61.Managerial accounting is concerned with
a.the data needs of stockholders and creditors
b.providing information to internal decision makers
c.meeting the requirements of generally accepted accounting principles
d.recording the resources consumed by an organization
62.Managerial accounting is primarily concerned with providing information to
a.owners and creditors of the firm
b.decision makers inside the firm
c.government agencies
d.the public
63.Managerial accounting
a.must follow generally accepted accounting principles
b.is just another term for financial accounting
c.deals primarily with the needs of parties external to the firm such as investors and creditors
d.is information used by a company’s managers to make decisions
64.The basic difference between managerial and financial accounting is that
a.the financial accounting system relies on accounting information whereas managerial accounting does not
b.financial accounting relies on information gathered from sources outside the business whereas managerial accounting relies on internally generated information
c.financial accounting is concerned with providing information to outsiders, whereas managerial accounting is concerned with providing information to managers for their use in directing the activities of the organization
d.managerial accounting information is useful to not-for-profit organizations, but financial accounting information is not
65.Which one of the following statements about generally accepted accounting principles (GAAP) is TRUE?
a.GAAP are developed by the federal government and must be followed by all companies
b.GAAP are designed to help ensure the reliability of accounting information
c.an audit is designed to determine whether GAAP were followed in the preparation of information used by managers for decision making
d.GAAP are special reporting rules that must be followed when preparing financial reports for government agencies such as the IRS
66.Which one of the following statements is TRUE regarding generally accepted accounting principles (GAAP)?
a.GAAP increase the comparability of financial information
b.GAAP apply to information prepared for a firm's managers
c.the primary purpose of GAAP is to show the highest amount of profit possible for a given year
d.GAAP are developed by the U.S. Congress and signed into law by the President
67.The best protection currently available to the public to assure that financial statements present a fair representation of the company is to have
a.the president of the company sign a sworn statement that the financial statements are a fair representation of the company
b.the financial statements examined by the General Accounting Office of the United States
c.the financial statements reviewed by the Board of Directors
d.an audit performed by an independent CPA
68.Most large companies are required to have the financial statements audited by a CPA. An audit is conducted
By the To lend
company’s own credibility to the
internal accountants financial statements
a.Yes Yes
b.Yes No
c.No Yes
d.No No
69.The term
GAAP
stands for
a.general auditing and accounting processes
b.generally accepted auditing procedures
c.generally accepted accounting principles
d.general accounting associates program
70.The standards developed by professional accounting organizations to identify appropriate accounting and reporting standards are
a.generally accepted accounting principles
b.generally authorized accounting procedures
c.government authorized accounting procedures
d.generally accepted auditing practices