Test Answers on Managerial Accounting Flashcards

Source documents identify and describe transactions and events entering the accounting process. evidence and data account is a record of increases and decreases in a specific asset, liability, equity, revenue, or expense item. general ledger is a record containing all accounts used by a company Asset Accounts This type of account. Assets are resources owned […]

question future orientation answer primary purpose of managerial accounting question relevance to business decisions answer primary focus of managerial accounting question AICPA answer world’s largest association representing the accounting profession question audit committee answer subcommittee of the BOD that is responsible for overseeing both the internal audit function and the annual financial statement audit by […]

question Which of the following statements is true? answer Managerial accounting reports are less regulated than financial accounting reports. Managerial accounting focuses on preparing information for internal users. The types and quality of information are dictated by the management of the reporting entity and are not subject to regulatory requirements. question Which of the following […]

question Managerial accounting applies to all types of businesses, including service, merchandising, and manufacturing, as well as to all forms of business organizations. answer True. question Which of the following statements is not true about managerial accounting? answer It is highly aggregated. question Which of the following statements is true about managerial accounting? answer It […]

question In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT: answer be prepared in accordance with generally accepted accounting principles question What is the primary criterion for the preparation of managerial accounting reports? answer b. Meet the manager needs question Which of the following is most […]

question A(n) _________________ changes basic inputs into products that are sold to customers: A) manufacturing business B) service business C) enterprise business D) merchandising business answer A question Which of the following users is not considered an external user of accounting information: A) a creditor B) an investor C) the government D) a manager answer […]

question In order to be useful to managers, management account reports should possess all of the following characteristics except” answer be prepared in accordance with generally accepted accounting principles question what is the primary criterion for the preparation of managerial accounting reports answer meet the manager needs question which of the following is most associated […]

question Financial accounting information answer is reported at fixed intervals in general-purpose financial statements. These financial statements are prepared according to GAAP. question Financial accounting information answer used by external users such as the following: Shareholders Creditors Government agencies The general public question Managerial accounting information answer is designed to meet the specific needs of […]

question Managerial accounting is applicable to answer service entities, manufacturing entities, and not-for-profit entities. (all of these) question For a manufacturing company, which of the following is an example of a period cost rather than a product cost? answer Wages of salespersons question Which one of the following would not be classified as manufacturing overhead? […]

question Which of the following are considered to be management’s three broad functions? answer Planning, directing, and controlling question Which of the following is considered part of the controlling process? answer Keeping the company’s activities on track question The management function that requires management to look ahead and establish objectives is answer planning question The […]

question If the cost of direct materials is a small portion of total production cost, it may be classified as part of: If the cost of direct materials is a small portion of total production cost, it may be classified as part of: a. direct labor cost b. selling and administrative costs c. miscellaneous costs […]

question Financial Accounting Primary users of reports – Types of reports – Frequency of reports- Purpose of reports- Content of reports- Verification process- answer External Users Financial Statements Quarterly/Annually General-Purpose Generally Accepted Accounting Principles Annually Audit by Certified Public Accountant question Managerial Accounting Primary users of reports- Types of reports- Frequency of reports- Purpose of […]

question Managerial accounting would use which of the following types of​ information? A. Nonfinancial information B. Financial information C. Forecasts of future earnings D. All of the above answer D question The primary goal of financial accounting is to provide information to A. creditors. B. government regulators. C. potential investors. D. all of the above. […]

question ________ gathers, summarizes, and reports on the financial impact of changes to business operations. answer *A) Managerial accounting B) Planning C) Directing D) Controlling question Which of the following groups are external users of financial information? answer A) Customers of the company B) Potential investors of the company C) Vendors of the company *D) […]

question Manager’s 3 responsabilities answer Planning Directing Controlling question Managerial Accounting answer Information is primarily used within a company. question Financial Accounting answer is intended for use by parties external to a company, as well as within the company. question How is Managerial accounting different from Financial Accounting answer Type of information produced What type […]

question Managerial accounting information answer Involves gathering information about costs for planning and control decisions question Managerial accounting is different from financial accounting in that answer Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions question Flexibility of practice when applied to managerial accounting means that answer The design […]

question T of F: Managerial accounting applies to all types of businesses, including service, merchandising, and manufacturing, as well as to all forms of business organizations. answer True question Which of the following statements is not true about managerial accounting? A. It is primarily for internal users such as officers and managers. B. It does […]

question D answer Which of the following users is not considered an internal user of accounting information? A. An employee B. A small business owner C. A manager D. A supplier question D answer Which of the following users is not considered an external user of accounting information? A. The government B. A creditor C. […]

question Managerial accounting, as compared to financial accounting answer uses frequent and prompt control reports. question The scattergram allows cost-volume relationships to be visually scanned for outlier observations that should be answer ignored in the calculation of the cost formula of a mixed cost question Knowledge about the behavior pattern of a cost is important […]

question Managerial accounting information includes both historical and estimated data answer True question the cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost answer true question Planning is the process of monitoring operating results and comparing actual result with the expected results answer False question Product […]

question If a company abandons a segment of its operation, the loss would be reported on the: answer income statement immediately after income from continuing operations question A company that is leveraged is one that: answer contains debt financing question _____ is the use of debt to finance a company or increase the return on […]