Chapter 1 Accounting Tb
CHAPTER 1
THE ACCOUNTANT’S ROLE IN THE
ORGANIZATION
TRUE/FALSE
1. Management accounting information focuses on external reporting.
Answer: False Difficulty: 1 Objective: 1 Terms to Learn: management accounting Management accounting information focuses on internal reporting.
2. A good cost accounting system is narrowly focused on a continuous reduction of costs.
Answer: False Difficulty: 2 Objective: 1 Terms to Learn: cost accounting A good cost accounting system is broadly focused to provide information that helps managers at all levels implement, monitor, and evaluate company strategies.
3. Modern cost accounting plays a significant role in management decision making.
Answer: True Difficulty: 1 Objective: 1 Terms to Learn: cost accounting
4. The balance sheet, income statement, and statement of cash flows are used for financial accounting, but not for management accounting.
Answer: False Difficulty: 1 Objective: 1 Terms to Learn: financial accounting The balance sheet, income statement, and statement of cash flows are used for financial accounting and also for management accounting.
5. Financial accounting is broader in scope than management accounting.
Answer: False Difficulty: 2 Objective: 1 Terms to Learn: financial accounting, management accounting Management accounting is broader in scope than financial accounting.
6. Cost accounting measures and reports short-term, long-term, financial, and nonfinancial information.
Answer: True Difficulty: 2 Objective: 1 Terms to Learn: cost accounting
7. Cost management provides information that helps increase value for customers.
Answer: True Difficulty: 1 Objective: 1 Terms to Learn: cost management
8. An ideal database should consist of data that could be used for a single purpose only.
Answer: False Difficulty: 2 Objective: 1 Terms to Learn: management accounting An ideal database should be able to
THE ACCOUNTANT’S ROLE IN THE
ORGANIZATION
TRUE/FALSE
1. Management accounting information focuses on external reporting.
Answer: False Difficulty: 1 Objective: 1 Terms to Learn: management accounting Management accounting information focuses on internal reporting.
2. A good cost accounting system is narrowly focused on a continuous reduction of costs.
Answer: False Difficulty: 2 Objective: 1 Terms to Learn: cost accounting A good cost accounting system is broadly focused to provide information that helps managers at all levels implement, monitor, and evaluate company strategies.
3. Modern cost accounting plays a significant role in management decision making.
Answer: True Difficulty: 1 Objective: 1 Terms to Learn: cost accounting
4. The balance sheet, income statement, and statement of cash flows are used for financial accounting, but not for management accounting.
Answer: False Difficulty: 1 Objective: 1 Terms to Learn: financial accounting The balance sheet, income statement, and statement of cash flows are used for financial accounting and also for management accounting.
5. Financial accounting is broader in scope than management accounting.
Answer: False Difficulty: 2 Objective: 1 Terms to Learn: financial accounting, management accounting Management accounting is broader in scope than financial accounting.
6. Cost accounting measures and reports short-term, long-term, financial, and nonfinancial information.
Answer: True Difficulty: 2 Objective: 1 Terms to Learn: cost accounting
7. Cost management provides information that helps increase value for customers.
Answer: True Difficulty: 1 Objective: 1 Terms to Learn: cost management
8. An ideal database should consist of data that could be used for a single purpose only.
Answer: False Difficulty: 2 Objective: 1 Terms to Learn: management accounting An ideal database should be able to