Accounting 100

All the following are characteristics of managerial accounting, except:

• Reports are used primarily by insiders rather than by persons outside of the business entity.

• Its purpose is to assist managers in planning and controlling business operations.

• Information must be developed in conformity with generally accepted accounting principles or with income tax regulations.

• Information may be tailored to assist in specific managerial decisions.

Which of the following is not one of the purposes of accounting?

• to assist with evasion of tax

• to determine whether a business is doing well or badly

• to identify which business problems should be looked at

• to determine the best alternative for doing a job

When is Management Accounting report needed to be prepared?

• Once a year

• Every month

• Whenever cost accountant has free time

• Whenever required by manager

Financial accounting provides which of the following information?

• Information for external users, such as investors

• All of the vital information that is used by internal users

• Tax return information that is useful to external users

• Decision making information for managers

Management accounting provides information for which target group?

• External users

• Regulatory agencies

• All users

• Internal users

Which of the following would use external financial statements?

• All would use them

• Banker

• Investors

• Creditors

The form of accounting that uses financial information to reach company goals is which of the following?

• Management accounting

• Financial accounting

• Budget accounting

• Proactive accounting

The type or branch of accounting that generates reports for the use of external parties such as creditors, investors and government agencies is known as:

• Financial accounting

• Managerial accounting

• Tax accounting

• Forensic accounting

The branch of accounting that generates reports and information for the use of internal management is known as:

• Tax accounting

• Managerial or management accounting

• Auditing

• International accounting

Which one of the following is not an external user of accounting information?

• Investor

• Creditor

• Manager

• Customer