Chapert 13 Quiz
CHAPTER 13 - MULTIPLE CHOICE QUESTIONS
1. Managerial accounting information is generally prepared for a. shareholders b. creditors c. managers d. regulatory agencies
C is correct.
Section “Management accounting basics” – Management accounting focuses mainly on the preparation of reports for the internal users of financial information, i.e. managers are all levels of the entity.
2. Managerial accounting information a. relates to the entity as a whole and is highly aggregated b. relates to sub-units of the entity and may be very detailed c. is prepared only once a year d. is constrained by the requirements of generally accepted accounting principles
B is correct.
Section “Management accounting basics” – Management accounting pertains to subunits of the entity and may be very detailed.
5. Which of the following is not an internal user of management information? a. Creditor b. Department manager c. Controller d. Treasurer
A is correct.
Section “Management accounting basics” – Creditors are external to the entity.
6. Managerial accounting does not encompass a. calculating product cost b. calculating earnings per share c. determining cost behavior d. profit planning
B is correct.
Section “Management accounting basics” – Calculating earnings per share is a function for external users of financial information.
7. Management accounting is applicable to a. service entities b. manufacturing entities c. not-for-profit entities d. all of these
D is correct.
Section “Management accounting basics” – Management accounting applies to any business entity.
10. Financial statements for external users can be described as a. user-specific b. general-purpose c. special-purpose d. management reports
B is correct.
Section “Management accounting basics” – Financial statements prepared for external users are general purpose financial reports.
11. Management
1. Managerial accounting information is generally prepared for a. shareholders b. creditors c. managers d. regulatory agencies
C is correct.
Section “Management accounting basics” – Management accounting focuses mainly on the preparation of reports for the internal users of financial information, i.e. managers are all levels of the entity.
2. Managerial accounting information a. relates to the entity as a whole and is highly aggregated b. relates to sub-units of the entity and may be very detailed c. is prepared only once a year d. is constrained by the requirements of generally accepted accounting principles
B is correct.
Section “Management accounting basics” – Management accounting pertains to subunits of the entity and may be very detailed.
5. Which of the following is not an internal user of management information? a. Creditor b. Department manager c. Controller d. Treasurer
A is correct.
Section “Management accounting basics” – Creditors are external to the entity.
6. Managerial accounting does not encompass a. calculating product cost b. calculating earnings per share c. determining cost behavior d. profit planning
B is correct.
Section “Management accounting basics” – Calculating earnings per share is a function for external users of financial information.
7. Management accounting is applicable to a. service entities b. manufacturing entities c. not-for-profit entities d. all of these
D is correct.
Section “Management accounting basics” – Management accounting applies to any business entity.
10. Financial statements for external users can be described as a. user-specific b. general-purpose c. special-purpose d. management reports
B is correct.
Section “Management accounting basics” – Financial statements prepared for external users are general purpose financial reports.
11. Management