EBK MANAGERIAL ACCOUNTING
EBK MANAGERIAL ACCOUNTING
5th Edition
ISBN: 8220103613811
Author: TIETZ
Publisher: PEARSON
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Chapter 1, Problem 2QC

(Learning Objective 2) Managerial accounting differs from financial accounting in that managerial accounting

  1. a. tends to report on the company as a whole rather than segments of the company.
  2. b. emphasizes data relevance over data objectivity.
  3. c. is used primarily by external decision makers.
  4. d. is required by Generally Accepted Accounting Principles (GAAP).
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For which type of learning outcomes would be the essay test be least useful?A. Understanding of accounting principlesB. Thinking skillsC. Organization of ideasD. Knowledge of factsE. Application of accounting principles
Which of the following statements is not true? a. Management accounting practices are laid down by Accounting Standards Board (ASB) b. Management accounting is future oriented c. Management accounting information is primarily prepared for internal use d. Management accounting provides quantitative as well as qualitative information
Chapter 3 of the text focuses on The Accounting Framework, which includes a discussion of the qualitative characteristics of financial information. While much of this discussion is beyond what a student taking an introductory course really needs to be concerned with, there are a few considerations that all business students should have a basic understanding;  Discuss a scenerio where Cost vs. Benefit, Materiality or Prudence would be considered. Your example should focus on one of the three characteristics.
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