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Chapter 1: The role of accounting information in management decision
making
True/false questions
1. A vision statement is a theoretical description of what an organisation should become.
*a. True
b. False
Correct answer: a
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
2. An organisational vision is a short-term plan for maximising financial results.
a. True
*b. False
Correct answer: b
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
3. Most organisations have one stakeholder.
a. True
*b. False
Correct answer: b
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
4. Organisational core competencies unrelated to the organisational vision.
a. True
*b. False
Correct answer: b
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
1.2
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5. Organisational strategies are the tactics that managers use to take advantage of core
competencies while working towards the organisational vision.
*a. True
b. False
Correct answer: a
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
6. Most organisations have databases that contain information collected formally or
informally from internal sources only.
a. True
*b. False
Correct answer: b
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
7. Desirable employee behaviour can be motivated by tying employee performance
evaluation and pay to long-term or short-term results.
*a. True
b. False
Correct answer: a
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
8. Organisational information systems only collect accounting information.
a. True
*b. False
Correct answer: b
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
in management decision making
1.3
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9. Cost accounting information is used for both management accounting and financial
accounting activities.
*a. True
b. False
Correct answer: a
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
in management decision making
10. Management accounting is the process of gathering, summarising and reporting
financial and non-financial information used internally to make decisions.
*a. True
b. False
Correct answer: a
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
in management decision making
11. Intellectual capital is a type of financial resource that is captured by the organisation’s
information system.
a. True
*b. False
Correct answer: b
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
in management decision making
12. It is easy to differentiate between internal and external reports.
a. True
*b. False
Correct answer: b
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
in management decision making
1.4
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Distribution of this document is illegal extra per year?
, Stuvia.com - The Marketplace to Buy and Sell your Study Material
Chapter 1: The role of accounting information in management decision
making
True/false questions
1. A vision statement is a theoretical description of what an organisation should become.
*a. True
b. False
Correct answer: a
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
2. An organisational vision is a short-term plan for maximising financial results.
a. True
*b. False
Correct answer: b
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
3. Most organisations have one stakeholder.
a. True
*b. False
Correct answer: b
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
4. Organisational core competencies unrelated to the organisational vision.
a. True
*b. False
Correct answer: b
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
1.2
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5. Organisational strategies are the tactics that managers use to take advantage of core
competencies while working towards the organisational vision.
*a. True
b. False
Correct answer: a
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
6. Most organisations have databases that contain information collected formally or
informally from internal sources only.
a. True
*b. False
Correct answer: b
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
7. Desirable employee behaviour can be motivated by tying employee performance
evaluation and pay to long-term or short-term results.
*a. True
b. False
Correct answer: a
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
8. Organisational information systems only collect accounting information.
a. True
*b. False
Correct answer: b
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
in management decision making
1.3
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9. Cost accounting information is used for both management accounting and financial
accounting activities.
*a. True
b. False
Correct answer: a
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
in management decision making
10. Management accounting is the process of gathering, summarising and reporting
financial and non-financial information used internally to make decisions.
*a. True
b. False
Correct answer: a
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
in management decision making
11. Intellectual capital is a type of financial resource that is captured by the organisation’s
information system.
a. True
*b. False
Correct answer: b
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
in management decision making
12. It is easy to differentiate between internal and external reports.
a. True
*b. False
Correct answer: b
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
in management decision making
1.4
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