Test Bank – Survey of Accounting, 11th Edition by Carl Warren, Farmer & Jones

TEST BANK




** All Chapters included
** True/False, ** MCQs, Short QAs

,Table of Contents are given below




Chapter 1. The Role of Accounting in Business

Chapter 2. Service Operations: Cash Basis

Chapter 3. Service Operations: Accrual Basis

Chapter 4. Merchandising Operations

Chapter 5. Internal Control and Cash

Chapter 6. Receivables and Inventories

Chapter 7. Long-Term Operating Assets

Chapter 8. Liabilities and Stockholders’ Equity

Chapter 9. Manufacturing Operations

Chapter 10. Cost-Volume-Profit Analysis

Chapter 11. Planning Operations

Chapter 12. Operating Decisions

Chapter 13. Evaluating Segments and Capital Investments

Chapter 14. The Balanced Scorecard

,The test bank is organized in reverse order, with the last chapter displayed first, to ensure that all chapters
are included in this document. (Complete Chapters included Ch14-1)

Chap 14 11e - Warren

Indicate whether the statement is true or false.
1. Cody is a manager at Valvco and is leading a team to create the measure map in the company’s new BSC
initiative. Cody is correct in sharing with his colleagues that a measure map provides a means for verifying the
expectations of how strategic objectives affect one another.
a. True
b. False

ANSWER: True

2. Falco Industries is adopting a balanced scorecard. It would be a positive outcome of the process if Falco’s
employees fully embraced surrogation of the metrics.
a. True
b. False

ANSWER: False
3. Evaluating employee performance and making strategic decisions are two examples of how managerial
accounting information is used.
a. True
b. False

ANSWER: True
4. Jace is an executive at a large but decentralized corporation that uses the balanced scorecard. It would be
reasonable for her to suggest using scorecard cascading to help her large company more effectively ensure that
individuals throughout the company support its overriding strategy.
a. True
b. False

ANSWER: True
5. Strategic performance measurement systems define and link strategic objectives to the performance metrics of
a company.
a. True
b. False

ANSWER: True
6. Operating income and cash flow are examples of metrics used to assess a company’s financial condition.
a. True
b. False

ANSWER: True




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, Chap 14 11e - Warren

7. Accounting metrics, such as cash flow, are often used to simplify the business decision-making process.
a. True
b. False

ANSWER: True
8. Performance measurement systems use measures of current performance to assess how well a company is
performing toward meeting its goals and objectives.
a. True
b. False

ANSWER: True
9. James, an accountant at Forta Company, is preparing an income statement at the end of the year. It will be
included in the company’s annual report to be released to the public. This is an example of the managerial
accounting function at Forta.
a. True
b. False

ANSWER: False
10. Performance measurement systems are used to assess how well a company is performing relative to the goals
the FASB sets for the company.
a. True
b. False

ANSWER: False
11. The balanced scorecard focuses on lagging indicators such as actual sales volume rather than including leading
indicators such as customer satisfaction.
a. True
b. False

ANSWER: False
12. One of the objectives of the four balanced scorecard performance perspectives is to help management focus on
looking beyond typical financial measures of performance.
a. True
b. False

ANSWER: True




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