Professional Documents
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Chapter 01-Garrison
Chapter 01-Garrison
True/False Questions
1. Managerial accounting places less emphasis on precision and more emphasis on
flexibility and relevance than financial accounting.
Answer: True AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA
FN: Measurement LO: 1 Level: Medium
2. Managerial accounting is not governed by generally accepted accounting principles
(GAAP).
Answer: True AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA
FN: Decision Making, Measurement LO: 1 Level: Easy
3. Financial accounting and managerial accounting reports must be prepared in
accordance with generally accepted accounting principles (GAAP).
Answer: False AACSB: Reflective Thinking AICPA BB: Critical Thinking
AICPA FN: Measurement LO: 1 Level: Easy
4. When carrying out their directing and motivating activities, managers mobilize the
organization's human and other resources so that the organization's plans are carried
out.
Answer: True AACSB: Reflective Thinking AICPA BB: Resource Management,
Critical Thinking AICPA FN: Decision Making LO: 2 Level: Easy
5. When carrying out planning activities, managers rely on feedback to ensure that the
plan is actually carried out and is appropriately modified as circumstances change.
Answer: False AACSB: Reflective Thinking AICPA BB: Resource Management
AICPA FN: Decision Making LO: 2 Level: Medium
6. When carrying out their directing and motivating activities, managers select a course
of action and specify how the action will be implemented.
Answer: False AACSB: Reflective Thinking AICPA BB: Resource Management
AICPA FN: Decision Making LO: 2 Level: Medium
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A)
B)
C)
D)
Manager of a Data
Processing Department
Staff
Staff
Line
Line
Manager of a Production
Department
Staff
Line
Staff
Line
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