Test Bank for Horngren's Accounting The Managerial Chapters, 14E by
n n n n n n n n n
Tracie L. Miller-Nobles,Brenda L. Mattison
n n n n n
Horngren'snAccounting:nThenManagerialnChapters,n14en(Miller-Nobles)
ChapternM:n1 IntroductionntonManagerialnAccounting
LearningnObjectivenM:1-1
1) Managerial naccountingnfocuses non nprovidingninformation nforninternalnplanningnandncontrol
.nAnswer:n TRUE
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
2) Financialnaccountingnprepares nreports nforninternalnpurposes,nwhereas nmanagerial naccountingnprovide
s ninformation ntonexternalnstakeholders.
Answer:n n FALSE
Explanation:n Thenreversenis ntrue.nFinancialnaccountingnserves nexternalnstakeholderninformation nneeds
nwhilenmanagerial naccountingnserves nthenneeds nofnmanagers nandninternal nstaff.
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
3) Financialnstatements npreparednforninvestors nandncreditors noften nincludenforward-
lookingninformation nbecausentheynmakendecisions nbasednon na ncompany's nfuturenprospects.
Answer:n n FALSE
Explanation:n Financialnstatements nprovidenmostlynhistoricalninformation;nrelevantnandnfaithfullynrepresentati
veninformation nandnfocusednon nthenpast.
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
4) Managerial naccountingnreportingnbyna npublicnfirm nis nrequiredntonfollownthenrules nofnGAA
P.nAnswer:n FALSE
Explanation:n Managerialnaccountingninformation nis nnotnguidednbynGAAPnbutnrathernbynthenconceptnofnuseful
ness ntonmanagementnforndecision nmakingnpurposes.
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
1
,5) Financialnreportingnis ntypicallynmuch nmorendetailednthan nmanagerial naccounting
.nAnswer:n FALSE
Explanation:n Financialnreportingnis ntypicallynless ndetailednthan nmanagerial naccountingninformation.
nFinancialnaccountingnreportingnis nusuallynsummarynreports,npreparednprimarilynon nthencompanynas
na nwhole,nusuallynon na nquarterlynornannual nbasis.
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
6) Managerial naccountingnprovides nfinancial nstatements nthatnreportnresults nofnoperations,nfinancia
lnposition,nandncash nflows nboth ntonmanagers nandntonexternalnstockholders.
Answer:n n FALSE
Explanation:n Managerialnaccountingnprovides ntheninformation nneededntonplan nandncontrolnoperations na
ndnthereforenserves ntheninformation nneeds nofninternalnparties nsuch nas nmanagers nandnstaff.
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
7) Which nofnthenfollowingnis na nfocus nofnmanagerialnaccounting?
A) tongeneratena ncompany's nfinancialnstatements nforntaxnreporting
B) tonprovideninformation ntonbusiness nmanagers ntonassistnthem nin ncontrollingntheirnbusinesses
C) tonprovideninformation ntonshareholders ntonassistnthem nwith ntheirninvestmentndecisions
D) tonensurenthatnthenreports nproducednforninternalnandnexternalnbusiness npurposes narenGAAPncomplian
tnAnswer:n B
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
8) Which nofnthenfollowingnstatements nis ntruenofnmanagerialnaccounting?
A) Thenexternalnstakeholders nofna ncompanynarenthenprimarynusers nofnmanagerial naccounting.
B) Managerial naccountingninformation nis nusedntonhelpnmanagers nplan,ndirectnandncontrolntheirnoperations.
C) An nexternalnauditnbynan nindependentnCPAnis nrequirednfornmanagerial naccountingninformation.
D) Managerial naccountingninformation nmustncomplynwith nGenerallynAcceptednAccountingnPrinciples
.nAnswer:n B
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
2
,9) Managerial naccountingninformation nforna ncompanynis nprimarilynusednbyn .
A) its ncustomers ntonunderstandnthenpricingnofnthenproduct
B) its ncreditors ntonunderstandnthencredibilitynofnthenbusiness
C) its nemployees ntonplan,ndirectnandncontrolnoperations
D) its ninvestors ntonmakentheirninvestmentndecision
s nAnswer:n C
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
10) Which nofnthenfollowingnstatements nis ntruenofnfinancialnaccounting?
A) Itnprovides ninformation ntoninvestors nneedednforntheirninvestmentndecisions.
B) Itnprovides nfuturenfocusedninformation nneedednfornmanagingnandndelegatingnoperations.
C) Itnfocuses non ndetailednreports nfornparts nofnthencompanynrathernthan nthenwholencompany.
