Free test bank for managerial accounting 3rd edition by braun

Managerial accounting would use which of the following types of information?. D All of the above Which of the following persons or groups would be least likely to receive detailed manage

Free Test Bank for Managerial Accounting 3rd Edition

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

Directing means setting goals and objectives for the company and determining how

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

Planning involves which of the following activities?

1 A) Evaluating the results of operations

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

3 C) Setting goals and objectives for the company - Given

4 D) None of the above

Which of the following is being fulfilled when management compares the budget to actual results?

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

1 A) directing and planning.

2 B) directing and controlling.

3 C) controlling, directing, and planning.

4 D) controlling and planning.

When management reviews hourly sales reports to determine the level of staffing needed to service customers, which of management's three primary responsibilities

is fulfilled?

1 A) Controlling and planning

2 B) Directing and planning

3 C) Directing, controlling, and planning

4 D) Analyzing, directing, and planning

Budgets are a way for managers to communicate their

Overseeing the day-to-day operations of a company is an example of which of the following management functions?

The SEC requires that reports generated by the managerial accounting

system must be audited by an independent certified public accountant

(CPA)

1 True

2 False

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

Managerial accounting information emphasizes relevance over reliability and objectivity

How often should managerial accounting reports be prepared?

3 C) It is prepared annually and quarterly

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

The focus of management accounting is on

Managerial accounting would use which of the following types of

information?

1 A) Forecasts of future earnings

2 B) Financial information

3 C) Nonfinancial information

4 D) All of the above

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

1 A) CEO

2 B) Plant managers

3 C) Current shareholders

4 D) Sales territory managers

is designed to meet the needs of internal decision makers

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

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 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

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

1 A) Monthly financial statements

2 B) Annual financial budgets

3 C) Annual financial statements

4 D) All of the above

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

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

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

3 C) financial accounting reports.

4 D) managerial accounting reports

Internal parties receive information about past performance from

Management accountants rarely interact with employees from other business functions such as marketing and customer service

Management accountants spend more time planning, analyzing and

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

What position is typically responsible for financial accounting, managerial accounting, and tax reporting?

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

The IMA issues which of the following certifications?

1 A) CMA

2 B) CIA

3 C) CFP

4 D) CPA

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 positions typically manages the daily operations of a company?

4 D) The Board of Directors

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

3 C) Research and development, production, and distribution

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

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

3 C) Stricter audit standards

4 D) None of the above

Which of the following tasks are performed by management accountants?

1 A) Help design information systems

2 B) Provide decision support

3 C) Ensure financial records are correct

4 D) All of the above

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

Managerial accountants are required to possess which of the following skills?

1 A) Analytical skills

2 B) Oral and written communication skills

3 C) The ability to work on a team

4 D) All of the above

The is a subgroup of the Board of Directors

1 A) managerial committee

2 B) stockholders' committee

3 C) audit committee

4 D) financial committee

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

Which person is hired directly by the board of directors to manage the daily operations of the company?

The person who is directly responsible for all financial functions is the

Your company sends you to a conference to update your skills It is a violation

of the professional competency and integrity standards if you decide to skip the afternoon session and go sightseeing

The IMA's overarching ethical principles include: Honesty, Fairness,

Objectivity, and Responsibility

1 True

2 False

The IMA suggests that, when faced with an ethical dilemma, the first thing management accountants should do is call the IMA's ethics hotline

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

Which of the following is not one of the IMA's overarching ethical

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

All of the following are overarching principles in the IMA Statement of Ethical Professional Practice except

Performing duties in accordance with relevant laws, regulations, and

technical standards comprise the IMA professional ethics standard of

To ensure a profit in the current year a company ships out pre-ordered

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

1 A) Confidentiality

2 B) Integrity

3 C) Competence

4 D) All of the above

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

2 B) Integrity

1 A) Institute of Professional Accountants

2 B) Professional Accountants Association

3 C) Association of Management Accountants

4 D) Institute of Management Accountants

Which of the following certifications is issued by the IMA?

1 A) CISA

2 B) CFP

3 C) CMA

4 D) CPA

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

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

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

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

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.

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

Accepting a job that you know can be better performed by someone else with the required skills would violate the ethical conduct standard of

The Sarbanes-Oxley Act was designed to hold corporations accountable for internal control and financial reporting functions

Implementing a program to bill customers electronically, therefore saving paper, is a green initiative that would reduce not only waste, but also company costs

Managerial accounting has its roots in the industrial age of

The American Institute of Certified Public Accountants was the first

professional membership organization in the United States to earn the ISO

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

1 True

2 False

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

2 B) The Sarbanes-Oxley Act of 2002

3 C) Decreased barriers to international trade

4 D) International financial reporting standards

Which type of system integrates ALL of the company's departments,

functions, and data?

1 A) The CEO and CFO

2 B) The internal auditors

3 C) The external auditors

4 D) The SEC

The Sarbanes-Oxley Act requires the CPA firm to rotate the audit partner off

of the audit engagement every year(s)

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 "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

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?

4 D) CFO and CEO

A requirement of SOX is that publicly traded companies must have which of the following assessed annually?

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

The SEC is considering the move to adopt IFRS for which types of

companies?

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

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

XBRL stands for

1 A) eXtensive Business Registering Location

2 B) eXtractable Business Reporting Location

3 C) eXtensible Business Reporting Language

4 D) eXisting Business Responsibility Language

In what year will XBRL be required for all publicly traded companies?

1 A) 2017

2 B) 2015

3 C) 2011

4 D) 2010

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

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 financialinformation into various government-prescribed formats

is the business philosophy and a strategy of manufacturing without waste

4 D) All of the above

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

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