheirglop
erations.
C) AnglexternalglauditglbyglanglindependentglCPAglisglrequiredglforglmanagerialglaccountingglinformation.
D) ManagerialglaccountingglinformationglmustglcomplyglwithglGenerallyglAcceptedglAccountingglPri
nciples.glglAnswer:g l B
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowled
geg l AICPAglFunctional:g l Reporting
, PEglQuestionglType:glgl Concept
H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
9) Managerialglaccountingglinformationglforglaglcompanyglisglprimarilyglusedglby .
A) itsglcustomersgltoglunderstandgltheglpricingglofgltheglproduct
B) itsglcreditorsgltoglunderstandgltheglcredibilityglofgltheglbusiness
C) itsglemployeesgltoglplan,gldirectglandglcontrolgloperations
D) itsglinvestorsgltoglmakegltheirglinvestmentgldecisi
onsglglAnswer:g l C
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowl
edgeg l AICPAglFunctional:g l Rep
orting
PEglQuestionglType:glgl Concept
H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
10) Whichglofgltheglfollowingglstatementsglisgltrueglofglfinancialglaccounting?
A) Itglprovidesglinformationgltoglinvestorsglneededglforgltheirglinvestmentgldecisions.
B) Itglprovidesglfutureglfocusedglinformationglneededglforglmanagingglandgldelegatinggloperations.
C) Itglfocusesglongldetailedglreportsglforglpartsglofgltheglcompanyglratherglthangltheglwholeglcompany.
D) Itglfocusesglonglplanning,gldirectingglandglcontrollingglday-to-
daygloperations.glglAnswer:g l A
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowl
edgeg l AICPAglFunctional:g l Rep
orting
PEglQuestionglType:glgl Concept
H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
11) Whichglofgltheglfollowingglisgltheglprimaryglfocusglofglmanagerialglaccounting?
A) providingglinformationglthatglmanagersglneedgltoglmakegloperationalgldecisions
B) providingglhistoricalgldatagltoglinvestorsglandglcreditors
C) providingglsummarizedglresultsglofgloperations
D) providingglinformationgltoglcomplyglwithgllawsglandglregulationsglofglgovernmentgl
bodiesglglAnswer:g l A
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowl
edgeg l AICPAglFunctional:g l Rep
orting
PEglQuestionglType:glgl Concept
H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
12) Whichglofgltheglfollowingglisgltheglprimaryglfocusglofglfinancialglaccounting?
A) providingglinformationglthatglmanagersglneedgltoglmakegloperationalgldecisions
B) providingglsummarizedglinformationglongloperationalglresultsgltoglinvestorsglandglcreditors
C) providingglinformationgltoglmanagersgltoglassistglinglplanning,gldirectingglandglcontrollinggloperations
D) providingglhighlygldetailedglinformationglonglproductgllines,glregions,glandgldi
visionsglglAnswer:g l B
Diff:gl1
LO:glg l M:1-1
Financial and Managerial Accounting:
gl gl gl
Managerial Chapters, 7th Edition
gl gl
gl
(Miller-Nobles) Chapter 1-11
gl gl
,ChapterglM:1 IntroductiongltoglManagerialglAccounting
LearningglObjectiveglM:1-1
1) Managerialglaccountingglfocusesglonglprovidingglinformationglforglinternalglplanningglandgl
control.glglAnswer:g l TRUE
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowled
geg l AICPAglFunctional:g l Reporting
PEglQuestionglType:glgl Concept
H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
2) Financialglaccountingglpreparesglreportsglforglinternalglpurposes,glwhereasglmanagerialglaccounting
providesg l informationgltoglexternalglstakeholders.
gl
Answer:glglFALSE
Explanation:glTheglreverseglisgltrue.glFinancialglaccountingglservesglexternalglstakeholderglinformationgln
eedswhileg l managerialglaccountingglservesgltheglneedsglofglmanagersglandglinternalglstaff.
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowled
geg l AICPAglFunctional:g l Reporting
PEglQuestionglType:glgl Concept
H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
3) Financialglstatementsglpreparedglforglinvestorsglandglcreditorsgloftenglincludeglforward-
lookingglinformationg l becausegltheyglmakegldecisionsglbasedglonglaglcompany'sglfutureglprospects.
Answer:glglFALSE
Explanation:glFinancialglstatementsglprovideglmostlyglhistoricalglinformation;glrelevantglandgl
faithfullyg l representativeglinformationglandglfocusedglongltheglpast.
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowled
geg l AICPAglFunctional:g l Reporting
PEglQuestionglType:glgl Concept
H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
4) Managerialglaccountingglreportingglbyglaglpublicglfirmglisglrequiredgltoglfollowgltheglrulesgl
ofglGAAP.glglAnswer:g l FALSE
Explanation:glManagerialglaccountingglinformationglisglnotglguidedglbyglGAAPglbutglratherglbygltheglco
nceptglofg l usefulnessgltoglmanagementglforgldecisionglmakingglpurposes.
