DOWNLOAD THE Test Bank for Horngrens Financial and ManagerialAccou
t t t t t t t t t
nting The Managerial Chapters 7th Edition Nobles
t t t t t t
FinancialtandtManagerialtAccounting:tManagerialtChapters,t7et(Miller-
Nobles)tChaptertM:1 IntroductionttotManagerialtAccounting
LearningtObjectivetM:1-1
1) Managerialtaccountingtfocusestontprovidingtinformationtfortinternaltplanningtandtcontrol.tA
nswer:t TRUE
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
2) Financialtaccountingtpreparestreportstfortinternaltpurposes,twhereastmanagerialtaccountingtprovidestin
formationttotexternaltstakeholders.
Answer:t FALSE
Explanation:tThetreversetisttrue.tFinancialtaccountingtservestexternaltstakeholdertinformationtneedstwhile
tmanagerialt accountingt servestthetneedstoft managerstandtinternaltstaff.
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
3) Financialtstatementstpreparedtfortinvestorstandtcreditorstoftentincludetforward-
lookingtinformationtbecausettheytmaketdecisionstbasedtontatcompany'stfuturetprospects.
Answer:t FALSE
Explanation:tFinancialtstatementstprovidetmostlythistoricaltinformation;trelevanttandtfaithfullytrepresentativ
etinformationtandtfocusedtontthetpast.
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
4) ManagerialtaccountingtreportingtbytatpublictfirmtistrequiredttotfollowtthetrulestoftGAAP.tAn
swer:t FALSE
Explanation:tManagerialtaccountingtinformationtistnottguidedtbytGAAPtbuttrathertbytthetconcepttoftusefulne
ssttotmanagementtfortdecisiontmakingtpurposes.
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
1
Copyrightt©t2021tPearsontEducation,tInc.
mynursytest.store
,DOWNLOAD THE Test Bank for Horngrens Financial and ManagerialAccou
t t t t t t t t t
nting The Managerial Chapters 7th Edition Nobles
t t t t t t
5) Financialtreportingtisttypicallytmuchtmoretdetailedtthantmanagerialtaccounting.tA
nswer:t FALSE
Explanation:tFinancialtreportingtisttypicallytlesstdetailedtthantmanagerialtaccountingtinformation.tFin
ancialtaccountingtreportingtistusuallytsummarytreports,tpreparedtprimarilytontthetcompanytastatwhole
,tusuallytontatquarterlytortannualtbasis.
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
6) Managerialtaccountingtprovidestfinancialtstatementstthattreporttresultstoftoperations,tfinancialtp
osition,tandtcashtflowstbothttotmanagerstandttotexternaltstockholders.
Answer:t FALSE
Explanation:tManagerialtaccountingtprovidestthetinformationtneededttotplantandtcontroltoperationstandtt
hereforetservestthetinformationtneedstoftinternaltpartiestsuchtastmanagerstandtstaff.
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
7) Whichtoftthetfollowingtistatfocustoftmanagerialtaccounting?
A) totgeneratetatcompany'stfinancialtstatementstforttaxtreporting
B) totprovidetinformationttotbusinesstmanagersttotassisttthemtintcontrollingttheirtbusinesses
C) totprovidetinformationttotshareholdersttotassisttthemtwithttheirtinvestmenttdecisions
D) totensuretthattthetreportstproducedtfortinternaltandtexternaltbusinesstpurposestaretGAAPtcomplianttAn
swer:t B
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
8) Whichtoftthetfollowingtstatementstisttruetoftmanagerialtaccounting?
A) Thetexternaltstakeholderstoftatcompanytaretthetprimarytuserstoftmanagerialtaccounting.
B) Managerialtaccountingtinformationtistusedttothelptmanagerstplan,tdirecttandtcontrolttheirtoperations.
C) AntexternaltaudittbytantindependenttCPAtistrequiredtfortmanagerialtaccountingtinformation.
