Test Bank Horngren's Financial & Managerial Accounting, The Managerial Chapters, 8th e
n n n n n n n n n n n
dition by Tracie Miller-Nobles
n n n
FinancialnandnManagerialnAccounting:nManagerialnChapters,n8en(Miller-
Nobles)nChapternM:1 IntroductionntonManagerialnAccounting
Learningn Objectiven M:1-1
1) Managerial naccountingnfocuses non nprovidingninformation nforninternalnplanningnandncontrol
.nAnswer:n TRUE
Diff:n1
LO:n n M:1-1
AACSB:n Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?n(H1)
2) Financialnaccountingnprepares nreports nforninternalnpurposes,nwhereas nmanagerial naccountingnprovide
s ninformation ntonexternalnstakeholders.
Answer:n n FALSE
Explanation:n Thenreversenis ntrue.nFinancialnaccountingnserves nexternalnstakeholderninformation nneeds nw
hilenmanagerialnaccountingnserves nthenneeds nofnmanagers nandninternalnstaff.
Diff:n1
LO:n n M:1-1
AACSB:n Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?n(H1)
3) Financialnstatements npreparednforninvestors nandncreditors noften nincludenforward-
lookingninformation nbecausentheynmakendecisions nbasednon na ncompany's nfuturenprospects.
Answer:n n FALSE
Explanation:n Financialnstatements nprovidenmostlynhistoricalninformation;nrelevantnandnfaithfullynreprese
ntativeninformation nandnfocusednon nthenpast.
Diff:n1
LO:n n M:1-1
AACSB:n Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?n(H1)
4) Managerial naccountingnreportingnbyna npublicnfirm nis nrequiredntonfollownthenrules nofnGAA
P.nAnswer:n FALSE
Explanation:n Managerialnaccountingninformation nis nnotnguidednbynGAAPnbutnrathernbynthenconceptnofn
usefulness ntonmanagementnforndecision nmakingnpurposes.
Diff:n1
LO:n n M:1-1
AACSB:n Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?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 Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?n(H1)
6) Managerial naccountingnprovides nfinancialnstatements 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 Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?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 narenGAAPncomplia
ntnAnswer:n B
Diff:n1
LO:n n M:1-1
AACSB:n Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?n(H1)
2
,8) Which nofnthenfollowingnstatements nis ntruenofnmanagerialnaccounting?
A) Thenexternalnstakeholders nofna ncompanynarenthenprimarynusers nofnmanagerial naccounting.
B) Managerial naccountingninformation nis nusedntonhelpnmanagers nplan,ndirectnandncontrolntheirnoperations.
C) An nexternalnauditnbynan nindependentnCPAnis nrequirednfornmanagerialnaccountingninformation.
D) Managerial naccountingninformation nmustncomplynwith nGenerallynAcceptednAccountingnPrinciples
.nAnswer:n B
Diff:n1
LO:n n M:1-1
AACSB:n Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?n(H1)
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 Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?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 Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?n(H1)
3
, 11) Which nofnthenfollowingnis nthenprimarynfocus nofnmanagerialnaccounting?
A) providingninformation nthatnmanagers nneedntonmakenoperational ndecisions
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 Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?n(H1)
12) Which nofnthenfollowingnis nthenprimarynfocus nofnfinancialnaccounting?
A) providingninformation nthatnmanagers nneedntonmakenoperational ndecisions
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 Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?n(H1)
13) Connienis nanalyzingnthenfinancialnstatements nofnMegaMartnandnBullseyenCompany.nShenwants ntoninve
stnin nonenofnthencompanies nandnis ntryingntondecidenwhich ncompanynhas nthenbetternpastnperformance.nCon
nien is nexaminingn .
