CRM 101 FINAL EXAM QUESTIONS

CRM 101 FINAL EXAM QUESTIONS 37. Managerial accounting a. is concerned with costing products. b. is governed by generally accepted accounting principles. c. pertains to the entity as a whole and is highly aggregated. d. places emphasis on special-purpose information. 38. Managerial accounting information is generally prepared for a. stockholders. b. managers. c. regulatory agencies. d. investors. 39. Managerial accounting information a. pertains to the entity as a whole and is highly aggregated. b. must be prepared according to generally accepted accounting principles. c. pertains to subunits of the entity and may be very detailed. d. is prepared only once a year. 40. The major reporting standard for management accounting is a. the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management. b. the Sarbanes-Oxley Act of 2002. c. relevance to decisions. d. generally accepted accounting principles. 41. Managerial accounting is also called a. inside reporting. b. cost accounting. c. management accounting. d. strategic management. 42. Which of the following is not an internal user? a. Corporate officers b. Staff employees c. Stockholders d. Department manager 43. Which of the following is not part of managerial accounting? a. Determining whether planned goals are being met b. Reporting financial information to the shareholders c. Calculating product costs d. Controlling costs 44. Which of the following uses managerial accounting? a. Manufacturing and service entities, but not merchandising b. Profit-oriented businesses only c. Service, manufacturing, and merchandising entities d. Only manufacturing entities 45. Which one of the following tasks would not be performed by a management accountant? a. Being concerned with the impact of cost and volume on profits b. Strategic cost management c. Assisting in budget planning d. Preparing reports primarily for external users 46. How often are internal managerial reports communicated? a. As frequently as needed b. Annually c. During every audit by the company’s CA d. Monthly 47. Which description identifies financial statements that are prepared for external users? a. External reports b. Special-purpose c. User-specific d. General-purpose 48. Which term describes managerial accounting reports? a. GAAP reports b. Special-purpose c. General-purpose d. Regulatory reports 49. Which of the following statements about internal reports is true? a. Most internal reports are summarized rather than detailed. b. Internal reports focus on general purpose needs of users. c. The content of internal reports extends beyond the double-entry accounting system. d. Internal reports are often very general. 50. Which one of the following describes internal reports? a. They are often audited by CAs. b. They must be prepared according to GAAP. c. They are aggregated. d. They are detailed. 51. Which of the following reports would management find useful in decision making? a. Monthly reports on activities to the Board of Directors b. Quarterly reporting to the Toronto Stock Exchange c. Specific purpose statements on services delivered d. Audited financial information in the annual report to shareholders 52. How often should management receive or prepare reports on its internal process activities? a. On a fixed time basis b. As often as is necessary c. Never more than monthly d. Weekly 53. How often should management receive or prepare reports on its external business process activities? a. As they correspond to external financial reporting b. Never more than monthly c. According to the company’s business cycle d. As often as is necessary 54. A company must inform readers of its annual report of: a. All changes in financial accounting policies. b. Results of any overseas activities. c. All changes in internal accounting information. b. Changes to management’s bonus system. 55. How could management information assist in motivating its employees? a. Keeping track of quality improvements b. Showing the company’s percent of market share c. Showing statistics on plant safety d. All areas would benefit from providing internal management information 56. In establishing a good internal reporting system, a company should: a. Ensure that these reports agree to generally accepted accounting principles. b. Have the Board of Directors agree to the information provided. c. Establish clearly understood standards of performance.