Test bank for managerial accounting 1st edition

B Managerial accounting reports provide detailed internal information1. B Management uses financial information to plan internal operations1. Which of the following is NOT included in th

Test Bank for Managerial Accounting 1st Edition

Information for external parties about past performance is provided by:

1 A) budget reports

2 B) financial accounting reports

3 C) managerial accounting reports

Which of the following groups are external users of financial information?

1 A) Customers of the company

2 B) Vendors of the company

3 C) Potential investors of the company

4 D) All of the above

Which of the following reports must be audited by an outside agency?

1 A) Annual financial statements

2 B) Monthly financial statements

3 C) Annual financial budgets

4 D) All of the above

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

1 A) Vendors

2 B) Customers

3 C) Managers

4 D) Shareholders

Which of the following is TRUE?

1 A) Managerial accounting reports are audited by CPAs

2 B) Managerial accounting reports provide detailed internal information

3 C) Managerial accounting reports aid potential investors

4 D) Managerial accounting reports must follow GAAP

Which of the following statements is FALSE?

1 A) Financial accounting provides sufficient information for managers to effectively plan and control operations

2 B) Financial accounting reports help creditors make decisions.

3 C) Financial accounting helps investors make decisions

4 D) Financial accounting provides external reports

Which statement is TRUE?

1 A) Management uses reports created for internal parties

2 B) Management uses financial information to plan internal operations

3 C) Management uses financial information to analyze costs

4 D) All of the above are true

Which of following is TRUE?

1 A) Management accounting focuses on historical transactions

2 B) Financial accounting uses the cash basis for recording transactions

3 C) Financial accounting focuses on future data

4 D) Management accounting focuses on relevant data

The primary goal of financial accounting is to provide information for:

The primary goal of managerial accounting is to provide information to:

1 A) shareholders

2 B) creditors

3 C) internal decision-makers

4 D) both shareholders and creditors

Which of the following types of accounting is designed to meet the needs of decision-makers inside a company?

3 C) Forecasts of future earnings

4 D) All of the above

The person MOST likely to use ONLY financial accounting information would

Managerial information is always based on historical transactions with

Managerial accounting information emphasizes relevance, more than

reliability and objectivity

The primary users of managerial accounting information are internal users such as managers

Evaluating results against the plan is an example of the management function of:

1 A) controlling, planning, and decision-making.

2 B) directing, controlling, and planning

3 C) directing, planning, and decision-making

4 D) controlling, directing, and planning

Reviewing hourly sales reports to determine the level of staffing needed to service customers fulfills which of management's four primary

responsibilities?

1 A) Directing, planning, and decision-making

2 B) Directing, controlling, and planning

3 C) Controlling, planning, and decision-making

4 D) Analyzing, directing, and planning

Which one of the following manager responsibilities encompasses the other three?

4 D) All of the above

Which of the following management responsibilities are being fulfilled when management uses feedback to take corrective action on the budgets?

1 A) Directing and planning

2 B) Planning and decision-making

3 C) Controlling and decision-making

4 D) Planning and controlling

When management compares the budget to actual results, which of the following is being fulfilled?

1 A) Directing

2 B) Controlling

3 C) Decision-making

4 D) Planning

Planning involves which of the following activities?

1 A) Setting goals and objectives for the company

2 B) Overseeing the company's day-to-day operations

3 C) Evaluating the results of operations

4 D) None of the above

Which of the following is NOT one of the primary responsibilities of

2 False

Directing means setting goals and objectives for the company and

determining how to achieve them

1 True

2 False

The four primary responsibilities of managers are planning, directing,

controlling, and decision making

Managerial accounting gathers, summarizes, and reports the cost and

revenue data relevant to each decision that is made

1 True

2 False

The CFO of a company is responsible for the day-to-day running of the company

Oral and written communications skills are considered among the most valuable skills a management accountant can possess

Management accountants spend more time planning, analyzing and

interpreting accounting data and less time recording routine accounting transactions than they have in the past

Which of the following certifications is issued by the Society of Management Accountants?

