introduction to management accounting 16th edition by horngren test bank

,Introduction to Management Accounting, 16e (Horngren) g g g g g



Chapter 1 Managerial Accounting, the Business Organization, and Profes
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sional Ethics g




1.1 Questions

1) Which credential is associated with management accountants?
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A) CPA
B) CMA
C) CFP
D) IMA
Answer: B Di g g

ff: 1
g

LO: 1-1 g


AACSB: Reflective thinking skills
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Learning Outcome: Describe the basics of managerial accounting and its function within an organization
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2) The largest U.S. association of professional accountants whose major interest is management
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accounting is the . g g g

A) American Institute of Certified Public Accountants
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B) American Institute of Certified Management Accountants
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C) Institute of Management Accountants
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D) American Institute of Management Accountants
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Answer: C g

Diff: 1 g

LO: 1-1 g


AACSB: Reflective thinking skills
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Learning Outcome: Describe the basics of managerial accounting and its function within an organization
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3) is the field that produces information used primarily by managers within an organization.
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A) Financial accounting g


B) Management accounting g


C) Internal auditing g


D) External auditing g

Answer: B
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Diff: 1 g


LO: 1-1 g


AACSB: Reflective thinking skills
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Learning Outcome: Describe the basics of managerial accounting and its function within an organization
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,4) The primary users of management accounting information are
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A) bankers
B) governmental regulatory bodies g g


C) managers in organizations g g


D) managerial accountants g

Answer: C
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Diff: 1 g


LO: 1-1
g


AACSB: Reflective thinking skills
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Learning Outcome: Describe the basics of managerial accounting and its function within an organization
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5) is the field of accounting that develops information for external parties such as stockholders,
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suppliers, banks and governmental regulatory bodies.
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A) Auditing
B) Internal auditing g


C) Management accounting g


D) Financial accounting g


gAnswer: D g

Diff: 1 g


LO: 1-1
g


AACSB: Reflective thinking skills
g g g


Learning Outcome: Describe the basics of managerial accounting and its function within an organization
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6) Which of the following statements about management accounting is FALSE?
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A) Management accounting is the process of identifying, measuring, accumulating, analyzing, preparing,
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interpreting and communicating information.
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B) Management accounting helps managers fulfill organizational objectives.
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C) Management accounting is used by managerial accountants to make strategic and operational
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decisions.
D) Management accounting produces information for managers in an organization.
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Answer: C g

Diff: 1 g


LO: 1-1
g


AACSB: Reflective thinking skills
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Learning Outcome: Describe the basics of managerial accounting and its function within an organization
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, 7) When comparing management accounting and financial accounting, which of the following statements i
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s FALSE?
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A) Management accounting has a future orientation whereas financial accounting has a past orientation.
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B) Management accounting prepares detailed reports whereas financial accounting prepares summary
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reports.
C) Management accountants are constrained by the principles of reporting promulgated by the Institute
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of Management Accountants whereas financial accountants are constrained by Generally Accepted Acc
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ounting Principles. g


D) Behavioral considerations are of primary importance in management accounting, but not in financial
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accounting.
Answer: C D g g

iff: 1 g

LO: 1-1 g


AACSB: Reflective thinking skills
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Learning Outcome: Describe the basics of managerial accounting and its function within an organization
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8) Generally Accepted Accounting Principles are most closely connected to
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A) management accounting g


B) financial accounting g


C) internal auditing g


D) management auditing g


Answer: B
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Diff: 1 g


LO: 1-1 g


AACSB: Reflective thinking skills
g g g


Learning Outcome: Describe the basics of managerial accounting and its function within an organization
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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) Certified Management Accountants and Certified Public Accountants
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B) Chartered Management Accountants and Certified Management Accountants
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C) Certified Public Accountants and Chartered Management Accountants
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D) Certified Public Accountants and Chartered Accountants
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Answer: D g

Diff: 1 g


LO: 1-1 g


AACSB: Reflective thinking skills
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Learning Outcome: Describe the basics of managerial accounting and its function within an organization
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