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Chapter 01 Testbank
1. What type of accounting system is part of an organisation's management information
system for internal use only?
A. Financial accounting
B. Management accounting
C. Governmental accounting
D. All of the given answers
2. Which of the following statement/s about management accounting is/are true?
i. It is a part of an organisation's management information system.
ii. It is relied on by managers to plan and control an organisation's operations.
iii. It is relied on by external users to make investment decisions.
A. i and ii
B. i, ii and iii
C. iii
D. ii
3. Which of the following statement/s about management accounting is/are true?
i. It is concerned only with information obtained from the accounting records.
ii. It is concerned with financial and non-financial information.
iii. It can provide information useful for making decisions.
A. i
B. i and ii
C. ii and iii
D. ii
4. A strategy is:
i. another name for a long-term objective.
ii. the same as an objective.
iii. a means by which an organisation plans to meet its mission and achieve its objectives.
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,Full download please contact or qidiantiku.com
A. i
B. ii
C. iii
D. i and ii
5. Which of the following is not an objective of management accounting?
A. Providing information for making decisions
B. Providing information for planning
C. Providing information for control
D. Providing information for profit and loss statements
6. Planning is:
A. comparing actual performance against targets.
B. setting objectives and formulating plans for future operations.
C. measuring the performance of managers against preset targets.
D. motivating managers towards achieving organisational goals.
7. 'Control' involves:
A. formulating details of operations and finances for the next financial year.
B. comparing actual performance against targets.
C. deciding whether to expand activities.
D. All of the given answers
8. Part of the planning process involves:
A. formulating details of operations and finances for the next financial year.
B. comparing actual performance against targets.
C. making a choice between available alternatives.
D. measuring the performance of managers against preset targets.
9. The role of management accounting is to:
A. provide information to parties outside the organisation.
B. provide information to managers within the organisation.
C. provide information to government agencies.
D. All of the given answers
10. Budgeting can be used in an organisation to:
A. motivate managers to achieve organisational goals.
B. control operations.
C. provide managers with information for making decisions and planning.
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,Full download please contact or qidiantiku.com
D. All of the given answers
11. The benefits of management accounting information include:
A. improved decisions.
B. more effective planning.
C. greater efficiency of operations.
D. All of the given answers
12. Management accounting:
A. must comply with Australian accounting standards.
B. focuses primarily on the needs of managers internal to the organisation.
C. provides information for parties external to the organisation.
D. involves reports focusing on the enterprise in its entirety.
13. Which of the following is necessary for management accounting information to be
useful?
A. It must report to external users.
B. It must develop a framework of principles and guidelines.
C. It must adapt to accommodate changes in the business environment.
D. It must focus on the enterprise in its entirety.
14. Both financial and management accounting:
A. draw on data from the organisation's basic information system.
B. provide information for external users.
C. must comply with Australian accounting standards.
D. rely exclusively on historical data.
15. Which of the following statements regarding management accounting information is
false?
A. The cost of providing the information must be considered in the light of the benefits
received from the information.
B. All information derived is necessary despite the cost.
C. The information entails both costs and benefits.
D. The cost of the information includes the time spent by the user to read, understand and
use the information.
16. A management accountant should be concerned with:
A. providing daily information on physical measures of operational performance.
B. assisting in interdepartmental communications.
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, Full download please contact or qidiantiku.com
C. developing and implementing information systems.
D. All of the given answers
17. The largest professional organisation for management accountants in Australia is the:
A. CPA Australia.
B. Australian Accounting Association.
C. Institute of Chartered Accountants in Australia.
D. Certified Institute of Management Accountants.
18. Which of the following does not represent the ethics of professional accountants?
A. Competence and confidentiality
B. Integrity and objectivity
C. Professional scepticism and efficiency
D. Objectivity and confidentiality
19. Which of the following statements regarding the competence of an accountant is true?
The accountant must:
A. strive continually to improve technical services and keep knowledge up-to-date.
B. not breach the trust of clients and employers.
C. not disclose information acquired in the course of professional work, except where there
is a legal or professional duty to disclose.