D) ManagerialtaccountingtinformationtmusttcomplytwithtGenerallytAcceptedtAccountingtPrinciples.tA
nswer:t B
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
2
Copyrightt©t2021tPearsontEducation,tInc.
mynursytest.store
,DOWNLOAD THE Test Bank for Horngrens Financial and ManagerialAccou
t t t t t t t t t
nting The Managerial Chapters 7th Edition Nobles
t t t t t t
9) Managerialtaccountingtinformationtfortatcompanytistprimarilytusedtby .
A) itstcustomersttotunderstandtthetpricingtoftthetproduct
B) itstcreditorsttotunderstandtthetcredibilitytoftthetbusiness
C) itstemployeesttotplan,tdirecttandtcontroltoperations
D) itstinvestorsttotmakettheirtinvestmenttdecisionst
Answer:t C
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
10) Whichtoftthetfollowingtstatementstisttruetoftfinancialtaccounting?
A) Ittprovidestinformationttotinvestorstneededtforttheirtinvestmenttdecisions.
B) Ittprovidestfuturetfocusedtinformationtneededtfortmanagingtandtdelegatingtoperations.
C) Ittfocusestontdetailedtreportstfortpartstoftthetcompanytrathertthantthetwholetcompany.
D) Ittfocusestontplanning,tdirectingtandtcontrollingtday-to-
daytoperations.tAnswer:t A
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
11) Whichtoftthetfollowingtistthetprimarytfocustoftmanagerialtaccounting?
A) providingtinformationtthattmanagerstneedttotmaketoperationaltdecisions
B) providingthistoricaltdatattotinvestorstandtcreditors
C) providingtsummarizedtresultstoftoperations
D) providingtinformationttotcomplytwithtlawstandtregulationstoftgovernmenttbodiestA
nswer:t A
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
12) Whichtoftthetfollowingtistthetprimarytfocustoftfinancialtaccounting?
A) providingtinformationtthattmanagerstneedttotmaketoperationaltdecisions
B) providingtsummarizedtinformationtontoperationaltresultsttotinvestorstandtcreditors
C) providingtinformationttotmanagersttotassisttintplanning,tdirectingtandtcontrollingtoperations
D) providingthighlytdetailedtinformationtontproducttlines,tregions,tandtdivisionstA
nswer:t B
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
3
Copyrightt©t2021tPearsontEducation,tInc.
mynursytest.store
, DOWNLOAD THE Test Bank for Horngrens Financial and ManagerialAccou
t t t t t t t t t
nting The Managerial Chapters 7th Edition Nobles
t t t t t t
13) ConnietistanalyzingtthetfinancialtstatementstoftMegaMarttandtBullseyetCompany.tShetwantsttotinves
ttintonetoftthetcompaniestandtisttryingttotdecidetwhichtcompanythastthetbettertpasttperformance.tConnieti
stexamining .
A) managerialtaccountingtinformation
B) financialtaccountingtinformation
C) regulatorytaccountingtinformation
D) organizationaltaccountingtinformationt
Answer:t B
Explanation:t Financialtaccountingtinformationtistfocusedtontexternaltuserstandtpasttperformance.
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
14) Whotistatprimarytusertoftmanagerialtaccountingtinformation?
A) investors
B) companytmanagers
C) creditors
D) governmenttauthoritiest
Answer:t B
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
15) Whichtoftthetfollowingtstatementstisttruetoftmanagerialtaccounting?
A) IttistrequiredttotfollowtGAAP.
B) Thetfocustistontthetfuture.
C) AntexternaltaudittbytantindependenttCPAtistrequiredtfortmanagerialtaccountingtinformation.
