Test Bank For Financial and

Test Bank For Financial and Managerial Accoun�ng The Basis for Business Decisions 17 th Edi�on By Jan Williams Susan Haka (All Chapters 100% Original Verified A+ Grade) Answers At The End Of Each Chapter 1 / 4

1-1 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.Chapter 01

Accounting: Information for Decision Making

True / False Questions 1.Managerial accounting information is designed primarily to assist investors and creditors in deciding how to allocate scarce resources.True False 2.All internal control systems need to be monitored.True False 3.Management accounting information is oriented toward the future while financial accounting information is historical in nature.True False 4.Return on investment is the same as return of investment.True False 5.The IRS tax return is one of the primary financial statements.True False 2 / 4

1-2 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

6.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 7.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 8.The annual financial statements of large corporations such as Microsoft or PepsiCo need not be audited by independent certified public accountants, since these firms maintain large accounting departments as part of their organizations.True False 9.The statement of financial position and the income statement are one and the same.True False 10.Investors are individuals and other enterprises that have provided equity to the reporting enterprise.True False 11.A statement of cash flows depicts the way profits have changed during a designated period.True False 12.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 3 / 4

1-3 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

• The content of management accounting reports needs to be presented in conformity with

generally accepted accounting principles.

True False

• One purpose of generally accepted accounting principles is to make accounting information

prepared by different companies more comparable.

True False

• 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

• The Public Company Accounting Oversight Board is responsible for creating and promoting

International Financial Reporting Standards.

True False

• Today, the most authoritative source of generally accepted accounting principles is the

American Accounting Association.

True False

• 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

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