Managerial Accounting Exam 1 Wileyplus |
QUESTIONS AND ANSWERS | LATEST VERSION
Which of the following is NOT one of the primary responsibilities of management? - SOLUTION -
Adhering to GAAP
Planning involves which of the following activities? - SOLUTION -Setting goals and objectives for the
company
Which of the following is being fulfilled when management compares the budget to actual results? -
SOLUTION -Controlling
Budgets are a way for managers to communicate their ______ - SOLUTION -Plans
Overseeing the day-to-day operations of a company is an example of which of the following
management functions? - SOLUTION -Directing
How often should managerial accounting reports be prepared? - SOLUTION -As often as necessary
Which of the following statements is TRUE regarding managerial accounting information? -
SOLUTION -Managerial accounting information emphasizes relevance
Which of the following statements is FALSE about financial accounting? - SOLUTION -Financial
accounting provides sufficient information for managers to effectively plan and control operations
Which of the following statements is TRUE about managerial accounting information? - SOLUTION -
Managerial accounting reports provide detailed internal information
Which of the following are the internal decision makers of a company? - SOLUTION -Managers
___________ are a company's decision makers. - SOLUTION -Managers
Management accountants rarely interact with employees from other business functions such as
marketing and customer service. - SOLUTION -False
The treasurer and the controller report directly to the CFO. - SOLUTION -True
The internal audit department reports directly to the audit committee, a subcommittee of the board
of directors. - SOLUTION -True
Managerial accountants no longer perform routine mechanical accounting tasks in most companies. -
SOLUTION -True
Managerial accountants are now considered to be similar to internal consultants and business
advisors. - SOLUTION -True
Oral and written communication skills are considered among the skills that are critical to
management accountants. - SOLUTION -True
What position is typically responsible for general financial accounting, managerial accounting, and
tax reporting? - SOLUTION -Controller
The IMA issues which of the following certifications? - SOLUTION -CMA
, The standards in the IMA statement of Ethical Professional Practice includes - SOLUTION -
Competence, Confidentiality, Integrity, Credibility
All of the following are overarching principles in the IMA Statement of Ethical Professional Practice
except - SOLUTION -Integrity
The standards of the IMA statement of Ethical Professional Practice include which of the following? -
SOLUTION -Integrity
Preparing financial statements in accordance with GAAP is an example of - SOLUTION -Competence
Communicating information fairly and objectively is an example of which ethical standard? -
SOLUTION -Credibility
Performing duties in accordance with relevant laws, regulations, and technical standards comprise
the IMA professional ethics standard of - SOLUTION -Competence
Inflating your expenses for a company-sponsored conference that discredits the profession is a
violation of what ethical standard? - SOLUTION -Integrity
What ethical standard is being violated when you tell a friend that the company you work for is going
to report lower than expected earnings next week? - SOLUTION -Confidentiality
What is the name of the professional association for managerial accountants? - SOLUTION -Institute
of Management Accountants
Which type of system integrates ALL of the company's departments, worldwide functions, and data?
- SOLUTION -ERP Systems
According to the Sarbanes-Okley Act, who is responsible for establishing and maintaining internal
controls over financial reporting? - SOLUTION -The CEO and CFO
In recent years, there has been an increasing awareness and growing interest in _________ and
social responsibility by both consumers and corporations. - SOLUTION -Sustainability
The "triple bottom line" focuses on what three factors that influence a firm's ability to survive and
thrive in the long run? - SOLUTION -Profit, people, planet
Under SOX, a CPA firm is permitted to perform which of the following services for an audit client with
pre-approval from the client's audit committee? - SOLUTION -Tax
The SEC is considering the move to adopt IFRS for which types of companies? - SOLUTION -All U.S.
publicly traded companies
IFRS stands for - SOLUTION -International Financial Reporting Standards
XBRL stands for - SOLUTION -Extensible Business Reporting Language
In what year will XBRL be required for all publicly traded companies? - SOLUTION -2011
XBRL can be described as a - SOLUTION -Standardized tagging system for financial statement data.
