TEST BANK
Financial and Managerial Accounting:
Managerial Chapters, 7th Edition
(Miller-Nobles) Chapter 1-11
,Chapter pM:1 Introduction pto pManagerial pAccounting
Learning pObjective pM:1-1
1) Managerial paccounting pfocuses pon pproviding pinformation pfor pinternal pplanning pand
pcontrol. p pAnswer: p TRUE
Diff: p1
LO: p p M:1-1
AACSB: p Application pof
pknowledge p AICPA pFunctional:
p Reporting
PE pQuestion pType: p p Concept
H2: p pWhy pIs pManagerial pAccounting pImportant? p(H1)
2) Financial paccounting pprepares preports pfor pinternal ppurposes, pwhereas pmanagerial
paccounting pprovides p information pto pexternal pstakeholders.
Answer: p pFALSE
Explanation: pThe preverse pis ptrue. pFinancial paccounting pserves pexternal pstakeholder pinformation
pneedswhile p managerial paccounting pserves pthe pneeds pof pmanagers pand pinternal pstaff.
Diff: p1
LO: p p M:1-1
AACSB: p Application pof
pknowledge p AICPA pFunctional:
p Reporting
PE pQuestion pType: p p Concept
H2: p pWhy pIs pManagerial pAccounting pImportant? p(H1)
3) Financial pstatements pprepared pfor pinvestors pand pcreditors poften pinclude pforward-looking
pinformation p because pthey pmake pdecisions pbased pon pa pcompany's pfuture pprospects.
Answer: p pFALSE
Explanation: pFinancial pstatements pprovide pmostly phistorical pinformation; prelevant pand
pfaithfully p representative pinformation pand pfocused pon pthe ppast.
Diff: p1
LO: p p M:1-1
AACSB: p Application pof
pknowledge p AICPA pFunctional:
p Reporting
PE pQuestion pType: p p Concept
H2: p pWhy pIs pManagerial pAccounting pImportant? p(H1)
4) Managerial paccounting preporting pby pa ppublic pfirm pis prequired pto pfollow pthe prules
pof pGAAP. p pAnswer: p FALSE
Explanation: pManagerial paccounting pinformation pis pnot pguided pby pGAAP pbut prather pby pthe
pconcept pof p usefulness pto pmanagement pfor pdecision pmaking ppurposes.
Diff: p1
LO: p p M:1-1
AACSB: p Application pof
pknowledge p AICPA pFunctional:
p Reporting
PE pQuestion pType: p p Concept
,H2: p pWhy pIs pManagerial pAccounting pImportant? p(H1)
5) Financial preporting pis ptypically pmuch pmore pdetailed pthan pmanagerial
paccounting. p pAnswer: p FALSE
Explanation: p Financial p reporting p is p typically p less p detailed p than p managerial p accounting
p information. p Financial p accounting p reporting p is p usually p summary p reports, p prepared
p primarily p on p the p company p as p a p whole, pusually pon pa pquarterly por pannual pbasis.
Diff: p1
LO: p p M:1-1
AACSB: p Application pof
pknowledge p AICPA pFunctional:
p Reporting
PE pQuestion pType: p p Concept
H2: p pWhy pIs pManagerial pAccounting pImportant? p(H1)
6) Managerial paccounting pprovides pfinancial pstatements pthat preport presults pof poperations,
pfinancial p position, pand pcash pflows pboth pto pmanagers pand pto pexternal pstockholders.
Answer: p pFALSE
Explanation: pManagerial paccounting pprovides pthe pinformation pneeded pto pplan pand pcontrol
poperations pand p therefore pserves pthe pinformation pneeds pof pinternal pparties psuch pas pmanagers
pand pstaff.
Diff: p1
LO: p p M:1-1
AACSB: p Application pof
pknowledge p AICPA pFunctional:
p Reporting
PE pQuestion pType: p p Concept
H2: p pWhy pIs pManagerial pAccounting pImportant? p(H1)
7) Which pof pthe pfollowing pis pa pfocus pof pmanagerial paccounting?
A) to pgenerate pa pcompany's pfinancial pstatements pfor ptax preporting
B) to pprovide pinformation pto pbusiness pmanagers pto passist pthem pin pcontrolling ptheir pbusinesses
C) to pprovide pinformation pto pshareholders pto passist pthem pwith ptheir pinvestment pdecisions
D) to pensure pthat pthe preports pproduced pfor pinternal pand pexternal pbusiness ppurposes pare pGAAP
pcompliant p pAnswer: p B
Diff: p1
LO: p p M:1-1
AACSB: p Application pof
pknowledge p AICPA pFunctional:
p Reporting
PE pQuestion pType: p p Concept
H2: p pWhy pIs pManagerial pAccounting pImportant? p(H1)
8) Which pof pthe pfollowing pstatements pis ptrue pof pmanagerial paccounting?
A) The pexternal pstakeholders pof pa pcompany pare pthe pprimary pusers pof pmanagerial paccounting.
B) Managerial paccounting pinformation pis pused pto phelp pmanagers pplan, pdirect pand pcontrol ptheir
operations.
p
C) An pexternal paudit pby pan pindependent pCPA pis prequired pfor pmanagerial paccounting pinformation.
