ACCOUNITNG 2

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

• A. service firms.

• B. manufacturing firms.

• C. merchandising firms.

• D. Managerial accounting applies to all types of firms.

Managerial accounting information is generally prepared for

• a. stockholders.

• b. creditors.

• c. managers.

• d. regulatory agencies.

The major reporting standard for presenting managerial accounting information is

• a. relevance.

• b. generally accepted accounting principles.

• c. the cost principle.

• d. the current tax law.

Managerial accounting is also called

• a. management accounting.

• b. controlling.

• c. analytical accounting.

• d. inside reporting.

Which of the following is not an internal user?

• a. Creditor

• b. Department manager

• c. Controller

• d. Treasurer

Management accountants would not

• a. assist in budget planning.

• b. prepare reports primarily for external users.

• c. determine cost behavior.

• d. be concerned with the impact of cost and volume on profits.

Internal reports must be communicated

• a. daily.

• b. monthly.

• c. annually.

• d. as needed.

Internal reports are generally

• a. aggregated.

• b. detailed.

• c. regulated.

• d. unreliable.

What activities and responsibilities are not associated with management's functions?

• a. Planning

• b. Accountability

• c. Controlling

• d. Decision making

Planning is a function that involves

• a. hiring the right people for a particular job.

• b. coordinating the accounting information system.

• c. setting goals and objectives for an entity.

• d. analyzing financial statements.