37 test bank for managerial accounting 3rd edition

37 Test Bank for Managerial Accounting 3rd Edition by Braun Mutiple Choice Questions - Page 1 Which of the following persons or groups would be least likely to receive detailed manageria

37 Test Bank for Managerial Accounting 3rd Edition

by Braun Mutiple Choice Questions - Page 1

Which of the following persons or groups would be least likely to receive detailed managerial accounting reports?

2 B) Plant managers

3 C) Current shareholders

4 D) Sales territory managers

Which of the following positions is primarily responsible for raising capital and investing funds?

4 D) both shareholders and creditors.

Which of the following people is most likely to only use financial accounting information?

1 A) Vice president of plant operations

2 B) Product manager

3 C) Plant manager

4 D) Bank loan officer

External parties receive information about past performance from

1 A) planning reports.

2 B) budget reports.

3 C) financial accounting reports.

4 D) managerial accounting reports.

are a company's decision makers

1 A) Shareholders

2 B) Managers

3 C) Customers

4 D) Creditors

Managerial accountants may be responsible for

1 A) providing decision support.

2 B) communicating results.

3 C) analyzing data.

4 D) all of the above.

is designed to meet the needs of internal decision

4 D) All of the above

To whom would the vice-president of operations typically directly report?

1 A) The COO

2 B) The Board of Directors

3 C) The CFO

4 D) The CEO

A company's budget information is most likely to be used by which

of the following groups?

1 A) Suppliers

2 B) Creditors

3 C) Customers

4 D) Managers

Which of the following statements is true?

1 A) Managerial accounting reports aid potential investors.

2 B) Managerial accounting reports must follow GAAP.

3 C) Managerial accounting reports are audited by CPAs.

4 D) Managerial accounting reports provide detailed internal information.

Which one of the following reports is most likely to be required to be audited by an outside entity?

1 A) Monthly financial statements

2 B) Annual financial budgets

3 C) Annual financial statements

4 D) All of the above

Which of following statements is true?

1 A) Managerial accounting focuses on historical transactions.

2 B) Financial accounting focuses on future data.

3 C) Management accounting focuses on relevant data.

4 D) Managerial accounting uses the cash basis for recording transactions.Which of the following statements is false?

1 A) Financial accounting helps investors make decisions.

2 B) Financial accounting provides sufficient information for managers to effectively plan and control operations.

3 C) Financial accounting reports help creditors make decisions.

4 D) Financial accounting provides external reports.

Which of the following are the internal decision-makers of a company?

1 A) Customers of the company

2 B) Potential investors of the company

3 C) Vendors of the company

4 D) All of the above

The IMA issues which of the following certifications?

What factor has changed the way that we now view managerial accountants?

1 A) Stricter GAAP standards

2 B) Technology

3 C) Stricter audit standards

4 D) None of the above

Despite the proliferation of technology, managerial accountants are still needed to provide professional judgment in which of the

following areas?

1 A) Recording non-routine transactions

2 B) Adjusting the financial records

3 C) Designing computer information systems

4 D) All of the about activities require professional judgment

How often should managerial accounting reports be prepared?

2 B) Oral and written communication skills

3 C) The ability to work on a team

4 D) All of the above

What is one constraint placed on the information provided by a managerial accounting system?

1 A) Generally Accepted Accounting Principles (GAAP)

2 B) SEC Regulations

3 C) Cost - Benefit

4 D) International Financial Reporting Standards (IFRS)

The primary goal of financial accounting is to provide information for

1 A) governmental regulators.

2 B) creditors.

3 C) potential investors.

4 D) all of the above.

The COO is responsible for managing which of the following

aspect(s) of the company?

1 A) The annual audit

2 B) Internal controls

3 C) Research and development, production, and distribution

4 D) Financial accounting, managerial accounting, and tax accounting

The focus of management accounting is on

1 A) Help design information systems

2 B) Provide decision support

3 C) Ensure financial records are correct

4 D) All of the above

The is a subgroup of the Board of Directors

4 D) managerial accounting reports.

Which of the following positions typically manages the daily

Which of the following positions report to the audit committee of the Board of Directors?

1 A) The CFO and internal audit department

2 B) The internal audit department and the independent CPA firm

3 C) The CFO and the independent CPA firm

4 D) The treasurer and controller

Which person or group is not an employee of the corporation?

1 A) A member of the audit committee

2 B) The treasurer

3 C) The VP of manufacturing

4 D) The CFO

A CFO would have all of the following responsibilities except

1 A) investing in new production equipment.

2 B) managing corporate financing.

3 C) preparing all corporate tax returns.

4 D) providing reports to creditors as required.

Which of the following statements is true regarding managerial accounting information?

