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 Tprimary Tusers Tof Tmanagement Taccounting Tinformation Tare .
A) bankers
B) governmental T regulatory T bodies
C) managers Tin Torganizations
D) managerial
Taccountants T Answer: T
TC
Diff: T 1
LO: T T 1-1
AACSB: T T Reflective Tthinking T skills
Learning TOutcome: T Describe Tthe Tbasics Tof Tmanagerial Taccounting Tand Tits Tfunction Twithin Tan
Torganization
5) T is Tthe Tfield Tof Taccounting Tthat Tdevelops Tinformation Tfor Texternal Tparties Tsuch Tas
Tstockholders, T suppliers, Tbanks Tand Tgovernmental Tregulatory Tbodies.
A) Auditing
B) Internal T auditing
C) Management Taccounting
D) FinancialTaccounting
T Answer: T D
Diff: T 1
LO: T T 1-1
AACSB: T T Reflective Tthinking T skills
Learning TOutcome: T Describe Tthe Tbasics Tof Tmanagerial Taccounting Tand Tits Tfunction Twithin Tan
Torganization
6) Which Tof Tthe Tfollowing Tstatements Tabout Tmanagement Taccounting Tis TFALSE?
A) Management Taccounting Tis Tthe Tprocess Tof Tidentifying, Tmeasuring, Taccumulating, Tanalyzing,
Tpreparing, T interpreting Tand Tcommunicating Tinformation.
B) Management Taccounting Thelps Tmanagers Tfulfill Torganizational Tobjectives.
C) Management Taccounting Tis Tused Tby Tmanagerial Taccountants Tto Tmake Tstrategic Tand
Toperational T decisions.
D) Management Taccounting Tproduces Tinformation Tfor Tmanagers TinTan
Torganization. T Answer: T C
Diff: T 1
LO: T T 1-1
AACSB: T T Reflective Tthinking T skills
Learning TOutcome: T Describe Tthe Tbasics Tof Tmanagerial Taccounting Tand Tits Tfunction Twithin Tan
Torganization
, 7) When Tcomparing Tmanagement Taccounting Tand Tfinancial Taccounting, Twhich Tof Tthe Tfollowing
Tstatements T is TFALSE?
A) Management T accounting T has T a T future T orientation T whereas T financial T accounting T has T a T past
T orientation.
B) Management Taccounting Tprepares Tdetailed Treports Twhereas Tfinancial Taccounting Tprepares
Tsummary T reports.
C) Management Taccountants Tare Tconstrained Tby Tthe Tprinciples Tof Treporting Tpromulgated Tby Tthe
TInstitute T of TManagement TAccountants Twhereas Tfinancial Taccountants Tare Tconstrained Tby
TGenerally T Accepted T Accounting TPrinciples.
D) Behavioral Tconsiderations Tare Tof Tprimary Timportance Tin Tmanagement Taccounting, Tbut Tnot Tin
Tfinancial T accounting.
Answer: T C
T Diff: T1
LO: T T 1-1
AACSB: T T Reflective Tthinking T skills
Learning TOutcome: T Describe Tthe Tbasics Tof Tmanagerial Taccounting Tand Tits Tfunction Twithin Tan
Torganization
8) Generally TAccepted TAccounting TPrinciples Tare Tmost Tclosely Tconnected Tto .
A) management T accounting
B) financial Taccounting
C) internal Tauditing
D) management
Tauditing T Answer: T B
Diff: T 1
LO: T T 1-1
AACSB: T T Reflective Tthinking T skills
Learning TOutcome: T Describe Tthe Tbasics Tof Tmanagerial Taccounting Tand Tits Tfunction Twithin Tan
Torganization
9) Who T provides T assurance T to T external T users T about T the T reliability T of T a T company's T financial
T statements?
A) Certified TManagement TAccountants Tand TCertified TPublic TAccountants
B) Chartered TManagement TAccountants Tand TCertified TManagement TAccountants
C) Certified TPublic TAccountants Tand TChartered TManagement TAccountants
D) Certified TPublic TAccountants Tand TChartered
TAccountants T Answer: T D
Diff: T 1
LO: T T 1-1
AACSB: T T Reflective Tthinking T skills
Learning TOutcome: T Describe Tthe Tbasics Tof Tmanagerial Taccounting Tand Tits Tfunction Twithin Tan
Torganization
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 Tprimary Tusers Tof Tmanagement Taccounting Tinformation Tare .
