Question 1

Management accountants primarily are concerned with developing information:

Accepted Answer

A) For use in income tax returns. 
B) Suited to the needs of stockholders,creditors,and other external decision makers. 
C) In conformity with generally accepted accounting principles. 
D) Suited to the needs of decision makers within the organization. 
A) For use in income tax returns. 
B) Suited to the needs of stockholders,creditors,and other external decision makers. 
C) In conformity with generally accepted accounting principles. 
D) Suited to the needs of decision makers within the organization.

Question 2

It is the function of management accounting to perform the following activities,except:

Accepted Answer

A) Create financial forecasts. 
B) Perform cost accounting. 
C) Complete internal audits. 
D) Audit financial statements. 
A) Create financial forecasts. 
B) Perform cost accounting. 
C) Complete internal audits. 
D) Audit financial statements.

Question 3

A statement of cash flows depicts the way profits have changed during a designated period.

Accepted Answer

A) True 
 B)False

Question 4

Match the organizations on the left with the descriptions on the right.Each description should be used only once.

Accepted Answer

Financial Accounting Standards Board (c)

Question 5

Which of the following is not characteristic of financial accounting?

Accepted Answer

A) Information used in financial statements is prepared in conformity with generally accepted accounting principles. 
B) The information is confidential and is intended for use only by company management. 
C) The information is used in a wide variety of business decisions. 
D) The information is developed primarily by "private accountants" that is,accountants employed by business organizations. 
A) Information used in financial statements is prepared in conformity with generally accepted accounting principles. 
B) The information is confidential and is intended for use only by company management. 
C) The information is used in a wide variety of business decisions. 
D) The information is developed primarily by "private accountants" that is,accountants employed by business organizations.

Question 6

Users of accounting information
List seven groups that would typically use financial information.

Accepted Answer

1.Investors;2.Credit

Question 7

Career opportunities in accounting exist in public accounting,management accounting,governmental accounting,and accounting education.

Accepted Answer

A) True 
 B)False

Question 8

The statement of financial position and the income statement are one and the same.

Accepted Answer

A) True 
 B)False

Question 9

Audits of financial statements are performed by:

Accepted Answer

A) The controller of the reporting company. 
B) The Financial Accounting Standards Board (FAS
B) . 
C) The management of the reporting company. 
D) Independent certified public accountants (CPAs). 
A) The controller of the reporting company. 
B) The Financial Accounting Standards Board (FAS
B) . 
C) The management of the reporting company. 
D) Independent certified public accountants (CPAs).

Question 10

Which of the following decision makers is least likely to be among the users of management accounting reports developed by Sears Roebuck and Co.?

Accepted Answer

A) The chief executive officer of Sears. 
B) The manager of the Automotive Department in a Sears' store. 
C) The manager of a mutual fund considering investing in Sears' common stock. 
D) Internal auditors within the Sears organization. 
A) The chief executive officer of Sears. 
B) The manager of the Automotive Department in a Sears' store. 
C) The manager of a mutual fund considering investing in Sears' common stock. 
D) Internal auditors within the Sears organization.

Question 11

Financial statements may be prepared for which time period?

Accepted Answer

A) One year. 
B) Less than one year. 
C) More than one year. 
D) Any time period. 
A) One year. 
B) Less than one year. 
C) More than one year. 
D) Any time period.

Question 12

Of the following objectives of financial reporting,which is the most specific?

Accepted Answer

A) Provide information useful in assessing amount,timing,and uncertainty of future cash flows. 
B) Provide information useful in making investment and credit decisions. 
C) Provide information about economic resources,claims to resources,and changes in resources and claims. 
D) Provide information useful to help the enterprise achieve its goals,objectives,and mission. 
A) Provide information useful in assessing amount,timing,and uncertainty of future cash flows. 
B) Provide information useful in making investment and credit decisions. 
C) Provide information about economic resources,claims to resources,and changes in resources and claims. 
D) Provide information useful to help the enterprise achieve its goals,objectives,and mission.

Question 13

The accounting systems of most business organizations:

Accepted Answer

A) Are tailored to meet the organization's needs for accounting information and the resources available for operating the system. 
B) Are similar in design to the journals,ledgers,and worksheets illustrated in this text. 
C) Utilize data bases,rather than ledger accounts. 
D) Are designed by the CPA firm that performs the annual financial audit. 
A) Are tailored to meet the organization's needs for accounting information and the resources available for operating the system. 
B) Are similar in design to the journals,ledgers,and worksheets illustrated in this text. 
C) Utilize data bases,rather than ledger accounts. 
D) Are designed by the CPA firm that performs the annual financial audit.