1 A) It is audited by CPAs.

2 B) It emphasizes relevance.

3 C) It is prepared annually and quarterly.

4 D) It must be prepared in conformity with generally accepted accounting principles (GAAP).

are owners of a company

1 A) Customers

2 B) Shareholders

3 C) Creditors

4 D) Managers

Which statement is true?

1 A) Management uses financial information to analyze costs.

2 B) Management uses financial information to plan internal operations.

3 C) Management uses reports created for internal parties.

4 D) All of the above are true.

137 Free Test Bank for Managerial Accounting 3rd

Edition by Braun Mutiple Choice Questions - Page 2

Refusing gifts or favors that could be perceived to influence your actions is an example of which ethical standard?

All of the following are overarching principles in the IMA Statement

of Ethical Professional Practice except

1 A) responsibility.

2 B) objectivity.

3 C) integrity.

4 D) fairness.

To ensure a profit in the current year a company ships out

pre-ordered merchandise the last week of December, instead of in January as the customer instructed This early shipment could be a violation of which ethical standard?

mid-1 A) Confidentiality

2 B) Integrity

3 C) Competence

4 D) All of the above

Which of the following certifications is issued by the IMA?

1 A) Competence, Confidentiality, Integrity, and Credibility.

2 B) Competence, Objectivity, Credibility, and Honesty.

3 C) Competence, Confidence, Integrity, and Credibility.

4 D) Competence, Confidentiality, Integrity, and Objectivity.

Which of the following is an example of the IMA's integrity

standard?

1 A) Provide decision support that is accurate, clear, concise and timely.

2 B) Keep information confidential, except when disclosure is legally required.

3 C) Communicate information fairly and objectively.

4 D) Abstain from engaging in or supporting any activity that might discredit the profession.

Companies listed on the New York Stock Exchange (NYSE) are required to have an internal audit function by

1 A) The NYSE.

2 B) The Internal Revenue Service (IRS).

3 C) The stockholders.

4 D) The Board of Directors.

Preparing financial statements in accordance with GAAP is an

Which of the following is not one of the IMA's credibility standards?

1 A) To disclose all relevant information

2 B) To disclose deficiencies in internal control

3 C) To communicate information fairly and objectively

4 D) All of the above are part of IMA's credibility standard.

Which of the following is an example of the IMA's credibility

standard?

1 A) Provide decision support that is accurate, clear, concise and timely.

2 B) Keep information confidential, except when disclosure is legally required.

3 C) Communicate information fairly and objectively.

4 D) Abstain from engaging in or supporting any activity that might discredit the profession.

What ethical standard is being violated when you tell a friend that the company you work for is going to report lower than expected earnings next week?

1 A) Credibility

1 A) Provide decision support that is accurate, clear, concise and timely.

2 B) Keep information confidential, except when disclosure is legally required.

3 C) Communicate information fairly and objectively.

4 D) Abstain from engaging in or supporting any activity that might discredit the profession.

A company's Board of Directors meets

1 A) Institute of Professional Accountants

2 B) Professional Accountants Association

3 C) Association of Management Accountants

4 D) Institute of Management Accountants

The person who is directly responsible for the company's

operations, such as research and development, production and distribution is the

2 B) call the IMA "Ethics Hotline".

3 C) follow their company's established policies for reporting unethical behavior.

4 D) discuss the unethical situation with their immediate supervisor.

Performing duties in accordance with relevant laws, regulations, and technical standards comprise the IMA professional ethics

An accountant who does not understand "accrual accounting" fails which ethical standard?

1 A) Provide decision support that is accurate, clear, concise and timely.

2 B) Keep information confidential, except when disclosure is legally required.

3 C) Communicate information fairly and objectively.

4 D) Abstain from engaging in or supporting any activity that might discredit the profession.

137 Free Test Bank for Managerial Accounting 3rd

Edition by Braun Mutiple Choice Questions - Page 3

is the business philosophy and a strategy of

manufacturing without waste

1 A) ISO 9001

2 B) Lean thinking

4 D) at any time they choose.

Under SOX, a CPA firm is permitted to perform which of the

following services for an audit client with pre-approval from the client's audit committee?

1 A) All U.S companies

2 B) All U.S publicly traded companies

3 C) All U.S private companies

4 D) Only foreign companies operating in the U.S.

Which of the following was not a result of the Sarbanes-Oxley Act?

