Write TRUE if the statement is true, and FALSE if the statement is FALSE. Chacter tStroteak Cost Meneaement.and Menment Accoutog27. Management accounting produces information that helps workers, manager, andexecutives in organizations make better decisions and improve their processes andperformance.28. Internal reporting is the preparation of financial reports based on generally acceptedaccounting principles29. Accounting system is often the principal means of gathering data to aid and coordinatethe process of making the best collective operating or routine decisions in light of theoverall goals or objectives of an organiration.30. An effective accounting system provides information only to internal managers for usein planning and controlling routine operations and in strategic planning.31. Data processing includes the preparation of documents (such as checks and invoices),and the flow of the data contained in these documents through the major accountingsteps of recording, classifying, and summarizing.32. Information generated or processed by computers is said to be free from any errors,thus, it possesses the quality of accuracy.33. Computers can make decisions in the sense of exercising judgment and can chooseamong alternatives by following the specific instructions contained in the program.34. Designing a good accounting system is a specialized job requiring a high degree of skill.35. Accounting system must contain controls to achieve accuracy, reliability and efficiency.36. Information system isprovide information for decision making.37. Data collection via an accounting system facilitates the best collective decision making.38. A program is a series of steps planned to carry out a certain process, such as thepreparation of a payroll.39. Accounting machines is usually applied to mechanical or electronic equipment capableof performing arithmetic functions and not used to produce a variety of accountingrecords and reports.40. The input in a computer-based system corresponds to the journals in a manual system.41. One of the first steps in the development of an accounting system is the preparation of achart of accounts.42. Accounting system must contain controls to achieve accuracy, honesty, and efficiency,and speed.43. The accuracy quality of information refers to the degree to which information is freefrom error.44. Information is said to be complete if the user could accumulate as many information aspossible.45. Information is said to be timely if it still useful to the decision makers before a decisionhas been made.combination of hardware, software, people and events to46. Management control systems guides the organizations in designing and implementingstrategies to achieve its objectives47. A detector is a measuring device that identifies what is actually happening in thebeing controlled.48. Communications network is a part of cost management system that identifies the cost ofprocessresources of the firms.a fo 49. The firm's organizational structure refers to how authority and responsibility fordecision making are distributed.50. Costs-benefits trade-offs may be considered by managers in designing managementinformation system.CS Scanned with CamScanner Chapter 1 Stratogic Cost Managomont ond Monagoment Accounting21I. TRUE OR FALSE STATEMENTS. Write "True" if the statement is true and write "False" if thestatement is false:1. Reports prepared in management accounting are general-purpose reports, whereasreports prepared in financial accounting are usually special-purpose reports.2. Management accounting information generally pertains to an entity as a whole and isvery detailed.3. Management accounting applies only to manufacturing companies.4. Determining the unit cost of manufacturing a product is an output of managementaccounting.5. Management accounting internal reports are prepared less frequently than classifiedfinancial statements.6. The management function of planning is mainly concerned with setting goals andobjectives for the entity.7. An organization chart in a manufacturing company replaces the chart of accounts.8. Directing is the process of determining whether planned goals are being met.9. Decision-making is an integral part of the planning, directing and motivating functions,but not of the controlling function.10. The theory of constraints is used to measure performance.11. The focus of a TQM system is to reduce defects in finished products.12. Recognize and communicate professional limitations or other constraints that wouldpreclude responsible judgment or successful performance of an activity is an integrityethical conduct of professionals.13. Management accountants must refrain form disclosing confidential informationacquired in the course of their work, except when authorized, unless legally obligated todo so.14. Competence is one of the underlying ethical conduct professionals must maintain.15. The plans of management are expressed in quantitative form as budgets.16. In practice, the planning, organizing, and controlling functions of management are keptseparate from the decision-making function.17. Staff departments in an organization generally have direct authority over linedepartments.18. The accounting information produced by a management accounting system does notinclude the expenses incurred in an operating department.19. Future-oriented reports are not a basic feature of a financial accounting system.20. Management accounting deals with providing economic information to internalconstituencies.21. The functions of management accounting information are: operational control, productand customer costing, management control, and external reporting.22. The steps to be followed in implementing an organization's objectives are set downthrough strategic planning.23. Strategic planning is sometimes referred to as setting policy.24. "Controlling" refers primarily to setting maximum limits on spending in anorganization.25. Management accountant must understand and anticipate the reactions of individual toinformation and measurements.26. A balanced report is a measurement system for clarifying, communicating andimplementing business strategy.CS Scanned with CamScanner

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27. Management accounting produces information that helps workers, manager, and executives in organizations make better decisions and improve their processes and performance.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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