Introduction to Management Accounting – 17th Global Edition by Charles T. Horngren, Gary L. Sundem, William O. Stratton, Dave Burgstahler & Jeff O. Schatzberg | Complete Test Bank with Verified Answers and Explanations | Managerial Accounting, Cost Analys

Test Bank for Introduction to Management Accounting,

17th Global Edition by Charles Horngren, Gary L. Sundem,
William O. Stratton, Dave Burgstahler, Jeff O. Schatzberg

,Introduction to Management Accounting, 17e (Horngren)

Chapter 1 Managerial Accounting, the Business

Organization, and Professional Ethics

1.1 Questions

1) Which credential is associated with management accountants?
A) CPA
B) CMA
C) CFP
D) IMA
Answer: B
Diff: 1
LO: 1-1
AACSB: Reflective thinking skills
Learning Outcome: Describe the basics of managerial accounting and its function within an organization

2) The largest U.S. association of professional accountants whose major interest is management
accounting is the .
A) American Institute of Certified Public Accountants
B) American Institute of Certified Management Accountants
C) Institute of Management Accountants
D) American Institute of Management Accountants
Answer: C
Diff: 1
LO: 1-1
AACSB: Reflective thinking skills
Learning Outcome: Describe the basics of managerial accounting and its function within an organization

3) is the field that produces information used primarily by managers within an organization.
A) Financial accounting
B) Management accounting
C) Internal auditing
D) External auditing
Answer: B
Diff: 1
LO: 1-1
AACSB: Reflective thinking skills
Learning Outcome: Describe the basics of managerial accounting and its function within an organization

,4) The primary users of management accounting information are .
A) bankers
B) governmental regulatory bodies
C) managers in organizations
D) managerial accountants
Answer: C
Diff: 1
LO: 1-1
AACSB: Reflective thinking skills
Learning Outcome: Describe the basics of managerial accounting and its function within an organization

5) is the field of accounting that develops information for external parties such as stockholders,
suppliers, banks and governmental regulatory bodies.
A) Auditing
B) Internal auditing
C) Management accounting
D) Financial accounting
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective thinking skills
Learning Outcome: Describe the basics of managerial accounting and its function within an organization

6) Which of the following statements about management accounting is FALSE?
A) Management accounting is the process of identifying, measuring, accumulating, analyzing, preparing,
interpreting and communicating information.
B) Management accounting helps managers fulfill organizational objectives.
C) Management accounting is used by managerial accountants to make strategic and operational
decisions.
D) Management accounting produces information for managers in an organization.
Answer: C
Diff: 1
LO: 1-1
AACSB: Reflective thinking skills
Learning Outcome: Describe the basics of managerial accounting and its function within an organization

, 7) When comparing management accounting and financial accounting, which of the following statements
is FALSE?
A) Management accounting has a future orientation whereas financial accounting has a past orientation.
B) Management accounting prepares detailed reports whereas financial accounting prepares summary
reports.
C) Management accountants are constrained by the principles of reporting promulgated by the Institute
of Management Accountants whereas financial accountants are constrained by Generally Accepted
Accounting Principles.
D) Behavioral considerations are of primary importance in management accounting, but not in financial
accounting.
Answer: C
Diff: 1
LO: 1-1
AACSB: Reflective thinking skills
Learning Outcome: Describe the basics of managerial accounting and its function within an organization

8) Generally Accepted Accounting Principles are most closely connected to .
A) management accounting
B) financial accounting
C) internal auditing
D) management auditing
Answer: B
Diff: 1
LO: 1-1
AACSB: Reflective thinking skills
Learning Outcome: Describe the basics of managerial accounting and its function within an organization

9) Who provides assurance to external users about the reliability of a company's financial statements?
A) Certified Management Accountants and Certified Public Accountants
B) Chartered Management Accountants and Certified Management Accountants
C) Certified Public Accountants and Chartered Management Accountants
D) Certified Public Accountants and Chartered Accountants
Answer: D
Diff: 1
LO: 1-1
AACSB: Reflective thinking skills
Learning Outcome: Describe the basics of managerial accounting and its function within an organization