Franklyn A Plus Pass
TEST BANK for Fundamental Financial Accounting
Concepts: 2024 Release by Christopher Edmonds
All Chapters Covered 1-14| Verified Q&As for Exam
Preparations| A+ GRADED
All Answers are at the End of Each Chapter
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, Franklyn A Plus Pass
Chapter 01
1) Which of the following items are representative of managerial accounting?
Note: Check all that apply.
A) Financial statement in accordance with GAAP
B) Monthly sales reports used internally to allocate funds to divisions
C) Quarterly financial information sent to investors
D) Audited financial statements submitted to bankers with credit application
E) Budget projections used to make logistic decisions
2) Which of the following costs are not included in the cost of manufacturing a product?
Note: Check all that apply.
A) Marketing
B) Production workers' wages
C) Factory janitor's wages
D) CEO salary
E) Depreciation on manufacturing equipment
Fr
3) Which of the following is considered a downstream cost?
an
Note: Check all that apply.
A) Research and development
kl
B) Production wages
yn
C) Advertising cost
e
D) Warranty cost
A
E) Cost of internet in manufacturing plant
pl
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4) Which of the following are examples of inventory holding costs?
Note: Check all that apply.
A) Cost of warehouse space
B) Cost of shipping inventory to customers
C) Research and development cost
D) Cost of supervising inventory
E) Inventory spoilage cost
5) Ashley Bradshaw is the manager of one department in a large store. In this capacity, which of the
following kinds of information would she be interested in?
A) Economic data
B) Financial data
C) Nonfinancial data
D) Financial, economic, and nonfinancial data
6) All of the following are features of managerial accounting except:
A) information is provided primarily to insiders such as managers.
B) information includes economic and non-financial data as well as financial data.
Fr
C) information is characterized by objectivity, reliability, consistency, and accuracy.
an
D) information is reported continuously with a present or future orientation.
kl
yn
7) Choose the answer that is not a distinguishing characteristic of financial accounting information.
e
A) It is global information that reflects the performance of the whole company.
A
B) It is focused primarily on the future.
pl
C) It is more concerned with financial data than physical or economic data.
D) It is more highly regulated than managerial accounting information.
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8) Managerial accounting information is limited or restricted by which of the following authorities or
principles?
A) Securities and Exchange Commission
B) Generally Accepted Accounting Principles
C) Managerial Accounting Standards Board
D) Value-Added Principle
9) Select the incorrect statement regarding the relationship between type of user and type of information.
A) Middle managers need more nonfinancial, or operational data than do senior executives.
B) Assembly line supervisors need more immediate feedback on performance than do senior
executives.
C) Senior executives need less aggregated information than do lower-level managers.
D) Senior executives use general economic information as well as financial information.
10) Which group would use managerial accounting data of XY Company?
A) Stockholders
B) Managers
C) Executives
Fr
D) Both managers and executives
an
E) All of the groups would use managerial accounting data
kl
yn
11) Which of the following is a feature of managerial accounting information?
A) Information is not distributed to the public
e
B) Information reports on the company as a whole
A
C) Information is focused on the past
pl
D) Information is reported annually
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TEST BANK for Fundamental Financial Accounting
Concepts: 2024 Release by Christopher Edmonds
All Chapters Covered 1-14| Verified Q&As for Exam
Preparations| A+ GRADED
All Answers are at the End of Each Chapter
Fr
an
kl
yn
e
A
pl
usP
Page | 1
as
s
, Franklyn A Plus Pass
Chapter 01
1) Which of the following items are representative of managerial accounting?
Note: Check all that apply.
A) Financial statement in accordance with GAAP
B) Monthly sales reports used internally to allocate funds to divisions
C) Quarterly financial information sent to investors
D) Audited financial statements submitted to bankers with credit application
E) Budget projections used to make logistic decisions
2) Which of the following costs are not included in the cost of manufacturing a product?
Note: Check all that apply.
A) Marketing
B) Production workers' wages
C) Factory janitor's wages
D) CEO salary
E) Depreciation on manufacturing equipment
Fr
3) Which of the following is considered a downstream cost?
an
Note: Check all that apply.
A) Research and development
kl
B) Production wages
yn
C) Advertising cost
e
D) Warranty cost
A
E) Cost of internet in manufacturing plant
pl
u sP
Page | 2
as
s
, Franklyn A Plus Pass
4) Which of the following are examples of inventory holding costs?
Note: Check all that apply.
A) Cost of warehouse space
B) Cost of shipping inventory to customers
C) Research and development cost
D) Cost of supervising inventory
E) Inventory spoilage cost
5) Ashley Bradshaw is the manager of one department in a large store. In this capacity, which of the
following kinds of information would she be interested in?
A) Economic data
B) Financial data
C) Nonfinancial data
D) Financial, economic, and nonfinancial data
6) All of the following are features of managerial accounting except:
A) information is provided primarily to insiders such as managers.
B) information includes economic and non-financial data as well as financial data.
Fr
C) information is characterized by objectivity, reliability, consistency, and accuracy.
an
D) information is reported continuously with a present or future orientation.
kl
yn
7) Choose the answer that is not a distinguishing characteristic of financial accounting information.
e
A) It is global information that reflects the performance of the whole company.
A
B) It is focused primarily on the future.
pl
C) It is more concerned with financial data than physical or economic data.
D) It is more highly regulated than managerial accounting information.
u sP
Page | 3
as
s
, Franklyn A Plus Pass
8) Managerial accounting information is limited or restricted by which of the following authorities or
principles?
A) Securities and Exchange Commission
B) Generally Accepted Accounting Principles
C) Managerial Accounting Standards Board
D) Value-Added Principle
9) Select the incorrect statement regarding the relationship between type of user and type of information.
A) Middle managers need more nonfinancial, or operational data than do senior executives.
B) Assembly line supervisors need more immediate feedback on performance than do senior
executives.
C) Senior executives need less aggregated information than do lower-level managers.
D) Senior executives use general economic information as well as financial information.
10) Which group would use managerial accounting data of XY Company?
A) Stockholders
B) Managers
C) Executives
Fr
D) Both managers and executives
an
E) All of the groups would use managerial accounting data
kl
yn
11) Which of the following is a feature of managerial accounting information?
A) Information is not distributed to the public
e
B) Information reports on the company as a whole
A
C) Information is focused on the past
pl
D) Information is reported annually
u sP
Page | 4
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