Managers use management accounting information to: A) communicate, develop, and implement strategies. B) help external users such as investors, banks, regulators, and suppliers. C) communicate a firm's financial position to investors, banks, regulators, and other outside parties. D) ensure that financial statements are consistent with the SEC rules.

Managers use management accounting information to: A) communicate, develop, and implement strategies. B) help external users such as investors, banks, regulators, and suppliers. C) communicate a firm's financial position to investors, banks, regulators, and other outside parties. D) ensure that financial statements are consistent with the SEC rules.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter3: Internal Control Over Financial Reporting: Responsibilities Of Management And The External Auditor

Section: Chapter Questions

Problem 1CYBK

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Indicate whether each statement describes financial accounting or managerial accounting. The information is directed at external users who are making decisions pertaining to investing, extending credit, and other decisions. The principal users are the organizations managers. The key focus is on the entity as a whole. The rules and principles are very flexible. The information gathered is usually available after an independent audit has been completed.
Managerial accounting produces information: to meet the needs of external users that is often focused on the future to meet the needs of investors that follows the rules of GAAP
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Who uses information from an accounting system? A. Stockholders, investors, taxing authorities, government regulators, and other interested parties use internal reporting for investment and long-range planning. Managers use external reporting for planning and controlling operations and long-range planning. B. Managers use internal reporting for planning and controlling operations, special decision-making, and long-range planning. Stockholders, investors, taxing authorities, government regulators, and other interested parties use external reporting. C. Managers, stockholders, and taxing authorities use internal reporting for planning and controlling operations. Investors, government regulators, and other interested parties use external reporting. D. Managers use internal reporting for planning and controlling operations, special decision-making, and long-range planning. Suppliers and customers use external reporting to plan for…
The primary goal of management accounting is to: Select one: O A. provide information to current and potential investors in the company O B. provide information to creditors as well as current and prospective investors O C. provide information to creditors, taxing authorities, and current and prospective investors O D. provide information for internal management to assist them in planning, control and decision making
Which of the following adequately describes Management Accounting? It is the process of identifying, measuring and: a. analysing financial information b. accumulating information developed for external users c. analysing information d. accumulating information developed for managers
What is the purpose of financial accounting? a) To provide information for internal decision making b) To record and report financial transactions c) To analyze market trends and forecasts d) To manage the company's budget
Indicate whether each statement describes financial accounting or managerial accounting.A. The information is directed at external users who are making decisions pertaining to investing,extending credit, and other decisions.B. The principal users are the organization’s managers.C. The key focus is on the entity as a whole.D. The rules and principles are very flexible.E. The information gathered is usually available after an independent audit has been completed.
The person MOST likely to use management accounting information is a: Select one: O a. banker evaluating a credit application. Ob. shareholder evaluating a stock investment. Oc assembly department supervisor. Od. governmental taxing authority.
1. Indicate whether each of the following statements describes financial accounting or managerial accounting. The information is directed at external users who are making decisions pertaining to investing, extending credit, and other decisions? The principal users are the organization’s managers? The key focus is on the entity as a whole? The rules and principles are very flexible? The information gathered is usually available after an independent audit has been completed?
Financial accounting follows Generally Accepted Acccounting Principles (GAAP), while managerial accounting Select one: O a. develops financial statements for external users O b. often has the financial information audited O c. is concerned with collecting data of historical nature O d. develops reports primarily prepared for internal use and help management make informed operational decisions.
The primary objective of management accounting is to provide thea.shareholders with useful information for decision makingb. creditors with useful information for decision makingc. management with information useful for planning and control of operationsd. government agencies with information for tax and other compliance purposes