,Managerial Accounting, 7e (Wild)
Chapter 1 Managerial Accounting Concepts and Principles
1) Managerial accounting is an activity that helps managers determine costs of products and
services, plan future activities, and compare actual to planned results.
Answer: TRUE
Difficulty: 1 Easy
Topic: Purpose of Managerial Accounting
Learning Objective: 01-C1 Explain the purpose and nature of, and the role of ethics in,
managerial accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Decision Making
2) Control is the process of setting goals and determining ways to achieve them.
Answer: FALSE
Difficulty: 1 Easy
Topic: Purpose of Managerial Accounting
Learning Objective: 01-C1 Explain the purpose and nature of, and the role of ethics in,
managerial accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Decision Making
3) Control is the process of monitoring planning decisions and evaluating an organization's
activities and employees.
Answer: TRUE
Difficulty: 1 Easy
Topic: Purpose of Managerial Accounting
Learning Objective: 01-C1 Explain the purpose and nature of, and the role of ethics in,
managerial accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Decision Making
1
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,4) Managerial accounting provides financial and nonfinancial information to an organization's
managers and other internal decision makers.
Answer: TRUE
Difficulty: 1 Easy
Topic: Purpose of Managerial Accounting
Learning Objective: 01-C1 Explain the purpose and nature of, and the role of ethics in,
managerial accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Decision Making
5) One of the usual differences between financial and managerial accounting is the timeliness of
the information reported.
Answer: TRUE
Difficulty: 1 Easy
Topic: Purpose of Managerial Accounting
Learning Objective: 01-C1 Explain the purpose and nature of, and the role of ethics in,
managerial accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Decision Making
6) Managerial accounting information can be forwarded to the managers of a company quickly
since external auditors do not have to review it, and estimates and projections are acceptable.
Answer: TRUE
Difficulty: 1 Easy
Topic: Purpose of Managerial Accounting
Learning Objective: 01-C1 Explain the purpose and nature of, and the role of ethics in,
managerial accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Reporting
2
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
, 7) Marketing managers can use managerial accounting information to decide whether to
advertise on social media.
Answer: TRUE
Difficulty: 1 Easy
Topic: Purpose of Managerial Accounting
Learning Objective: 01-C1 Explain the purpose and nature of, and the role of ethics in,
managerial accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Reporting
8) Managerial accounting reports and information are used by external users and financial
accounting by internal users.
Answer: FALSE
Difficulty: 1 Easy
Topic: Purpose of Managerial Accounting
Learning Objective: 01-C1 Explain the purpose and nature of, and the role of ethics in,
managerial accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Decision Making
9) Both financial and managerial accounting rely on accepted principles that are enforced
through an extensive set of rules and guidelines.
Answer: FALSE
Difficulty: 1 Easy
Topic: Purpose of Managerial Accounting
Learning Objective: 01-C1 Explain the purpose and nature of, and the role of ethics in,
managerial accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Decision Making
3
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
Chapter 1 Managerial Accounting Concepts and Principles
1) Managerial accounting is an activity that helps managers determine costs of products and
services, plan future activities, and compare actual to planned results.
Answer: TRUE
Difficulty: 1 Easy
Topic: Purpose of Managerial Accounting
Learning Objective: 01-C1 Explain the purpose and nature of, and the role of ethics in,
managerial accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Decision Making
2) Control is the process of setting goals and determining ways to achieve them.
Answer: FALSE
Difficulty: 1 Easy
Topic: Purpose of Managerial Accounting
Learning Objective: 01-C1 Explain the purpose and nature of, and the role of ethics in,
managerial accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Decision Making
3) Control is the process of monitoring planning decisions and evaluating an organization's
activities and employees.
Answer: TRUE
Difficulty: 1 Easy
Topic: Purpose of Managerial Accounting
Learning Objective: 01-C1 Explain the purpose and nature of, and the role of ethics in,
managerial accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Decision Making
1
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,4) Managerial accounting provides financial and nonfinancial information to an organization's
managers and other internal decision makers.
Answer: TRUE
Difficulty: 1 Easy
Topic: Purpose of Managerial Accounting
Learning Objective: 01-C1 Explain the purpose and nature of, and the role of ethics in,
managerial accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Decision Making
5) One of the usual differences between financial and managerial accounting is the timeliness of
the information reported.
Answer: TRUE
Difficulty: 1 Easy
Topic: Purpose of Managerial Accounting
Learning Objective: 01-C1 Explain the purpose and nature of, and the role of ethics in,
managerial accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Decision Making
6) Managerial accounting information can be forwarded to the managers of a company quickly
since external auditors do not have to review it, and estimates and projections are acceptable.
Answer: TRUE
Difficulty: 1 Easy
Topic: Purpose of Managerial Accounting
Learning Objective: 01-C1 Explain the purpose and nature of, and the role of ethics in,
managerial accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Reporting
2
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
, 7) Marketing managers can use managerial accounting information to decide whether to
advertise on social media.
Answer: TRUE
Difficulty: 1 Easy
Topic: Purpose of Managerial Accounting
Learning Objective: 01-C1 Explain the purpose and nature of, and the role of ethics in,
managerial accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Reporting
8) Managerial accounting reports and information are used by external users and financial
accounting by internal users.
Answer: FALSE
Difficulty: 1 Easy
Topic: Purpose of Managerial Accounting
Learning Objective: 01-C1 Explain the purpose and nature of, and the role of ethics in,
managerial accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Decision Making
9) Both financial and managerial accounting rely on accepted principles that are enforced
through an extensive set of rules and guidelines.
Answer: FALSE
Difficulty: 1 Easy
Topic: Purpose of Managerial Accounting
Learning Objective: 01-C1 Explain the purpose and nature of, and the role of ethics in,
managerial accounting.
Bloom's: Remember
AACSB/Accessibility: Communication / Keyboard Navigation
AICPA: BB Industry; FN Decision Making
3
Copyright 2019 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
