Chapter 1 self quiz - 1 Managerial accounting is concerned...

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1 Managerial accounting is concerned with: A) reporting financial information to stockholders. B) reporting financial information to regulators. C) providing information for use within the organization. D) the financial consequences of past activities.Feedback: The correct answer is C: Managerial accounting is concerned with providing information to managers for use within the organization. 2 Which of the following statements is not correct? A) A plan is always expressed in formal quantitative terms. B) Planning involves establishing goals and specifying how to achieve them. C) Controlling involves gathering feedback to ensure that the plan is being properly executed or modified as circumstances change. D) Decision making involves selecting a course of action from competing alternatives. Feedback: The correct answer is A: Plans include the goals established and information specifying how those goals will be achieved. As such, plans may or may not be expressed in formal quantitative terms. On the other hand, plans are often accompanied by a budget. A budget is a detailed plan for the future that is usually expressed in formal quantitative terms. 3 A performance report: A) is part of the control process. B) compares budgeted data to actual data in an effort to identify and learn from excellent performance. C) is prepared to identify and eliminate sources of unsatisfactory performance. D) is all of the above. Feedback: The correct answer is D: Part of the control process includes preparing performance reports. A performance report compares budgeted data to actual data in an effort to identify and learn from excellent performance and to identify and eliminate sources of unsatisfactory performance. 4
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Chapter 1 self quiz - 1 Managerial accounting is concerned...

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