Test Bank for Horngren's Accounting The Managerial Chapters, 14E
m m m m m m m m m
by Tracie L. Miller-Nobles,Brenda L. Mattison
m m m m m
Horngren'sm Accounting:m Them Managerialm Chapters,m 14em (Miller-Nobles)
ChaptermM:m1 IntroductionmtomManagerialmAccounting
LearningmObjectivemM:1-1
1) Managerial maccountingmfocuses mon mprovidingminformation mforminternalmplanningmandmcon
trol.mAnswer:m TRUE
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
2) Financialmaccountingmprepares mreports mforminternalmpurposes,mwhereas mmanagerialmaccountingmprov
ides minformation mtomexternalmstakeholders.
Answer:m m FALSE
Explanation:m Themreversemis mtrue.mFinancial maccountingmserves mexternalmstakeholderminformation mne
eds mwhilemmanagerialmaccountingmserves mthemneeds mofmmanagers mandminternalmstaff.
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
3) Financialmstatements mpreparedmforminvestors mandmcreditors moften mincludemforward-
lookingminformation mbecausemtheymmakemdecisions mbasedmon ma mcompany's mfuturemprospects.
Answer:m m FALSE
Explanation:m Financialmstatements mprovidemmostlymhistoricalminformation;mrelevantmandmfaithfullymrepresen
tativeminformation mandmfocusedmon mthempast.
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
4) Managerial maccountingmreportingmbyma mpublicmfirm mis mrequiredmtomfollowmthemrules mofm
GAAP.mAnswer:m FALSE
Explanation:m Managerialmaccountingminformation mis mnotmguidedmbymGAAPmbutmrathermbymthemconceptmofm
usefulness mtommanagementmformdecision mmakingmpurposes.
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
1
,5) Financialmreportingmis mtypicallymmuch mmoremdetailedmthan mmanagerial maccount
ing.mAnswer:m FALSE
Explanation:m Financialmreportingmis mtypicallymless mdetailedmthan mmanagerialmaccountingminformat
ion.mFinancial maccountingmreportingmis musuallymsummarymreports,mpreparedmprimarilymon mthemcom
panymas ma mwhole,musuallymon ma mquarterlymormannualmbasis.
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
6) Managerial maccountingmprovides mfinancial mstatements mthatmreportmresults mofmoperations,mfina
ncialmposition,mandmcash mflows mboth mtommanagers mandmtomexternalmstockholders.
Answer:m m FALSE
Explanation:m Managerialmaccountingmprovides mtheminformation mneededmtomplan mandmcontrolmoperatio
ns mandmthereforemserves mtheminformation mneeds mofminternalmparties msuch mas mmanagers mandmstaff.
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
7) Which mofmthemfollowingmis ma mfocus mofmmanagerialmaccounting?
A) tomgeneratema mcompany's mfinancialmstatements mformtaxmreporting
B) tomprovideminformation mtombusiness mmanagers mtomassistmthem min mcontrollingmtheirmbusinesses
C) tomprovideminformation mtomshareholders mtomassistmthem mwith mtheirminvestmentmdecisions
D) tomensuremthatmthemreports mproducedmforminternalmandmexternalmbusiness mpurposes maremGAAPmcom
pliantmAnswer:m B
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
8) Which mofmthemfollowingmstatements mis mtruemofmmanagerial maccounting?
A) Themexternalmstakeholders mofma mcompanymaremthemprimarymusers mofmmanagerial maccounting.
B) Managerial maccountingminformation mis musedmtomhelpmmanagers mplan,mdirectmandmcontrolmtheirmoperations.
C) An mexternalmauditmbyman mindependentmCPAmis mrequiredmformmanagerial maccountingminformation.
D) Managerial maccountingminformation mmustmcomplymwith mGenerallymAcceptedmAccountingmPrinci
ples.mAnswer:m B
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
2
,9) Managerial maccountingminformation mforma mcompanymis mprimarilymusedmbym .
A) its mcustomers mtomunderstandmthempricingmofmthemproduct
B) its mcreditors mtomunderstandmthemcredibilitymofmthembusiness
C) its memployees mtomplan,mdirectmandmcontrolmoperations
D) its minvestors mtommakemtheirminvestmentmdecisio
ns mAnswer:m C
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
10) Which mofmthemfollowingmstatements mis mtruemofmfinancialmaccounting?
A) Itmprovides minformation mtominvestors mneededmformtheirminvestmentmdecisions.
B) Itmprovides mfuturemfocusedminformation mneededmformmanagingmandmdelegatingmoperations.
C) Itmfocuses mon mdetailedmreports mformparts mofmthemcompanymrathermthan mthemwholemcompany.
