Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 1, Problem 2EB
Identify the following as true or false:
Financial accounting reports are not released to external users.Managerial accounting reports are not used by employees inside the organization.- Managerial accounting reports include only monetary information.
- Financial accounting reports are monetary in nature.
- If a result of a company’s operations is nonmonetary in nature, it must be converted to monetary units for managerial reporting.
- Tax authorities and government regulatory agencies are external users of financial information.
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Students have asked these similar questions
One major difference between financial and management accounting is that
A. financial accounting reports are prepared primarily for users external to the company.
B. management accounting is not under the jurisdiction of the Securities and Exchange Commission.
C. government regulations do not apply to management accounting.
D. all of the above are true.
Which of the following statements is false?
Managerial accounting does not need to conform to GAAP
Financial accounting must conform to GAAP.
Managerial accounting sometimes relies on past information.
There is no overlap between financial and managerial accounting.
Which of the following statements is false?
a.Financial accounting must conform to GAAP.
b.Managerial accounting sometimes relies on past information.
c.Managerial accounting does not need to conform to GAAP.
d.There is no overlap between financial and managerial accounting.
Chapter 1 Solutions
Principles of Accounting Volume 2
Ch. 1 - The managers of an organization are responsible...Ch. 1 - Management accountants help the management of an...Ch. 1 - Which of the following is a primary aspect of the...Ch. 1 - During the control function, the measurements...Ch. 1 - Which of the following is false regarding...Ch. 1 - Managerial accounting produces information: to...Ch. 1 - Management accounting: emphasizes special-purpose...Ch. 1 - Internal users of accounting information would not...Ch. 1 - External users of accounting information would...Ch. 1 - Which of the following statements is incorrect?...
Ch. 1 - The stockholders of a company are: the owners...Ch. 1 - The controller of a corporation: reports to the...Ch. 1 - The Certified Financial Analyst (CFA)...Ch. 1 - The Certified Management Accountant (CMA)...Ch. 1 - Which of the following terms means the ability to...Ch. 1 - Which of the following terms means knowing how a...Ch. 1 - What is the law that protects investors from...Ch. 1 - What year was the Sarbanes-Oxley Act enacted? 2007...Ch. 1 - When a representative of an organization gives...Ch. 1 - The law that specifically prohibits payments to...Ch. 1 - Which of the following is not a step in the...Ch. 1 - Which of the following is not an objective used in...Ch. 1 - Which of the following is not true regarding...Ch. 1 - A companys attempts to utilize sustainable...Ch. 1 - A process that is often linked to Six Sigma and is...Ch. 1 - An inventory system that organizations use to...Ch. 1 - A quality control program that depends on multiple...Ch. 1 - Carlita believes an important part of the planning...Ch. 1 - What are some activities and tasks a manager might...Ch. 1 - If there are deviations from the stated goals and...Ch. 1 - Explain how managerial accountants help managers...Ch. 1 - How do the subject matter of reports and the...Ch. 1 - What is the purpose of management accounting?Ch. 1 - Who are the primary users of the information...Ch. 1 - What are the key differences between financial...Ch. 1 - Other than accounting skills, what six qualities...Ch. 1 - Explain how having more than one of the accounting...Ch. 1 - Briefly discuss the chain of command for someone...Ch. 1 - According to the information available at...Ch. 1 - According to the information on management...Ch. 1 - What other professional business organizations...Ch. 1 - How can having a bonus system based purely on...Ch. 1 - What led to the United States Congress passing the...Ch. 1 - What is an enterprise resource planning (ERP)...Ch. 1 - Describe what is meant by the term balanced in the...Ch. 1 - What is corporate social responsibility, and who...Ch. 1 - Indicate whether each statement describes...Ch. 1 - Identify the following as True or False:...Ch. 1 - Define each of these users of accounting...Ch. 1 - Discuss what information would be most useful for...Ch. 1 - Taylor Speedy has prepared the following list of...Ch. 1 - Match the term with the description:Ch. 1 - After the passage of the Sarbanes-Oxley Act in...Ch. 1 - Indicate whether each of the following statements...Ch. 1 - Match each lean business method to the best...Ch. 1 - For each of the activities listed, choose the...Ch. 1 - Look up the definitions for the following terms:...Ch. 1 - Indicate whether the statement describes reporting...Ch. 1 - Identify the following as true or false: Financial...Ch. 1 - Companies need to report both monetary and...Ch. 1 - Marvin has been thinking about the fields of...Ch. 1 - Match the term with the description.Ch. 1 - The Foreign Corrupt Practices Act (FC PA) was...Ch. 1 - Indicate whether each of the following statements...Ch. 1 - Table 1.3 shows how different areas within the...Ch. 1 - There are individuals who are under the impression...Ch. 1 - Think about the organization chart in Figure 1.7....Ch. 1 - Controversy tends to surround the topic of...
