Deck 1: Introduction to Managerial Accounting

Question 1

Budgets are the way that managers can express their

A)plans.
B)decision-making.
C)control.
D)hiring practices.

Answer 1

A

Question 2

The four primary responsibilities of managers are planning,directing,controlling,and decision making.

Answer 2

True

Question 3

Overseeing the day-to-day operations of a company is an example of the management function of

A)controlling.
B)decision-making.
C)directing.
D)planning.

Answer 3

C

Question 4

Managerial accounting develops reports that help internal parties effectively and efficiently run the company.

Question 5

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

A)Decision-making
B)Feedback
C)Planning
D)Controlling

Question 6

Evaluating the results of business operations against a plan and then making adjustments to that plan is called budgeting.

Question 7

Managerial accounting gathers,summarizes,and reports the cost and revenue data relevant to decisions.

Question 8

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

A)Directing
B)Controlling
C)Decision-making
D)Planning

Question 9

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

A)Directing and planning
B)Planning and decision-making
C)Controlling and decision-making
D)Planning and controlling

Question 10

Budgets are the quantitative expression of management's plans.

Question 11

Controlling means overseeing the company's day-to-day operations.

Question 12

Planning involves which of the following activities?

A)Setting goals and objectives for the company
B)Overseeing the company's day-to-day operations
C)Evaluating the results of operations
D)Getting feedback on results

Question 13

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

A)Directing,planning,and decision-making
B)Directing,controlling,and planning
C)Controlling,planning,and decision-making
D)Analyzing,directing,and planning

Question 14

Using product cost information to determine sales prices is an example of

A)controlling,planning,and decision-making.
B)directing,controlling,and planning.
C)directing,planning,and decision-making.
D)controlling,directing,and planning.

Question 15

Comparing actual results to budgets is an example of the management function of

A)controlling.
B)decision-making.
C)directing.
D)planning.

Question 16

Preparing budgets is an example of the management function of

A)controlling.
B)decision-making.
C)directing.
D)planning.

Question 17

Directing means setting goals and objectives for the company and determining how to achieve them.

Question 18

What are the four primary responsibilities of managers as described in the chapter? Give an example of each type of responsibility.

Question 19

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

A)controlling.
B)decision-making.
C)directing.
D)planning.

Question 20

The primary managerial accounting product is the company's audited financial statements.

Question 21

Managerial accounting reports are always prepared on a quarterly and annual basis.

Question 22

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

Question 23

The primary purpose of managerial accounting information is to help external users make investing and lending decisions.

Question 24

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

A)Plant managers
B)Current shareholders
C)Sales territory managers
D)CEO

Question 25

Managerial accounting information tends to report on segments of the business.

Question 26

Managerial accounting information emphasizes relevance,more than reliability and objectivity.

Question 27

Match the following:

Evaluating results of business operations.

Question 28

Match the following:

Overseeing the company's day to day operations.

Question 29

The person MOST likely to use ONLY financial accounting information would be the

A)bank loan officer.
B)plant manager.
C)vice president of plant operations.
D)product manager.

Question 30

GAAP must be followed when managerial accounting reports are prepared.

Question 31

Managerial information is always based on historical transactions with external parties.

Question 32

Which of the following statements is TRUE about managerial accounting information?

A)It is prepared annually and quarterly.
B)It is audited.
C)It emphasizes relevance.
D)It must be prepared in conformity with generally accepted accounting principles (GAAP).

Question 33

Management accounting requires independent audits of the firm's books.

Question 34

Management accounting focuses on

A)external reporting.
B)internal reporting.
C)tax preparation.
D)auditing.

Question 35

Match the following:

Determining how to achieve company goals.

Question 36

The design of a management accounting system should consider how reports affect employees' behavior.

Question 37

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

A)Audit accounting
B)Financial accounting
C)Managerial accounting
D)Tax accounting

Question 38

Which of the following statements is FALSE?

A)Financial accounting provides sufficient information for managers to effectively plan and control operations.
B)Financial accounting reports help creditors make decisions.
C)Financial accounting helps investors make decisions.
D)Financial accounting provides external reports.

Question 39

Which of the following is TRUE?

A)Managerial accounting reports are audited by professional accountants.
B)Managerial accounting reports provide detailed internal information.
C)Managerial accounting reports aid potential investors.
D)Managerial accounting reports must follow GAAP.

Question 40

Managerial accountants are now considered to be similar to advisors and business analysts.

Question 41

Owners of a company are its

A)creditors.
B)customers.
C)managers.
D)shareholders.

