ACG 2071 Exam 1 Practice Questions With
Correct Answers
T/F- The primary purpose of managerial accounting information is to
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help external users make investing and lending decisions - CORRECT
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ANSWER✔✔-False
Which of the following is TRUE?
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Managerial accounting reports are audited by CPAs
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Managerial accounting reports provide detailed internal information
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Managerial accounting reports aid potential investors
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Managerial accounting reports must follow GAAP - CORRECT
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ANSWER✔✔-Managerial accounting reports provide detailed internal | | | | | |
information
The board of directors hires the chief executive officer (CEO)
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to manage the company on a daily basis
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to hire other executives to run various aspects of the organization
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to manage the internal audit function on a day to day basis
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All the answers are correct. - CORRECT ANSWER✔✔-All answers are
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correct
, The ____________________ focuses on people, planet, and profit. -
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CORRECT ANSWER✔✔-Triple bottom line
| | |
T/F- CPA's audit the budget plans of public companies. - CORRECT
| | | | | | | | | | |
ANSWER✔✔-False
T/F- When managers are evaluating the company's performance
| | | | | | | |
compared to the plan, they are performing the planning role of
| | | | | | | | | | |
management. - CORRECT ANSWER✔✔-False | | |
Snow Rides manufactures snowboards. Richard May, the CEO, is trying
| | | | | | | | | |
to decide whether to adopt a lean thinking model. He expects that
| | | | | | | | | | | |
adopting lean production would save $104,116 in warehousing
| | | | | | | |
expenses and $45,486 in spoilage costs. Adopting lean production will
| | | | | | | | | |
require several one-time up-front expenditures: $12,660 for an
| | | | | | | |
employee training program, $95,111 to streamline the plant's
| | | | | | | |
production process, and $8,250 to identify suppliers that will guarantee
| | | | | | | | | |
zero defects and on-time delivery. What will be the net benefit to this
| | | | | | | | | | | | |
company by adopting lean production? - CORRECT ANSWER✔✔-Total
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benefits: $104,116 + $45,486= $149,602
| | | |
Total benefits: total costs: $146,602 - $12,660 - $95,111 - $8,250=
| | | | | | | | | | |
$33,581
Correct Answers
T/F- The primary purpose of managerial accounting information is to
| | | | | | | | | |
help external users make investing and lending decisions - CORRECT
| | | | | | | | | |
ANSWER✔✔-False
Which of the following is TRUE?
| | | | |
Managerial accounting reports are audited by CPAs
| | | | | |
Managerial accounting reports provide detailed internal information
| | | | | |
Managerial accounting reports aid potential investors
| | | | |
Managerial accounting reports must follow GAAP - CORRECT
| | | | | | | |
ANSWER✔✔-Managerial accounting reports provide detailed internal | | | | | |
information
The board of directors hires the chief executive officer (CEO)
| | | | | | | | |
to manage the company on a daily basis
| | | | | | |
to hire other executives to run various aspects of the organization
| | | | | | | | | |
to manage the internal audit function on a day to day basis
| | | | | | | | | | |
All the answers are correct. - CORRECT ANSWER✔✔-All answers are
| | | | | | | | | |
correct
, The ____________________ focuses on people, planet, and profit. -
| | | | | | | | |
CORRECT ANSWER✔✔-Triple bottom line
| | |
T/F- CPA's audit the budget plans of public companies. - CORRECT
| | | | | | | | | | |
ANSWER✔✔-False
T/F- When managers are evaluating the company's performance
| | | | | | | |
compared to the plan, they are performing the planning role of
| | | | | | | | | | |
management. - CORRECT ANSWER✔✔-False | | |
Snow Rides manufactures snowboards. Richard May, the CEO, is trying
| | | | | | | | | |
to decide whether to adopt a lean thinking model. He expects that
| | | | | | | | | | | |
adopting lean production would save $104,116 in warehousing
| | | | | | | |
expenses and $45,486 in spoilage costs. Adopting lean production will
| | | | | | | | | |
require several one-time up-front expenditures: $12,660 for an
| | | | | | | |
employee training program, $95,111 to streamline the plant's
| | | | | | | |
production process, and $8,250 to identify suppliers that will guarantee
| | | | | | | | | |
zero defects and on-time delivery. What will be the net benefit to this
| | | | | | | | | | | | |
company by adopting lean production? - CORRECT ANSWER✔✔-Total
| | | | | | | |
benefits: $104,116 + $45,486= $149,602
| | | |
Total benefits: total costs: $146,602 - $12,660 - $95,111 - $8,250=
| | | | | | | | | | |
$33,581
