100 Free Test Bank for Managerial Accounting 2nd Edition by Davis 

Encourage students of accounting practicing textbook test bank samples for managerial accounting that we offer 100 Free Test Bank for Managerial Accounting 2nd Edition by Davis multiple choice questions. These quiz questions below concentrating on the key of accounting such as a tool for management, cost behavior, cost estimation, planning and forecasting, variance analysis, and so on that completing test bank questions is the one of way to learn the concepts quickly and deeply for preparing your study and career. Let’s enjoy us to become professional at your next exam and don’t forget to leave your comment below to let us know what your problem is that we will support you as soon as possible.

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Which of the following is not a correct statement?

•  a. Managerial accounting benefits internal users.
•  b. Managerial accounting reports must comply with generally accepted accounting principles.
•  c. Managerial accounting includes reports and information prepared for a range of decision makers within the organization.
•  d. Managerial accounting reports come in a variety of formats.

Since internal users have access to all the underlying data used for managerial accounting reports,

•  a. They can create reports that suit their particular decision making needs.
•  b. There is no need to use financial data in making decisions.
•  c. Both they can create reports that suit their particular decision making needs and there is no need to use financial data in making decisions.
•  d. Neither they can create reports that suit their particular decision making needs nor there is no need to use financial data in making decisions.

An example of an external user is a

•  a. Company president.
•  b. Plant manager.
•  c. Payroll supervisor
•  d. Creditor.

Managerial accounting is designed to assist managers with which of the following activities?

•  a. Planning
•  b. Controlling
•  c. Evaluating
•  d. All of these answer choices are correct

GAAP “rules” govern how transactions are

•  a. Valued.
•  b. Recorded.
•  c. Presented.
•  d. All of these answer choices are correct.

Frequent feedback from planning, controlling, evaluating, and decision making activities creates which of the following types of decision-making process?

•  a. Linear
•  b. Circular
•  c. Scattered
•  d. None these answer choices are correct

One purpose of controlling activities is to

•  a. Monitor day-to-day operations to ensure that processes are operating as expected.
•  b. Translate long-term strategy into a short-term plan.
•  c. To perform variance analysis and prepare performance reports.
•  d. None of these answer choices are correct.

Which of the following statements is not true?

•  a. A company is unlikely to be successful in the long run without adequate managerial accounting information to support decision making.
•  b. Managerial accounting is completely optional.
•  c. Managerial accounting reports are covered by rules comparable to those governing financial accounting.
•  d. Internal users have access to all the underlying data in managerial accounting reports.

Operational planning translates strategic planning into a plan to be completed within

•  a. Three months.
•  b. One year.
•  c. Five years.
•  d. Ten years.

Which of the following is not an activity in which managerial accounting is designed to assist managers?

•  a. Reporting
•  b. Controlling
•  c. Decision making
•  d. Evaluation

The leading professional organization for management accountants is the

•  a. American Association of Management Accountants.
•  b. Institute of Management Accountants.
•  c. National Association of Accountants.
•  d. Society of Management Accountants.

Managerial accounting is used by managers to

•  a. Plan.
•  b. Evaluate.
•  c. Control.
•  d. All of these answer choices are correct.

The basic financial statements always report on transactions and events

•  a. That have already occurred.
•  b. That will occur in the future.
•  c. That are projected.
•  d. That have been audited.

Which of the following statements is not true?

•  a. Managerial accounting reports use historical information.
•  b. Managerial accounting must not use estimates in preparing reports.
•  c. Managerial accountants use historical amounts in developing future projections.
•  d. All of these answer choices are true.

Which of the following is not a characteristic of managerial accounting reports?

•  a. Managerial accounting reports are designed to provide the ultimate decision maker with the appropriate information.
•  b. Managerial accounting reports come in a variety of formats.
•  c. Managerial accounting reports are not distributed to the general public.
•  d. All of these answer choices are correct.

Managerial accounting reports

•  a. Use historical information.
•  b. Compare actual results to budged results.
•  c. Project the results of certain decisions.
•  d. All of these answer choices are correct.

The information provided by managerial accountants is not disseminated to the general public because

•  a. To do so would violate federal trade laws
•  b. It would be too expensive to distribute the information
•  c. To do so would provide competitors with vital information about corporate strategies and capabilities.
•  d. All of these answer choices are reasons managerial accounting information is not disseminated to the general public.

In the context of managerial accounting, relevant information

•  a. Is information that will make a difference in the decision.
•  b. Is information that has been provided by the controller.
•  c. Must be provided in quantitative terms.
•  d. Must be analyzed by the chief financial officer before being provided to managers.

Managers perform controlling activities

•  a. In real time as operations are occurring.
•  b. With a frequency such as once a day or once an hour.
•  c. Both in real time as operations are occurring and with a frequency such as once a day or once an hour.
•  d. Neither in real time as operations are occurring nor a frequency such as once a day or once an hour.

The information provided by managerial accountants is not distributed to the general public because

•  a. To do so could provide competitors with vital information about corporate strategies and capabilities.
•  b. To do so would be against the Institute of Management Accountants’ code of conduct.
•  c. To do so would be against generally accepted accounting principles.
•  d. To do so would violate federal trade laws.

Managerial accounting is used by managers to

•  a. Assure appropriate use of an organization’s resources.
•  b. Assure accountability for an organization’s resources.
•  c. Provide information used in planning, evaluation and controlling functions within an organization.
•  d. All of these answer choices are correct.

Which of the following is not a way managers use managerial accounting?

•  a. Provide information used in planning, evaluation and controlling functions within an organization.
•  b. To assure appropriate use of its resources
•  c. To assure accountability for its resources
•  d. To communicate information to stockholders

Since external users of financial statements have no way to verify the reported information

•  a. They cannot make informed decisions from financial information.
•  b. FASB provides consequences to companies who distribute false managerial accounting reports to outsiders.
•  c. GAAP provides a level of protection or assurance that the reports will follow certain standards.
•  d. None of these answer choices are correct.

Decision makers sometimes might need to sacrifice precision for timeliness because

•  a. Receiving highly accurate information after the deadline has passed would be of no help.
•  b. The nature of many business decisions does not require precision in managerial accounting reports.
•  c. Both receiving highly accurate information after the deadline has passed would be of no help and the nature of many business decisions does not require precision in managerial accounting reports.
•  d. Neither receiving highly accurate information after the deadline has passed would be of no help nor the nature of many business decisions does not require precision in managerial accounting reports.