Exam (elaborations)
Fundamental Managerial Accounting Concepts 9Th Edition by Thomas Edmonds - Test Bank
- Course
- Institution
Test Bank For Fundamental Managerial Accounting Concepts 9Th Edition by Thomas Edmonds
[Show more]
Seller
Follow
ExamsExpert
Reviews received
Content preview
,Fundamental Managerial Accounting Concepts, 9e (Edmonds)Chapter 1 Management Accounting and Corporate Governance
1) Ashley Bradshaw is the manager of one department in a large store. In this capacity, which of
the following kinds of information would she be interested in?
A) Economic data
B) Financial data
C) Nonfinancial data
D) Financial, economic, and nonfinancial data
Answer: D
Explanation: Managers rely on financial, economic, and nonfinancial data to make decisions and
evaluate performance.
Difficulty: 1 Easy
Topic: Users and Types of Information
Learning Objective: 01-01 Distinguish between managerial and financial accounting.
Bloom's: Remember
AACSB: Knowledge Application
AICPA: FN Decision Making; BB Industry
2) All of the following are features of managerial accounting except:
A) information is provided primarily to insiders such as managers.
B) information includes economic and non-financial data as well as financial data.
C) information is characterized by objectivity, reliability, consistency, and accuracy.
D) information is reported continuously with a present or future orientation.
Answer: C
Explanation: Managerial accounting is concerned with unregulated financial, economic, and
nonfinancial data, which pertains more to the sub-units of the organization, that is current and
future oriented, and that is designed primarily to meet the information needs of insiders.
Financial accounting information is characterized by objectivity, reliability, consistency, and
accuracy.
Difficulty: 1 Easy
Topic: Information Characteristics
Learning Objective: 01-01 Distinguish between managerial and financial accounting.
Bloom's: Remember
AACSB: Knowledge Application
AICPA: FN Decision Making; BB Industry
1
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,3) Choose the answer that is not a distinguishing characteristic of financial accounting
information.
A) It is global information that reflects the performance of the whole company.
B) It is focused primarily on the future.
C) It is more concerned with financial data than physical or economic data.
D) It is more highly regulated than managerial accounting information.
Answer: B
Explanation: Financial accounting deals with regulated, historical financial information that
pertains to the whole company and is designed primarily to meet the information needs of
outsiders.
Difficulty: 1 Easy
Topic: Information Characteristics
Learning Objective: 01-01 Distinguish between managerial and financial accounting.
Bloom's: Remember
AACSB: Knowledge Application
AICPA: FN Decision Making; BB Industry
4) Managerial accounting information is limited or restricted by which of the following
authorities or principles?
A) Securities and Exchange Commission
B) Generally Accepted Accounting Principles
C) Managerial Accounting Standards Board
D) Value-Added Principle
Answer: D
Explanation: The value-added principle means that management accountants are free to engage
in any information gathering and reporting activity so long as the activity adds value in excess of
its cost.
Difficulty: 1 Easy
Topic: Regulation
Learning Objective: 01-01 Distinguish between managerial and financial accounting.
Bloom's: Remember
AACSB: Knowledge Application
AICPA: FN Decision Making; BB Industry
2
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
, 5) Select the incorrect statement regarding the relationship between type of user and type of
information.
A) Middle managers need more nonfinancial, or operational data than do senior executives.
B) Assembly line supervisors need more immediate feedback on performance than do senior
executives.
C) Senior executives need less aggregated information than do lower-level managers.
D) Senior executives use general economic information as well as financial information.
Answer: C
Explanation: Senior executives need more aggregated information than do lower-level
managers.
Difficulty: 1 Easy
Topic: Users and Types of Information
Learning Objective: 01-01 Distinguish between managerial and financial accounting.
Bloom's: Remember
AACSB: Knowledge Application
AICPA: FN Decision Making; BB Industry
6) Select the correct statement regarding managerial and financial accounting.
A) Users of managerial accounting information desire greater aggregation than do users of
financial accounting information.
B) Both managerial and financial accounting use economic and physical data in addition to
financial data.
C) Financial accounting is more highly regulated than managerial accounting.
D) Timeliness is more important in financial accounting than in managerial accounting.
Answer: C
Explanation: Financial accounting deals with regulated, historical, financial information that
pertains to the whole company and is designed primarily to meet the information needs of
outsiders. Managerial accounting is concerned with unregulated financial, economic, and
nonfinancial data, which pertains more to the sub-units of the organization, that is current and
future oriented, and that is designed primarily to meet the information needs of insiders.
Difficulty: 1 Easy
Topic: Regulation
Learning Objective: 01-01 Distinguish between managerial and financial accounting.
Bloom's: Remember
AACSB: Knowledge Application
AICPA: FN Decision Making; BB Industry
3
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamsExpert. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $30.59. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79271 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now