1 A) CPA

2 B) CMA

3 C) CIA

4 D) CFP

A CFO would have all of the following responsibilities EXCEPT:

1 A) preparing all corporate tax returns

2 B) managing corporate financing

3 C) providing reports to creditors as required

4 D) investing in new equipment

Who typically manages the daily operations of a company?

4 D) The company president

The vice-president of operations directly reports to which person(s)?

1 A) The CFO

2 B) The COO

3 C) The CEO

4 D) The Board of Directors

The COO is responsible for managing which of the following aspect(s) of the company?

1 A) Internal controls

2 B) The annual audit

3 C) Financial, managerial, and tax accounting

4 D) Research and development, production, and distribution

Which of the following report to the audit committee of the Board of

Directors?

1 A) The treasurer and controller

2 B) The CFO and internal audit department

3 C) The internal audit department and the independent CPA firm

4 D) The CFO and the independent CPA firm

Who is primarily responsible for raising capital and investing funds?

1 A) The CEO

1 A) Stricter audit standards

2 B) Stricter GAAP standards

3 C) Technology

4 D) None of the above

Managerial accountants perform which of the following tasks?

1 A) Ensure financial records are correct

2 B) Help design information systems

3 C) Provide decision support

4 D) All of the above

Managerial accountants may be responsible for:

1 A) analyzing data

2 B) communicating results

3 C) providing decision support

4 D) all of the above

Which of the following skills are required of managerial accountants?

1 A) The ability to work on a team

2 B) Analytical skills

3 C) Oral and written communication skills

4 D) All of the above

Which would be a subgroup of the Board of Directors?

2 B) CFO.

3 C) COO

4 D) Treasurer

The person or position who is directly responsible for the company's

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

1 A) CEO

2 B) CFO

3 C) COO

4 D) Treasurer

Which of the following skills are required of managerial accountants?

1 A) Solid knowledge of financial accounting

2 B) Problem solving and analytical skills

3 C) Knowledge of how a business runs

4 D) All of the above

Which of the following skills are required of managerial accountants?

1 A) Adherence to professional and ethical standards

2 B) Problem solving and analytical skills

3 C) Written and verbal communication skills

4 D) All of the above

Which of the following is NOT included in the list of necessary skills for management accountants?

1 A) Solid knowledge of financial accounting

2 B) Problem solving and analytical skills

3 C) Knowledge of how a business runs

4 D) Ability to work independently

Which of the following is NOT included in the list of necessary skills for management accountants?

1 A) Solid knowledge of financial accounting

2 B) Analytical skills

3 C) Designation as a qualified managerial accountant

4 D) Knowledge of how a business runs

Which of the following is NOT included in the list of necessary skills for management accountants?

1 A) Designation as a qualified managerial accountant

2 B) Analytical skills

3 C) Adherence to professional and ethical standards

4 D) Knowledge of how a business runs

Why is it important that all managerial accountants adhere to professional and ethical standards as codified by the profession?A$#1

The SMA is the professional association for managerial accountants

2 False

The Society of Management Accountants ethical principles include:

Responsibility, Loyalty, honour and integrity

1 True

2 False

When faced with an ethical dilemma, the Society of Management Accountants suggests that the first thing management accountants should do is call the Society's ethics hotline

1 True

2 False

To resolve ethical dilemmas management accountants should FIRST:

1 A) follow their company's established policies for Reporting unethical

behavior

2 B) discuss the unethical situation with their immediate supervisor

3 C) consult an attorney

4 D) call the Society of Management Accountants "Ethics Hotline"

Which of the following is NOT one of the Society of Management Accountants overarching ethical principles?

1 A) Honour

2 B) Fairness

3 C) Integrity

4 D) Responsibility

The overarching principles in the Society of Management Accountants Code of Professional Ethics include all of the following EXCEPT:

1 A) fairness

2 B) integrity

3 C) loyalty

4 D) responsibility

The standards of the Society of Management Accountants Code of

Professional Ethics include which of the following?

3 C) Credibility

4 D) Integrity

Performing duties in accordance with relevant laws, regulations, and

technical standards make up which SMA professional ethics standard?

