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
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
