TEST BANK
S
FINANCIAL AND MANAGERIAL ACCOUNTING:
S S S
MANAGERIAL CHAPTERS, 7TH EDITION
S S S
(MILLER-NOBLES) CHAPTER 1-11
S S
CHAPTER M:1
s
, INTRODUCTION TO MANAGERIAL ACCOUNTING
s s s
LearningsObjectivesM:1-1
1) Managerialsaccountingsfocusessonsprovidingsinformationsforsinternalsplanningsandscontrol.sA
nswer:s TRUE
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)
2) Financialsaccountingspreparessreportssforsinternalspurposes,swhereassmanagerialsaccountingsprovidessin
formationstosexternalsstakeholders.
Answer:s FALSE
Explanation:sThesreversesisstrue.sFinancialsaccountingsservessexternalsstakeholdersinformationsneedsswhile
smanagerialsaccountingsservessthesneedssofsmanagerssandsinternalsstaff.
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)
3) Financialsstatementsspreparedsforsinvestorssandscreditorssoftensincludesforward-
lookingsinformationsbecausestheysmakesdecisionssbasedsonsascompany'ssfuturesprospects.
Answer:s FALSE
Explanation:sFinancialsstatementssprovidesmostlyshistoricalsinformation;srelevantsandsfaithfullysrepresentativ
esinformationsandsfocusedsonsthespast.
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)
4) ManagerialsaccountingsreportingsbysaspublicsfirmsissrequiredstosfollowsthesrulessofsGAAP.sA
nswer:s FALSE
Explanation:sManagerialsaccountingsinformationsissnotsguidedsbysGAAPsbutsrathersbysthesconceptsofsuseful
nessstosmanagementsforsdecisionsmakingspurposes.
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
,H2:s WhysIssManagerialsAccountingsImportant?s(H1)
5) Financialsreportingsisstypicallysmuchsmoresdetailedsthansmanagerialsaccounting.sA
nswer:s FALSE
Explanation:sFinancialsreportingsisstypicallyslesssdetailedsthansmanagerialsaccountingsinformation.sFin
ancialsaccountingsreportingsissusuallyssummarysreports,spreparedsprimarilysonsthescompanysassaswhol
e,susuallysonsasquarterlysorsannualsbasis.
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)
6) Managerialsaccountingsprovidessfinancialsstatementssthatsreportsresultssofsoperations,sfinancialsp
osition,sandscashsflowssbothstosmanagerssandstosexternalsstockholders.
Answer:s FALSE
Explanation:s Managerialsaccountingsprovidessthesinformationsneededstosplansandscontrolsoperationssandsth
ereforesservessthesinformationsneedssofsinternalspartiesssuchsassmanagerssandsstaff.
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)
7) Whichsofsthesfollowingsissasfocussofsmanagerialsaccounting?
A) tosgeneratesascompany'ssfinancialsstatementssforstaxsreporting
B) tosprovidesinformationstosbusinesssmanagersstosassiststhemsinscontrollingstheirsbusinesses
C) tosprovidesinformationstosshareholdersstosassiststhemswithstheirsinvestmentsdecisions
D) tosensuresthatsthesreportssproducedsforsinternalsandsexternalsbusinessspurposessaresGAAPscompliantsA
nswer:s B
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)
8) Whichsofsthesfollowingsstatementssisstruesofsmanagerialsaccounting?
A) Thesexternalsstakeholderssofsascompanysaresthesprimarysuserssofsmanagerialsaccounting.
B) Managerialsaccountingsinformationsissusedstoshelpsmanagerssplan,sdirectsandscontrolstheirsoperations.
C) AnsexternalsauditsbysansindependentsCPAsissrequiredsforsmanagerialsaccountingsinformation.
D) ManagerialsaccountingsinformationsmustscomplyswithsGenerallysAcceptedsAccountingsPrinciples.sAns
wer:s B
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
, PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)
9) Managerialsaccountingsinformationsforsascompanysissprimarilysusedsby .
