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Principles of Accounting, Volume 2: Managerial Accounting

Multiple Choice

Principles of Accounting, Volume 2: Managerial AccountingMultiple Choice
1.

LO 1.1The managers of an organization are responsible for performing several broad functions. They are ________.

  1. planning, controlling, and selling
  2. directing, controlling, and evaluating
  3. planning, evaluating, and manufacturing
  4. planning, controlling, and evaluating
2.

LO 1.1Management accountants help the management of an organization in their planning function through ________.

  1. monitoring anti-theft systems
  2. strategic planning
  3. evaluating costs
  4. analyzing profits
3.

LO 1.1Which of the following is a primary aspect of the evaluating function within an organization?

  1. comparing actual results against expected results for products, departments, divisions, or the company as a whole
  2. reviewing only the quantitative or financial results of the company
  3. setting goals
  4. putting controls in place for the upcoming year
4.

LO 1.1During the control function, the measurements taken of the performance must be accurate enough to see ________.

  1. only positive results
  2. deviations and variances
  3. the primary focus
  4. only the negative results
5.

LO 1.1Which of the following is false regarding strategic planning?

  1. It is the sole responsibility of supervisors.
  2. It will span many years.
  3. It should include both short-term and long-term goals.
  4. Strategic objectives will be diverse and vary from company to company.
6.

LO 1.2Managerial accounting produces information:

  1. to meet the needs of external users
  2. that is often focused on the future
  3. to meet the needs of investors
  4. that follows the rules of GAAP
7.

LO 1.2Management accounting:

  1. emphasizes special-purpose information
  2. relates to the company as a whole
  3. is limited to strictly cost figures
  4. is controlled by GAAP
8.

LO 1.2Internal users of accounting information would not include ________.

  1. managers
  2. employees
  3. creditors
  4. officers
9.

LO 1.2External users of accounting information would include ________.

  1. employees
  2. managers
  3. investors
  4. supervisors
10.

LO 1.2Which of the following statements is incorrect?

  1. The practice of management accounting is fairly flexible.
  2. The information gathered from management accounting is not required by law.
  3. Management accounting focuses mainly on the internal user.
  4. Reports produced using management accounting must follow GAAP.
11.

LO 1.3The stockholders of a company are:

  1. the owners
  2. policy setters
  3. responsible and liable for the financial well-being of the company
  4. operating within the company as independent shareholders
12.

LO 1.3The controller of a corporation:

  1. reports to the CFO and is in charge of the finance side of the business
  2. reports to the CFO and is in charge of the accounting side of the business
  3. reports to the CEO and implements all cash policies
  4. reports to the board of directors
13.

LO 1.3The Chartered Financial Analyst (CFA) certification:

  1. only requires a high school diploma
  2. is administered by the AICPA
  3. consists of three separate exams that must be taken in succession
  4. is the most popular certification among accountants in the United States
14.

LO 1.3The Certified Management Accountant (CMA) certification:

  1. signifies someone specializing in tax accounting
  2. requires an associate’s degree and four years of work experience
  3. includes a two-part exam, education requirements, and a work experience requirement
  4. is offered to managers who take special courses in accounting
15.

LO 1.3Which of the following terms means the ability to work in cross-functional teams in order to complete a task?

  1. supervisory skills
  2. conceptualization
  3. collaboration
  4. resource planning
16.

LO 1.3Which of the following terms means knowing how a business is run and how it is influenced by external forces, and knowing and understanding the overall industry?

  1. commercial awareness
  2. conceptualization
  3. collaboration
  4. imagination
17.

LO 1.4What is the law that protects investors from fraudulent financial accounting activity?

  1. FASB
  2. SACS
  3. SOX
  4. CPAS
18.

LO 1.4What year was the Sarbanes-Oxley Act enacted?

  1. 2007
  2. 1992
  3. 1997
  4. 2002
19.

LO 1.4When a representative of an organization gives money to another business official in order to gain favor and/or manipulate a business decision, this is known as ________.

  1. whistleblowing
  2. bribery
  3. buyer debits
  4. face value
20.

LO 1.4The law that specifically prohibits payments to foreign officials in order to attain business is known as ________.

  1. FCPA
  2. AICPA
  3. SOX
  4. IFRS
21.

LO 1.4Which of the following is not a step in the outline for examining ethical issues?

  1. Establish the facts of the situation.
  2. Evaluate each course of action.
  3. Make a decision.
  4. Confirm decision with FASB.
22.

LO 1.5Which of the following is not an objective used in the balanced scorecard approach?

  1. Customer
  2. Financial
  3. Vendor
  4. Learning and growth
23.

LO 1.5Which of the following is not true regarding continuous improvement?

  1. It applies to both service and manufacturing companies.
  2. It is used to reduce performance costs.
  3. It rejects the idea of “good enough.”
  4. It can be applied only to improve processes and products but not services and practices.
24.

LO 1.5A company’s attempts to utilize sustainable business practices with regard to its employees, the environment, and society are known as ________.

  1. a balanced scorecard
  2. corporate social responsibility
  3. total quality management
  4. value chain
25.

LO 1.5A process that is often linked to Six Sigma and is designed toward continuous improvement by eliminating waste is ________.

  1. kamikaze
  2. value chain
  3. total quality management
  4. kaizen
26.

LO 1.5An inventory system that organizations use to increase efficiency and decrease waste is ________.

  1. corporate social responsibility
  2. just-in-time manufacturing
  3. total quality management
  4. Lean Six Sigma
27.

LO 1.5A quality control program that depends on multiple team members for removing waste and diminishing defects within products is ________.

  1. kaizen
  2. total quality management
  3. Lean Six Sigma
  4. a balanced scorecard
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