Deck 1: The Manager and Management Accounting

Question 1

The controller (or chief accounting officer):

A) has overall responsibility for the management accounting function
B) has overall responsibility for purchasing stock
C) gathers all financial data and prepares all financial reports
D) all of the above

Answer 1

has overall responsibility for the management accounting function

Question 2

The focus of financial analysis is:

A) the comparison between projected revenues and costs and actual revenues and costs
B) to help managers make decisions to fulfill an organization's goals
C) to predict the likely revenues over the next reporting period
D) all of the above

Answer 2

the comparison between projected revenues and costs and actual revenues and costs

Question 3

While the income statement includes all sources of revenue, the revenue and expenditure report focuses only on the revenue generated by the company's core operations and sales.

Answer 3

False

Question 4

List some examples of comparative information that can be supplied for inclusion in the financial reporting process.

Question 5

Management accounting has to strictly follow the rules of international financial reporting standards for the purposes of measurement and reporting.

Question 6

Complete a performance report for the month of May, 2014, for the Daily Bulletin, a regional newspaper showing four columns: 1) Actual Result; 2) Budgeted Amount; 3) Difference: Actual Result minus Budgeted Amount; 4) Difference as a Percentage of Budgeted Amount, given the following data:
Does the report indicate any cause for managerial investigation?

Question 7

Long term financing is an integral part of the ________ function in an organization.

A) internal audit
B) president's
C) controller's
D) treasurer's

Question 8

The International Ethics Standards Board for Accountants (IESBA) has developed a code of ethics for management accountants which includes concepts related to:

A) integrity, objectivity, professional competence and due care, and confidentiality
B) competence, performance, integrity, and reporting
C) experience, integrity, reporting, and objectivity
D) None of these answers are correct.

Question 9

The principle of integrity imposes an obligation on all professional accountant to be straightforward and honest in all professional and business relationships. Integrity also implies fair dealing and truthfulness.