_________ is the business philosophy and a strategy of manufacturing without waste. - SOLUTION -
Lean thinking
Companies may adopt which of the following in an attempt to increase their competitive edge? -
SOLUTION -All of the above, Green initiatives, learning thinking, TQM
QUESTIONS AND ANSWERS | LATEST VERSION
Which of the following is NOT one of the primary responsibilities of management? - SOLUTION -
Adhering to GAAP
Planning involves which of the following activities? - SOLUTION -Setting goals and objectives for the
company
Which of the following is being fulfilled when management compares the budget to actual results? -
SOLUTION -Controlling
Budgets are a way for managers to communicate their ______ - SOLUTION -Plans
Overseeing the day-to-day operations of a company is an example of which of the following
management functions? - SOLUTION -Directing
How often should managerial accounting reports be prepared? - SOLUTION -As often as necessary
Which of the following statements is TRUE regarding managerial accounting information? -
SOLUTION -Managerial accounting information emphasizes relevance
Which of the following statements is FALSE about financial accounting? - SOLUTION -Financial
accounting provides sufficient information for managers to effectively plan and control operations
Which of the following statements is TRUE about managerial accounting information? - SOLUTION -
Managerial accounting reports provide detailed internal information
Which of the following are the internal decision makers of a company? - SOLUTION -Managers
___________ are a company's decision makers. - SOLUTION -Managers
Management accountants rarely interact with employees from other business functions such as
marketing and customer service. - SOLUTION -False
The treasurer and the controller report directly to the CFO. - SOLUTION -True
The internal audit department reports directly to the audit committee, a subcommittee of the board
of directors. - SOLUTION -True
Managerial accountants no longer perform routine mechanical accounting tasks in most companies. -
SOLUTION -True
Managerial accountants are now considered to be similar to internal consultants and business
advisors. - SOLUTION -True
Oral and written communication skills are considered among the skills that are critical to
management accountants. - SOLUTION -True
What position is typically responsible for general financial accounting, managerial accounting, and
tax reporting? - SOLUTION -Controller
The IMA issues which of the following certifications? - SOLUTION -CMA
, The standards in the IMA statement of Ethical Professional Practice includes - SOLUTION -
Competence, Confidentiality, Integrity, Credibility
All of the following are overarching principles in the IMA Statement of Ethical Professional Practice
except - SOLUTION -Integrity
The standards of the IMA statement of Ethical Professional Practice include which of the following? -
SOLUTION -Integrity
Preparing financial statements in accordance with GAAP is an example of - SOLUTION -Competence
Communicating information fairly and objectively is an example of which ethical standard? -
SOLUTION -Credibility
Performing duties in accordance with relevant laws, regulations, and technical standards comprise
the IMA professional ethics standard of - SOLUTION -Competence
Inflating your expenses for a company-sponsored conference that discredits the profession is a
violation of what ethical standard? - SOLUTION -Integrity
What ethical standard is being violated when you tell a friend that the company you work for is going
to report lower than expected earnings next week? - SOLUTION -Confidentiality
What is the name of the professional association for managerial accountants? - SOLUTION -Institute
of Management Accountants
Which type of system integrates ALL of the company's departments, worldwide functions, and data?
- SOLUTION -ERP Systems
According to the Sarbanes-Okley Act, who is responsible for establishing and maintaining internal
controls over financial reporting? - SOLUTION -The CEO and CFO
In recent years, there has been an increasing awareness and growing interest in _________ and
social responsibility by both consumers and corporations. - SOLUTION -Sustainability
The "triple bottom line" focuses on what three factors that influence a firm's ability to survive and
thrive in the long run? - SOLUTION -Profit, people, planet
Under SOX, a CPA firm is permitted to perform which of the following services for an audit client with
pre-approval from the client's audit committee? - SOLUTION -Tax
The SEC is considering the move to adopt IFRS for which types of companies? - SOLUTION -All U.S.
publicly traded companies
IFRS stands for - SOLUTION -International Financial Reporting Standards
XBRL stands for - SOLUTION -Extensible Business Reporting Language
In what year will XBRL be required for all publicly traded companies? - SOLUTION -2011
XBRL can be described as a - SOLUTION -Standardized tagging system for financial statement data.
_________ is the business philosophy and a strategy of manufacturing without waste. - SOLUTION -
Lean thinking
Companies may adopt which of the following in an attempt to increase their competitive edge? -
SOLUTION -All of the above, Green initiatives, learning thinking, TQM