A) itsscustomersstosunderstandsthespricingsofsthesproduct
B) itsscreditorsstosunderstandsthescredibilitysofsthesbusiness
C) itssemployeesstosplan,sdirectsandscontrolsoperations
D) itssinvestorsstosmakestheirsinvestmentsdecisionss
Answer:s C
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)
10) Whichsofsthesfollowingsstatementssisstruesofsfinancialsaccounting?
A) Itsprovidessinformationstosinvestorssneededsforstheirsinvestmentsdecisions.
B) Itsprovidessfuturesfocusedsinformationsneededsforsmanagingsandsdelegatingsoperations.
C) Itsfocusessonsdetailedsreportssforspartssofsthescompanysrathersthanstheswholescompany.
D) Itsfocusessonsplanning,sdirectingsandscontrollingsday-to-
daysoperations.sAnswer:s A
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)
11) Whichsofsthesfollowingsissthesprimarysfocussofsmanagerialsaccounting?
A) providingsinformationsthatsmanagerssneedstosmakesoperationalsdecisions
B) providingshistoricalsdatastosinvestorssandscreditors
C) providingssummarizedsresultssofsoperations
D) providingsinformationstoscomplyswithslawssandsregulationssofsgovernmentsbodiessA
nswer:s A
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)
12) Whichsofsthesfollowingsissthesprimarysfocussofsfinancialsaccounting?
A) providingsinformationsthatsmanagerssneedstosmakesoperationalsdecisions
B) providingssummarizedsinformationsonsoperationalsresultsstosinvestorssandscreditors
C) providingsinformationstosmanagersstosassistsinsplanning,sdirectingsandscontrollingsoperations
D) providingshighlysdetailedsinformationsonsproductslines,sregions,sandsdivisionssA
nswer:s B
Diff:s1
LO:s M:1-1
AACSB:s Applicationsofsknowledge
S
FINANCIAL AND MANAGERIAL ACCOUNTING:
S S S
MANAGERIAL CHAPTERS, 7TH EDITION
S S S
(MILLER-NOBLES) CHAPTER 1-11
S S
CHAPTER M:1
s
, INTRODUCTION TO MANAGERIAL ACCOUNTING
s s s
LearningsObjectivesM:1-1
1) Managerialsaccountingsfocusessonsprovidingsinformationsforsinternalsplanningsandscontrol.sA
nswer:s TRUE
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)
2) Financialsaccountingspreparessreportssforsinternalspurposes,swhereassmanagerialsaccountingsprovidessin
formationstosexternalsstakeholders.
Answer:s FALSE
Explanation:sThesreversesisstrue.sFinancialsaccountingsservessexternalsstakeholdersinformationsneedsswhile
smanagerialsaccountingsservessthesneedssofsmanagerssandsinternalsstaff.
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)
3) Financialsstatementsspreparedsforsinvestorssandscreditorssoftensincludesforward-
lookingsinformationsbecausestheysmakesdecisionssbasedsonsascompany'ssfuturesprospects.
Answer:s FALSE
Explanation:sFinancialsstatementssprovidesmostlyshistoricalsinformation;srelevantsandsfaithfullysrepresentativ
esinformationsandsfocusedsonsthespast.
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)
4) ManagerialsaccountingsreportingsbysaspublicsfirmsissrequiredstosfollowsthesrulessofsGAAP.sA
nswer:s FALSE
Explanation:sManagerialsaccountingsinformationsissnotsguidedsbysGAAPsbutsrathersbysthesconceptsofsuseful
nessstosmanagementsforsdecisionsmakingspurposes.
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
,H2:s WhysIssManagerialsAccountingsImportant?s(H1)
5) Financialsreportingsisstypicallysmuchsmoresdetailedsthansmanagerialsaccounting.sA
nswer:s FALSE
Explanation:sFinancialsreportingsisstypicallyslesssdetailedsthansmanagerialsaccountingsinformation.sFin
ancialsaccountingsreportingsissusuallyssummarysreports,spreparedsprimarilysonsthescompanysassaswhol
e,susuallysonsasquarterlysorsannualsbasis.
