Exam (elaborations)
Test Bank for Managerial Accounting 7th Edition by Karen W. Braun Test Bank A+
- Course
- Institution
Test Bank for Managerial Accounting 7th Edition by Karen W. Braun Test Bank A+..
[Show more]
Seller
Follow
ASolution
Reviews received
Content preview
Created By: A SolutionTest Bank for Managerial Accounting 7th Edition by Karen
W. Braun Test Bank A+
Chapter 1 Introduction to Managerial Accounting
1.1 Identify managers' three primary responsibilities
1) Evaluating operations by comparing actual results to budgeted results is a part of the
controlling responsibility of management.
Answer: TRUE Diff: 1
LO: 1-1 EOC: QC1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
2) Controlling means overseeing the companyʹs day-to-day operations. Answer: FALSE
Diff: 1
LO: 1-1 EOC: QC1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
3) The purpose of managerial accounting is to gather, summarize, and report the cost and
revenue data relevant to each decision that is made.
Answer: TRUE Diff: 1
LO: 1-1 EOC: QC1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
4) Budgeting is the process of evaluating the results of business operations against a plan
and then making adjustments to that plan.
A+ Page 1
,Created By: A Solution
Answer: FALSE Diff: 1
LO: 1-1 EOC: QC1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
5) Planning, directing, and controlling are a managerʹs three primary decision-making
responsibilities. Answer: TRUE
Diff: 1
LO: 1-1 EOC: QC1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
6) Directing means setting goals and objectives for the company and determining how to
achieve them. Answer: FALSE
Diff: 1
LO: 1-1 EOC: S1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
7) Budgets are the quantitative expression of managementʹs plans. Answer: TRUE
Diff: 1
LO: 1-1 EOC: S1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
8) gathers, summarizes, and reports on the financial impact of changes to business
operations.
A) Managerial accounting
B) Planning
A+ Page 2
,Created By: A Solution
C) Directing
D) Controlling Answer: A Diff: 2
LO: 1-1 EOC: S1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
9) Creating budgets are part of which primary management responsibility?
A) Controlling
B) Planning
C) Managerial accounting
D) Directing Answer: B Diff: 2
LO: 1-1 EOC: S1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
10) Which of the following is not one of the primary responsibilities of management?
A) Adhering to GAAP
B) Planning
C) Directing
D) Controlling Answer: A Diff: 2
LO: 1-1 EOC: S1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
11) Planning involves which of the following activities?
A) Evaluating the results of operations
B) Overseeing the companyʹs day-to-day operations
C) Setting goals and objectives for the company
D) None of the above Answer: C
A+ Page 3
, Created By: A Solution
Diff: 1
LO: 1-1 EOC: S1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
12) Which of the following is being fulfilled when management compares the budget to
actual results?
A) Directing
B) Planning
C) Adjusting
D) Controlling Answer: D Diff: 2
LO: 1-1 EOC: S1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
13) When management uses feedback to take corrective action on the budgets, which of the
following management responsibilities are being fulfilled?
A) Controlling
B) Adjusting
C) Directing
D) Planning Answer: A Diff: 2
LO: 1-1 EOC: S1-1
AACSB: Reflective thinking
Learning Outcome: Describe the basics of managerial accounting and its function within an
organization.
14) When management analyzes whether to move production to another country or to keep
the production located where it currently is, which of the following management responsibilities
is being performed?
A) Adjusting
A+ Page 4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ASolution. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now