D) Itnfocuses non nplanning,ndirectingnandncontrollingnday-to-
daynoperations.nAnswer:n A
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
11) Which nofnthenfollowingnis nthenprimarynfocus nofnmanagerialnaccounting?
A) providingninformation nthatnmanagers nneedntonmakenoperationalndecisions
B) providingnhistoricalndata ntoninvestors nandncreditors
C) providingnsummarizednresults nofnoperations
D) providingninformation ntoncomplynwith nlaws nandnregulations nofngovernmentnbodie
s nAnswer:n A
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
12) Which nofnthenfollowingnis nthenprimarynfocus nofnfinancialnaccounting?
A) providingninformation nthatnmanagers nneedntonmakenoperationalndecisions
B) providingnsummarizedninformation non noperationalnresults ntoninvestors nandncreditors
C) providingninformation ntonmanagers ntonassistnin nplanning,ndirectingnandncontrollingnoperations
D) providingnhighlyndetailedninformation non nproductnlines,nregions,nandndivision
s nAnswer:n B
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
3
, 13) Connienis nanalyzingnthenfinancialnstatements nofnMegaMartnandnBullseyenCompany.nShenwants ntoninve
stnin nonenofnthencompanies nandnis ntryingntondecidenwhich ncompanynhas nthenbetternpastnperformance.nCon
nie
is nexaminingn .
A) managerial naccountingninformation
B) financialnaccountingninformation
C) regulatorynaccountingninformation
D) organizational naccountingninformation
nAnswer:n B
Explanation:n n Financialnaccountingninformation nis nfocusednon nexternalnusers nandnpastnperformance.
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
14) Whonis na nprimarynusernofnmanagerialnaccountingninformation?
A) investors
B) companynmanagers
C) creditors
D) governmentnauthorities
nAnswer:n B
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
15) Which nofnthenfollowingnstatements nis ntruenofnmanagerialnaccounting?
A) Itnis nrequiredntonfollownGAAP.
B) Thenfocus nis non nthenfuture.
C) An nexternalnauditnbynan nindependentnCPAnis nrequirednfornmanagerial naccountingninformation.
D) Summarynreports narenpreparednprimarilynfornthencompanynas na nwhole
.nAnswer:n B
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
4
n n n n n n n n n
Tracie L. Miller-Nobles,Brenda L. Mattison
n n n n n
Horngren'snAccounting:nThenManagerialnChapters,n14en(Miller-Nobles)
ChapternM:n1 IntroductionntonManagerialnAccounting
LearningnObjectivenM:1-1
1) Managerial naccountingnfocuses non nprovidingninformation nforninternalnplanningnandncontrol
.nAnswer:n TRUE
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
2) Financialnaccountingnprepares nreports nforninternalnpurposes,nwhereas nmanagerial naccountingnprovide
s ninformation ntonexternalnstakeholders.
Answer:n n FALSE
Explanation:n Thenreversenis ntrue.nFinancialnaccountingnserves nexternalnstakeholderninformation nneeds
nwhilenmanagerial naccountingnserves nthenneeds nofnmanagers nandninternal nstaff.
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
3) Financialnstatements npreparednforninvestors nandncreditors noften nincludenforward-
lookingninformation nbecausentheynmakendecisions nbasednon na ncompany's nfuturenprospects.
Answer:n n FALSE
Explanation:n Financialnstatements nprovidenmostlynhistoricalninformation;nrelevantnandnfaithfullynrepresentati
veninformation nandnfocusednon nthenpast.
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
4) Managerial naccountingnreportingnbyna npublicnfirm nis nrequiredntonfollownthenrules nofnGAA
P.nAnswer:n FALSE
Explanation:n Managerialnaccountingninformation nis nnotnguidednbynGAAPnbutnrathernbynthenconceptnofnuseful
ness ntonmanagementnforndecision nmakingnpurposes.
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
1
,5) Financialnreportingnis ntypicallynmuch nmorendetailednthan nmanagerial naccounting
.nAnswer:n FALSE
Explanation:n Financialnreportingnis ntypicallynless ndetailednthan nmanagerial naccountingninformation.
nFinancialnaccountingnreportingnis nusuallynsummarynreports,npreparednprimarilynon nthencompanynas
na nwhole,nusuallynon na nquarterlynornannual nbasis.
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
6) Managerial naccountingnprovides nfinancial nstatements nthatnreportnresults nofnoperations,nfinancia
lnposition,nandncash nflows nboth ntonmanagers nandntonexternalnstockholders.