1 A) The COO assumes financial statement responsibility.

2 B) There are new requirements for CPA firms.

3 C) There are stiffer consequences for white-collar crimes.

4 D) Audit committees must be independent.

Increased competition with foreign companies and the rise of the global marketplace is mainly due to which of the following?

1 A) Globalization

2 B) The Sarbanes-Oxley Act of 2002

3 C) Decreased barriers to international trade

4 D) International financial reporting standards

Movements toward sustainability and corporate responsibility often

1 A) result in increased demand for the company's product or service.

2 B) include monetary support of local schools and charities.

3 C) include green initiatives.

4 D) All of the above are correct.

In what year will XBRL be required for all publicly traded

companies?

1 A) 2017

2 B) 2015

3 C) 2011

4 D) 2010

IFRS stands for

1 A) Important Foreign Registering Systems.

2 B) International and Foreign Registering Standards.

3 C) International and Foreign Reporting Systems.

4 D) International Financial Reporting Standards.

A wave of accounting scandals around the turn of the 21st century prompted which of the following?

1 A) effective exchange of information between vendors and customers.

2 B) system where production occurs only when needed.

3 C) software system which integrates all departments.

4 D) certification that a company complies with international quality standards.

Companies may adopt which of the following in an attempt to

increase their competitive edge?

2 B) Green initiatives

3 C) Lean thinking

4 D) All of the above

Failure to mitigate a conflict of interest would violate which ethical standard of conduct?

1 A) Credibility

2 B) Integrity

3 C) Competency

4 D) Confidentiality

Companies that wish to demonstrate their commitment to

international quality standards may become certified by what

What is a business philosophy that focuses on providing customers with superior products and services?

The Sarbanes-Oxley Act was enacted

1 A) to prevent accounting scandals like Enron.

2 B) to restore trust in publicly traded companies.

3 C) to hire better qualified managerial accountants.

4 D) none of the above

Which of the following statements about XBRL is false?

1 A) XBRL is only required for publicly traded companies.

2 B) XBRL will decrease the need for manual financial information searches.

3 C) The US is the first country to mandate use of XBRL.

4 D) XBRL should decrease the time companies spend converting their financial information into various government-prescribed formats.

According to the Sarbanes-Oxley Act, who is responsible for

establishing and maintaining internal controls over financial

reporting?

1 A) The CEO and CFO

2 B) The internal auditors

3 C) The external auditors

4 D) The SEC

According to SOX, a company's financial statements must be

certified by the company's

1 A) CEO.

2 B) CFO.

3 C) Controller.

4 D) CFO and CEO.

XBRL can best be described as a

1 A) new set of auditing standards.

2 B) new set of accounting standards.

3 C) new set of ethical standards.

4 D) a tagging system for financial statement data.

It would be a violation of which ethical standard to withhold relevant information?

1 A) eXtensive Business Registering Location.

2 B) eXtractable Business Reporting Location.

3 C) eXtensible Business Reporting Language.

4 D) eXisting Business Responsibility Language.

What is a system that requires suppliers to deliver materials at the exact time the materials are needed?

1 A) Financial reporting system

2 B) Internal control system

3 C) Internal control system and financial reporting system

4 D) There is no annual assessment required under SOX.

Which type of system integrates ALL of the company's departments, functions, and data?

2 B) ERP System

3 C) ISO System

4 D) QuickBooks

Which of the following is not an advantage of an ERP system?

1 A) Streamlining operations

2 B) Allowing faster response to changes

3 C) Eliminating separate software systems across the company

4 D) Lower initial cost than traditional systems

The ability to meet the needs of the present without compromising the needs of the future is often referred to as

1 A) the bottom line.

2 B) total quality management.

3 C) sustainability.

4 D) just-in-time.

The Sarbanes-Oxley Act allows for a maximum of years

of imprisonment for knowingly destroying or creating documents to obstruct any federal investigation

1 A) 20

2 B) 15

3 C) 10

4 D) 5

The "triple bottom line" focuses on these three factors that influence

a firm's ability to survive and thrive in the long run:

1 A) people, places, things

2 B) profit, people, planet

3 C) profit, people, place

4 D) planet, profit, place

137 Free Test Bank for Managerial Accounting 3rd

Edition by Braun Mutiple Choice Questions - Page 4

Which ethical standard is demonstrated when you attend a class to maintain your professional knowledge?

$8,000 in employee training costs Computer hardware also needs

to be upgraded for the system; the hardware upgrades are

expected to be $12,000 The expected benefits from the inventory