Test bank for horngren s managerial chapters accounting 7th edition by Miller-Nobles
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Course
Financial and Managerial Accounting
Institution
Financial And Managerial Accounting
Test bank for horngren s managerial chapters accounting 7th edition by Miller-NoblesTest bank for horngren s managerial chapters accounting 7th edition by Miller-NoblesTest bank for horngren s managerial chapters accounting 7th edition by Miller-NoblesTest bank for horngren s managerial chapters ac...
provides
ltI information to external stakeholders.
l l t I I ltI ltI ltI
Answer: FALSE lltII llt II
Explanation: The reverse is true. Financial accounting serves external stakeholder information
lltII ltI ltI ltI ltI ltII lltII ltI ltI lltII
needswhile
ltI managerial accounting serves the needs of managers and internal staff.
l l t I I ltI lltII ltI lltII ltI lltI ltI lltII ltII
Diff: 1 lltII
LO: M:1-1 lltII l l t I I
AACSB: Application of llt II ltI
knowledge AICPA Functional:
ltI lltII ltI
Reporting
lltII
PE Question Type: Concept
lltII ltI lltII l l t I I
H2: Why Is Managerial Accounting Important? (H1)
lltII llt II lltII ltI lltII lltII lltII
3) Financial statements prepared for investors and creditors often include forward-looking
ltI ltI ltI ltI ltI ltII ltI ltI ltI
information
ltI because they make decisions based on a company's future prospects.
l l t I I ltI lltII ltI lltII ltII lltII lltII lltII lltII
Answer: FALSE lltII llt II
Explanation: Financial statements provide mostly historical information; relevant and
ltI ltI ltI ltI ltI ltI lltII ltI
faithfully
ltI representative information and focused on the past.
l l t I I ltI ltII ltI ltI lltII ltI
Diff: 1 lltII
LO: M:1-1 lltII l l t I I
AACSB: Application of llt II ltI
knowledge AICPA Functional:
ltI lltII ltI
Reporting
lltII
PE Question Type: Concept
lltII ltI lltII l l t I I
H2: Why Is Managerial Accounting Important? (H1)
lltII llt II lltII ltI lltII lltII lltII
4) Managerial accounting reporting by a public firm is required to follow the rules of ltII ltI ltI lltII ltI ltI ltI ltI lltI lltII ltI ltI ltI
GAAP. Answer: FALSE
lltII lltII lltII lltII
Explanation: Managerial accounting information is not guided by GAAP but rather by the
ltII lltII lltII ltII lltII lltII ltI lltII lltII lltII lltII lltII
concept of
ltI usefulness to management for decision making purposes.
lltII l l t I I ltI lltII lltII lltII ltI ltI
Diff: 1 lltII
LO: M:1-1 lltII l l t I I
AACSB: Application of llt II ltI
knowledge AICPA Functional:
ltI lltII ltI
Reporting
lltII
PE Question Type: Concept
lltII ltI lltII l l t I I
,H2: Why Is Managerial Accounting Important? (H1)
lltII llt II lltII ltI lltII lltII lltII
5) Financialreporting is typically much more detailed than managerial ltI ltI ltI ltI ltI ltI ltI ltI
accounting. Answer: FALSE
ltI lltII lltII lltII
Explanation: Financial reporting is typically less detailed than managerial l l t I I l l t I I l l t I I l l t I I llt II l l t I I l l t I I l l t I I
accounting information.
l l t I I Financial accounting reporting is usually summary l l t I I l l t I I llt I I llt I I l ltII lltII l lt I I
reports, prepared primarily on the company as a
l lt II whole, usually on a quarterly or
llt II lltII lltII lltI I llt II llt II lltII l l t I I ltII lltII lltII lltII lltII
annual basis.
lltII lltII
Diff: 1 lltII
LO: M:1-1 lltII l l t I I
AACSB: Application of llt II ltI
knowledge AICPA Functional:
ltI lltII ltI
Reporting
lltII
PE Question Type: Concept
lltII ltI lltII l l t I I
H2: Why Is Managerial Accounting Important? (H1)
lltII llt II lltII lltII lltII lltII lltII
and
ltI therefore serves the information needs of internal parties such as managers and staff.
l l t I I ltI lltII lltII lltII lltII lltII ltII lltII lltII ltI lltII lltII
Diff: 1 lltII
LO: M:1-1 lltII l l t I I
AACSB: Application of llt II ltI
knowledge AICPA Functional:
ltI lltII ltI
Reporting
lltII
PE Question Type: Concept
lltII lltII lltII l l t I I
H2: Why Is Managerial Accounting Important? (H1)
lltII llt II lltII ltI lltII lltII lltII
7) Which of the following is a focus of managerial accounting? ltI ltI ltI ltI ltI ltI ltI ltI lltII
A) to generate a company's financial statements for tax reporting
ltI ltI ltI ltI ltI ltI ltI ltI
B) to provide information to business managers to assist them in controlling their businesses
ltI ltI ltI ltI lltII ltI ltI ltI ltI ltI ltI ltI
C) to provide information to shareholders to assist them with their investment decisions
ltI ltI ltI ltI ltI ltI ltI ltI ltI ltI ltI
D) to ensure that the reports produced for internal and external business purposes are GAAP
ltI ltI ltI ltI ltI ltI ltI ltI lltII ltI ltI lltII ltI
compliant Answer: B
ltI lltII lltII lltII
Diff: 1 lltII
LO: M:1-1 lltII l l t I I
AACSB: Application of llt II ltI
knowledge AICPA Functional:
ltI lltII ltI
Reporting
lltII
PE Question Type: Concept
lltII ltI lltII l l t I I
H2: Why Is Managerial Accounting Important? (H1)
lltII llt II lltII ltI lltII lltII lltII
8) Which of the following statements is true of managerial accounting?
ltI ltI ltI ltI ltI ltI ltI ltI ltI
A) The external stakeholders of a company are the primary users of managerial accounting.
ltI ltI ltI ltI ltI ltI ltI ltI ltI ltI ltI ltI
B) Managerial accounting information is used to help managers plan, direct and control ltI ltI ltI ltI ltI ltI ltI ltI ltI ltI ltI their
ltI
operations.
ltI
C) An external audit by an independent CPA is required for managerial accounting information.
ltI ltI ltI ltI ltI ltI ltI ltI ltI ltI ltI ltI
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