Question

3. Which of the following is most associated with managerial accounting?   a. must follow GAAP   b. may rely on estimates and forecasts   c. is prepared for users outside the organization   d. always reports on the entire entity

4. Which of the following is most associated with financial accounting?   a. can have both objective and subjective information   b. can be prepared periodically, or as needed   c. prepared in accordance with GAAP   d. can be prepared for the entity or segment :

5. Which of the following statements is false?   a. There is no overlap between financial and managerial accounting.   b. Managerial accounting sometimes relies on past information.   c. Managerial accounting does not need to conform to GAAP.   d. Financial accounting must conform to GAAP.

6. In most business organizations, the chief management accountant is called the   a. chief accounting officer   b. controller   c. chairman of the board   d. chief executive officer

Answer 1

3. may rely on estimates and forecasts

4. Prepared in accordance with GAAP

5. There is no overlap between financial and managerial accounting.

6. controller