Question 1

Betty's job entails detecting problems such as embezzlement, waste, mismanagement, and employee theft at her organization. In this case, Betty is a(n) _____.
A) forensic auditor
B) government accountant
C) internal auditor
D) certified public accountant

Accepted Answer

Betty is an internal auditor because her job involves identifying issues like embezzlement, waste, mismanagement, and employee theft within her organization.

Question 2

A static budget is based on a single assumed level of sales and is an excellent tool for planning.

Accepted Answer

A static budget is indeed based on a single assumed level of sales, which makes it useful for planning as it provides a clear financial framework and targets for a specific level of activity. However, it may not be flexible enough to adapt to changes in actual sales levels.

Question 3

The direct labor method of costing is a technique to assign product costs based on links between the daily tasks of a company that drive costs and the production of specific products.

Accepted Answer

The direct labor method of costing assigns product costs based on the labor hours or wages directly associated with the production of specific products, not on the links between daily tasks and production.

Question 4

The employees of an information technology company complain that the company has been spending a lot of funds in wasteful activities, such as office renovation, instead of revising the employees' salaries. In this case, the company should hire a(n) _____ to keep a check on the company's expenses and prevent the problem from aggravating.
A) public prosecutor
B) government accountant
C) internal auditor
D) public accountant

Accepted Answer

An internal auditor is responsible for evaluating and improving the effectiveness of risk management, control, and governance processes, including monitoring company expenses and ensuring funds are used appropriately.

Question 5

The management of Lovelo, a candy manufacturing company, comes across a case of employee theft in their inventory. In this case, the company should seek the help of a(n) _____ to look into the matter.
A) public prosecutor
B) gazetted officer
C) internal auditor
D) district attorney

Accepted Answer

An internal auditor is responsible for evaluating and improving the effectiveness of risk management, control, and governance processes, including investigating cases of theft or fraud within a company.

Question 6

Which of the following is true of government accountants in the United States?
A) They provide services such as tax preparation, external auditing, or management consulting to clients on a fee basis.
B) They help ensure that a nation's banks and other financial institutions comply with the rules and regulations controlling their behavior.
C) They perform a narrow set of accounting functions solely for federal government agencies.
D) They do not need to adhere to the generally accepted accounting principles.

Accepted Answer

Government accountants in the United States help ensure that financial institutions comply with regulations, which is a key part of their role. They must adhere to generally accepted accounting principles, and their work is not limited to federal agencies alone.

Question 7

A firm's operating budget represents the firm's overall plan of action for a specified time period.

Accepted Answer

The answer of A firm's operating budget represents the firm's...

Question 8

Daryl is an accountant in Vansert Inc., a multinational healthcare company. He is responsible for providing analysis, preparing financial statements, and reporting the financial transactions of the company to the deputy chairman of the company. In this scenario, Daryl is most likely a _____.
A) forensic accountant
B) government accountant
C) public accountant
D) management accountant

Accepted Answer

Daryl is most likely a management accountant because he is involved in preparing financial statements and reporting financial transactions within a company, which are typical responsibilities of a management accountant.

Question 9

The chief financial officer of NoveauNoir Production Company requests his accountant, Felipe, to prepare a customized report of the cost overruns at the company's production facility in Los Angeles. In this scenario, Felipe is a managerial accountant.

Accepted Answer

Managerial accountants prepare internal reports, such as customized reports on cost overruns, to assist management in decision-making.

Question 10

Sebastian is an employee at Plowell Inc. His duties include preparing reports and analyzing company data. He also appraises financial performances and verifies the accuracy and validity of the company's internal records. In this scenario, Sebastian's role is that of a _____ in the organization.
A) forensic accountant
B) social audit examiner
C) certified fraud examiner
D) management accountant

Accepted Answer

Sebastian's duties of preparing reports, analyzing data, appraising financial performances, and verifying records align with the responsibilities of a management accountant, who focuses on internal financial processes and decision-making support within an organization.

Question 11

Luke works in an accounting firm that offers services such as tax preparation and external auditing to corporate companies. Luke is currently providing consultation to a client that deals in automobile parts. In this scenario, Luke is most likely a:
A) public accountant.
B) managerial accountant.
C) government accountant.
D) forensic accountant.

Accepted Answer

Luke is most likely a public accountant because he is providing services such as tax preparation and external auditing to corporate clients, which are typical functions of a public accountant.

Question 12

Lorraine works for an accounting firm that performs external audits, provides consulting services, and does the tax preparation for other businesses and individuals. Given this information, Lorraine is most likely a _____.
A) forensic accountant
B) public accountant
C) government accountant
D) management accountant

Accepted Answer

Lorraine works for an accounting firm that offers a variety of services such as audits, consulting, and tax preparation, which are typical functions of a public accountant.

Question 13

In top-down budgeting, top management prepares the budget with the involvement of the middle and supervisory managers.

Accepted Answer

In top-down budgeting, top management prepares the budget with little to no involvement from middle and supervisory managers.

Question 14

_____ perform a variety of accounting functions for local, state, or federal agencies, such as the Internal Revenue Service (IRS) and the Federal Deposit Insurance Corporation (FDIC).
A) Public prosecutors
B) Government accountants
C) Public accountants
D) Social accountants

Accepted Answer

Government accountants perform accounting functions for government agencies like the IRS and FDIC.