A) managerial naccountingninformation
B) financialnaccountingninformation
C) regulatorynaccountingninformation
D) organizational naccountingninformation
nAnswer:n B
Diff:n1
LO:n n M:1-1
AACSB:n Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?n(H1)
4
n n n n n n n n n n n
dition by Tracie Miller-Nobles
n n n
FinancialnandnManagerialnAccounting:nManagerialnChapters,n8en(Miller-
Nobles)nChapternM:1 IntroductionntonManagerialnAccounting
Learningn Objectiven M:1-1
1) Managerial naccountingnfocuses non nprovidingninformation nforninternalnplanningnandncontrol
.nAnswer:n TRUE
Diff:n1
LO:n n M:1-1
AACSB:n Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?n(H1)
2) Financialnaccountingnprepares nreports nforninternalnpurposes,nwhereas nmanagerial naccountingnprovide
s ninformation ntonexternalnstakeholders.
Answer:n n FALSE
Explanation:n Thenreversenis ntrue.nFinancialnaccountingnserves nexternalnstakeholderninformation nneeds nw
hilenmanagerialnaccountingnserves nthenneeds nofnmanagers nandninternalnstaff.
Diff:n1
LO:n n M:1-1
AACSB:n Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?n(H1)
3) Financialnstatements npreparednforninvestors nandncreditors noften nincludenforward-
lookingninformation nbecausentheynmakendecisions nbasednon na ncompany's nfuturenprospects.
Answer:n n FALSE
Explanation:n Financialnstatements nprovidenmostlynhistoricalninformation;nrelevantnandnfaithfullynreprese
ntativeninformation nandnfocusednon nthenpast.
Diff:n1
LO:n n M:1-1
AACSB:n Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?n(H1)
4) Managerial naccountingnreportingnbyna npublicnfirm nis nrequiredntonfollownthenrules nofnGAA
P.nAnswer:n FALSE
Explanation:n Managerialnaccountingninformation nis nnotnguidednbynGAAPnbutnrathernbynthenconceptnofn
usefulness ntonmanagementnforndecision nmakingnpurposes.
Diff:n1
LO:n n M:1-1
AACSB:n Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?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 Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?n(H1)
6) Managerial naccountingnprovides nfinancialnstatements 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 Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?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 narenGAAPncomplia
ntnAnswer:n B
Diff:n1
LO:n n M:1-1
AACSB:n Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?n(H1)
2
,8) Which nofnthenfollowingnstatements nis ntruenofnmanagerialnaccounting?
A) Thenexternalnstakeholders nofna ncompanynarenthenprimarynusers nofnmanagerial naccounting.
B) Managerial naccountingninformation nis nusedntonhelpnmanagers nplan,ndirectnandncontrolntheirnoperations.
C) An nexternalnauditnbynan nindependentnCPAnis nrequirednfornmanagerialnaccountingninformation.
D) Managerial naccountingninformation nmustncomplynwith nGenerallynAcceptednAccountingnPrinciples
.nAnswer:n B
Diff:n1
LO:n n M:1-1
AACSB:n Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?n(H1)
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 Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?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 Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?n(H1)
3
, 11) Which nofnthenfollowingnis nthenprimarynfocus nofnmanagerialnaccounting?
A) providingninformation nthatnmanagers nneedntonmakenoperational ndecisions
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 Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?n(H1)
12) Which nofnthenfollowingnis nthenprimarynfocus nofnfinancialnaccounting?
A) providingninformation nthatnmanagers nneedntonmakenoperational ndecisions
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 Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?n(H1)
13) Connienis nanalyzingnthenfinancialnstatements nofnMegaMartnandnBullseyenCompany.nShenwants ntoninve
stnin nonenofnthencompanies nandnis ntryingntondecidenwhich ncompanynhas nthenbetternpastnperformance.nCon
nien is nexaminingn .
A) managerial naccountingninformation
B) financialnaccountingninformation
C) regulatorynaccountingninformation
D) organizational naccountingninformation
nAnswer:n B
Diff:n1
LO:n n M:1-1
AACSB:n Application nofnknowledgen
AICPAnFunctional:n Reporting
PEnQuestion nType:n n Concept
H2:n n WhynIs nManagerial nAccountingnImportant?n(H1)
4
