TEST BANK
All Chapters Included
,Introduction to Management Accounting, 16e (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
1
Copyright © 2014 Pearson Education,
Inc.
,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
2
Copyright © 2014 Pearson Education,
Inc.
, 7) When comparing management accounting and financial accounting, which of the following
statements is FALSE?
A) Management accounting has a future orientation whereas financial accounting has a past
orientation.
B) Management accounting prepares detailed reports whereas financial accounting prepares
summary reports.
C) Management accountants are constrained by the principles of reporting promulgated by the
Institute of Management Accountants whereas financial accountants are constrained by
Generally Accepted Accounting Principles.
D) Behavioral considerations are of primary importance in management accounting, but not in
financial accounting.
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
8)Generally Accepted Accounting Principles are most closely connected to .
A) management accounting
B) financial accounting
C) internal auditing
D) management
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
9)Who provides assurance to external users about the reliability of a company's financial statements?
A) Certified Management Accountants and Certified Public Accountants
B) Chartered Management Accountants and Certified Management Accountants
C) Certified Public Accountants and Chartered Management Accountants
D) Certified Public Accountants and Chartered
Accountants 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
3
Copyright © 2014 Pearson Education,
Inc.
All Chapters Included
,Introduction to Management Accounting, 16e (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
1
Copyright © 2014 Pearson Education,
Inc.
,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
2
Copyright © 2014 Pearson Education,
Inc.
, 7) When comparing management accounting and financial accounting, which of the following
statements is FALSE?
A) Management accounting has a future orientation whereas financial accounting has a past
orientation.
B) Management accounting prepares detailed reports whereas financial accounting prepares
summary reports.
C) Management accountants are constrained by the principles of reporting promulgated by the
Institute of Management Accountants whereas financial accountants are constrained by
Generally Accepted Accounting Principles.
D) Behavioral considerations are of primary importance in management accounting, but not in
financial accounting.
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
8)Generally Accepted Accounting Principles are most closely connected to .
A) management accounting
B) financial accounting
C) internal auditing
D) management
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
9)Who provides assurance to external users about the reliability of a company's financial statements?
A) Certified Management Accountants and Certified Public Accountants
B) Chartered Management Accountants and Certified Management Accountants
C) Certified Public Accountants and Chartered Management Accountants
D) Certified Public Accountants and Chartered
Accountants 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
3
Copyright © 2014 Pearson Education,
Inc.
