Question 1
Which of the following statements is true of managerial accounting?
a. The external stakeholders of a company are the primary users of managerial accounting.
b. Managerial accounting information is used to help managers plan and control their operations.
c. An external audit by an independent CPA is required for managerial accounting information.
d. Managerial accounting information must comply with generally accepted accounting principles.
Question 2
Which Of The Following Statements Is False?
Question 3
Which of the following statements is false about the uses of managerial accounting?
a) Managerial accounting cannot be used to determine how many products need to be sold in order to cover the recurring cost.
b) Managerial accounting is used to support long-term planning decision.
c) Managerial accounting helps a company evaluate the performance of company decision.
d) Managerial accounting helps users run the day to day operations of the business.
Answer to question 1
a. No, the outsiders’ shareholders of an organization are not the primary users of managerial accounting (MA) because MA helps in taking internal important decisions of a company whose shareholders do not take part in the day-to-day decisions of a company.
b. Yes, MA gives the financial information to the internal managers of a company for planning, controlling, reporting, and analyzing the operational work and making all the important internal decisions for the company.
c. An independent CPA audits the company’s accounts externally with the help of the financial accounting information but does not require the MA information. MA information is required mostly for internal decisions only.
d. No, MA information is not covered under GAAP (Generally Accepted Accounting Principles). MA is fully flexible for organizations as per their needs and the nature of business.
Answer to question 2
Answer is: a There is no overlap between financial and managerial accounting
There is overlap between financial and managerial accounting as same data is used for making financial statements as well for as for management use for planning and preparing budgets,Except this other statements listed above are correct
Answer to question 3
Answer: a) Managerial accounting cannot be used to determine how many products need to be sold in order to cover the recurring cost.
In broader sense, Managerial accounting helps the users of the financial information of a certain company to operate with the aim of achieving the company’s goals. Therefore, the said study encompasses as well the planning of the quantity of products to be sold by a company.