Which of the following is true of managerial accounting rather than financial accounting?

MA Chapter 1

1. Which of the following statements is true?

a. Management accounting information focuses on

external reporting.

b. The statement of financial position, income

statement and statement of cash flows are used for

financial accounting but not for management

accounting.

c. Financial accounting is broader in scope than

management accounting.

d. Modern cost accounting plays a significant role in

management decision making.

2. Which of the following statements is false?

a. Cost accounting measures and reports short-term,

long-term financial, and nonfinancial information.

b. Cost management provides information that helps

increase value for customers.

c. All strategies should be evaluated regarding the

resources and capabilities of the company.

d. A good cost accounting system is narrowly focused

on continuous reduction of costs.

3. Which of the following statements is correct?

a. The best-designed strategies are valuable whether or

not they are effectively implemented.

b. To take advantage of changing market opportunities,

the annual budget should be strictly enforced.

c. Linking rewards to performance is a major deterrent

to good management performance.

d. An important strategic decision is making the correct

investments in productive assets.

4. All of the following statements are true except

a. A budget is a tool used to plan and express strategy.

b. Financial accounting reports financial and

nonfinancial information that helps managers

implement company strategies.

c. Feedback links planning and control.

d. Control includes deciding what feedback to provide

that will help with future decision making.

5. All of the following statements are false except

a. Attention-directing activities should focus on cost-

reduction opportunities, and not on value-adding

opportunities.

b. For strategic decisions, scorekeeping is the most

prominent role played by management accounting.

c. A budget may be used as a planning tool, but not as a

control tool.

d. Management accountants often are simultaneously

doing problem-solving, scorekeeping, and attention-

directing activities.

6. Management accounting

a. focuses on estimating future revenues, costs, and

other measures to forecast activities and their results.

b. provides information about the company as a whole.

c. provides information that has occurred in the past

and that is verifiable and reliable.

d. provides information that is generally available only

on a quarterly or annual basis.

7. Financial accounting

a. focuses on the future and includes activities such as

preparing next year’s operating budget.

b. must comply with PFRS ( Philippine Financial

Reporting Standards).

c. reports include detailed information on the various

operating segments of the business such as product

lines or departments.

d. is prepared for the use of department heads and

other employees.

8. The person MOST likely to use management

accounting information is a(n)

a. banker evaluating a credit application.

b. shareholder evaluating a stock investment.

c. governmental taxing authority.

d. assembly department supervisor.

9. Which of the following descriptions refers to

management accounting information?

a. It is verifiable and reliable.

b. It is driven by rules.

c. It is prepared for shareholders.

d. It provides reasonable and timely estimates.

10. Which of the following groups would be LEAST likely

to receive detailed management accounting reports?

a. Stockholders

b. Sales representatives

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Which of the following is a difference between financial accounting and managerial accounting?

What is true of financial accounting but not true of managerial accounting?

Which of the following is a difference between financial accounting and managerial accounting quizlet?

Which of the following is true about management accounting?