Question 15

_____ provide analysis and prepare reports and financial statements for their organization.
A) Public accountants
B) Management accountants
C) Government accountants
D) Forensic accountants

Accepted Answer

Management accountants are responsible for analyzing financial information and preparing reports and financial statements for internal use within their organization.

Question 16

Which of the following is a criterion that needs to be fulfilled by an individual to be recognized as a certified public accountant?
A) He or she must serve the Securities and Exchange Commission for at least two years after passing the certified public accountancy examination.
B) He or she must complete the equivalent of 150 semester hours of college education with a heavy emphasis in accounting and other business-related courses.
C) He or she must complete at least three years of direct work experience in the field of accounting.
D) He or she must pass a rigorous five-day, six-part examination.

Accepted Answer

To be recognized as a certified public accountant, an individual typically needs to complete 150 semester hours of college education with a focus on accounting and business courses.

Question 17

While performing a financial analysis for his organization, Morris discovers that there has been mismanagement of employee funds over the past three months. He immediately reports this to his supervisors. In this scenario, Morris is most likely a(n) _____.
A) public prosecutor
B) government accountant
C) internal auditor
D) public accountant

Accepted Answer

Morris is most likely an internal auditor because internal auditors are responsible for evaluating and improving the effectiveness of risk management, control, and governance processes within an organization, which includes identifying and reporting any mismanagement of funds.

Question 18

In which of the following ways do public accountants differ from management accountants?
A) Public accountants rely on data provided by top managers, whereas management accounts rely on data provided by middle and supervisory managers.
B) Management accountants are answerable to the Securities and Exchange Commission, whereas public accountants are answerable to their own organization.
C) Management accountants are associated with CPA firms, whereas public accountants can only be internal auditors.
D) Public accountants conduct external audits, whereas management accountants analyze the financial statements of their own organization.

Accepted Answer

Public accountants conduct external audits for various clients, while management accountants focus on analyzing and managing financial information within their own organization.

Question 19

Which of the following would most likely be a question asked by the stockholders of a firm?
A) Is performance feedback being given to the employees in a constructive manner?
B) Has the management generated a strong-enough return on their investment?
C) Is the management looking into issues related to harassment at the workplace?
D) Are there suppliers in the market who can provide resources at a lower cost?

Accepted Answer

Stockholders are primarily concerned with the financial performance of the firm and the return on their investment.

Question 20

The Securities and Exchange Commission hires Tim to procure and analyze data on the state's tax revenues and expenditures to ensure that they are recorded and reported in accordance with regulations and requirements. In this case, Tim is most likely a(n) _____.
A) external auditor
B) government accountant
C) public prosecutor
D) public accountant

Accepted Answer

Tim is most likely a government accountant because he is working with the state's tax revenues and expenditures to ensure compliance with regulations, which is a typical role for government accountants.

Quiz 8: Accounting: Decision Making by the Numbers

Betty's job entails detecting problems such as embezzlement, waste, mismanagement, and employee theft at her organization. In this case, Betty is a(n) _____.

A static budget is based on a single assumed level of sales and is an excellent tool for planning.

The direct labor method of costing is a technique to assign product costs based on links between the daily tasks of a company that drive costs and the production of specific products.

The management of Lovelo, a candy manufacturing company, comes across a case of employee theft in their inventory. In this case, the company should seek the help of a(n) _____ to look into the matter.

Which of the following is true of government accountants in the United States?

A firm's operating budget represents the firm's overall plan of action for a specified time period.

Daryl is an accountant in Vansert Inc., a multinational healthcare company. He is responsible for providing analysis, preparing financial statements, and reporting the financial transactions of the company to the deputy chairman of the company. In this scenario, Daryl is most likely a _____.

The chief financial officer of NoveauNoir Production Company requests his accountant, Felipe, to prepare a customized report of the cost overruns at the company's production facility in Los Angeles. In this scenario, Felipe is a managerial accountant.

Sebastian is an employee at Plowell Inc. His duties include preparing reports and analyzing company data. He also appraises financial performances and verifies the accuracy and validity of the company's internal records. In this scenario, Sebastian's role is that of a _____ in the organization.

Luke works in an accounting firm that offers services such as tax preparation and external auditing to corporate companies. Luke is currently providing consultation to a client that deals in automobile parts. In this scenario, Luke is most likely a:

Lorraine works for an accounting firm that performs external audits, provides consulting services, and does the tax preparation for other businesses and individuals. Given this information, Lorraine is most likely a _____.

In top-down budgeting, top management prepares the budget with the involvement of the middle and supervisory managers.

_____ perform a variety of accounting functions for local, state, or federal agencies, such as the Internal Revenue Service (IRS) and the Federal Deposit Insurance Corporation (FDIC) .

_____ provide analysis and prepare reports and financial statements for their organization.

Which of the following is a criterion that needs to be fulfilled by an individual to be recognized as a certified public accountant?

While performing a financial analysis for his organization, Morris discovers that there has been mismanagement of employee funds over the past three months. He immediately reports this to his supervisors. In this scenario, Morris is most likely a(n) _____.

In which of the following ways do public accountants differ from management accountants?

Which of the following would most likely be a question asked by the stockholders of a firm?

The Securities and Exchange Commission hires Tim to procure and analyze data on the state's tax revenues and expenditures to ensure that they are recorded and reported in accordance with regulations and requirements. In this case, Tim is most likely a(n) _____.