Chapter 1 Accounting: Information for Decision Making 1) Managerial accounting information is designed primarily to assist investors and creditors in deciding how to allocate scarce resources. Answer: FALSE Difficulty: 1 Easy Topic: Accounting Information: A Means to an End Learning Objecti: 01-01 Discuss accounting as the language of business and the role of accounting information in making economic decisions. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 2) All internal control systems need to be monitored. Answer: TRUE Difficulty: 2 Medium Topic: Accounting Systems Learning Objecti: 01-02 Discuss the significance of accounting systems in generating reliable accounting information and understand the five components of internal control. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation 3) Management accounting information is oriented toward the future while financial accounting information is historical in nature. Answer: TRUE Difficulty: 2 Medium Topic: Financial Accounting Information Learning Objecti: 01-03 Explain the importance of financial accounting information for external parties—primarily investors and creditors—in terms of the objectives and the characteristics of that information.; 01-04 Explain the importance of accounting information for internal parties—primarily management—in te