D) Itmfocuses mon mplanning,mdirectingmandmcontrollingmday-to-
daymoperations.mAnswer:m A
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
11) Which mofmthemfollowingmis mthemprimarymfocus mofmmanagerial maccounting?
A) providingminformation mthatmmanagers mneedmtommakemoperational mdecisions
B) providingmhistoricalmdata mtominvestors mandmcreditors
C) providingmsummarizedmresults mofmoperations
D) providingminformation mtomcomplymwith mlaws mandmregulations mofmgovernmentmbo
dies mAnswer:m A
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
12) Which mofmthemfollowingmis mthemprimarymfocus mofmfinancialmaccounting?
A) providingminformation mthatmmanagers mneedmtommakemoperational mdecisions
B) providingmsummarizedminformation mon moperationalmresults mtominvestors mandmcreditors
C) providingminformation mtommanagers mtomassistmin mplanning,mdirectingmandmcontrollingmoperations
D) providingmhighlymdetailedminformation mon mproductmlines,mregions,mandmdivisi
ons mAnswer:m B
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
3
, 13) Conniemis manalyzingmthemfinancialmstatements mofmMegaMartmandmBullseyemCompany.mShemwants mtom
investmin monemofmthemcompanies mandmis mtryingmtomdecidemwhich mcompanymhas mthembettermpastmperform
ance.mConnie
is mexaminingm .
A) managerial maccountingminformation
B) financialmaccountingminformation
C) regulatorymaccountingminformation
D) organizational maccountingminformatio
n mAnswer:m B
Explanation:m m Financialmaccountingminformation mis mfocusedmon mexternalmusers mandmpastmperformance.
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
14) Whomis ma mprimarymusermofmmanagerial maccountingminformation?
A) investors
B) companymmanagers
C) creditors
D) governmentmauthoritie
s mAnswer:m B
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
15) Which mofmthemfollowingmstatements mis mtruemofmmanagerialmaccounting?
A) Itmis mrequiredmtomfollowmGAAP.
B) Themfocus mis mon mthemfuture.
C) An mexternalmauditmbyman mindependentmCPAmis mrequiredmformmanagerial maccountingminformation.
D) Summarymreports marempreparedmprimarilymformthemcompanymas ma mw
hole.mAnswer:m B
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
4
m m m m m m m m m
by Tracie L. Miller-Nobles,Brenda L. Mattison
m m m m m
Horngren'sm Accounting:m Them Managerialm Chapters,m 14em (Miller-Nobles)
ChaptermM:m1 IntroductionmtomManagerialmAccounting
LearningmObjectivemM:1-1
1) Managerial maccountingmfocuses mon mprovidingminformation mforminternalmplanningmandmcon
trol.mAnswer:m TRUE
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
2) Financialmaccountingmprepares mreports mforminternalmpurposes,mwhereas mmanagerialmaccountingmprov
ides minformation mtomexternalmstakeholders.
Answer:m m FALSE
Explanation:m Themreversemis mtrue.mFinancial maccountingmserves mexternalmstakeholderminformation mne
eds mwhilemmanagerialmaccountingmserves mthemneeds mofmmanagers mandminternalmstaff.
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
3) Financialmstatements mpreparedmforminvestors mandmcreditors moften mincludemforward-
lookingminformation mbecausemtheymmakemdecisions mbasedmon ma mcompany's mfuturemprospects.
Answer:m m FALSE
Explanation:m Financialmstatements mprovidemmostlymhistoricalminformation;mrelevantmandmfaithfullymrepresen
tativeminformation mandmfocusedmon mthempast.
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
4) Managerial maccountingmreportingmbyma mpublicmfirm mis mrequiredmtomfollowmthemrules mofm
GAAP.mAnswer:m FALSE
Explanation:m Managerialmaccountingminformation mis mnotmguidedmbymGAAPmbutmrathermbymthemconceptmofm
usefulness mtommanagementmformdecision mmakingmpurposes.
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
1
,5) Financialmreportingmis mtypicallymmuch mmoremdetailedmthan mmanagerial maccount
ing.mAnswer:m FALSE
Explanation:m Financialmreportingmis mtypicallymless mdetailedmthan mmanagerialmaccountingminformat
ion.mFinancial maccountingmreportingmis musuallymsummarymreports,mpreparedmprimarilymon mthemcom
panymas ma mwhole,musuallymon ma mquarterlymormannualmbasis.
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
6) Managerial maccountingmprovides mfinancial mstatements mthatmreportmresults mofmoperations,mfina
ncialmposition,mandmcash mflows mboth mtommanagers mandmtomexternalmstockholders.
