Managerial Accounting Exams – Flashcards
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The focus of Financial accounting is on
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on the past, since historical cost data are generally accurate and reliable.
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Financial accounting
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is governed by generally accepted accounting principles (GAAP).
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Financial accounting is concerned
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with providing information to creditors and others outside of an organization.
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In a centralized organization
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most decisions are made by top management
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Budgets are
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a formal expression of management's plans.
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In decision making, managers use
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whatever information is relevant to the decision even though the information may not conform to generally accepted accounting principles.
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The managerial accounting reports of a company The managerial accounting reports of a company would be of most interest and benefit to the company's: A) bankers. B) shareholders. C) bondholders. D) vice president of manufacturing.
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vice president of manufacturing.
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Managerial accounting
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has its primary emphasis on the future
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The process of overseeing day-to-day activities and keeping the organization functioning smoothly is called: A) directing. B) controlling. C) planning. D) decision making
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directing
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Financial Accounting information
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is primarily oriented to external stakeholders, such as investors, creditors, regulators, and tax authorities.
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A good management accounting system can become
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a source of competitive advantage for a company.
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Management accounting information
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is sometimes predictive and forward looking.
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Management accounting has no
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prescribed rules about its content, how the content is to be developed, and how the content is to be presented.
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Management accounting measures can provide
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advance warnings of problems.
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6. Information about customer satisfaction is an example of
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Managerial Accounting
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Which of the following types of information are used in management accounting?
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A) financial information B) nonfinancial information
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Management accounting reports might include information about:
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A) customer complaints. B) net income for the year on budgeted income statement. C) total assets on budgeted balance sheet. D) All of the above are correct.
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The person MOST likely to use management accounting information is a(n): A) banker evaluating a credit application. B) shareholder evaluating a stock investment. C) governmental taxing authority. D) assembly department supervisor.
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assembly department supervisor.
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Which of the following is NOT a function of a management accounting system? A) strategic development B) financial reporting C) control D) product costing
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financial reporting
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Financial accounting information: A) provides a signal that something is wrong. B) identifies what is wrong. C) explains what is wrong. D) simply summarizes information but gives no indication that anything is wrong.
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A) provides a signal that something is wrong.
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Management accounting information is BEST described as: A) providing a signal that something is wrong. B) identifying and helping to explain what is wrong. C) simply summarizing information, but giving no indication that anything is wrong. D) measuring overall organizational performance.
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B) identifying and helping to explain what is wrong.
