Chapter 1 Managerial Accounting and the Business Environment Garrison/Noreen/Brew er, Managerial Accounting, Tw elfth Edition 1-3 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 Chapter 1 Managerial Acco...
