QUIZ - INTODUCTION TO MANAGERIAL ACCOUNTING

Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports.

• True

• False

The management function of organizing and directing is mainly concerned with setting goals and objectives for the entity.

• True

• False

Controlling is the process of determining whether planned goals are being met.

• True

• False

Decision-making is an integral part of the planning, directing, and controlling functions.

• True

• False

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

• service firms.

• merchandising firms.

• manufacturing firms.

• Managerial accounting applies to all types of firms.

Managerial accounting information is generally prepared for

• stockholders.

• creditors.

• managers.

• regulatory agencies.

Which of the following is not an internal user?

• Creditor

• Department Manager

• Controller

• Treasurer

Management accountants would not

• assist in budget planning.

• prepare reports primarily for external users.

• determine cost behavior.

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

Internal reports must be communicated

• daily.

• monthly.

• annually.

• as needed.

Managerial accounting reports can be described as

• general-purpose.

• macro-reports.

• special-purpose.

• classified financial statements.