Question 14

Internal users of financial accounting information include all of the following except:

Accepted Answer

A) Investors. 
B) Managers. 
C) Chief Financial Officer. 
D) Chief Executive Officer. 
A) Investors. 
B) Managers. 
C) Chief Financial Officer. 
D) Chief Executive Officer.

Question 15

Establishing international accounting standards is the responsibility of:

Accepted Answer

A) AICPA. 
B) IASB. 
C) SEC. 
D) AAA. 
A) AICPA. 
B) IASB. 
C) SEC. 
D) AAA.

Question 16

Which financial statement is primarily concerned with reporting the financial position of a business at a particular time?

Accepted Answer

A) The balance sheet. 
B) The income statement. 
C) The statement of cash flows. 
D) Consolidated statement of stockholders' equity. 
A) The balance sheet. 
B) The income statement. 
C) The statement of cash flows. 
D) Consolidated statement of stockholders' equity.

Question 17

Financial and management accounting information
Explain one way in which the characteristics of financial and management accounting information differ.

Accepted Answer

Financial accounting information is prim

Question 18

The Accounting Standards Codification was developed by:

Accepted Answer

A) The Financial Accounting Standards Board. 
B) Certified public accountants. 
C) The Securities and Exchange Commission. 
D) The Internal Revenue Service. 
A) The Financial Accounting Standards Board. 
B) Certified public accountants. 
C) The Securities and Exchange Commission. 
D) The Internal Revenue Service.

Question 19

The basic purpose of generally accepted accounting principles is to:

Accepted Answer

A) Minimize the possibility of a business becoming insolvent. 
B) Provide a framework for financial reporting that is understood by both the preparers and the users of financial statements. 
C) Ensure that financial statements include the type of information that is best suited to every type of business decision. 
D) Eliminate the need for professional judgment in preparing financial statements. 
A) Minimize the possibility of a business becoming insolvent. 
B) Provide a framework for financial reporting that is understood by both the preparers and the users of financial statements. 
C) Ensure that financial statements include the type of information that is best suited to every type of business decision. 
D) Eliminate the need for professional judgment in preparing financial statements.

Question 20

Financial statements are prepared:

Accepted Answer

A) Only for publicly owned business organizations. 
B) For corporations,but not for sole proprietorships or partnerships. 
C) Primarily for the benefit of persons outside of the business organization. 
D) In either monetary or nonmonetary terms,depending upon the need of the decision maker. 
A) Only for publicly owned business organizations. 
B) For corporations,but not for sole proprietorships or partnerships. 
C) Primarily for the benefit of persons outside of the business organization. 
D) In either monetary or nonmonetary terms,depending upon the need of the decision maker.

Exam 1: Accounting: Information for Decision Making

Management accountants primarily are concerned with developing information:

It is the function of management accounting to perform the following activities,except:

A statement of cash flows depicts the way profits have changed during a designated period.

Match the organizations on the left with the descriptions on the right.Each description should be used only once.

Which of the following is not characteristic of financial accounting?

Users of accounting information List seven groups that would typically use financial information.

Career opportunities in accounting exist in public accounting,management accounting,governmental accounting,and accounting education.

The statement of financial position and the income statement are one and the same.

Audits of financial statements are performed by:

Which of the following decision makers is least likely to be among the users of management accounting reports developed by Sears Roebuck and Co.?

Financial statements may be prepared for which time period?

Of the following objectives of financial reporting,which is the most specific?

The accounting systems of most business organizations:

Internal users of financial accounting information include all of the following except:

Establishing international accounting standards is the responsibility of:

Which financial statement is primarily concerned with reporting the financial position of a business at a particular time?

Financial and management accounting information Explain one way in which the characteristics of financial and management accounting information differ.

The Accounting Standards Codification was developed by:

The basic purpose of generally accepted accounting principles is to:

Financial statements are prepared:

Basic Financial Statements

The Accounting Cycle: Capturing Economic Events

The Accounting Cycle: Accruals and Deferrals

The Accounting Cycle: Reporting Financial Results

Merchandising Activities

Financial Assets

Inventories and the Cost of Goods Sold

Plant and Intangible Assets

Liabilities

Stockholders Equity: Paid-In Capital

Income and Changes in Retained Earnings

Statement of Cash Flows

Financial Statement Analysis

Global Business and Accounting

Management Accounting

Job Order Cost Systems and Overhead Allocations

Process Costing

Costing and the Value Chain

Cost-Volume-Profit Analysis

Incremental Analysis

Responsibility Accounting and Transfer Pricing

Operational Budgeting

Standard Cost Systems

Rewarding Business Performance

Capital Budgeting

the Time Value of Money: Future Amounts and Present Values

Forms of Business Organization

Filters