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Accounting > EXAM > ACCOUNTING (All)

ACCOUNTING

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ALL CHAPTERS True/False Questions 1. Although financial and managerial accounting differ in many ways, they are similar in that both rely on the same underlying financial data. Answer: True L ... evel: Medium LO: 1 2. Managerial accounting is a branch of financial accounting and serves essentially the same purposes as financial accounting. Answer: False Level: Medium LO: 1 3. Managerial accounting places greater emphasis on the future than financial accounting, which is primarily concerned with the past. Answer: True Level: Easy LO: 1 4. Managerial accounting is not needed in a non-profit or governmental organization. Answer: False Level: Easy LO: 1 5. When carrying out their planning activities, managers select a course of action and specify how the action will be implemented. Answer: True Level: Easy LO: 2 6. When carrying out their planning activities, managers obtain feedback to ensure that the plan is actually carried out and is appropriately modified as circumstances change. Answer: False Level: Medium LO: 2 7. The controller occupies a line position in an organization. Answer: False Level: Easy LO: 2 8. Decentralization means the delegation of decision-making authority throughout an organization by allowing managers at various operating levels to make key decisions relating to their own area of responsibility. Answer: True Level: Easy LO: 2 9. A firm's organization chart will normally show both the formal and informal lines of reporting and communication. Answer: False Level: Easy LO: 2 10. The Chief Financial Officer of an organization is responsible for ensuring that line operations run smoothly. Answer: False Level: Medium LO: 2 11. Traditionally, companies have maintained large amounts of raw materials, work in process, and finished goods inventories to act as buffers so that operations can proceed smoothly even if there are unanticipated disruptions. [Show More]

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