- The finance manager of ABC Co. approves the financial statements that has an overstated net income since they believe this will develop a good managerial image of the company. Which qualitative characteristic is violated? * Relevance Neutrality Reliability
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- Which of the following statements is false? Select one: O A. Management accounting statements need not comply with Accounting regulations O B. Financial accounting statements normally reflect more detail than would be found in management accounting reports O C. Management accounting reports emphasise future activities and future costs O D. Financial accounting data are directed primarily at external users rather than internal users.Which of the following does not describe a management control system? A. establishes a companys strategic goals B. implements a companys strategic goals C. monitors a companys strategic goals D. a system that only measures profitabilityManagers in decentralized organizations make decisions relating to all of the following except_______. A. the companys stock price B. equipment purchases C. personnel D. prices to charge customers
- Which of the following statement about management accounting information is incorrect? a. The benefits of providing the information should outweigh the costs. b. It is influenced by organisational structure and size. c. It is only prepared on an ad-hoc basis. d. It is used by senior managers.Which of the following statements is false? Oa. Financial accounting must conform to GAAP. Ob. Managerial accounting sometimes relies on past information. Oc. Managerial accounting does not need to conform to GAAP. Od. There is no overlap between financial and managerial accounting.Which is correct about financial information? a. Financial information’s purpose is only to comply with needs external users such as the government, investors and external stakeholders. b. Financial information can be used for forecasting and budgeting. c. Financial information deviates from the actual thus it justifies erroneous management decisions. d. Financial information is used by line managers to evaluate performance of staff positions. e. b & d f. All of the above g. None of the above
- The important aspects of financial management do not include the following: a. Financial decision b. Increasing value of the firm C. Acquisition of funds d. Employee promotion6 Which of the following is more true of MANAGERIAL accounting systems than it is of FINANCIAL accounting systems? Use only historical information. Primarily based on the statement of cash flows. Based on debits and credits. Rules established by the FASB. Have substantial competitive value.Do not Copy What is the difference between managerial and financial accounting?
- V5. Match the following ____ Complexity in business operations a. Management compensation ____ Timely information b . Accounting procedure that a company ____ Information for control and uses monitoring c. Current and predictive information ____ Differential information d. Need for more specific reports ____ Accounting Policies e. Substantive information that is not in the financial reports f. Financial information must be quantitative g. Financial information not useful in reportsManagerial accounting reports are used by external users unlike financial accounting. TRUE FALSE3/Identify the false statement: a. Cost accounting is based on data derived from financial accounts b. Management accounting is purely voluntary c. None of the above d. Evolution of management accounting is due to the limitation of cost accounting