A) bankers
B) governmental T regulatory T bodies
C) managers Tin Torganizations
D) managerial
Taccountants T Answer: T
TC
Diff: T 1
LO: T T 1-1
AACSB: T T Reflective Tthinking T skills
Learning TOutcome: T Describe Tthe Tbasics Tof Tmanagerial Taccounting Tand Tits Tfunction Twithin Tan
Torganization
5) T is Tthe Tfield Tof Taccounting Tthat Tdevelops Tinformation Tfor Texternal Tparties Tsuch Tas
Tstockholders, T suppliers, Tbanks Tand Tgovernmental Tregulatory Tbodies.
A) Auditing
B) Internal T auditing
C) Management Taccounting
D) FinancialTaccounting
T Answer: T D
Diff: T 1
LO: T T 1-1
AACSB: T T Reflective Tthinking T skills
Learning TOutcome: T Describe Tthe Tbasics Tof Tmanagerial Taccounting Tand Tits Tfunction Twithin Tan
Torganization
6) Which Tof Tthe Tfollowing Tstatements Tabout Tmanagement Taccounting Tis TFALSE?
A) Management Taccounting Tis Tthe Tprocess Tof Tidentifying, Tmeasuring, Taccumulating, Tanalyzing,
Tpreparing, T interpreting Tand Tcommunicating Tinformation.
B) Management Taccounting Thelps Tmanagers Tfulfill Torganizational Tobjectives.
C) Management Taccounting Tis Tused Tby Tmanagerial Taccountants Tto Tmake Tstrategic Tand
Toperational T decisions.
D) Management Taccounting Tproduces Tinformation Tfor Tmanagers TinTan
Torganization. T Answer: T C
Diff: T 1
LO: T T 1-1
AACSB: T T Reflective Tthinking T skills
Learning TOutcome: T Describe Tthe Tbasics Tof Tmanagerial Taccounting Tand Tits Tfunction Twithin Tan
Torganization
, 7) When Tcomparing Tmanagement Taccounting Tand Tfinancial Taccounting, Twhich Tof Tthe Tfollowing
Tstatements T is TFALSE?
A) Management T accounting T has T a T future T orientation T whereas T financial T accounting T has T a T past
T orientation.
B) Management Taccounting Tprepares Tdetailed Treports Twhereas Tfinancial Taccounting Tprepares
Tsummary T reports.
C) Management Taccountants Tare Tconstrained Tby Tthe Tprinciples Tof Treporting Tpromulgated Tby Tthe
TInstitute T of TManagement TAccountants Twhereas Tfinancial Taccountants Tare Tconstrained Tby
TGenerally T Accepted T Accounting TPrinciples.
D) Behavioral Tconsiderations Tare Tof Tprimary Timportance Tin Tmanagement Taccounting, Tbut Tnot Tin
Tfinancial T accounting.
Answer: T C
T Diff: T1
LO: T T 1-1
AACSB: T T Reflective Tthinking T skills
Learning TOutcome: T Describe Tthe Tbasics Tof Tmanagerial Taccounting Tand Tits Tfunction Twithin Tan
Torganization
8) Generally TAccepted TAccounting TPrinciples Tare Tmost Tclosely Tconnected Tto .
A) management T accounting
B) financial Taccounting
C) internal Tauditing
D) management
Tauditing T Answer: T B
Diff: T 1
LO: T T 1-1
AACSB: T T Reflective Tthinking T skills
Learning TOutcome: T Describe Tthe Tbasics Tof Tmanagerial Taccounting Tand Tits Tfunction Twithin Tan
Torganization
9) Who T provides T assurance T to T external T users T about T the T reliability T of T a T company's T financial
T statements?
A) Certified TManagement TAccountants Tand TCertified TPublic TAccountants
B) Chartered TManagement TAccountants Tand TCertified TManagement TAccountants
C) Certified TPublic TAccountants Tand TChartered TManagement TAccountants
D) Certified TPublic TAccountants Tand TChartered
TAccountants T Answer: T D
Diff: T 1
LO: T T 1-1
AACSB: T T Reflective Tthinking T skills
Learning TOutcome: T Describe Tthe Tbasics Tof Tmanagerial Taccounting Tand Tits Tfunction Twithin Tan
Torganization