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Similar questions
- How do the subject matter of reports and the verification of reports differ between financial accounting and managerial accounting?arrow_forwardWhat is the primary purpose of financial accounting? A) To control the spending of a company B) To manage employee payrolls C) To provide financial information to external users for decision-making D) To calculate the company's tax liabilitiesarrow_forwardManagerial accounting reports must comply with generally accepted accounting principles. Is it true or false ?arrow_forward
- Identify the following as True or False:A. Managerial accounting reports must comply with the rules set in place by the FASB.B. Financial accounting reports are typically general-purpose reports.C. Financial accounting reports pertain to the entity as a whole, whereas managerial accounting focusesmore on subunits of the organization.D. The main users of the financial accounting information are the internal users.E. Managerial reports are prepared on an as-needed basis.F. Financial accounting reports often must be audited at least annually by an independent auditor.arrow_forwardWhich is correct about financial information? a. Financial information’s purpose is only to comply with needs external users such as the government, investors and external stakeholders. b. Financial information can be used for forecasting and budgeting. c. Financial information deviates from the actual thus it justifies erroneous management decisions. d. Financial information is used by line managers to evaluate performance of staff positions. e. b & d f. All of the above g. None of the abovearrow_forwardInternal auditors ?arrow_forward
- Which of the following statements is false? Select one: O A. Management accounting statements need not comply with Accounting regulations O B. Financial accounting statements normally reflect more detail than would be found in management accounting reports O C. Management accounting reports emphasise future activities and future costs O D. Financial accounting data are directed primarily at external users rather than internal users.arrow_forwardIt has been suggested that not all accounting choices are made by management in the best interest of fair and consistent financial reporting. Required: What motivations can you think of for management’s choice of accounting methods?arrow_forwardWhich of the following is not a provision of the Sarbanes-Oxley Act as to the responsibility of a company's top managers? Question 3 options: They must establish formal procedures to receive, retain, and address any information that may affect the company's accounting. They must certify that they are primarily responsible for the company's internal controls over financial reporting. They must certify that the company's financial statements are fairly presented. They may deny responsibility for certain financial reporting matters if they are not knowledgeable about the proper accounting procedures for those transactions.arrow_forward
- The AICPA Special Committee on Financial Reporting proposed the following constraints related to financial reporting. 1. Business reporting should exclude information outside of management’s expertise or for which management is not the best source, such as information about competitors. 2. Management should not be required to report information that would significantly harm the company’s competitive position. 3. Management should not be required to provide forecasted financial statements. Rather, management should provide information that helps users forecast for themselves the company’s financial future. 4. Other than for financial statements, management need report only the information it knows. That is, management should be under no obligation to gather information it does not have, or does not need, to manage the business. 5. Companies should present certain elements of business reporting only if users and management agree they should be reported—a concept of…arrow_forwardWhich one of the following statements is false? O A. Management accounting reports tend to be specific. O B. Management accounting reports are produced as often as required. O C. Management accounting reports are subjected to the principles and practices of GAAP. O D. Management accounting reports are not required by law.arrow_forwardIdentify the following statements as either True or False: 1. Financial accounting reports pertain to the entity as a whole, whereas managerial accounting focuses more on subunits of the organization. 2. organization. Staff positions are directly involved in the company's primaty revenue- generating activities. 3. Managerial reports are prepared on an as needed basis.  4. Both managerial accounting and financial accounting deal with many of the same economic events. 5. Financial accounting reports are typically general purpose reports. 6. Financial accounting reports often must be audited at least annually by an independent auditor. 7. Preparation of budget is part of financial accounting. 8. Managerial accounting reports must comply with the rules in place by the FASB. 9. Managerial accounting applies only to merchandising and manufacturing companies. 10. The main users of the financial accounting information are the internal users. arrow_forward
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