Accounting for Decision Making and Control 10th Edition Jerald Zimmerman Summary Guide!!!

, Chapter 01 Test Bank – Static Key x x x x x x




Multiple Choice Questions x x




1. The firm's information system:
x x x




A. is always a single integrated system
x x x x x


B. includes only financial information
x x x


C. may include other information such as customer satisfaction surveys, in addition to financial information
x x x x x x x x x x x x x


D. is less important as a firm grows in size
x x x x x x x x


E. none of the above x x x




The firm's information system includes many kinds of financial and non-financial information.
x x x x x x x x x x x




AACSB: xKnowledge xApplication
Accessibility: xKeyboard xNavigation
x

x Accessibility: xScreen xReader

xCompatible

AICPA: xBB xIndustry
x AICPA: xFN xLeveraging

xTechnology

Blooms: xRemember
x Difficulty: x1

xEasy

Topic: xManagerial xAccounting: xDecision xMaking xand xControl

2. Identify all the correct statements:
x x x x




A. Managers naturally seek to maximize shareholders' wealth
x x x x x x


B. Managers act in their own interests, and so there is no way to align their interests with those of the owners
x x x x x x x x x x x x x x x x x x x x


C. To motivate managers in non-profit firms, no employee incentives are needed
x x x x x x x x x x


D. To align the interests of managers and owners, owners must design systems to monitor and reward management behavior
x x x x x x x x x x x x x x x x x


that increases the firm's profits
x x x x x


E. none of the above x x x




To minimize conflicts between the economic interests of managers and owners, the owners need both systems to monitor the
x x x x x x x x x x x x x x x x x x

manager's performance and systems of rewards or incentives.
x x x x x x x x



AACSB: xKnowledge xApplication
Accessibility: xKeyboard xNavigation
x

x Accessibility: xScreen xReader

xCompatible

AICPA: xBB xIndustry
x AICPA: xFN xDecision

xMaking x AICPA: xFN xRisk

xAnalysis x Blooms:

xRemember x Difficulty: x1

xEasy

Topic: xManagement xAccountant's xRole xin xthe
xOrganization x Topic: xManagerial xAccounting: xDecision

xMaking xand xControl




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xof xMcGraw-Hill xEducation.

,3. An internal accounting system should:
x x x x




A. provide information to enable costs to be minimized
x x x x x x x


B. provide financial accounting data for external reporting purposes
x x x x x x x


C. provide management accounting information for decision-making
x x x x x


D. provide data for tax purposesx x x x


E. all of the above
x x x




A well designed internal accounting system should provide data for external purposes, such as financial reporting and tax, as
x x x x x x x x x x x x x x x x x x

well as internal purposes such as cost control, assessing performance and determining rewards. It is economically inefficient to
x x x x x x x x x x x x x x x x x x

maintain multiple accounting systems.
x x x x



AACSB: xKnowledge xApplication
Accessibility: xKeyboard xNavigation
x

x Accessibility: xScreen xReader

xCompatible

AICPA: xBB xIndustry
x AICPA: xFN xDecision

xMaking

Blooms: xRemember
x Difficulty: x1

xEasy

Topic: xDesign xand xUse xof xCost xSystems

4. Economic Darwinism: x




A. explains why firms persist in inefficient behavior
x x x x x x


B. explains why some inefficient accounting practices persist
x x x x x x


C. explains why marmots eat bears x x x x


D. explains why bears eat marmots x x x x


E. none of the abovex x x




Inefficient accounting systems may continue to exist either because they have proved better than other systems or because better
x x x x x x x x x x x x x x x x x x

xsystems have not been yet discovered.
x x x x x



AACSB: xKnowledge xApplication
x Accessibility: xKeyboard xNavigation
x Accessibility: xScreen xReader

xCompatible

AICPA: xBB xMarketing
x AICPA: xFN xRisk

xAnalysis x Blooms:

xRemember x Difficulty: x1

xEasy

Topic: xMarmots xand xGrizzly xBears




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Copyright x© x2019 xMcGraw-Hill xEducation. xAll xrights xreserved. xNo xreproduction xor xdistribution xwithout xthe xprior xwritten xconsent
xof xMcGraw-Hill xEducation.

, 5. Management accountants mainly are: x x x




A. Internal consultants x


B. Scorekeepers
C. Focused on calculating product costs
x x x x


D. Corporate cops x


E. Internal consultants and corporate cops.
x x x x




While score-keeping and product costing are tasks performed by today's management accountants, these usually are
x x x x x x x x x x x x x x

considered minor. The major roles they perform are internal consultant in terms of providing information to aid other's
x x x x x x x x x x x x x x x x x x

decision making and corporate cop in terms of providing control systems to prevent fraud and performance measures for
x x x x x x x x x x x x x x x x x x

incentive systems.
x x



AACSB: xKnowledge xApplication
Accessibility: xKeyboard xNavigation
x

x Accessibility: xScreen xReader

xCompatible

AICPA: xBB xIndustry
x AICPA: xFN xDecision

xMaking x Blooms:

xUnderstand x Difficulty: x2

xMedium

Topic: xManagement xAccountant's xRole xin xthe xOrganization

6. Internal control systems: x x




A. are the responsibility of the external auditor
x x x x x x


B. include anti-fraud measures x x


C. are designed to allow financial misrepresentation
x x x x x


D. require that one person perform all aspects of a task
x x x x x x x x x


E. all of the above
x x x




The internal control system is designed to safeguard assets, protect the integrity of the accounting information system, and
x x x x x x x x x x x x x x x x x

to prevent fraud. A key practice is the separation of duties to ensure that critical tasks are performed by two or more
x x x x x x x x x x x x x x x x x x x x x x

people.
x



AACSB: xKnowledge xApplication
Accessibility: xKeyboard xNavigation
x

x Accessibility: xScreen xReader

xCompatible

AICPA: xBB xIndustry
x AICPA: xFN xDecision

xMaking x Blooms:

xUnderstand x Difficulty: x2

xMedium

Topic: xManagement xAccountant's xRole xin xthe xOrganization




3-3
Copyright x© x2019 xMcGraw-Hill xEducation. xAll xrights xreserved. xNo xreproduction xor xdistribution xwithout xthe xprior xwritten xconsent
xof xMcGraw-Hill xEducation.