You tell your sister that the company you work for is going to report higher than expected earnings What ethical standard is being violated?

2 B) Society of Management Accountants

3 C) Society of Professional Accountants

4 D) Professional Accountants Association

The Society of Management Accountants issues what certification?

1 A) CMA

2 B) CPA

3 C) CISA

4 D) CFP

An example of the IMA's competence standard is to:

1 A) abstain from engaging in or supporting any activity that might discredit the profession

2 B) communicate information fairly and objectively

3 C) keep information confidential, except when disclosure is legally required

4 D) provide decision support that is accurate, clear, concise and timely

Attending class to maintain professional knowledge is an example of which ethical standard?

1 A) Competence

2 B) Confidentiality

3 C) Credibility

4 D) Integrity

Not disclosing confidential information is an example of which ethical

Trends in the modern business environment include a shift to a service

economy and the rise of the global marketplace

According to SOX, at least one member of the audit committee should be a financial expert

Lean production is both a philosophy and a business strategy of

manufacturing without waste

1 True

2 False

To resolve ethical dilemmas, management accountants should first :

1 A) consult an attorney regarding legal obligations and rights

2 B) discuss the unethical situation with an objective advisor

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

behaviour

4 D) discuss the unethical situation with the immediate supervisor

Sustainability is generally described as the ability to meet the needs of the present without compromising the ability of future generations to meet their own needs

1 True

2 False

Company initiatives to address sustainability and corporate responsibility not only "do the right thing", but also can lead to economic profits by increasing demand for the company's products and services

SOX requires that the company's financial statements be certified by the company's:

1 A) their internal control system

2 B) their financial Reporting procedures

3 C) their internal control system and financial Reporting system

4 D) none of the above

The SEC has moved to adopt IFRS for which types of companies?

1 A) All U.S companies

2 B) Only foreign companies operating in the U.S

3 C) All U.S publicly traded companies

4 D) All U.S private companies

IFRS stands for:

1 A) International and Foreign Reporting Systems

2 B) International Financial Reporting Standards

3 C) Important Foreign Registering Systems.

4 D) International and Foreign Registering Standards

XBRL stands for:

1 A) eXtensible Business Reporting Language

2 B) eXisting Business Responsibility Language

3 C) eXtensive Business Registering Location

4 D) eXtractable Business Reporting Location

The advantages of XBRL include decreases in the need for manual searches through corporate reports for specific pieces of information as well as

facilitating the comparison of companies results to industry averages and to each other

1 True

2 False

XBRL is essentially a:

1 A) new set of accounting standards

2 B) new set of auditing standards

3 C) a tagging system which allows computer programs to extract information from financial reports

4 D) new set of ethical standards

Which of the following statements about XBRL is FALSE?

1 A) The US is the first country to mandate use of XBRL

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

3 C) XBRL is only required for publicly-traded companies

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

The philosophy and a business strategy of manufacturing without waste is referred to as:

4 D) all of the above

Movements toward sustainability and corporate responsibility often:

1 A) include green initiatives

2 B) result in increased demand for the company's product or service

3 C) include monetary support of local schools and charities

4 D) do all of the above

Why was the Sarbanes-Oxley Act enacted?

1 A) To hire better qualified managerial accountants

2 B) To prevent accounting scandals like Enron

3 C) To restore trust in publicly traded companies

4 D) None of the above

Which is NOT a result of Sarbanes-Oxley?

1 A) Audit committees must be independent

2 B) The COO assumes financial statement responsibility

3 C) There are new requirements for CPA firms

4 D) There are stiffer consequences for white-collar crimes

Under Sarbanes-Oxley, companies must have their internal audit procedures assessed:

1 A) annually

2 B) monthly

3 C) quarterly

4 D) at any time they choose

Under Sarbanes-Oxley, what is the maximum number of years of

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

1 A) 5 years

2 B) 10 years

Which of the following describes a system in which suppliers deliver materials

at the time they are needed?

1 A) certification that a company complies with international quality standards

2 B) software system which integrates all departments

3 C) system where production occurs only when needed

4 D) effective exchange of information between vendors and customers