Test Bank for Horngren's Financial & Managerial Accounting The Managerial Chapters, 7th edition by Tracie Miller-Nobles, Brenda Mattison
Test Bank for Horngren's Financial & Managerial Accounting The Managerial Chapters, 7th edition by Tracie Miller-Nobles, Brenda Mattison Latest 2024 VERSION ISBN: 9781292412306 PDF
Test Bank- Horngren's Financial & Managerial Accounting, The Financial Chapters, Global Edition 7th Edition (Tracie Miller-Nobles,2024) 1-15 Chapters|| All Chapter ||Latest Edition
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TEST BANK FOR
Horngren's Financial & Managerial
Accounting, 7th Edition Nobles Chapter 1-
15 with Appendix B A+
,TEST BANK FOR
Horngren's Financial & Managerial Accounting, 7th Edition Nobles
Chapter 1-15 with Appendix B
Chapter F:1 Accounting and the Business Environment
Learning Objective F:1-1
1) Accounting is the information system that measures business activities, processes the information into
reports, and communicates the results to decision makers.
Answer: TRUE
Diff: 1
LO: F:1-1
AACSB: Application of knowledge
AICPA Functional: Measurement PE
Question Type: Concept
H2: Why is Accounting Important? (H1)
2) Critical thinking and judgment skills are not necessary for accountants because technology has made
the activities routine.
Answer: FALSE
Explanation: Technology plays an important supporting role in performing routine accounting
functions. This allows accountants to have more time to focus on reviewing and evaluating economic
activities using critical thinking and judgment.
Diff: 1
LO: F:1-1
AACSB: Application of knowledge
AICPA Functional: Measurement PE
Question Type: Concept
H2: Why is Accounting Important? (H1)
3) Accounting starts with economic activities that accountants review and evaluate using critical thinking
and judgment to create useful information that helps individuals make good decisions.
Answer: TRUE
Diff: 1
,LO: F:1-1
AACSB: Application of knowledge
AICPA Functional: Measurement PE
Question Type: Concept
H2: Why is Accounting Important? (H1)
4) Accounting is referred to as the language of business because it is the method of communicating
business information to decision makers.
Answer: TRUE
Diff: 1
LO: F:1-1
AACSB: Application of knowledge
AICPA Functional: Measurement PE
Question Type: Concept
H2: Why is Accounting Important? (H1)
5) A model called the was created
to help students and the public understand what accounting is.
A) Decision Making Model
B) Business Model
C) Pathways Vision Model
D) Cost Model
Answer: C
Diff: 1
LO: F:1-1
AACSB: Application of knowledge
AICPA Functional: Measurement PE
Question Type: Concept
H2: Why is Accounting Important? (H1)
6) The Pathways Vision Model emphasizes that good decisions have an impact on
A) accounting judgments and economic activity.
B) accounting judgments only.
C) economic activity only.
D) neither accounting judgments nor economic activity.
, Answer: A
Diff: 1
LO: F:1-1
AACSB: Application of knowledge
AICPA Functional: Measurement PE
Question Type: Concept
H2: Why is Accounting Important? (H1)
7) Managerial accounting focuses on providing information for external decision makers.
Answer: FALSE
Explanation: Managerial accounting focuses on providing information for internal decision makers.
Diff: 1
LO: F:1-1
AACSB: Application of knowledge
AICPA Functional: Measurement PE
Question Type: Concept
H2: Decision Makers: The Users of Accounting Information
8) Investors primarily use managerial accounting information for decision-making purposes.
Answer: FALSE
Explanation: External users (investors) use financial accounting information.
Diff: 1
LO: F:1-1
AACSB: Application of knowledge
AICPA Functional: Measurement PE
Question Type: Concept
H2: Decision Makers: The Users of Accounting Information
10) Income tax is calculated using accounting information.
Answer: TRUE
Diff: 1
LO: F:1-1
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