Answer:m m FALSE
Explanation:m Managerialmaccountingmprovides mtheminformation mneededmtomplan mandmcontrolmoperatio
ns mandmthereforemserves mtheminformation mneeds mofminternalmparties msuch mas mmanagers mandmstaff.
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
7) Which mofmthemfollowingmis ma mfocus mofmmanagerialmaccounting?
A) tomgeneratema mcompany's mfinancialmstatements mformtaxmreporting
B) tomprovideminformation mtombusiness mmanagers mtomassistmthem min mcontrollingmtheirmbusinesses
C) tomprovideminformation mtomshareholders mtomassistmthem mwith mtheirminvestmentmdecisions
D) tomensuremthatmthemreports mproducedmforminternalmandmexternalmbusiness mpurposes maremGAAPmcom
pliantmAnswer:m B
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
8) Which mofmthemfollowingmstatements mis mtruemofmmanagerial maccounting?
A) Themexternalmstakeholders mofma mcompanymaremthemprimarymusers mofmmanagerial maccounting.
B) Managerial maccountingminformation mis musedmtomhelpmmanagers mplan,mdirectmandmcontrolmtheirmoperations.
C) An mexternalmauditmbyman mindependentmCPAmis mrequiredmformmanagerial maccountingminformation.
D) Managerial maccountingminformation mmustmcomplymwith mGenerallymAcceptedmAccountingmPrinci
ples.mAnswer:m B
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
2
,9) Managerial maccountingminformation mforma mcompanymis mprimarilymusedmbym .
A) its mcustomers mtomunderstandmthempricingmofmthemproduct
B) its mcreditors mtomunderstandmthemcredibilitymofmthembusiness
C) its memployees mtomplan,mdirectmandmcontrolmoperations
D) its minvestors mtommakemtheirminvestmentmdecisio
ns mAnswer:m C
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
10) Which mofmthemfollowingmstatements mis mtruemofmfinancialmaccounting?
A) Itmprovides minformation mtominvestors mneededmformtheirminvestmentmdecisions.
B) Itmprovides mfuturemfocusedminformation mneededmformmanagingmandmdelegatingmoperations.
C) Itmfocuses mon mdetailedmreports mformparts mofmthemcompanymrathermthan mthemwholemcompany.
D) Itmfocuses mon mplanning,mdirectingmandmcontrollingmday-to-
daymoperations.mAnswer:m A
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
11) Which mofmthemfollowingmis mthemprimarymfocus mofmmanagerial maccounting?
A) providingminformation mthatmmanagers mneedmtommakemoperational mdecisions
B) providingmhistoricalmdata mtominvestors mandmcreditors
C) providingmsummarizedmresults mofmoperations
D) providingminformation mtomcomplymwith mlaws mandmregulations mofmgovernmentmbo
dies mAnswer:m A
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
12) Which mofmthemfollowingmis mthemprimarymfocus mofmfinancialmaccounting?
A) providingminformation mthatmmanagers mneedmtommakemoperational mdecisions
B) providingmsummarizedminformation mon moperationalmresults mtominvestors mandmcreditors
C) providingminformation mtommanagers mtomassistmin mplanning,mdirectingmandmcontrollingmoperations
D) providingmhighlymdetailedminformation mon mproductmlines,mregions,mandmdivisi
ons mAnswer:m B
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
3
, 13) Conniemis manalyzingmthemfinancialmstatements mofmMegaMartmandmBullseyemCompany.mShemwants mtom
investmin monemofmthemcompanies mandmis mtryingmtomdecidemwhich mcompanymhas mthembettermpastmperform
ance.mConnie
is mexaminingm .
A) managerial maccountingminformation
B) financialmaccountingminformation
C) regulatorymaccountingminformation
D) organizational maccountingminformatio
n mAnswer:m B
Explanation:m m Financialmaccountingminformation mis mfocusedmon mexternalmusers mandmpastmperformance.
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
14) Whomis ma mprimarymusermofmmanagerial maccountingminformation?
A) investors
B) companymmanagers
C) creditors
D) governmentmauthoritie
s mAnswer:m B
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
15) Which mofmthemfollowingmstatements mis mtruemofmmanagerialmaccounting?
A) Itmis mrequiredmtomfollowmGAAP.
B) Themfocus mis mon mthemfuture.
C) An mexternalmauditmbyman mindependentmCPAmis mrequiredmformmanagerial maccountingminformation.
D) Summarymreports marempreparedmprimarilymformthemcompanymas ma mw
hole.mAnswer:m B
Diff:m1
LO:m m M:1-1
AACSB:m Applicationmofmknowledg
emAICPAmFunctional:m Reporting
PEmQuestionmType:m m Concept
H2:m m Why mIsmManagerial mAccounting mImportant?m(H1)
4
