Question 1

According to SOX, at least one member of the audit committee should be a financial expert.

Accepted Answer

A) True 
 B)False

Question 2

Which statement is true?

Accepted Answer

A)  Management uses financial information to analyze costs.
B)  Management uses financial information to plan internal operations.
C)  Management uses reports created for internal parties.
D)  All of the above are true.E) None of the above
F) A) and B)

Question 3

What factor has changed the roles of managerial accountants?

Accepted Answer

A)  Stricter GAAP standards
B)  Technology
C)  Stricter audit standards
D)  None of the aboveE) A) and B)
F) C) and D)

Question 4

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

Accepted Answer

Managerial accounting is more useful to ...

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Inflating your expenses for a company-sponsored conference that discredits the profession is a violation of what ethical standard?

Accepted Answer

A)  Credibility
B)  Integrity
C)  Competence
D)  ConfidentialityE) A) and B)
F) None of the above

Question 7

The standards of the IMA Statement of Ethical Professional Practice include which of the following?

Accepted Answer

A)  Objectivity
B)  Fairness
C)  Honesty
D)  IntegrityE) A) and C)
F) None of the above

Question 8

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

Accepted Answer

The answer of Discuss at least four differences between financial...

Question 9

Sustainability refers to the ability of a system to:

Accepted Answer

A)  maintain its own viability.
B)  endure without giving way.
C)  sparingly use resources as to not deplete or permanently damage them.
D)  All of the above are correct.E) A) and B)
F) All of the above

Question 10

Managers and other internal users are the primary users of managerial accounting information.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  Provide decision support information and recommendations that is accurate, clear, concise and timely.
B)  Keep information confidential, except when disclosure is legally required.
C)  Communicate information fairly and objectively.
D)  Abstain from engaging in or supporting any activity that might discredit the profession.E) B) and C)
F) A) and D)

Question 12

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

Accepted Answer

A)  Future benefits to be received from project
B)  Amounts for future costs of project
C)  Book value of past investment in equipment
D)  Amount needed to invest in project initiallyE) B) and C)
F) All of the above

Question 13

Budgets are the quantitative expression of management's plans.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following positions is responsible for the oversight, strategy formulation, and guidance at a large corporation?

Accepted Answer

A)  CEO
B)  Company president
C)  Stockholders
D)  Board of DirectorsE) C) and D)
F) A) and B)

Question 15

Which of the following statements is false about financial accounting?

Accepted Answer

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

Question 16

How often should managerial accounting reports be prepared?

Accepted Answer

A)  Annually
B)  Quarterly
C)  Monthly
D)  As often as necessaryE) C) and D)
F) A) and B)

Question 17

Managerial accounting reports are prepared whenever they are requested and contain specific data required by the managers of the company.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A)  Vendors
B)  Managers
C)  Shareholders
D)  CustomersE) A) and D)
F) A) and B)

Question 20

Lean thinking is both a philosophy and a business strategy of manufacturing without waste.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to Managerial Accounting

Managers and other internal users are the primary users of managerial accounting information.

Correct AnswerverifiedShow Answer

Inflating your expenses for a company-sponsored conference that discredits the profession is a violation of what ethical standard?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which statement is true?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Budgets are the quantitative expression of management's plans.

Correct AnswerverifiedShow Answer

According to SOX, at least one member of the audit committee should be a financial expert.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedManagerial accounting is more useful to ...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

How often should managerial accounting reports be prepared?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Sustainability refers to the ability of a system to:

Correct AnswerverifiedShow Answer

What factor has changed the roles of managerial accountants?

Correct AnswerverifiedShow Answer

The standards of the IMA Statement of Ethical Professional Practice include which of the following?

Correct AnswerverifiedShow Answer

Managerial accounting reports are prepared whenever they are requested and contain specific data required by the managers of the company.

Correct AnswerverifiedShow Answer

Lean thinking is both a philosophy and a business strategy of manufacturing without waste.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following positions is responsible for the oversight, strategy formulation, and guidance at a large corporation?

Correct AnswerverifiedShow Answer

Which of the following statements is false about financial accounting?

Correct AnswerverifiedShow Answer

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Managerial accounting is more useful to ...
View Answer

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