Solution Manual
Managerial Accounting
By Karen W. Braun
5th Edition
,Chapter 1
Introduction To Managerial Accounting
Quick Check
Answers:
1. B 3. D 5. C 7. C
2. B 4. D 6. C 8. B
Short Exercises
(5–10 Min.) S1-1
The Four Primary Responsibilities Of Managers Include Planning, Directing, Controlling, And Decision
Making. Managers Plan By Setting Goals And Objectives For The Company And Devising Strategies
For Achieving Those Goals. Then They Direct The Day-To-Day Operations Of The Company In Light
Of The Goals And Objectives. They Control The Company By Comparing Actual Results To Plans And
Then Use That Feedback To Adjust Plans And Operations. Throughout All Aspects Of These Duties,
Management Is Making Critical Business Decisions.
Student Responses May Vary.
(5–10 Min.) S1-2
a. Managerial Accounting
b. Managerial Accounting
c. Financial Accounting
d. Financial Accounting
e. Managerial Accounting
f. Managerial Accounting
g. Financial Accounting
h. Managerial Accounting
i. Financial Accounting
j. Financial Accounting
k. Financial Accounting
l. Financial Accounting
m. Managerial Accounting
,Managerial Accounting Fifth Canadian Edition Instructor’s Solutions Manual
(5–10 Min.) S1-5
(10 min.) S1-3
a. Internal Auditing Department
b. Controller
c. Treasurer
d. Internal Auditing Department
e. Controller
f. Controller
g. Treasurer
h. Internal Auditing Department
i. Controller
j. Controller
k. Treasurer
l. Internal Auditing Department
m. Controller
(5–10 Min.) S1-4
Characteristic Check (✓) If Related To
Internal Auditing
A. Helps To Ensure That The Company’s Internal Controls Are ✓
Functioning Properly
B. Reports To The Treasurer Or Controller
C. Required By The Toronto Stock Exchange If Company ✓
Stock Is Publicly Traded On The Tsx
D. Reports Directly To The Audit Committee ✓
E. Ensures That The Company Achieves Its Profit Goals
F. Is Part Of The Accounting Department
G. Usually Reports To A Senior Executive (Cfo Or Ceo) For ✓
Administrative Matters
H. Performs The Same Function As Independent Certified
Public Accountants
I. External Audits Can Be Performed By The Internal Auditing
Department
, Managerial Accounting Fifth Canadian Edition Instructor’s Solutions Manual
Each Of The Five Ethical Standards Contributes To Maintaining Cpa Canada’s Expectation That
Management Accountants Will Uphold The Highest Standards Of Ethical Behaviour.
Without The Necessary Competence, Management Accountants Will Be Unable To Perform Their
Responsibilities. Even If They Do Recognize An Ethical Dilemma, They Could Lack The Competence
Required To Determine All The Alternative Courses Of Action And The Implications Of Each
Alternative. Having Independence Is Important For Minimizing Or Eliminating The Impact Of Others’
Influences. Management Accountants Need To Provide Opinions Based On Their Own Interpretation Of
Data Rather Than The Interpretations Of Other Stakeholders.
Management Accountants Have Access To Confidential Information. If They Do Not Maintain That
Confidentiality, Their Companies Could Suffer. Their Companies Would Be Reluctant To Provide
Access To Information, Which Would Prevent Management Accountants From Performing Their
Responsibilities. Additionally, Employers Must Have Confidence That Management Accountants Have
The Integrity To Apply Their Skills Appropriately And Avoid Being Prejudiced By Any Conflicts Of
Interest.
Management Accountants Should Have The Ability As Well To Effectively Analyze Situations So
That They Might Communicate Them Faithfully To Employers, Regulators, Or Clients To Ensure
Proper Action Is Taken.
Finally, An Important Part Of Management Accountants’ Responsibilities Is Communicating
Information And Providing Reports To Senior Management. To Be Able To Rely On These Reports,
Management Must Have Confidence That The Management Accountant Is Not Hiding Inconvenient
Facts Or Presenting A Biased View.
Student Responses May Vary.