Question 42

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

A)Vendors
B)Customers
C)Managers
D)Shareholders

Question 43

Information for external parties about past performance is provided by

A)budget reports.
B)financial accounting reports.
C)managerial accounting reports.
D)planning reports.

Question 44

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

A)Annual financial statements
B)Monthly financial statements
C)Annual financial budgets
D)Budgets

Question 45

The only skill required of managerial accountants is that they have a solid knowledge of both financial and managerial accounting.

Question 46

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

Question 47

Management accountants spend more time planning,analyzing and interpreting accounting data and less time recording routine accounting transactions than they have in the past.

Question 48

The primary goal of managerial accounting is to provide information to

A)shareholders.
B)creditors.
C)internal decision-makers.
D)both shareholders and creditors.

Question 49

Is financial accounting or managerial accounting more useful to a plant (factory)manager? Explain your answer.

Question 50

In most companies,managerial accountants no longer perform routine mechanical accounting tasks.

Question 51

The internal audit department reports directly to the subcommittee of the board of directors called the audit committee.

Question 52

The treasurer and the controller report directly to the CFO.

Question 53

Discuss at least four differences between financial accounting and managerial accounting.

Question 54

Technology has been a driving factor in the changing roles of management accountants.

Question 55

Which of the following groups are most likely to use a company's budget information?

A)Managers
B)Customers
C)Creditors
D)Suppliers

Question 56

Which of following is TRUE?

A)Management accounting focuses on historical transactions.
B)Financial accounting uses the cash basis for recording transactions.
C)Financial accounting focuses on future data.
D)Management accounting focuses on relevant data.

Question 57

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

Question 58

Describe the position of the CFO,the treasurer,and the controller within the organization.Describe the main functions of the treasurer and the controller.

Question 59

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

Question 60

Which would be a subgroup of the Board of Directors?

A)Audit committee
B)Financial committee
C)Managerial committee
D)Stockholders' committee

Question 61

Who typically provides oversight for large corporations?

A)Stockholders
B)The CEO
C)The Board of Directors
D)The company president

Question 62

Your company sends you to a conference to update your skills.You decide to skip the afternoon session and go sightseeing.This violates the professional competency and integrity standards.

Question 63

Which person is hired directly by the board of directors to run the company?

A)The Treasurer
B)The CEO
C)The CFO
D)The COO

Question 64

Managerial accountants only need a solid understanding of managerial accounting,and not financial accounting.

Question 65

Who is primarily responsible for raising capital and investing funds?

A)The CEO
B)The CFO
C)The COO
D)The Treasurer

Question 66

The CMA designation is issued by the Society of Management Accountants of Canada.

Question 67

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

A)The treasurer and controller
B)The CFO and internal audit department
C)The internal audit department and the independent CPA firm
D)The CFO and the independent CPA firm

Question 68

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

A)The CFO
B)The COO
C)The CEO
D)The Board of Directors

Question 69

Managerial accountants often work on teams called

A)audit teams.
B)cross-functional teams.
C)multi-functional teams.
D)work groups.

Question 70

Who typically manages the daily operations of a company?

A)Stockholders
B)The controller
C)The company's board of directors
D)The CEO

Question 71

Who requires companies listed on the New York Stock Exchange to have an internal audit function?

A)The Board of Directors
B)The NYSE
C)The internal revenue service (IRS)
D)The stockholders

Question 72

What has been the determining factor in the way that we now view managerial accountants?

A)Stricter audit standards
B)Stricter GAAP standards
C)Technology
D)Government licensing

Question 73

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

A)Internal controls
B)The annual audit
C)Financial,managerial,and tax accounting
D)Research and development,production,and distribution

Question 74

A company's Board of Directors meets

A)annually.
B)monthly.
C)periodically,as needs dictate.
D)quarterly.

Question 75

The person or position who is directly responsible for all financial concerns is the

A)CEO.
B)CFO.
C)COO.
D)Treasurer.

Question 76

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

A)CPA
B)CMA
C)CIA
D)CFP

Question 77

The Society of Management Accountants is the professional association for managerial accountants.

Question 78

Preparing financial statements in accordance with GAAP is an example of

A)competence.
B)integrity.
C)objectivity.
D)credibility.

Question 79

To resolve ethical dilemmas management accountants should FIRST

A)follow their company's established policies for Reporting unethical behavior.
B)discuss the unethical situation with their immediate supervisor.
C)consult an attorney.
D)call the Society of Management Accountants "Ethics Hotline."

Question 80

The Society of management Accountants Code of Professional Ethics always gives clear guidance for every ethical situation.