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowled
geg l AICPAglFunctional:g l Reporting
PEglQuestionglType:glgl Concept
,H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
5) Financialglreportingglisgltypicallyglmuchglmoregldetailedglthanglmanagerialglacc
ounting.glglAnswer:g l FALSE
Explanation:g l Financialg l reportingg l isg l typicallyg l lessg l detailedg l thang l managerialg l accountingg
l information.g l Financialgl accountinggl reportinggl isgl usuallygl summarygl reports,gl preparedgl prim
arilygl ongl theglcompanyglasgl ag l whole,glusuallyglonglaglquarterlyglorglannualglbasis.
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowled
geg l AICPAglFunctional:g l Reporting
PEglQuestionglType:glgl Concept
H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
6) Managerialglaccountingglprovidesglfinancialglstatementsglthatglreportglresultsglofgloperations,glf
inancialg l position,glandglcashglflowsglbothgltoglmanagersglandgltoglexternalglstockholders.
Answer:glglFALSE
Explanation:glManagerialglaccountingglprovidesgltheglinformationglneededgltoglplanglandglcontrolgloperati
onsglandg l thereforeglservesgltheglinformationglneedsglofglinternalglpartiesglsuchglasglmanagersglandglstaff
.
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowled
geg l AICPAglFunctional:g l Reporting
PEglQuestionglType:glgl Concept
H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
7) Whichglofgltheglfollowingglisglaglfocusglofglmanagerialglaccounting?
A) toglgenerateglaglcompany'sglfinancialglstatementsglforgltaxglreporting
B) toglprovideglinformationgltoglbusinessglmanagersgltoglassistglthemglinglcontrollinggltheirglbusinesses
C) toglprovideglinformationgltoglshareholdersgltoglassistglthemglwithgltheirglinvestmentgldecisions
D) toglensureglthatgltheglreportsglproducedglforglinternalglandglexternalglbusinessglpurposesglareglGAAPgl
compliantglglAnswer:g l B
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowled
geg l AICPAglFunctional:g l Reporting
PEglQuestionglType:glgl Concept
H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
8) Whichglofgltheglfollowingglstatementsglisgltrueglofglmanagerialglaccounting?
A) Theglexternalglstakeholdersglofglaglcompanyglaregltheglprimaryglusersglofglmanagerialglaccounting.
B) Managerialglaccountingglinformationglisglusedgltoglhelpglmanagersglplan,gldirectglandglcontrolgltheirglop
erations.
C) AnglexternalglauditglbyglanglindependentglCPAglisglrequiredglforglmanagerialglaccountingglinformation.
D) ManagerialglaccountingglinformationglmustglcomplyglwithglGenerallyglAcceptedglAccountingglPri
nciples.glglAnswer:g l B
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowled
geg l AICPAglFunctional:g l Reporting
, PEglQuestionglType:glgl Concept
H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
9) Managerialglaccountingglinformationglforglaglcompanyglisglprimarilyglusedglby .
A) itsglcustomersgltoglunderstandgltheglpricingglofgltheglproduct
B) itsglcreditorsgltoglunderstandgltheglcredibilityglofgltheglbusiness
C) itsglemployeesgltoglplan,gldirectglandglcontrolgloperations
D) itsglinvestorsgltoglmakegltheirglinvestmentgldecisi
onsglglAnswer:g l C
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowl
edgeg l AICPAglFunctional:g l Rep
orting
PEglQuestionglType:glgl Concept
H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
10) Whichglofgltheglfollowingglstatementsglisgltrueglofglfinancialglaccounting?
A) Itglprovidesglinformationgltoglinvestorsglneededglforgltheirglinvestmentgldecisions.
B) Itglprovidesglfutureglfocusedglinformationglneededglforglmanagingglandgldelegatinggloperations.
C) Itglfocusesglongldetailedglreportsglforglpartsglofgltheglcompanyglratherglthangltheglwholeglcompany.
D) Itglfocusesglonglplanning,gldirectingglandglcontrollingglday-to-
daygloperations.glglAnswer:g l A
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowl
edgeg l AICPAglFunctional:g l Rep
orting
PEglQuestionglType:glgl Concept
H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
11) Whichglofgltheglfollowingglisgltheglprimaryglfocusglofglmanagerialglaccounting?
A) providingglinformationglthatglmanagersglneedgltoglmakegloperationalgldecisions
B) providingglhistoricalgldatagltoglinvestorsglandglcreditors
C) providingglsummarizedglresultsglofgloperations
D) providingglinformationgltoglcomplyglwithgllawsglandglregulationsglofglgovernmentgl
bodiesglglAnswer:g l A
Diff:gl1
LO:glg l M:1-1
AACSB:g l Applicationglofglknowl
edgeg l AICPAglFunctional:g l Rep
orting
PEglQuestionglType:glgl Concept
H2:glgl WhyglIsglManagerialglAccountingglImportant?gl(H1)
12) Whichglofgltheglfollowingglisgltheglprimaryglfocusglofglfinancialglaccounting?
A) providingglinformationglthatglmanagersglneedgltoglmakegloperationalgldecisions
B) providingglsummarizedglinformationglongloperationalglresultsgltoglinvestorsglandglcreditors
C) providingglinformationgltoglmanagersgltoglassistglinglplanning,gldirectingglandglcontrollinggloperations
D) providingglhighlygldetailedglinformationglonglproductgllines,glregions,glandgldi
visionsglglAnswer:g l B
Diff:gl1
LO:glg l M:1-1
