Test bank for managerial accounting 2nd edition LO

All of the above 15 Which of the following persons or groups would be LEAST likely to receive detailed managerial accounting reports.. 18 The primary goal of financial accounting is to p

Test Bank for Managerial Accounting 2nd Edition LO

1 Controlling means overseeing the company’s day-to-day operations

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

9 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

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

2 B Planning and decision-making

3 C Controlling and decision-making

4 D Planning and controlling

12 Which of the following management responsibilities is being fulfilled when management decides to move production to another country to lower

costs?

1 A Directing

2 B Planning

3 C Decision-making

4 D All of the above

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

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

15 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

16 Budgets are the way that managers can express their:

4 The primary purpose of managerial accounting information is to help

external users make investing and lending decisions

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

3 C Forecasts of future earnings

4 D All of the above

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

1 A Plant managers

2 B Current shareholders

3 C Sales territory managers

4 D CEO

16 Which of the following types of accounting is designed to meet the needs

of decision-makers inside a company?

4 D both shareholders and creditors

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

1 A potential investors

2 B creditors

3 C governmental regulators

4 D all of the above

19 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

20 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

21 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

22 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

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

1 A Vendors

2 B Customers

3 C Managers

4 D Shareholders

24 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

25 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

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

1 A Managers

2 B Customers

3 C Creditors

4 D Suppliers

27 Decision makers inside a company are its:

2 B financial accounting reports

3 C managerial accounting reports

3 C managerial accounting reports.

8 Management accountants spend more time planning, analyzing and

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

12 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

13 Who typically manages the daily operations of a company?

3 C The Board of Directors

4 D The company president

15 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

16 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

17 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

18 Who is primarily responsible for raising capital and investing funds?

1 A Stricter audit standards

2 B Stricter GAAP standards

3 C Technology

4 D None of the above

20 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

21 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.

22 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

23 Which would be a subgroup of the Board of Directors?

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

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

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

3 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

7 The IMA’s overarching ethical principles include: Honesty, Fairness,

Objectivity, and Responsibility

1 True

2 False

8 When faced with an ethical dilemma, the IMA suggests that the first thing management accountants should do is call the IMA’s ethics hotline

1 True

2 False

9 To resolve ethical dilemmas, the IMA suggests that 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 IMA “Ethics Hotline”

10 Which of the following is NOT one of the IMA’s overarching ethical

1 A Competence, Confidentiality, Integrity, and Objectivity

2 B Competence, Confidence, Integrity, and Credibility

3 C Competence, Objectivity, Credibility, and Honesty

4 D Competence, Confidentiality, Integrity, and Credibility.

12 The overarching principles in the IMA Statement of Ethical Professional Practice include all of the following EXCEPT:

15 Communicating information fairly and objectively represents what ethical standard?

1 A Competence

2 B Confidentiality

3 C Integrity

4 D All of the above

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

22 What is the name of the professional association for managerial

accountants?

1 A Association of Management Accountants

2 B Institute of Management Accountants

3 C Institute of Professional Accountants

4 D Professional Accountants Association

23 The IMA issues what certification?

1 A CMA

2 B CPA

3 C CISA

4 D CFP

24 An example of the IMA’s competence standard is to:

1 A abstain from engaging in or supporting any activity that might discredit theprofession

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

25 An example of the IMA’s credibility standard is to:

1 A abstain from engaging in or supporting any activity that might discredit theprofession

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

26 An example of the IMA’s integrity standard is to:

1 A abstain from engaging in or supporting any activity that might discredit theprofession

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

27 An example of the IMA’s confidentiality standard is to:

1 A abstain from engaging in or supporting any activity that might discredit theprofession

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

28 Which of the following is NOT one of the IMA’s credibility standards?

1 A To communicate information fairly and objectively

2 B To disclose all relevant information

3 C To disclose deficiencies in internal control

4 D All of the above are part of IMA’s credibility standard

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

2 The Sarbanes-Oxley Act has significantly impacted the responsibility for financial reporting by publicly traded corporations

7 Lean production cuts the throughput time of a manufacturing concern

12 Managerial accounting has its roots in the industrial age of

manufacturing

1 True

2 False

13 Lean production is both a philosophy and a business strategy of

manufacturing without waste

1 True

2 False

14 The American Institute of Certified Public Accountants was the first

professional membership organization in the United States to earn the ISO

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

20 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 US

3 C All U.S publicly traded companies

4 D All U.S private companies

21 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

22 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

23 All publicly traded companies will be required to use XBRL by the year:

1 A 2010

2 B 2011

3 C 2015

4 D 2017

24 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

25 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

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

3 C TQM.

4 D all of the above

28 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

29 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

30 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

31 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

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

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

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

materials at the time they are needed?

1 A ERP

2 B JIT

3 C TQM

4 D ISO

35 ISO 9001:2008 is a(n):

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

36 What is the name given to software systems that can integrate all

37 E-commerce refers to the:

1 A conduct of business on the internet

2 B exchange of information with customers and suppliers

3 C production of superior goods and services

4 D quick delivery of goods and services

38 What is the purpose of supply chain management?

1 A To improve the quality of products

2 B To reduce costs

3 C To speed delivery of goods and services

4 D All of the above

39 Companies that wish to demonstrate their commitment to international quality standards may become certified by what organization?

4 D All of the above

42 Which services are CPA firms allowed to provide to audit clients?

1 A Bookkeeping

2 B Consulting

3 C Information systems design

46 Wonder Company is considering installing an ERP system To make a good decision, Wonder needs to conduct a(n):

2 B Steadily rising prices

3 C Rapidly declining prices

4 D None of the above

48 Which of the following is NOT used in a cost-benefit analysis?

1 A Future benefits to be received from project

2 B Amounts for future costs of project

3 C Book value of past investment in equipment

4 D Amount needed to invest in project initially