Accounting Managerial Ch1

Management accountants help the management of an organization in their planning function through _____.

strategic planning

Which of the following is false regarding strategic planning?

It is the sole responsibility of supervisors

Internal users of accounting information would not include

creditors

External users of accounting information would include

investors

When a representative of an organization gives money to another business official in order to gain favor and/or manipulate a business decisions, this is known as _____.

bribery

Financial accounting statements:

1. the information is directed at external users who are making decisions pertaining to investing, extending credit, and other decisions
2. the key focus is on the entity as a whole
3. the information gathered is usually available after an independent audit has been completed

Managerial accounting statements:

1. the principal users are the organization’s managers
2. the rules and principles are very flexible

Managerial accounting reports must comply with the rules set in place by the FASB

false

Financial accounting reports are typically general-purpose reports

true

Financial accounting reports pertain to the entity as a whole, whereas managerial accounting focuses more on subunits of the organization

true

The main users of the financial accounting information are the internal users

false

Managerial reports are prepared on an as-needed basis

true

Financial accounting reports often must be audited at least annually by an independent auditors

true

Define accounting information as internal or external users :

1. management - internal
2. employees - internal
3. investors - external
4. creditors - external
5. customers - external
6. tax authorities- external

True or false:

1. Financial accounting reports are not released to external users --- false
2. Managerial accounting reports are not used by employees inside the organization --- false
3. Managerial accounting reports include only monetary information --- false
4. Financial accounting reports are monetary in nature --- true
5. If a result of a company’s operations is non-monetary in nature, it must be converted to monetary units for managerial reporting --- false
6. Tax authorities and government regulatory agencies are external users of financial information --- true