D) Summarytreportstaretpreparedtprimarilytfortthetcompanytastatwhole.tA
nswer:t B
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
4
Copyrightt©t2021tPearsontEducation,tInc.
mynursytest.store
t t t t t t t t t
nting The Managerial Chapters 7th Edition Nobles
t t t t t t
FinancialtandtManagerialtAccounting:tManagerialtChapters,t7et(Miller-
Nobles)tChaptertM:1 IntroductionttotManagerialtAccounting
LearningtObjectivetM:1-1
1) Managerialtaccountingtfocusestontprovidingtinformationtfortinternaltplanningtandtcontrol.tA
nswer:t TRUE
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
2) Financialtaccountingtpreparestreportstfortinternaltpurposes,twhereastmanagerialtaccountingtprovidestin
formationttotexternaltstakeholders.
Answer:t FALSE
Explanation:tThetreversetisttrue.tFinancialtaccountingtservestexternaltstakeholdertinformationtneedstwhile
tmanagerialt accountingt servestthetneedstoft managerstandtinternaltstaff.
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
3) Financialtstatementstpreparedtfortinvestorstandtcreditorstoftentincludetforward-
lookingtinformationtbecausettheytmaketdecisionstbasedtontatcompany'stfuturetprospects.
Answer:t FALSE
Explanation:tFinancialtstatementstprovidetmostlythistoricaltinformation;trelevanttandtfaithfullytrepresentativ
etinformationtandtfocusedtontthetpast.
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
4) ManagerialtaccountingtreportingtbytatpublictfirmtistrequiredttotfollowtthetrulestoftGAAP.tAn
swer:t FALSE
Explanation:tManagerialtaccountingtinformationtistnottguidedtbytGAAPtbuttrathertbytthetconcepttoftusefulne
ssttotmanagementtfortdecisiontmakingtpurposes.
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
1
Copyrightt©t2021tPearsontEducation,tInc.
mynursytest.store
,DOWNLOAD THE Test Bank for Horngrens Financial and ManagerialAccou
t t t t t t t t t
nting The Managerial Chapters 7th Edition Nobles
t t t t t t
5) Financialtreportingtisttypicallytmuchtmoretdetailedtthantmanagerialtaccounting.tA
nswer:t FALSE
Explanation:tFinancialtreportingtisttypicallytlesstdetailedtthantmanagerialtaccountingtinformation.tFin
ancialtaccountingtreportingtistusuallytsummarytreports,tpreparedtprimarilytontthetcompanytastatwhole
,tusuallytontatquarterlytortannualtbasis.
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
6) Managerialtaccountingtprovidestfinancialtstatementstthattreporttresultstoftoperations,tfinancialtp
osition,tandtcashtflowstbothttotmanagerstandttotexternaltstockholders.
Answer:t FALSE
Explanation:tManagerialtaccountingtprovidestthetinformationtneededttotplantandtcontroltoperationstandtt
hereforetservestthetinformationtneedstoftinternaltpartiestsuchtastmanagerstandtstaff.
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
7) Whichtoftthetfollowingtistatfocustoftmanagerialtaccounting?
A) totgeneratetatcompany'stfinancialtstatementstforttaxtreporting
B) totprovidetinformationttotbusinesstmanagersttotassisttthemtintcontrollingttheirtbusinesses
C) totprovidetinformationttotshareholdersttotassisttthemtwithttheirtinvestmenttdecisions
D) totensuretthattthetreportstproducedtfortinternaltandtexternaltbusinesstpurposestaretGAAPtcomplianttAn
swer:t B
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
8) Whichtoftthetfollowingtstatementstisttruetoftmanagerialtaccounting?
A) Thetexternaltstakeholderstoftatcompanytaretthetprimarytuserstoftmanagerialtaccounting.
B) Managerialtaccountingtinformationtistusedttothelptmanagerstplan,tdirecttandtcontrolttheirtoperations.
C) AntexternaltaudittbytantindependenttCPAtistrequiredtfortmanagerialtaccountingtinformation.
