Test Bank For Managerial Accounting, Global Edition, 1st Edition by Jennifer Cainas Celina Jozsi Kelly Richmond Pope Chapter 1-12 Chapter 1
Managerial Accounting: An Information System
Learning Objective 1.1 1) Financial accounting emphasizes relevant, detailed information that may be used to forecast future performance. Answer: FALSE Objective: 1 AACSB: Application of knowledge 2) Managerial accounting requires accountants to follow generally accepted accounting principles (GAAP) when producing operational reports. Answer: FALSE Objective: 1 AACSB: Application of knowledge 3) The annual tax return filed with the Internal Revenue Service (IRS) is an example of a report generated from a financial accounting system. Answer: TRUE Objective: 1 AACSB: Application of knowledge 4) The number of defective materials received from vendors could be directly reported for managerial accounting but not financial accounting. Answer: TRUE Objective: 1 AACSB: Reflective thinking 5) Financial accounting and managerial accounting differ in that: A) financial reporting is focused on forecasted future performance. B) managerial accounting reporting requirements are based on the needs of management. C) managerial accounting information is primarily used by individuals external to the business. D) financial reporting provides relevant and detailed information. Answer: B Objective: 1 AACSB: Application of knowledge 6) The objective of financial accounting is to: A) provide summarized reports to external stakeholders for decision making. B) provide detailed information to operational and upper-level managers for decision making. C) generate reports that meet the needs of management. 1