1. Accounting is an information system that provides essential data about the economic activities of an entity to various users to aid them in making informed judgments and decisions. 
 

2. Managerial accounting reports are prepared according to generally accepted accounting principles. 
 

3. Managerial accounting information includes both historical and estimated data. 
 

4. Since there are few rules to restrict how an organization chooses to arrange its own internal data for decision making, managerial accounting provides ample opportunity for creativity and change. 
 

5. A diagram of the operating structure of an organization is called an organization chart. 
 

6. In most business organizations, the chief accountant is called the treasurer. 
 

7. In most business organizations, the chief accountant is called the controller. 
 

8. A staff department or unit is one that provides services, assistance, and advice to the departments with line or other staff responsibilities. 
 

9. The vice presidents of production and sales and the controller hold line positions in most large organizations. 
 

10. A staff department has no direct authority over a line department.