Introduction to Management Accounting, 15e (Horngren) questions and answers

Introduction to Management Accounting, 15e (Horngren) Answer: Error! Bookmark not defined. Diff: 1 Page Ref: 1 LO: 1 1 Chapter 1 Managerial Accounting, the Business Organization, and Professional Ethics 1.1 Questions 1) ________ is the field that produces information for managers within an organization. A) Financial accounting B) Management accounting C) Financial auditing D) External auditing AACSB: None 2) The primary users of management accounting information are ________. A) bankers B) governmental regulatory bodies C) managers in organizations D) managerial accountants Answer: C Diff: 1 Page Ref: 3 LO: 1-1 AACSB: None 3) ________ is the field of accounting that develops information for external parties such as stockholders, suppliers, banks and governmental regulatory bodies. A) Auditing B) Internal auditing C) Management accounting D) Financial accounting Answer: D Diff: 1 Page Ref: 3 LO: 1-1 AACSB: None 4) What statement about management accounting is FALSE? A) Management accounting is the process of identifying, measuring, accumulating, analyzing, preparing, interpreting and communicating information. B) Management accounting helps managers fulfill organizational objectives. C) Management accounting is used by managerial accountants to make strategic and operational decisions. D) Management accounting produces information for managers in an organization. Answer: C Diff: 1 Page Ref: 3 LO: 1-1 AACSB: None 5) When comparing management accounting and financial accounting, which of the following statements is FALSE? A) Management accounting has a future orientation whereas financial accounting has a past orientation.B) Management accounting prepares detailed reports whereas financial accounting prepares summary reports. C) Management accountants are constrained by the principles of reporting promulgated bythe Institute of Management Accountants whereas financial accountants are constrained by Generally Accepted Accounting Principles. D) Behavioral considerations are of primary importance in management accounting, but not in financial accounting. Answer: C Diff: 1 Page Ref: 4 LO: 1-1 AACSB: None 6) ________ information involves routine reports that compare actual results to predicted results. A) Budgets B) Attention directing C) Scorekeeping D) Problem solvingAnswer: B Diff: 1 Page Ref: 4 LO: 1-1 AACSB: None 7) ________ information helps managers focus on operating problems, imperfections, inefficiencies and opportunities. A) Scorekeeping B) Attention directing C) Problem solving D) Performance Answer: B Diff: 1 Page Ref: 4 LO: 1-1 AACSB: None 8) Problem solving information would NOT be used in this situation. A) decision to make or buy parts for a manufactured product B) decision to replace equipment C) decision to add or drop a division D) evaluating the operating performance of a segment in the current year Answer: D Diff: 2 Page Ref: 4-5 LO: 1-1 AACSB: Analytic Skills 9) Which of the following activities would NOT be called scorekeeping? A) estimating the cost of moving the corporate headquarters to another city B) preparing a schedule of depreciation expense for trucks for the current year C) preparing a schedule of sales for the current year D) preparing a schedule of plant assets at the end of the current year Answer: ADiff: 2 Page Ref: 4 LO: 1-1 AACSB: Analytic Skills, Reflective Thinking 10) Investigating the reasons for the variances on a department's performance report is an example of ________. A) scorekeeping B) attention directing C) problem solving D) auditing Answer: B Diff: 2 Page Ref: 4 LO: 1-1 AACSB: Analytic Skills 11) ________ is the classification, accumulation, and reporting of data that help users understand and evaluate organizational performance. A) Scorekeeping B) Attention directing C) Problem solving D) Cost accountingAnswer: A Diff: 1 Page Ref: 4 LO: 1-1 AACSB: None 12) Generally Accepted Accounting Principles are most closely connected to ________. A) management accounting B) financial accounting C) internal auditing D) management accounting Answer: B Diff: 1 Page Ref: 4 LO: 1-1 AACSB: None 13) What type of information is used in making nonroutine decisions, such as the decision to replace a traditional assembly line with fully automated robots? A) scorekeeping information B) attention directing information C) problem solving information D) auditing information Answer: C Diff: 2 Page Ref: 5 LO: 1-1 AACSB: Analytic Skills 14) Which of the following is NOT a government regulation that influences accounting systems? A) Sarbanes-Oxley Act B) Foreign Corrupt Practices Act C) tax rules promulgated by the Internal Revenue Servic