Chapter 1
Introduction to Managerial Accounting
Quick Check
Answers:
QC1-1. c QC1-3. a QC1-5. c QC1-7. b QC1-9. b
QC1-2. b QC1-4. d QC1-6. a QC1-8. a QC1-10. d
Short Exercises
(5-10 min.) S1-1
a. Planning
b. Controlling
c. Directing
d. Directing
e. Directing, Controlling
, (5-10 min.) S1-2
a. Financial accounting
b. Financial accounting
c. Financial accounting
d. Managerial accounting
e. Managerial accounting
f. Managerial accounting
g. Financial accounting
h. Financial accounting
i. Managerial accounting
j. Managerial accounting
k. Financial accounting
l. Managerial accounting
m. Financial accounting
, (5-10 min.) S1-3
a. Internal Auditing Department
b. Controller
c. Internal Auditing Department
d. Internal Auditing Department
e. Treasurer
f. Controller
g. Controller
h. Controller
i. Controller
j. Controller
k. Controller
l. Treasurer
m. Treasurer
(5-10 min.) S1-4
Characteristic Check (√) if related to internal
auditing
a. Reports directly to the audit committee √
b. Reports to treasurer or controller
c. Is part of the Accounting Department
d. Helps to ensure that company’s internal controls are √
functioning properly
, e. Performs the same function as independent certified public
accountants
f. Usually reports to a senior executive (CFO or CEO) for √
administrative matters
g. External audits can be performed by the internal auditing
department
h. Required by the New York Stock Exchange if company stock is √
publicly traded on the NYSE
i. Ensures that the company achieves its profit goals
(10 min.) S1-5
a. The CEO is hired by the Board of Directors.
b. A subcommittee of the board of directors is called the audit committee.
c. Raising capital and investing funds are the direct responsibilities of the treasurer.
d. The CFO and the COO report to the CEO.
e. Financial accounting, managerial accounting, and tax reporting are the direct responsibilities of the
controller.
f. Management accountants often work on cross functional teams.
g. The internal audit function reports to the CFO or the CEO and the audit committee.
h. The company’s operations are the direct responsibility of the COO.
(5 min.) S1-6
1. The Institute of Management Accountants (IMA) issues the Certified Management Accountant
(CMA) certification.
2. The certification offered by IMA, focuses on accounting and finance topics.
Introduction to Managerial Accounting
Quick Check
Answers:
QC1-1. c QC1-3. a QC1-5. c QC1-7. b QC1-9. b
QC1-2. b QC1-4. d QC1-6. a QC1-8. a QC1-10. d
Short Exercises
(5-10 min.) S1-1
a. Planning
b. Controlling
c. Directing
d. Directing
e. Directing, Controlling
, (5-10 min.) S1-2
a. Financial accounting
b. Financial accounting
c. Financial accounting
d. Managerial accounting
e. Managerial accounting
f. Managerial accounting
g. Financial accounting
h. Financial accounting
i. Managerial accounting
j. Managerial accounting
k. Financial accounting
l. Managerial accounting
m. Financial accounting
, (5-10 min.) S1-3
a. Internal Auditing Department
b. Controller
c. Internal Auditing Department
d. Internal Auditing Department
e. Treasurer
f. Controller
g. Controller
h. Controller
i. Controller
j. Controller
k. Controller
l. Treasurer
m. Treasurer
(5-10 min.) S1-4
Characteristic Check (√) if related to internal
auditing
a. Reports directly to the audit committee √
b. Reports to treasurer or controller
c. Is part of the Accounting Department
d. Helps to ensure that company’s internal controls are √
functioning properly
, e. Performs the same function as independent certified public
accountants
f. Usually reports to a senior executive (CFO or CEO) for √
administrative matters
g. External audits can be performed by the internal auditing
department
h. Required by the New York Stock Exchange if company stock is √
publicly traded on the NYSE
i. Ensures that the company achieves its profit goals
(10 min.) S1-5
a. The CEO is hired by the Board of Directors.
b. A subcommittee of the board of directors is called the audit committee.
c. Raising capital and investing funds are the direct responsibilities of the treasurer.
d. The CFO and the COO report to the CEO.
e. Financial accounting, managerial accounting, and tax reporting are the direct responsibilities of the
controller.
f. Management accountants often work on cross functional teams.
g. The internal audit function reports to the CFO or the CEO and the audit committee.
h. The company’s operations are the direct responsibility of the COO.
(5 min.) S1-6
1. The Institute of Management Accountants (IMA) issues the Certified Management Accountant
(CMA) certification.
2. The certification offered by IMA, focuses on accounting and finance topics.