D) Managerial paccounting pinformation pmust pcomply pwith pGenerally pAccepted pAccounting
Principles. p pAnswer: p B
p
Diff: p1
, LO: p p M:1-1
AACSB: p Application pof
pknowledge p AICPA pFunctional:
p Reporting
Financial and Managerial Accounting:
Managerial Chapters, 7th Edition
(Miller-Nobles) Chapter 1-11
,Chapter pM:1 Introduction pto pManagerial pAccounting
Learning pObjective pM:1-1
1) Managerial paccounting pfocuses pon pproviding pinformation pfor pinternal pplanning pand
pcontrol. p pAnswer: p TRUE
Diff: p1
LO: p p M:1-1
AACSB: p Application pof
pknowledge p AICPA pFunctional:
p Reporting
PE pQuestion pType: p p Concept
H2: p pWhy pIs pManagerial pAccounting pImportant? p(H1)
2) Financial paccounting pprepares preports pfor pinternal ppurposes, pwhereas pmanagerial
paccounting pprovides p information pto pexternal pstakeholders.
Answer: p pFALSE
Explanation: pThe preverse pis ptrue. pFinancial paccounting pserves pexternal pstakeholder pinformation
pneedswhile p managerial paccounting pserves pthe pneeds pof pmanagers pand pinternal pstaff.
Diff: p1
LO: p p M:1-1
AACSB: p Application pof
pknowledge p AICPA pFunctional:
p Reporting
PE pQuestion pType: p p Concept
H2: p pWhy pIs pManagerial pAccounting pImportant? p(H1)
3) Financial pstatements pprepared pfor pinvestors pand pcreditors poften pinclude pforward-looking
pinformation p because pthey pmake pdecisions pbased pon pa pcompany's pfuture pprospects.
Answer: p pFALSE
Explanation: pFinancial pstatements pprovide pmostly phistorical pinformation; prelevant pand
pfaithfully p representative pinformation pand pfocused pon pthe ppast.
Diff: p1
LO: p p M:1-1
AACSB: p Application pof
pknowledge p AICPA pFunctional:
p Reporting
PE pQuestion pType: p p Concept
H2: p pWhy pIs pManagerial pAccounting pImportant? p(H1)
4) Managerial paccounting preporting pby pa ppublic pfirm pis prequired pto pfollow pthe prules
pof pGAAP. p pAnswer: p FALSE
Explanation: pManagerial paccounting pinformation pis pnot pguided pby pGAAP pbut prather pby pthe
pconcept pof p usefulness pto pmanagement pfor pdecision pmaking ppurposes.
Diff: p1
LO: p p M:1-1
AACSB: p Application pof
pknowledge p AICPA pFunctional:
p Reporting
PE pQuestion pType: p p Concept
,H2: p pWhy pIs pManagerial pAccounting pImportant? p(H1)
5) Financial preporting pis ptypically pmuch pmore pdetailed pthan pmanagerial
paccounting. p pAnswer: p FALSE
Explanation: p Financial p reporting p is p typically p less p detailed p than p managerial p accounting
p information. p Financial p accounting p reporting p is p usually p summary p reports, p prepared
p primarily p on p the p company p as p a p whole, pusually pon pa pquarterly por pannual pbasis.
Diff: p1
LO: p p M:1-1
AACSB: p Application pof
pknowledge p AICPA pFunctional:
p Reporting
PE pQuestion pType: p p Concept
H2: p pWhy pIs pManagerial pAccounting pImportant? p(H1)
6) Managerial paccounting pprovides pfinancial pstatements pthat preport presults pof poperations,
pfinancial p position, pand pcash pflows pboth pto pmanagers pand pto pexternal pstockholders.
Answer: p pFALSE
Explanation: pManagerial paccounting pprovides pthe pinformation pneeded pto pplan pand pcontrol
poperations pand p therefore pserves pthe pinformation pneeds pof pinternal pparties psuch pas pmanagers
pand pstaff.
Diff: p1
LO: p p M:1-1
AACSB: p Application pof
pknowledge p AICPA pFunctional:
p Reporting
PE pQuestion pType: p p Concept
H2: p pWhy pIs pManagerial pAccounting pImportant? p(H1)
7) Which pof pthe pfollowing pis pa pfocus pof pmanagerial paccounting?
A) to pgenerate pa pcompany's pfinancial pstatements pfor ptax preporting
B) to pprovide pinformation pto pbusiness pmanagers pto passist pthem pin pcontrolling ptheir pbusinesses
C) to pprovide pinformation pto pshareholders pto passist pthem pwith ptheir pinvestment pdecisions
D) to pensure pthat pthe preports pproduced pfor pinternal pand pexternal pbusiness ppurposes pare pGAAP
pcompliant p pAnswer: p B
Diff: p1
LO: p p M:1-1
AACSB: p Application pof
pknowledge p AICPA pFunctional:
p Reporting
PE pQuestion pType: p p Concept
H2: p pWhy pIs pManagerial pAccounting pImportant? p(H1)
8) Which pof pthe pfollowing pstatements pis ptrue pof pmanagerial paccounting?
A) The pexternal pstakeholders pof pa pcompany pare pthe pprimary pusers pof pmanagerial paccounting.
B) Managerial paccounting pinformation pis pused pto phelp pmanagers pplan, pdirect pand pcontrol ptheir
operations.
p
C) An pexternal paudit pby pan pindependent pCPA pis prequired pfor pmanagerial paccounting pinformation.
D) Managerial paccounting pinformation pmust pcomply pwith pGenerally pAccepted pAccounting
Principles. p pAnswer: p B
p
Diff: p1
, LO: p p M:1-1
AACSB: p Application pof
pknowledge p AICPA pFunctional:
p Reporting
