1) Managerial accounting focuses on information for external decision makers.

A) TRUEB)FALSE

2) Stockholders primarily use managerial accounting information for decision-making purposes.

A) TRUEB)FALSE

3) Financial accounting focuses on information for decision makers outside of the business, such as creditors and taxing authorities.

A) TRUEB)FALSE

4) Business owners use accounting information to set goals, evaluate progress toward those goals, and make adjustments when needed.

A) TRUEB)FALSE

5) Outside investors would ordinarily use managerial accounting information to decide whether or not to invest in a business.

A) TRUEB)FALSE

6) Which of the following statements best defines financial statements?

A) Financial statements are the information systems that record monetary and nonmonetary business transactions.

B) Financial statements are the verbal statements made to business news organizations by chief financial officers.

C) Financial statements are documents that report on a business in monetary terms, providing information to help people make informed business decisions.

D) Financial statements are plans and forecasts for future time periods based on information from past financial periods.

7) Which of the following is an external user of a business' financial information?

A) customers

B) cost accountant