Answer:n n FALSE
Explanation:n Managerialnaccountingnprovides ntheninformation nneededntonplan nandncontrolnoperations na
ndnthereforenserves ntheninformation nneeds nofninternalnparties nsuch nas nmanagers nandnstaff.
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
7) Which nofnthenfollowingnis na nfocus nofnmanagerialnaccounting?
A) tongeneratena ncompany's nfinancialnstatements nforntaxnreporting
B) tonprovideninformation ntonbusiness nmanagers ntonassistnthem nin ncontrollingntheirnbusinesses
C) tonprovideninformation ntonshareholders ntonassistnthem nwith ntheirninvestmentndecisions
D) tonensurenthatnthenreports nproducednforninternalnandnexternalnbusiness npurposes narenGAAPncomplian
tnAnswer:n B
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
8) Which nofnthenfollowingnstatements nis ntruenofnmanagerialnaccounting?
A) Thenexternalnstakeholders nofna ncompanynarenthenprimarynusers nofnmanagerial naccounting.
B) Managerial naccountingninformation nis nusedntonhelpnmanagers nplan,ndirectnandncontrolntheirnoperations.
C) An nexternalnauditnbynan nindependentnCPAnis nrequirednfornmanagerial naccountingninformation.
D) Managerial naccountingninformation nmustncomplynwith nGenerallynAcceptednAccountingnPrinciples
.nAnswer:n B
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
2
,9) Managerial naccountingninformation nforna ncompanynis nprimarilynusednbyn .
A) its ncustomers ntonunderstandnthenpricingnofnthenproduct
B) its ncreditors ntonunderstandnthencredibilitynofnthenbusiness
C) its nemployees ntonplan,ndirectnandncontrolnoperations
D) its ninvestors ntonmakentheirninvestmentndecision
s nAnswer:n C
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
10) Which nofnthenfollowingnstatements nis ntruenofnfinancialnaccounting?
A) Itnprovides ninformation ntoninvestors nneedednforntheirninvestmentndecisions.
B) Itnprovides nfuturenfocusedninformation nneedednfornmanagingnandndelegatingnoperations.
C) Itnfocuses non ndetailednreports nfornparts nofnthencompanynrathernthan nthenwholencompany.
D) Itnfocuses non nplanning,ndirectingnandncontrollingnday-to-
daynoperations.nAnswer:n A
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
11) Which nofnthenfollowingnis nthenprimarynfocus nofnmanagerialnaccounting?
A) providingninformation nthatnmanagers nneedntonmakenoperationalndecisions
B) providingnhistoricalndata ntoninvestors nandncreditors
C) providingnsummarizednresults nofnoperations
D) providingninformation ntoncomplynwith nlaws nandnregulations nofngovernmentnbodie
s nAnswer:n A
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
12) Which nofnthenfollowingnis nthenprimarynfocus nofnfinancialnaccounting?
A) providingninformation nthatnmanagers nneedntonmakenoperationalndecisions
B) providingnsummarizedninformation non noperationalnresults ntoninvestors nandncreditors
C) providingninformation ntonmanagers ntonassistnin nplanning,ndirectingnandncontrollingnoperations
D) providingnhighlyndetailedninformation non nproductnlines,nregions,nandndivision
s nAnswer:n B
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
3
, 13) Connienis nanalyzingnthenfinancialnstatements nofnMegaMartnandnBullseyenCompany.nShenwants ntoninve
stnin nonenofnthencompanies nandnis ntryingntondecidenwhich ncompanynhas nthenbetternpastnperformance.nCon
nie
is nexaminingn .
A) managerial naccountingninformation
B) financialnaccountingninformation
C) regulatorynaccountingninformation
D) organizational naccountingninformation
nAnswer:n B
Explanation:n n Financialnaccountingninformation nis nfocusednon nexternalnusers nandnpastnperformance.
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
14) Whonis na nprimarynusernofnmanagerialnaccountingninformation?
A) investors
B) companynmanagers
C) creditors
D) governmentnauthorities
nAnswer:n B
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
15) Which nofnthenfollowingnstatements nis ntruenofnmanagerialnaccounting?
A) Itnis nrequiredntonfollownGAAP.
B) Thenfocus nis non nthenfuture.
C) An nexternalnauditnbynan nindependentnCPAnis nrequirednfornmanagerial naccountingninformation.
D) Summarynreports narenpreparednprimarilynfornthencompanynas na nwhole
.nAnswer:n B
Diff:n1
LO:n n M:1-1
AACSB:n Applicationnofnknowledge
nAICPAnFunctional:n Reporting
PEnQuestionnType:n n Concept
H2:n n Why nIsnManagerial nAccounting nImportant?n(H1)
4
