Management Accounting Information for Decision Making 7th edition by Atkinson Test bank

 

 
   
   
 
LO1
Terms:  Management accounting
Difficulty:  1
1.         Management accounting is subject to the rules formulated by standard setters such as the Financial Accounting Standards Board (FASB).
 
Answer:  FALSE
Explanation:  Financial accounting is subject to the rules of the FASB.
 
 
LO1
Terms:  Management accounting
Difficulty:  1
2.         Management accounting information is primarily oriented to external stakeholders, such as investors, creditors, regulators, and tax authorities.
 
Answer:  FALSE
Explanation:  Management accounting information is primarily oriented to management.
 
 
LO1
Terms:  International Accounting Standards Board
Difficulty:  1
3.         The International Accounting Standards Board sets the guidelines used for management accounting.
 
Answer:  FALSE
Explanation:  Financial accounting must be consistent with the rules of the IASB.
 
 
LO1
Terms:  Management Accounting
Difficulty:  1
4.         A good management accounting system can become a source of competitive advantage for a company.
 
Answer:  TRUE
 

 
LO1
Terms:  Management Accounting
Difficulty:  1
5.         Management accounting information is sometimes predictive and forward looking.
 
Answer:  TRUE
 
 
LO1
Terms:  Management Accounting
Difficulty:  2
6.           Management accounting has no prescribed rules about its content, how the content is to be developed, and how the content is to be presented.
 
Answer:  TRUE
 
 
LO1
Terms:  Management Accounting
Difficulty:  1
7.         Management accounting measures can provide advance warnings of problems.
 
Answer:  TRUE
 
 
LO1
Terms:  Nonfinancial information
Difficulty:  1
8.         Information about customer satisfaction is an example of financial information.
 
Answer:  FALSE
Explanation:  Information about customer satisfaction is an example of nonfinancial information.
 
 
LO2
Terms:  Evolution of management accounting
Difficulty:  2
9.         During the history of management accounting, innovations were developed to address the decision-making needs of managers.
 
Answer:  TRUE
 
 
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LO2
Terms:  Evolution of management accounting
Difficulty:  2
10.       Management accounting innovations are usually developed by academics.
 
Answer:  FALSE
Explanation:  Management accounting innovations are usually developed by management accountants in the field.
 
 
LO3
Terms:  Financial information
Difficulty:  1
11.       Operating profit is an example of nonfinancial information.
 
Answer:  FALSE
Explanation:  Operating profit is an example of financial information.