Horngren's Cost Accounting: A Managerial Emphasis, 17e by Datar/Rajan
Chapter 1 The Manager and Management Accounting
Objective 1.1
1) Management accounting:
A) focuses on estimating future revenues, costs, and other measures to forecast activities and their results
B) provides information about the company as a whole
C) reports information that has occurred in the past that is verifiable and reliable
D) provides information that is generally available only on a quarterly or annual basis
Answer: A
Explanation: A) Management accounting has a forward-looking orientation as opposed to financial
accounting which has a historical perspective.
Diff: 1
Objective: 1
AACSB: Analytical thinking
2) Managers use management accounting information to:
A) help external users such as investors, banks, regulators, and suppliers
B) communicate, develop, and implement strategies
C) communicate a firm's financial position to investors, banks, regulators, and other outside parties
D) ensure that financial statements are consistent with the SEC rules
Answer: B
Diff: 1
Objective: 1
AACSB: Analytical thinking
3) Financial accounting:
A) focuses on the future and includes activities such as preparing next year's operating budget
B) must comply with GAAP (generally accepted accounting principles)
C) is the process of measuring, analyzing, and reporting financial and nonfinancial information related to
the costs of acquiring or using resources in an organization
D) is prepared for the use of department heads and other employees
Answer: B
Diff: 1
Objective: 1
AACSB: Analytical thinking
4) Which of the following would most likely be the user of financial accounting information?
A) factory shift supervisor
B) distribution manager
C) current shareholder
D) department manager
Answer: C
Diff: 1
Objective: 1
AACSB: Analytical thinking
Chapter 1 The Manager and Management Accounting
Objective 1.1
1) Management accounting:
A) focuses on estimating future revenues, costs, and other measures to forecast activities and their results
B) provides information about the company as a whole
C) reports information that has occurred in the past that is verifiable and reliable
D) provides information that is generally available only on a quarterly or annual basis
Answer: A
Explanation: A) Management accounting has a forward-looking orientation as opposed to financial
accounting which has a historical perspective.
Diff: 1
Objective: 1
AACSB: Analytical thinking
2) Managers use management accounting information to:
A) help external users such as investors, banks, regulators, and suppliers
B) communicate, develop, and implement strategies
C) communicate a firm's financial position to investors, banks, regulators, and other outside parties
D) ensure that financial statements are consistent with the SEC rules
Answer: B
Diff: 1
Objective: 1
AACSB: Analytical thinking
3) Financial accounting:
A) focuses on the future and includes activities such as preparing next year's operating budget
B) must comply with GAAP (generally accepted accounting principles)
C) is the process of measuring, analyzing, and reporting financial and nonfinancial information related to
the costs of acquiring or using resources in an organization
D) is prepared for the use of department heads and other employees
Answer: B
Diff: 1
Objective: 1
AACSB: Analytical thinking
4) Which of the following would most likely be the user of financial accounting information?
A) factory shift supervisor
B) distribution manager
C) current shareholder
D) department manager
Answer: C
Diff: 1
Objective: 1
AACSB: Analytical thinking
