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WorksheetsChapter 1 - Managerial Accounting - LO 1
Total questions: 28
Worksheet time: 14mins
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.
Managerial accounting information
pertains to the entity as a whole and is highly aggregated.
pertains to subunits of the entity and may be very detailed.
is prepared only once a year.
is constrained by the requirements of generally accepted accounting principles.
The major reporting standard for presenting managerial accounting information is
relevance.
generally accepted accounting principles.
the cost principle.
the current tax law.
Managerial accounting is also called
management accounting.
controlling.
analytical accounting.
inside reporting.
Which of the following is not an internal user?
Creditor
Department manager
Controller
Treasurer
Managerial accounting does not encompass
calculating product cost.
calculating earnings per share.
determining cost behavior.
profit planning.
Managerial accounting is applicable to
service entities.
manufacturing entities.
not-for-profit entities.
all of these.
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.
Financial statements for external users can be described as
user-specific.
general-purpose.
special-purpose.
managerial reports.
Managerial accounting reports can be described as
general-purpose.
macro-reports.
special purpose.
classified financial statements.
The reporting standard for external financial reports is
industry specific.
company specific.
Generally Accepted Accounting Principles.
department specific.
The function that pertains to keeping the activities of the enterprise on track is
planning.
directing.
controlling.
accounting.
Which of the following statements about internal reports is not true?
The content of internal reports may extend beyond the double-entry accounting system.
Internal reports may show all amounts at market values.
Internal reports may discuss prospective events.
Most internal reports are summarized rather than detailed.
In an analogous sense, external user is to internal user as Generally Accepted Accounting Principles are to
timely.
special-purpose.
relevance to decision.
SEC.
Internal reports are generally
aggregated.
detailed.
regulated.
regulated.
A distinguishing feature of managerial accounting is
external users.
general purpose reports.
very detailed reports.
quarterly and annual reports.
What activities and responsibilities are not associated with management's functions?
Planning
Accountability
Controlling
Directing
Planning is a function that involves
hiring the right people for a particular job.
coordinating the accounting information system.
setting goals and objectives for an entity.
analyzing financial statements.
The managerial function of controlling
is performed only by the controller of a company.
is only applicable when the company sustains a loss.
is concerned mainly with operating a manufacturing segment.
includes performance evaluation by management.
Which of the following is not a management function?
Constraining
Planning
Controlling
Directing
A manager that is establishing objectives is performing which management function?
Controlling
Directing
Planning
Constraining
The management function that requires managers to look ahead and establish objectives is
controlling.
directing.
planning.
constraining.
In determining whether planned goals are being met, a manager is performing the function of
planning.
follow-up.
directing.
controlling.
Which of the following is not a separate management function?
Planning
Directing
Decision-making
Controlling
Directing includes
providing a framework for management to have criteria to terminate employees when needed.
running a department under quality control standards universally accepted.
coordinating a company's diverse activities and human resources to produce a smooth-running operation.
developing a complex performance ranking system to give certain high performers good raises.
Financial and managerial accounting are similar in that both
have the same primary users.
produce general-purpose reports.
have reports that are prepared quarterly and annually.
deal with the economic events of an enterprise.
