1. Investors primarily use managerial accounting information for decision-making
purposes?
*False
2. What is managerial accounting?
*The field of accounting that focuses on providing information for internal decision
makers (managers/employees)
3. Local, state, and federal governments use accounting information to calculate income
taxes?
*True
4. A creditor is any person who has an ownership interest in a business?
*False
5. What is a creditor?
*Any person or business to whom a business owes money
6. Different users of accounting information focus on the information they need to
make the best choices?
*True
7. The field of accounting that focuses on providing information for internal decision
makers is?
*Managerial accounting
8. Which of the following users would rely on managerial information for decisionmaking purposes?
*Company managers
9._______are professional accountants who serve the general public, not one particular
company
*Certified public accountants
10. Which of the following organizations is responsible for the creation and governance
of accounting standards in the United States?
*Financial accounting standards board (FASB)
11. What is the financial accounting standards board?
*The private organization that oversees the creation and governance of accounting
standards in the United States
12. As per the economic entity assumption, an organization and its owners should be
seen as the same entity
* False
13. In a sole proprietorship, the owner is personally liable for the debts of the business
*True
14. In a limited-liability company (LLC), the members are personally liable for the debts
of the business
*False
15. A corporation pays income taxes on its earnings
*True