TEST BANK
Management Accounting
by Leslie G. Eldenburg, Albie Brooks
5th Edition
TE
S TS
O
LU
TI
O
N
, Chapter 1: The role of accounting information in management decision
making
True/false questions
TE
1. A vision statement is a theoretical description of what an organisation should become.
*a. True
b. False
Correct answer: a
S
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
TS
2. An organisational vision is a short-term plan for maximising financial results.
a. True
*b. False
O
Correct answer: b
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
LU
3. Most organisations have one stakeholder.
a. True
*b. False
TI
Correct answer: b
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
O
4. Organisational core competencies unrelated to the organisational vision.
a. True
N
*b. False
Correct answer: b
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
1.2
, 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
TE
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
S
informally from internal sources only.
a. True
*b. False
TS
Correct answer: b
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
O
7. Desirable employee behaviour can be motivated by tying employee performance
evaluation and pay to long-term or short-term results.
LU
*a. True
b. False
Correct answer: a
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
TI
8. Organisational information systems only collect accounting information.
a. True
O
*b. False
Correct answer: b
N
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
in management decision making
1.3
, 9. Cost accounting information is used for both management accounting and financial
accounting activities.
*a. True
b. False
Correct answer: a
TE
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.
S
*a. True
b. False
TS
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
O
information system.
a. True
*b. False
LU
Correct answer: b
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
in management decision making
TI
12. It is easy to differentiate between internal and external reports.
a. True
*b. False
O
Correct answer: b
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
in management decision making
N
1.4
Management Accounting
by Leslie G. Eldenburg, Albie Brooks
5th Edition
TE
S TS
O
LU
TI
O
N
, Chapter 1: The role of accounting information in management decision
making
True/false questions
TE
1. A vision statement is a theoretical description of what an organisation should become.
*a. True
b. False
Correct answer: a
S
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
TS
2. An organisational vision is a short-term plan for maximising financial results.
a. True
*b. False
O
Correct answer: b
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
LU
3. Most organisations have one stakeholder.
a. True
*b. False
TI
Correct answer: b
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
O
4. Organisational core competencies unrelated to the organisational vision.
a. True
N
*b. False
Correct answer: b
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
1.2
, 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
TE
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
S
informally from internal sources only.
a. True
*b. False
TS
Correct answer: b
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
O
7. Desirable employee behaviour can be motivated by tying employee performance
evaluation and pay to long-term or short-term results.
LU
*a. True
b. False
Correct answer: a
Learning objective 1.1 ~ Recognise the types of decisions managers make for an
organisation
TI
8. Organisational information systems only collect accounting information.
a. True
O
*b. False
Correct answer: b
N
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
in management decision making
1.3
, 9. Cost accounting information is used for both management accounting and financial
accounting activities.
*a. True
b. False
Correct answer: a
TE
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.
S
*a. True
b. False
TS
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
O
information system.
a. True
*b. False
LU
Correct answer: b
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
in management decision making
TI
12. It is easy to differentiate between internal and external reports.
a. True
*b. False
O
Correct answer: b
Learning objective 1.2 ~ Discuss the role of cost and management accounting information
in management decision making
N
1.4
