BUS103 Chapter 1
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. Return on investment is the same as return of investment.
True False 3. The IRS tax return is one of the primary financial statements.
True False 4. 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 5. The content of management accounting reports needs to be presented in conformity with generally accepted accounting principles.
True False 6. 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 7. 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 8. Generally accepted accounting principles were established by the American Accounting Association in 1934 and are updated annually by Congress.
True False 9. One purpose of generally accepted accounting principles is to make accounting information prepared by different companies more comparable.
True False 10. Today, the most authoritative source of generally accepted accounting principles is the American Accounting Association.
True False 11. 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 12. An accounting practice can become a "generally accepted accounting principle" through widespread use,
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. Return on investment is the same as return of investment.
True False 3. The IRS tax return is one of the primary financial statements.
True False 4. 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 5. The content of management accounting reports needs to be presented in conformity with generally accepted accounting principles.
True False 6. 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 7. 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 8. Generally accepted accounting principles were established by the American Accounting Association in 1934 and are updated annually by Congress.
True False 9. One purpose of generally accepted accounting principles is to make accounting information prepared by different companies more comparable.
True False 10. Today, the most authoritative source of generally accepted accounting principles is the American Accounting Association.
True False 11. 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 12. An accounting practice can become a "generally accepted accounting principle" through widespread use,