Test Bank for Introduction to Management Accounting, 17th Global Edition by Charles Horngren, Gary L. Sundem, William O. Stratton, Dave Burgstahler, Jeff O. Schatzberg

TestBankforIntroductiontoManagementAccounting,
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17thGlobalEditionbyCharlesHorngren,GaryL.Sundem,
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ft ft William O.Stratton,DaveBurgstahler,JeffO.Schatzberg
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, IntroductiontoManagementAccounting,17e(Horngren) ft ft ft ft ft




Chapter1 ManagerialAccounting,theBusiness ft f t ft ft ft




Organization,andProfessional Ethics ft ft ft




1.1 Questions

1) Which credential is associated with management accountants?
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A) CPA
B) CMA
C) CFP
D) IMA
Answer:
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B Diff: 1
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LO: 1-1 ft f t




AACSB: Reflective thinking skills ft f t ft ft




LearningOutcome: Describethebasics ofmanagerialaccounting anditsfunctionwithinanorganization
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2) The largest U.S. association of professional accountants whose major interest is management
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faccounting is the
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A) AmericanInstituteofCertifiedPublicAccountants ft ft ft ft ft




B) AmericanInstituteofCertifiedManagementAccountants ft ft ft ft ft




C) InstituteofManagementAccountants ft ft ft




D) AmericanInstituteofManagementAccountants ft ft ft ft




fAnswer: C
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Diff: 1 f t




LO: 1-1 ft f t




AACSB: Reflective thinking skills ft f t ft ft




LearningOutcome: Describethebasics ofmanagerialaccounting anditsfunctionwithinanorganization
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3) ft isthefieldthatproducesinformationused primarilyby managerswithinanorganization. ft ft ft ft ft ft ft ft ft ft ft ft




A) Financialaccounting ft




B) Managementaccounting ft




C) Internal auditing ft




D) External auditing ft




Answer: B
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Diff: 1 f t




LO: 1-1 ft f t




AACSB: Reflective thinking skills ft f t ft ft




LearningOutcome: Describethebasics ofmanagerialaccounting anditsfunctionwithinanorganization
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,4) The primary users ofmanagement accounting information are
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A) bankers
B) governmental regulatory bodies f t f t




C) managersinorganizations ft ft




D) managerial accountants ft




Answer: C
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Diff: 1 f t




LO: 1-1 ft f t




AACSB: Reflective thinking skills ft f t ft ft




LearningOutcome: Describethebasics ofmanagerialaccounting anditsfunctionwithinanorganization
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5) isthefieldofaccountingthatdevelopsinformationforexternalpartiessuchasstockholders,
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f suppliers, banks and governmental regulatory bodies.
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A) Auditing
B) Internal auditing ft




C) Managementaccounting ft




D) Financialaccounting ft




Answer: D
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Diff: 1 f t




LO: 1-1 ft f t




AACSB: Reflective thinking skills ft f t ft ft




LearningOutcome: Describethebasics ofmanagerialaccounting anditsfunctionwithinanorganization
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6) WhichofthefollowingstatementsaboutmanagementaccountingisFALSE?
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A) Managementaccounting istheprocess ofidentifying, measuring,accumulating, analyzing, preparing, ft ft ft ft ft ft ft ft ft ft




f interpreting andcommunicating information.
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B) Managementaccountinghelpsmanagersfulfillorganizationalobjectives. ft ft ft ft ft ft




C) Managementaccountingisusedbymanagerialaccountantstomakestrategicandoperational ft ft ft ft ft ft ft ft ft ft ft




f decisions.
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D) Managementaccountingproducesinformationformanagersinanorganization. ft ft ft ft ft ft ft ft




f Answer: C
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Diff: 1 f t




LO: 1-1 ft f t




AACSB: Reflective thinking skills ft f t ft ft




LearningOutcome: Describethebasics ofmanagerialaccounting anditsfunctionwithinanorganization
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, 7) Whencomparingmanagement accountingandfinancial accounting,whichofthefollowing statements
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f is FALSE? t ft




A) Management accounting has a future orientation whereas financial accounting has a past orientation. f t f t ft f t ft f t f t f t f t ft f t f t




B) Management accounting prepares detailed reports whereas financial accounting prepares summary ft ft ft ft ft ft ft ft ft




f reports. t




C) ManagementaccountantsareconstrainedbytheprinciplesofreportingpromulgatedbytheInstitute of ft ft ft ft ft ft ft ft ft ft ft ft f t




Management Accountants whereas financial accountants are constrained by Generally Accepted
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f AccountingPrinciples.
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D) Behavioral considerations are of primary importance in management accounting, but not in financial
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f accounting.
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Answer: C f t




Diff: 1
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LO: 1-1 ft f t




AACSB: Reflective thinking skills ft f t ft ft




LearningOutcome: Describethebasics ofmanagerialaccounting anditsfunctionwithinanorganization
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8) GenerallyAcceptedAccounting Principlesaremostcloselyconnectedto .
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A) management accounting f t




B) financial accounting ft




C) internal auditing ft




D) managementauditing ft




Answer: B
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Diff: 1 f t




LO: 1-1 ft f t




AACSB: Reflective thinking skills ft f t ft ft




LearningOutcome: Describethebasics ofmanagerialaccounting anditsfunctionwithinanorganization
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9) Who provides assurance to external users about the reliability of a company's financial statements?
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A) CertifiedManagement Accountants andCertified Public Accountants ft ft ft ft ft ft




B) CharteredManagementAccountantsandCertifiedManagement Accountants ft ft ft ft ft ft




C) CertifiedPublic Accountants andCharteredManagement Accountants ft ft ft ft ft ft




D) CertifiedPublicAccountants andCharteredAccountants ft ft ft ft ft




fAnswer: D
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Diff: 1 f t




LO: 1-1 ft f t




AACSB: Reflective thinking skills ft f t ft ft




LearningOutcome: Describethebasics ofmanagerialaccounting anditsfunctionwithinanorganization
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