Principles of Managerial Accounting
Exam 1 Actual Real Questions &
Answers | Updated> Already Passed
Three Primary Responsibilities - Answers -✔✔ Planning, directing and controlling.
Decision making is integrated throughout all of these.
What is the normal organizational structure? - Answers -✔✔ Board members who only
periodically meet, who hires a CEO, who hires the CFO and COO, and the CFO has the
treasurer and controller report to them.
What are the required skills for management accountants? - Answers -✔✔ Solid
knowledge of both financial/managerial accounting, analytical skills, knowledge of how a
business functions, ability to work on a team, oral and written communication skills
What is IMA? - Answers -✔✔ The Institute of Management Accountants. This institute
provides forums for research, practice development, education, etc. but also issues the
Certified Management Accountant (CMA) certification.
Management accountants must comply with four ethical standards. What are they? -
Answers -✔✔ Maintain professional competence, preserve confidentiality of information,
uphold their integrity, perform duties with credibility.
What all did the Sarbanes-Oxley Act of 2002 detail? - Answers -✔✔ 1. CEO & CFO
assume responsibility for the company's financial statements, internal control system,
and procedures for financial reporting
2. Audit committee must be independent and should include a financial expert
3. New requirements for public accounting firms, including limited non-audit services for
audit clients and periodic quality review
4. Stiffer imprisonment and monetary fines for white-collar crimes
What business trends affect management accounting? - Answers -✔✔ Sustainability
(social, environmental and economic), social responsibility, and the triple bottom line.
What is the triple bottom line? - Answers -✔✔ It is a recognization that a company's
performance should be viewed not only in terms of economic profits for its owner, but
also by its impact on people and the planet.
What are the three major business sectors? - Answers -✔✔ Service, Merchandising,
and Manufacturing
, What type of merchandising company buys products and then sells them individually to
consumers? - Answers -✔✔ Retailers
What type of merchandising company buys products in bulk from the manufacturer and
then sells them to retailers? They are often referred to as the "middlemen" - Answers -
✔✔ Wholesalers
What three types of inventory do manufacturers carry? - Answers -✔✔ Raw materials,
work in process, and finished goods.
What type of inventory is the following? Steel, tires, glass, engines. - Answers -✔✔ Raw
Materials
What type of inventory is the following? Goods that are partway through the
manufacturing process but not yet complete. - Answers -✔✔ Work in process
What type of inventory is the following? Completed goods that have not yet been sold. -
Answers -✔✔ Finished goods
What Six Business Activities make up the Value Chain? - Answers -✔✔ Research and
Development
Design
Marketing
Production or Purchases
Customer Service
Distribution
What type of value chain business activity is the following? Researching and developing
new or improved products or services and the processes for producing them. - Answers
-✔✔ Research and Development
What type of value chain business activity is the following? Detailed engineering of
products and services and the processes for producing them. - Answers -✔✔ Design
What type of value chain business activity is the following? Resources used to produce
a product or service or to purchase finished merchandise intended for resale. - Answers
-✔✔ Production or Purchases
What type of value chain business activity is the following? Promotion and advertising of
products or services. - Answers -✔✔ Marketing
What type of value chain business activity is the following? Delivery of products or
services to customers. - Answers -✔✔ Distribution
Exam 1 Actual Real Questions &
Answers | Updated> Already Passed
Three Primary Responsibilities - Answers -✔✔ Planning, directing and controlling.
Decision making is integrated throughout all of these.
What is the normal organizational structure? - Answers -✔✔ Board members who only
periodically meet, who hires a CEO, who hires the CFO and COO, and the CFO has the
treasurer and controller report to them.
What are the required skills for management accountants? - Answers -✔✔ Solid
knowledge of both financial/managerial accounting, analytical skills, knowledge of how a
business functions, ability to work on a team, oral and written communication skills
What is IMA? - Answers -✔✔ The Institute of Management Accountants. This institute
provides forums for research, practice development, education, etc. but also issues the
Certified Management Accountant (CMA) certification.
Management accountants must comply with four ethical standards. What are they? -
Answers -✔✔ Maintain professional competence, preserve confidentiality of information,
uphold their integrity, perform duties with credibility.
What all did the Sarbanes-Oxley Act of 2002 detail? - Answers -✔✔ 1. CEO & CFO
assume responsibility for the company's financial statements, internal control system,
and procedures for financial reporting
2. Audit committee must be independent and should include a financial expert
3. New requirements for public accounting firms, including limited non-audit services for
audit clients and periodic quality review
4. Stiffer imprisonment and monetary fines for white-collar crimes
What business trends affect management accounting? - Answers -✔✔ Sustainability
(social, environmental and economic), social responsibility, and the triple bottom line.
What is the triple bottom line? - Answers -✔✔ It is a recognization that a company's
performance should be viewed not only in terms of economic profits for its owner, but
also by its impact on people and the planet.
What are the three major business sectors? - Answers -✔✔ Service, Merchandising,
and Manufacturing
, What type of merchandising company buys products and then sells them individually to
consumers? - Answers -✔✔ Retailers
What type of merchandising company buys products in bulk from the manufacturer and
then sells them to retailers? They are often referred to as the "middlemen" - Answers -
✔✔ Wholesalers
What three types of inventory do manufacturers carry? - Answers -✔✔ Raw materials,
work in process, and finished goods.
What type of inventory is the following? Steel, tires, glass, engines. - Answers -✔✔ Raw
Materials
What type of inventory is the following? Goods that are partway through the
manufacturing process but not yet complete. - Answers -✔✔ Work in process
What type of inventory is the following? Completed goods that have not yet been sold. -
Answers -✔✔ Finished goods
What Six Business Activities make up the Value Chain? - Answers -✔✔ Research and
Development
Design
Marketing
Production or Purchases
Customer Service
Distribution
What type of value chain business activity is the following? Researching and developing
new or improved products or services and the processes for producing them. - Answers
-✔✔ Research and Development
What type of value chain business activity is the following? Detailed engineering of
products and services and the processes for producing them. - Answers -✔✔ Design
What type of value chain business activity is the following? Resources used to produce
a product or service or to purchase finished merchandise intended for resale. - Answers
-✔✔ Production or Purchases
What type of value chain business activity is the following? Promotion and advertising of
products or services. - Answers -✔✔ Marketing
What type of value chain business activity is the following? Delivery of products or
services to customers. - Answers -✔✔ Distribution
