1 Managerial accounting information is designed primarily to assist investors and creditors in

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1) Managerial accounting information is designed primarily to assist investors and creditors in deciding how to allocate scarce resources.⊚ true ⊚ false

2) Information provided to decision makers in an organization is comprised only of the accounting information generated by the organization’s information system.⊚ true ⊚ false

3) All internal control systems need to be monitored.⊚ true ⊚ false

4) A data analytics system is the integrated management of core business processes that an organization can use to collect, store, manage, and interpret data across a wide range of business activities.⊚ true ⊚ false

5) Management accounting information is oriented toward the future while financial accounting information is historical in nature.⊚ true ⊚ false

6) Return on investment is the same as return of investment.⊚ true ⊚ false

(Financial and Managerial Accounting The Basis for Business Decisions, 20e Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello) (Answer at the end of each Chapter) (For Complete File, Download link at the end of this File) 1 / 4

Version 1 2 7) The IRS tax return is one of the primary financial statements.⊚ true ⊚ false

8) External users of accounting information have a financial interest in an entity but are not involved with the day-to-day operations of the enterprise.⊚ true ⊚ false

9) The tailoring of an accounting report to meet the needs of a specific decision maker is more characteristic of financial accounting reports than of management accounting reports.⊚ true ⊚ false

10) The annual financial statements of large corporations such as Microsoft or PepsiCo need not be audited by independent certified public accountants, since these companies maintain large accounting departments as part of their organizations.⊚ true ⊚ false

11) The statement of financial position and the income statement are one and the same.⊚ true ⊚ false

12) Investors are individuals and other enterprises that have provided equity to the reporting enterprise.⊚ true ⊚ false

13) A statement of cash flows depicts the way profits have changed during a designated period.⊚ true ⊚ false

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Version 1 3 14) Management accounting refers to the preparation and use of accounting information designed to meet the needs of decision makers outside the business organization.⊚ true ⊚ false

15) The content of management accounting reports needs to be presented in conformity with generally accepted accounting principles.⊚ true ⊚ false

16) One purpose of generally accepted accounting principles is to make accounting information prepared by different companies more comparable.⊚ true ⊚ false

17) An accounting practice can become a "generally accepted accounting principle" through widespread use, even if the practice is not mentioned in the official pronouncements of the accounting standard-setting organizations.⊚ true ⊚ false

18) The Public Company Accounting Oversight Board is responsible for creating and promoting International Financial Reporting Standards.⊚ true ⊚ false

19) Today, the most authoritative source of generally accepted accounting principles is the American Accounting Association.⊚ true ⊚ false

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Version 1 4 20) The American Institute of Certified Public Accountants has the legal authority over publicly held corporations to enforce compliance with generally accepted accounting principles.⊚ true ⊚ false

21) The Securities and Exchange Commission is instrumental in the development of financial accounting standards.⊚ true ⊚ false

22) Financial accounting standards issued by the FASB are considered generally accepted accounting principles.⊚ true ⊚ false

23) Generally accepted accounting principles were established by the American Accounting Association in 1934 and are updated annually by Congress.⊚ true ⊚ false

24) The CPA examination is administered by the General Accounting Office of the U.S.Government.⊚ true ⊚ false

25) The Sarbanes-Oxley Act places responsibility on CEOs and CFOs of companies to certify the fairness of a company's financial statements. The Act also created the Public Company Accounting Oversight Board, which oversees the public accounting profession.⊚ true ⊚ false

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