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 reports- Content of reports- Verifications process-

answer

Internal users Internal Reports As Frequently as needed Special-Purpose Information for Special Decisions Relevance to Decisions No Independent Audits

question

Managerial accounting reports focus on manufacturing and nonmanufacturing costs, but are also used in the budget process.

answer

False

question

Financial accounting reports pertain to subunits of the business and are very detailed.

answer

False

question

Managerial accounting reports must follow GAAP and are audited by CPAs.

answer

False

question

Managers' activities and responsibilities can be classified into three broad functions: planning, directing, and controlling.

answer

True

question

Financial accounting focuses on providing information to internal users.

answer

False

question

Staff positions are directly involved in the company's primary revenue-generating activities.

answer

False

question

Preparation of budgets is part of financial accounting.

answer

False

question

Managerial accounting applies only to merchandising and manufacturing companies.

answer

False

question

Both managerial accounting and financial accounting deal with many of the same economic events.

answer

True

question

Managerial accounting reports are prepared only quarterly and annually.

answer

False

question

Financial accounting reports are general-purpose reports.

answer

True

question

Managerial accounting reports pertain to subunits of the business.

answer

True

question

Managerial accounting reports must comply with generally accepted accounting principles.

answer

False

question

The company treasurer reports directly to the vice president of operations.

answer

False

question

Salaries for assembly line inspectors.

answer

Direct Labor or Manufacturing Overhead

question

Insurance on factory machines.

answer

Manufacturing Overhead

question

Property taxes on the factory building.

answer

Manufacturing Overhead

question

Factory repairs.

answer

Manufacturing Overhead

question

Upholstery used in manufacturing furniture.

answer

Direct Materials

question

Wages paid to assembly line workers.

answer

Direct Labor

question

Factory machinery depreciation.

answer

Manufacturing Overhead

question

Glue, nails, paint, and other small parts used in production.

answer

Manufacturing Overhead

question

Factory supervisors' salaries.

answer

Manufacturing Overhead

question

Wood used in manufacturing furniture

answer

Direct Materials

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 process of keeping the company's activities on track is

answer

controlling

question

Managerial accounting applies to each of the following types of businesses except

answer

managerial accounting applies to all types of firms.

question

Managerial accounting information is generally prepared for

answer

managers.

question

Managerial accounting information

answer

pertains to subunits of the entity and may be very detailed.

question

The major reporting standard for presenting managerial accounting information is

answer

relevance.

question

Which of the following is not an internal user?

answer

Creditor

question

Planning is a function that involves

answer

setting goals and objectives for an entity.

question

The managerial function of controlling

answer

includes performance evaluation by management.

question

Which of the following is not a management function?

answer

Constraining.

question

A manager that is establishing objectives is performing which management function?

answer

Planning.

question

The management function that requires managers to look ahead and establish objectives is

answer

planning.

question

In determining whether planned goals are being met, a manager is performing the function of

answer

controlling

question

Which of the following is not a separate management function?

answer

Decision-making

question

Directing includes

answer

coordinating a company's diverse activities and human resources to produce a smooth-running operation.

question

Financial and managerial accounting are similar in that both

answer

deal with the economic events of an enterprise.

question

The function that pertains to keeping the activities of the enterprise on track is

answer

controlling

question

General-purpose reports

answer

Financial Accounting

question

Reports are used internally

answer

Managerial accounting

question

Prepared in accordance with generally accepted accounting principles

answer

Financial Accounting

question

Special purpose reports

answer

Managerial Accounting

question

Limited to historical cost data

answer

Financial Accounting

question

Reporting standard is relevance to the decision to be made

answer

Managerial Accounting

question

Financial statements

answer

Financial Accounting

question

Reports generally pertain to the business as a whole

answer

Financial Accounting

question

Reports generally pertain to subunits

answer

Managerial Accounting

question

Reports issued quarterly or annually

answer

Financial Accounting

question

Financial accounting information is prepared mainly for Entry field with correct answer_______ users, while managerial accounting information is prepared primarily for_________ users.

answer

external, internal

question

hree broad managerial functions are: (1)_________,(2)__________, and (3)_________.

answer

planning, directing and controlling.

question

The ________function is concerned with setting goals and objectives for the entity.

answer

planning.

question

Exercising good judgment in performing the managerial functions and choosing among alternative courses of action is called

answer

decision making

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