The person most likely to use only financial accounting information is a
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Show MA Chapter 1 1. Which of the following statements is true? a. Management accounting information focuses on external reporting. b. The statement of financial position, income statement and statement of cash flows are used for financial accounting but not for management accounting. c. Financial accounting is broader in scope than management accounting. d. Modern cost accounting plays a significant role in management decision making. 2. Which of the following statements is false? a. Cost accounting measures and reports short-term, long-term financial, and nonfinancial information. b. Cost management provides information that helps increase value for customers. c. All strategies should be evaluated regarding the resources and capabilities of the company. d. A good cost accounting system is narrowly focused on continuous reduction of costs. 3. Which of the following statements is correct? a. The best-designed strategies are valuable whether or not they are effectively implemented. b. To take advantage of changing market opportunities, the annual budget should be strictly enforced. c. Linking rewards to performance is a major deterrent to good management performance. d. An important strategic decision is making the correct investments in productive assets. 4. All of the following statements are true except a. A budget is a tool used to plan and express strategy. b. Financial accounting reports financial and nonfinancial information that helps managers implement company strategies. c. Feedback links planning and control. d. Control includes deciding what feedback to provide that will help with future decision making. 5. All of the following statements are false except a. Attention-directing activities should focus on cost- reduction opportunities, and not on value-adding opportunities. b. For strategic decisions, scorekeeping is the most prominent role played by management accounting. c. A budget may be used as a planning tool, but not as a control tool. d. Management accountants often are simultaneously doing problem-solving, scorekeeping, and attention- directing activities. 6. Management accounting a. focuses on estimating future revenues, costs, and other measures to forecast activities and their results. b. provides information about the company as a whole. c. provides information that has occurred in the past and that is verifiable and reliable. d. provides information that is generally available only on a quarterly or annual basis. 7. Financial accounting a. focuses on the future and includes activities such as preparing next year’s operating budget. b. must comply with PFRS ( Philippine Financial Reporting Standards). c. reports include detailed information on the various operating segments of the business such as product lines or departments. d. is prepared for the use of department heads and other employees. 8. The person MOST likely to use management accounting information is a(n) a. banker evaluating a credit application. b. shareholder evaluating a stock investment. c. governmental taxing authority. d. assembly department supervisor. 9. Which of the following descriptions refers to management accounting information? a. It is verifiable and reliable. b. It is driven by rules. c. It is prepared for shareholders. d. It provides reasonable and timely estimates. 10. Which of the following groups would be LEAST likely to receive detailed management accounting reports? a. Stockholders b. Sales representatives Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Why is this page out of focus?This is a Premium document. Become Premium to read the whole document. Who uses accounting information the most?Top 8 Users of the Accounting Information. Owners: The primary objective of accounting is to provide necessary information to the owners relating to their business. ... . Management: ... . Creditors: ... . Regulatory Agencies: ... . Government: ... . Potential Investors: ... . Employees: ... . Researchers:. Who are the users of financial accounting information and their needs?Users of Accounting Information and their Needs: The public, the government and its agencies, management, employees, lenders, suppliers, and other creditors in the business world are among the users of accounting information.
Who uses financial accounting quizlet?The two primary external, or outside the firm, users of financial accounting information are investors and creditors. Managerial accounting deals with the methods accountants use to provide information to an organization's internal users, that is, its own managers.
Which of the following would be primary users of financial accounting information?Primary users of the financial statements are considered existing and potential investors, creditors, and lenders.
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