Test Bank for Introduction to Management Accounting 17th Edition (Global Edition) By Horngren Sundem Stratton Burgstahler Schatzberg

Test Bank for Introduction to Management Accounting,
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17th Global Edition by Charles Horngren, Gary L. Sundem,
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bb William O. Stratton, Dave Burgstahler, Jeff O. Schatzberg
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,Introduction to Management Accounting, 17e (Horngren) b b b b b




Chapter 1 Managerial Accounting, the Business b b b b b




Organization, and Professional Ethics b b b




1.1 Questions

1) Which credential is associated with management accountants?
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A) CPA
B) CMA
C) CFP
D) IMA
bAnswer:
bB Diff: 1
b b

LO: 1-1 b b


AACSB: Reflective thinking skills
bb b b


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
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management accounting is the
b . b b b


A) American Institute of Certified Public Accountants
b b b b b


B) American Institute of Certified Management Accountants
b b b b b


C) Institute of Management Accountants
b b b


D) American Institute of Management Accountants
b b b b


bAnswer: C b

Diff: 1 b


LO: 1-1 b b


AACSB: Reflective thinking skills
bb b b


Learning Outcome: Describe the basics of managerial accounting and its function within an organization
b b b b b b b b b b b b b




3) b is the field that produces information used primarily by managers within an organization.
b b b b b b b b b b b b

A) Financial accounting b


B) Management accounting b


C) Internal auditing b


D) External auditing b

bAnswer: B b


Diff: 1 b


LO: 1-1 b b


AACSB: Reflective thinking skills
bb b b


Learning Outcome: Describe the basics of managerial accounting and its function within an organization
b b b b b b b b b b b b b

,4) The primary users of management accounting information are
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A) bankers
B) governmental regulatory bodies b b


C) managers in organizations b b


D) managerial accountants b

bAnswer: C b b

Diff: 1 b


LO: 1-1 b b


AACSB: Reflective thinking skills
bb b b


Learning Outcome: Describe the basics of managerial accounting and its function within an organization
b b b b b b b b b b b b b




5) b is the field of accounting that develops information for external parties such as stockholders,
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bsuppliers, banks and governmental regulatory bodies.
b b b b b

A) Auditing
B) Internal auditing b


C) Management accounting b


D) Financial accounting b


bAnswer: D b

Diff: 1 b


LO: 1-1 b b


AACSB: Reflective thinking skills
bb b b


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,
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preparing, interpreting and communicating information.
b b b b b

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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bdecisions.
D) Management accounting produces information for managers in an organization.
b b b b b b b b


bAnswer: C b

Diff: 1 b


LO: 1-1 b b


AACSB: Reflective thinking skills
bb b b


Learning Outcome: Describe the basics of managerial accounting and its function within an organization
b b b b b b b b b b b b b

, 7) When comparing management accounting and financial accounting, which of the following
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statements is FALSE?
b b b

A) Management accounting has a future orientation whereas financial accounting has a past orientation.
b b b b b b b b b b b b


B) Management accounting prepares detailed reports whereas financial accounting prepares
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summary reports.
b b


C) Management accountants are constrained by the principles of reporting promulgated by the Institute
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b of Management Accountants whereas financial accountants are constrained by Generally Accepted
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bAccounting Principles. b


D) Behavioral considerations are of primary importance in management accounting, but not in
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financial accounting.
b b

Answer: C b


bDiff: 1 b


LO: 1-1
b b


AACSB: Reflective thinking skills
bb b b


Learning Outcome: Describe the basics of managerial accounting and its function within an organization
b b b b b b b b b b b b b




8) Generally Accepted Accounting Principles are most closely connected to
b b . b b b b b b


A) management accounting b


B) financial accounting b


C) internal auditing b


D) management auditing b


bAnswer: B b


Diff: 1 b


LO: 1-1
b b

AACSB: Reflective thinking skills
bb b b


Learning Outcome: Describe the basics of managerial accounting and its function within an organization
b b b b b b b b b b b b b




9) Who provides assurance to external users about the reliability of a company's financial statements?
b b b b b b b b b b b b b


A) Certified Management Accountants and Certified Public Accountants
b b b b b b


B) Chartered Management Accountants and Certified Management Accountants
b b b b b b


C) Certified Public Accountants and Chartered Management Accountants
b b b b b b


D) Certified Public Accountants and Chartered Accountants
b b b b b


bAnswer: D b

Diff: 1 b


LO: 1-1
b b

AACSB: Reflective thinking skills
bb b b


Learning Outcome: Describe the basics of managerial accounting and its function within an organization
b b b b b b b b b b b b b