Management accounting seminar W25/1

Which of the following statement is true for management accounting: a. It focuses on estimating future revenues, costs, and other measures to forecast activities and their results. b. It provides information about the company as a whole. c. It reports information that has occurred in the past that is verifiable and reliable. d. It provides information that is generally available only on a quarterly or annual basis

a

Which of the following statement refers to management accounting information? a. There are no regulations governing the reports. b. The reports are generally delayed and historical. c. The audience tends to be stockholders, creditors, and tax authorities. d. It primarily measures and records business transactions

a

Which of the following statement is true for financial accounting: a. focuses on the future and includes activities such as preparing next year's operating budget. b. must comply with GAAP (generally accepted accounting principles). c. reports include detailed information on the various operating segments of the business such as product lines or departments. d. is prepared for internal users like department heads and other employees

b

Financial accounting represents the primary source of information for: a. decision making in the production department. b. improving customer service and satisfaction. c. preparing balance sheet and income statement for shareholders. d. planning next year's operating budget

c

Which of the following types of information is used in management accounting? a. Financial information b. Non-financial information c. Information focused on the long term d. All of the above

d

T/F. An activity that provides financial and nonfinancial information to managers and other internal decision makers of an organization is called financial accounting

false

T/F. Financial accounting information is produced for internal users

false

T/F. Financial accounting reports are often prepared for a specific purpose whereas management accounting reports usually serve a general purpose

false

T/F. Management accounting information focuses on external reporting

false

T/F. Management accounting reports place less emphasis on objective, verifiable evidence than financial accounting reports

false

T/F. The information that management needs to plan and control operations is provided by the accounting system, and is under the rigid standards of GAAP

false

T/F. Financial accounting focuses on external reporting that is guided by generally accepted accounting principles

true

T/F. Management accounting measures and reports financial as well as other types of information that may be useful to managers in fulfilling the goals of the organisation

true

T/F. The emphasis of the focus of information generated through managerial accounting is on segments of the organization rather than the organization as a whole

true

T/F. The purpose of using information provided by the accounting system is quite different for investors and creditors than it is for managers of the firm

true