Managerial Accounting
By Karen W. Braun
5th Edition
,Chapter 1
Introduction To Managerial Accounting
Quick Check
Answers:
1. B 3. D 5. C 7. C
2. B 4. D 6. C 8. B
Short Exercises
(5–10 Min.) S1-1
The Four Primary Responsibilities Of Managers Include Planning, Directing, Controlling, And Decision
Making. Managers Plan By Setting Goals And Objectives For The Company And Devising Strategies
For Achieving Those Goals. Then They Direct The Day-To-Day Operations Of The Company In Light
Of The Goals And Objectives. They Control The Company By Comparing Actual Results To Plans And
Then Use That Feedback To Adjust Plans And Operations. Throughout All Aspects Of These Duties,
Management Is Making Critical Business Decisions.
Student Responses May Vary.
(5–10 Min.) S1-2
a. Managerial Accounting
b. Managerial Accounting
c. Financial Accounting
d. Financial Accounting
e. Managerial Accounting
f. Managerial Accounting
g. Financial Accounting
h. Managerial Accounting
i. Financial Accounting
j. Financial Accounting
k. Financial Accounting
l. Financial Accounting
m. Managerial Accounting
,Managerial Accounting Fifth Canadian Edition Instructor’s Solutions Manual
(5–10 Min.) S1-5
(10 min.) S1-3
a. Internal Auditing Department
b. Controller
c. Treasurer
d. Internal Auditing Department
e. Controller
f. Controller
g. Treasurer
h. Internal Auditing Department
i. Controller
j. Controller
k. Treasurer
l. Internal Auditing Department
m. Controller
(5–10 Min.) S1-4
Characteristic Check (✓) If Related To
Internal Auditing
A. Helps To Ensure That The Company’s Internal Controls Are ✓
Functioning Properly
B. Reports To The Treasurer Or Controller
C. Required By The Toronto Stock Exchange If Company ✓
Stock Is Publicly Traded On The Tsx
D. Reports Directly To The Audit Committee ✓
E. Ensures That The Company Achieves Its Profit Goals
F. Is Part Of The Accounting Department
G. Usually Reports To A Senior Executive (Cfo Or Ceo) For ✓
Administrative Matters
H. Performs The Same Function As Independent Certified
Public Accountants
I. External Audits Can Be Performed By The Internal Auditing
Department
, Managerial Accounting Fifth Canadian Edition Instructor’s Solutions Manual
Each Of The Five Ethical Standards Contributes To Maintaining Cpa Canada’s Expectation That
Management Accountants Will Uphold The Highest Standards Of Ethical Behaviour.
Without The Necessary Competence, Management Accountants Will Be Unable To Perform Their
Responsibilities. Even If They Do Recognize An Ethical Dilemma, They Could Lack The Competence
Required To Determine All The Alternative Courses Of Action And The Implications Of Each
Alternative. Having Independence Is Important For Minimizing Or Eliminating The Impact Of Others’
Influences. Management Accountants Need To Provide Opinions Based On Their Own Interpretation Of
Data Rather Than The Interpretations Of Other Stakeholders.
Management Accountants Have Access To Confidential Information. If They Do Not Maintain That
Confidentiality, Their Companies Could Suffer. Their Companies Would Be Reluctant To Provide
Access To Information, Which Would Prevent Management Accountants From Performing Their
Responsibilities. Additionally, Employers Must Have Confidence That Management Accountants Have
The Integrity To Apply Their Skills Appropriately And Avoid Being Prejudiced By Any Conflicts Of
Interest.
Management Accountants Should Have The Ability As Well To Effectively Analyze Situations So
That They Might Communicate Them Faithfully To Employers, Regulators, Or Clients To Ensure
Proper Action Is Taken.
Finally, An Important Part Of Management Accountants’ Responsibilities Is Communicating
Information And Providing Reports To Senior Management. To Be Able To Rely On These Reports,
Management Must Have Confidence That The Management Accountant Is Not Hiding Inconvenient
Facts Or Presenting A Biased View.
Student Responses May Vary.
