Statement 1: In recent times, most organizations are adopting a structure where managerial accountants are grouped away in segregated management accounting department to establish independence from their business counterparts. Statement 2: When compared to financial accountants, managerial accountants often prepare reports that are concerned about different segments of the organization rather than the organization as a whole. a. Both statements are true. b. Only Statement 1 is true. c. Only Statement 2 is true. d. Both statements are false.

Statement 1: In recent times, most organizations are adopting a structure where managerial accountants are grouped away in segregated management accounting department to establish independence from their business counterparts. Statement 2: When compared to financial accountants, managerial accountants often prepare reports that are concerned about different segments of the organization rather than the organization as a whole. a. Both statements are true. b. Only Statement 1 is true. c. Only Statement 2 is true. d. Both statements are false.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter1: Accounting As A Tool For Managers

Section: Chapter Questions

Problem 10MC: Which of the following statements is incorrect? The practice of management accounting is fairly...

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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 companys 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.
Managerial accounting is diferent from financial accounting in that Multiple Cholce 0:58:38 Managerial accounting is used extensively by Investors, whereas financial accounting is used only by creditors. Managerial accounting never Includes nonmonetary information. Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions. Managerial accounting is structured and controlled by GAAP. Managerial accounting is more focused on the organization as a whole, while financial accounting is more focused
Which of the following statement about management accounting information is incorrect? a. The benefits of providing the information should outweigh the costs. b. It is influenced by organisational structure and size. c. It is only prepared on an ad-hoc basis. d. It is used by senior managers.
Which of the following statements is FALSE? Select one: A. Managerial accounting information includes both historical and estimated data. B. Accounting is an information system that provides essential data about the economic activities of an entity to various users to aid them in making informed judgments and decisions. C. Managerial accounting reports are prepared according to generally accepted accounting principles. D. Since there are few rules to restrict how an organization chooses to arrange its own internal data for decision making, managerial accounting provides ample opportunity for creativity and change.
What statement about management accounting is FALSE? O A Management accounting helps managers fulfill organizational objectives. Management accounting is the process of identifying, measuring, B) accumulating, analyzing, preparing, interpreting and communicating information. C Management accounting is used by managerial accountants to make strategic and operational decisions. OD) Management accounting produces information for managers in an organization.
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.
1. Which of the following is not an internal user? a. Creditor b. Department manager c. Controller d. Treasurer 2. Internal reports are generally a. aggregated. b. detailed. c. regulated. d. unreliable. 3. The reporting standard for external financialreports isa. industry-specific.b. company-specific.c. generally accepted accounting principles.d. department-specific. 4. A distinguishing feature of managerial accountingisa. external users.b. general-purpose reports.c. very detailed reports.d. quarterly and annual reports. 5. The job cost sheet does not showa. costs chargeable to a specific job.b. the total costs of a completed job.c. the unit cost of a completed job.d. the cost of goods sold. 6. Which one of the following best describes a jobcost sheet? a. It is a form used to record the costs chargeableto a specific job and to determine the total and unit costs of the completedjob.b. It is used to track manufacturing overhead coststo specific jobs.c. It is used by management to…
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.
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1.What are the impact of issues in management accounting practices on the company and stakeholder? 2. Elaborate some suggestions to avoid the recurrence of the issues in management accounting practices.