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)
6) Managerialsaccountingsprovidessfinancialsstatementssthatsreportsresultssofsoperations,sfinancialsp
osition,sandscashsflowssbothstosmanagerssandstosexternalsstockholders.
Answer:s FALSE
Explanation:s Managerialsaccountingsprovidessthesinformationsneededstosplansandscontrolsoperationssandsth
ereforesservessthesinformationsneedssofsinternalspartiesssuchsassmanagerssandsstaff.
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)
7) Whichsofsthesfollowingsissasfocussofsmanagerialsaccounting?
A) tosgeneratesascompany'ssfinancialsstatementssforstaxsreporting
B) tosprovidesinformationstosbusinesssmanagersstosassiststhemsinscontrollingstheirsbusinesses
C) tosprovidesinformationstosshareholdersstosassiststhemswithstheirsinvestmentsdecisions
D) tosensuresthatsthesreportssproducedsforsinternalsandsexternalsbusinessspurposessaresGAAPscompliantsA
nswer:s B
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)
8) Whichsofsthesfollowingsstatementssisstruesofsmanagerialsaccounting?
A) Thesexternalsstakeholderssofsascompanysaresthesprimarysuserssofsmanagerialsaccounting.
B) Managerialsaccountingsinformationsissusedstoshelpsmanagerssplan,sdirectsandscontrolstheirsoperations.
C) AnsexternalsauditsbysansindependentsCPAsissrequiredsforsmanagerialsaccountingsinformation.
D) ManagerialsaccountingsinformationsmustscomplyswithsGenerallysAcceptedsAccountingsPrinciples.sAns
wer:s B
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
, PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)
9) Managerialsaccountingsinformationsforsascompanysissprimarilysusedsby .
A) itsscustomersstosunderstandsthespricingsofsthesproduct
B) itsscreditorsstosunderstandsthescredibilitysofsthesbusiness
C) itssemployeesstosplan,sdirectsandscontrolsoperations
D) itssinvestorsstosmakestheirsinvestmentsdecisionss
Answer:s C
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)
10) Whichsofsthesfollowingsstatementssisstruesofsfinancialsaccounting?
A) Itsprovidessinformationstosinvestorssneededsforstheirsinvestmentsdecisions.
B) Itsprovidessfuturesfocusedsinformationsneededsforsmanagingsandsdelegatingsoperations.
C) Itsfocusessonsdetailedsreportssforspartssofsthescompanysrathersthanstheswholescompany.
D) Itsfocusessonsplanning,sdirectingsandscontrollingsday-to-
daysoperations.sAnswer:s A
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)
11) Whichsofsthesfollowingsissthesprimarysfocussofsmanagerialsaccounting?
A) providingsinformationsthatsmanagerssneedstosmakesoperationalsdecisions
B) providingshistoricalsdatastosinvestorssandscreditors
C) providingssummarizedsresultssofsoperations
D) providingsinformationstoscomplyswithslawssandsregulationssofsgovernmentsbodiessA
nswer:s A
Diff:s1
LO:s M:1-1
AACSB:s ApplicationsofsknowledgesAI
CPAsFunctional:s Reporting
PEsQuestionsType:s Concept
H2:s WhysIssManagerialsAccountingsImportant?s(H1)
12) Whichsofsthesfollowingsissthesprimarysfocussofsfinancialsaccounting?
A) providingsinformationsthatsmanagerssneedstosmakesoperationalsdecisions
B) providingssummarizedsinformationsonsoperationalsresultsstosinvestorssandscreditors
C) providingsinformationstosmanagersstosassistsinsplanning,sdirectingsandscontrollingsoperations
D) providingshighlysdetailedsinformationsonsproductslines,sregions,sandsdivisionssA
nswer:s B
Diff:s1
LO:s M:1-1
AACSB:s Applicationsofsknowledge