D) ManagerialtaccountingtinformationtmusttcomplytwithtGenerallytAcceptedtAccountingtPrinciples.tA
nswer:t B
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
2
Copyrightt©t2021tPearsontEducation,tInc.
mynursytest.store
,DOWNLOAD THE Test Bank for Horngrens Financial and ManagerialAccou
t t t t t t t t t
nting The Managerial Chapters 7th Edition Nobles
t t t t t t
9) Managerialtaccountingtinformationtfortatcompanytistprimarilytusedtby .
A) itstcustomersttotunderstandtthetpricingtoftthetproduct
B) itstcreditorsttotunderstandtthetcredibilitytoftthetbusiness
C) itstemployeesttotplan,tdirecttandtcontroltoperations
D) itstinvestorsttotmakettheirtinvestmenttdecisionst
Answer:t C
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
10) Whichtoftthetfollowingtstatementstisttruetoftfinancialtaccounting?
A) Ittprovidestinformationttotinvestorstneededtforttheirtinvestmenttdecisions.
B) Ittprovidestfuturetfocusedtinformationtneededtfortmanagingtandtdelegatingtoperations.
C) Ittfocusestontdetailedtreportstfortpartstoftthetcompanytrathertthantthetwholetcompany.
D) Ittfocusestontplanning,tdirectingtandtcontrollingtday-to-
daytoperations.tAnswer:t A
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
11) Whichtoftthetfollowingtistthetprimarytfocustoftmanagerialtaccounting?
A) providingtinformationtthattmanagerstneedttotmaketoperationaltdecisions
B) providingthistoricaltdatattotinvestorstandtcreditors
C) providingtsummarizedtresultstoftoperations
D) providingtinformationttotcomplytwithtlawstandtregulationstoftgovernmenttbodiestA
nswer:t A
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
12) Whichtoftthetfollowingtistthetprimarytfocustoftfinancialtaccounting?
A) providingtinformationtthattmanagerstneedttotmaketoperationaltdecisions
B) providingtsummarizedtinformationtontoperationaltresultsttotinvestorstandtcreditors
C) providingtinformationttotmanagersttotassisttintplanning,tdirectingtandtcontrollingtoperations
D) providingthighlytdetailedtinformationtontproducttlines,tregions,tandtdivisionstA
nswer:t B
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
3
Copyrightt©t2021tPearsontEducation,tInc.
mynursytest.store
, DOWNLOAD THE Test Bank for Horngrens Financial and ManagerialAccou
t t t t t t t t t
nting The Managerial Chapters 7th Edition Nobles
t t t t t t
13) ConnietistanalyzingtthetfinancialtstatementstoftMegaMarttandtBullseyetCompany.tShetwantsttotinves
ttintonetoftthetcompaniestandtisttryingttotdecidetwhichtcompanythastthetbettertpasttperformance.tConnieti
stexamining .
A) managerialtaccountingtinformation
B) financialtaccountingtinformation
C) regulatorytaccountingtinformation
D) organizationaltaccountingtinformationt
Answer:t B
Explanation:t Financialtaccountingtinformationtistfocusedtontexternaltuserstandtpasttperformance.
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
14) Whotistatprimarytusertoftmanagerialtaccountingtinformation?
A) investors
B) companytmanagers
C) creditors
D) governmenttauthoritiest
Answer:t B
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
15) Whichtoftthetfollowingtstatementstisttruetoftmanagerialtaccounting?
A) IttistrequiredttotfollowtGAAP.
B) Thetfocustistontthetfuture.
C) AntexternaltaudittbytantindependenttCPAtistrequiredtfortmanagerialtaccountingtinformation.
D) Summarytreportstaretpreparedtprimarilytfortthetcompanytastatwhole.tA
nswer:t B
Diff:t1
LO:t M:1-1
AACSB:t Applicationtoftknowledget
AICPAtFunctional:t Reporting
PEtQuestiontType:t Concept
H2:t WhytIstManagerialtAccountingtImportant?t(H1)
4
Copyrightt©t2021tPearsontEducation,tInc.
mynursytest.store
