Test Bank for Horngren's Financial & Managerial Accounting, The Financial Chapters, Global Edition 7th Edition by Tracie Miller-Nobles, Brenda Mattison

TESTBANKf




Financial and Managerial Accounting:
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Managerial Chapters, 7th Edition
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(Miller-Nobles) Chapter1-11
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,ChapterM:1 f IntroductiontoManagerialAccounting f f f




LearningObjectiveM:1-1 f f




1) Managerialaccountingfocusesonprovidinginformationforinternalplanningandcontrol.f f f f f f f f f f f




Answer: TRUE
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Diff: 1 f




LO: M:1-1
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AACSB: Applicationofknowledge
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AICPAFunctional: Reporting
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PEQuestionType: Concept
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H2: WhyIsManagerialAccounting Important?(H1)
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2) Financialaccountingpreparesreportsforinternalpurposes,whereasmanagerialaccounting
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provides informationtoexternalstakeholders.
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Answer: FALSE f f




Explanation:Thereverseistrue.Financialaccountingservesexternalstakeholderinformation
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needswhile managerialaccountingservestheneedsofmanagersandinternalstaff.
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Diff: 1 f




LO: M:1-1
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AACSB: Applicationofknowledge
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AICPAFunctional: Reporting
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PEQuestionType: Concept
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H2: WhyIsManagerialAccounting Important?(H1)
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3) Financialstatementspreparedforinvestorsandcreditorsoftenincludeforward-lookinginformation
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fbecausetheymakedecisionsbasedonacompany'sfutureprospects.
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Answer: FALSE f f




Explanation:Financialstatementsprovidemostlyhistoricalinformation;relevantand
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faithfully representativeinformationandfocusedonthepast.
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Diff: 1 f




LO: M:1-1
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AACSB: Applicationofknowledge
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AICPAFunctional: Reporting
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PEQuestionType: Concept
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H2: WhyIsManagerialAccounting Important?(H1)
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4) ManagerialaccountingreportingbyapublicfirmisrequiredtofollowtherulesofGAAP. f f f f f f f f f f f f f f f




Answer: FALSE
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Explanation:ManagerialaccountinginformationisnotguidedbyGAAPbutratherbytheconceptof
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fusefulnesstomanagementfordecisionmakingpurposes. f f f f f f




Diff: 1 f




LO: M:1-1
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AACSB: Applicationofknowledge
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AICPAFunctional: Reporting
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PEQuestionType: Concept
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,H2: WhyIsManagerialAccounting Important?(H1)
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5) Financialreportingistypicallymuchmoredetailedthanmanagerial f f f f f f f f




accounting. Answer: FALSE
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Explanation: Financial reporting is typically less detailed than managerial accounting f f f f f f f f f




information. Financial accounting reporting is usually summary reports, prepared primarily on
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the company as a whole,usuallyonaquarterlyorannual basis.
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Diff: 1 f




LO: M:1-1 f f




AACSB: Applicationofknowledge f f f




AICPAFunctional: Reporting
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PEQuestionType: Concept
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H2: WhyIsManagerialAccounting Important?(H1)
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6) Managerialaccountingprovidesfinancialstatementsthatreportresultsofoperations, f f f f f f f f f




financial position,andcashflowsbothto managersandtoexternalstockholders.
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Answer: FALSE f f




Explanation: Managerialaccountingprovidestheinformationneededtoplanandcontroloperationsand f f f f f f f f f f f f




fthereforeservestheinformationneedsofinternalpartiessuchasmanagersandstaff.f f f f f f f f f f f f




Diff: 1 f




LO: M:1-1 f f




AACSB: Applicationofknowledge f f f




AICPAFunctional: Reporting
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PEQuestionType: Concept
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H2: WhyIsManagerialAccounting Important?(H1)
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7) Whichofthefollowingisafocusofmanagerialaccounting? f f f f f f f f f




A) togenerateacompany'sfinancialstatementsfortaxreporting
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B) toprovideinformationtobusinessmanagerstoassistthemincontrollingtheirbusinesses
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C) toprovideinformationtoshareholderstoassistthemwiththeirinvestmentdecisions
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D) toensurethatthereportsproducedforinternalandexternalbusinesspurposesareGAAPcompliant
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Answer: B
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Diff: 1 f




LO: M:1-1 f f




AACSB: Applicationofknowledge f f f




AICPAFunctional: Reporting
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PEQuestionType: Concept
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H2: WhyIsManagerialAccounting Important?(H1)
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8) Whichofthefollowingstatementsistrueofmanagerialaccounting?
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A) Theexternalstakeholdersofacompanyaretheprimaryusersofmanagerialaccounting.
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B) Managerialaccountinginformationisusedtohelpmanagersplan,directandcontroltheiroperations. f f f f f f f f f f f f f




C) AnexternalauditbyanindependentCPAisrequiredformanagerialaccountinginformation.
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D) ManagerialaccountinginformationmustcomplywithGenerallyAcceptedAccounting f f f f f f f f




Principles. Answer: B
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Diff: 1 f




LO: M:1-1 f f




AACSB: Applicationofknowledge f f f




AICPAFunctional: Reporting
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, PEQuestionType: Concept
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H2: WhyIsManagerialAccounting Important? (H1)
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9) Managerialaccountinginformationforacompanyisprimarilyusedby f f f f f f f f f .
A) itscustomerstounderstandthepricingoftheproduct
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B) itscreditorstounderstandthecredibilityofthebusiness
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C) itsemployeestoplan,directandcontroloperations
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D) itsinvestorstomaketheirinvestmentdecisions
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Answer: C
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Diff: 1 f




LO: M:1-1
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AACSB: Applicationof f f




knowledge AICPAFunctional:
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Reporting
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PEQuestionType: Concept
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H2: WhyIsManagerialAccounting Important?(H1)
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10) Whichofthefollowingstatementsistrueoffinancialaccounting?
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A) Itprovidesinformationtoinvestorsneededfortheirinvestmentdecisions.
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B) Itprovidesfuturefocusedinformationneededformanaginganddelegatingoperations.
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C) Itfocusesondetailedreportsforpartsofthecompanyratherthanthewholecompany.
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D) Itfocusesonplanning,directingandcontrollingday-to-dayoperations.
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Answer: A
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Diff: 1 f




LO: M:1-1
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AACSB: Applicationof f f




knowledge AICPAFunctional:
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Reporting
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PEQuestionType: Concept
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H2: WhyIsManagerialAccounting Important?(H1)
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11) Whichofthefollowingistheprimaryfocusofmanagerialaccounting?
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A) providinginformationthatmanagersneedtomakeoperationaldecisions f f f f f f f f




B) providinghistoricaldatatoinvestorsandcreditors f f f f f f




C) providingsummarizedresultsofoperations f f f f




D) providinginformationtocomplywithlawsandregulationsofgovernmentbodies f f f f f f f f f f f




Answer: A
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Diff: 1 f




LO: M:1-1
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AACSB: Applicationof f f




knowledge AICPAFunctional:
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Reporting
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PEQuestionType: Concept
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H2: WhyIsManagerialAccountingImportant?(H1)
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12) Whichofthefollowingistheprimaryfocusoffinancialaccounting?
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A) providinginformationthatmanagersneedtomakeoperationaldecisions f f f f f f f f




B) providingsummarizedinformationonoperationalresultstoinvestorsandcreditors
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C) providinginformationtomanagerstoassistinplanning,directingandcontrollingoperations
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D) providinghighlydetailedinformationonproductlines,regions,anddivisions f f f f f f f f f f




Answer: B
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Diff: 1 f




LO: M:1-1
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