D. at all times safeguard the interest of the clients and employers, provided it does not
conflict with their duty to the community.
20. Which of the following statements is an element of confidentiality?
i. Accountants must not disclose information acquired in the course of their work.
ii. Accountants must disclose information if there is a professional duty to do so.
iii. Accountants may not use information gained in the course of their work for their own or
another's personal advantage.
A. i
B. ii
C. iii
D. i, ii and iii
21. The focus of management accounting over time has changed. Which is the correct
historical order for the following foci?
i. Cost
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Chapter 01 Testbank
1. What type of accounting system is part of an organisation's management information
system for internal use only?
A. Financial accounting
B. Management accounting
C. Governmental accounting
D. All of the given answers
2. Which of the following statement/s about management accounting is/are true?
i. It is a part of an organisation's management information system.
ii. It is relied on by managers to plan and control an organisation's operations.
iii. It is relied on by external users to make investment decisions.
A. i and ii
B. i, ii and iii
C. iii
D. ii
3. Which of the following statement/s about management accounting is/are true?
i. It is concerned only with information obtained from the accounting records.
ii. It is concerned with financial and non-financial information.
iii. It can provide information useful for making decisions.
A. i
B. i and ii
C. ii and iii
D. ii
4. A strategy is:
i. another name for a long-term objective.
ii. the same as an objective.
iii. a means by which an organisation plans to meet its mission and achieve its objectives.
Full download please contact or qidiantiku.com
,Full download please contact or qidiantiku.com
A. i
B. ii
C. iii
D. i and ii
5. Which of the following is not an objective of management accounting?
A. Providing information for making decisions
B. Providing information for planning
C. Providing information for control
D. Providing information for profit and loss statements
6. Planning is:
A. comparing actual performance against targets.
B. setting objectives and formulating plans for future operations.
C. measuring the performance of managers against preset targets.
D. motivating managers towards achieving organisational goals.
7. 'Control' involves:
A. formulating details of operations and finances for the next financial year.
B. comparing actual performance against targets.
C. deciding whether to expand activities.
D. All of the given answers
8. Part of the planning process involves:
A. formulating details of operations and finances for the next financial year.
B. comparing actual performance against targets.
C. making a choice between available alternatives.
D. measuring the performance of managers against preset targets.
9. The role of management accounting is to:
A. provide information to parties outside the organisation.
B. provide information to managers within the organisation.
C. provide information to government agencies.
D. All of the given answers
10. Budgeting can be used in an organisation to:
A. motivate managers to achieve organisational goals.
B. control operations.
C. provide managers with information for making decisions and planning.
Full download please contact or qidiantiku.com
,Full download please contact or qidiantiku.com
D. All of the given answers
11. The benefits of management accounting information include:
A. improved decisions.
B. more effective planning.
C. greater efficiency of operations.
D. All of the given answers
12. Management accounting:
A. must comply with Australian accounting standards.
B. focuses primarily on the needs of managers internal to the organisation.
C. provides information for parties external to the organisation.
D. involves reports focusing on the enterprise in its entirety.
13. Which of the following is necessary for management accounting information to be
useful?
A. It must report to external users.
B. It must develop a framework of principles and guidelines.
C. It must adapt to accommodate changes in the business environment.
D. It must focus on the enterprise in its entirety.
14. Both financial and management accounting:
A. draw on data from the organisation's basic information system.
B. provide information for external users.
C. must comply with Australian accounting standards.
D. rely exclusively on historical data.
15. Which of the following statements regarding management accounting information is
false?
A. The cost of providing the information must be considered in the light of the benefits
received from the information.
B. All information derived is necessary despite the cost.
C. The information entails both costs and benefits.
D. The cost of the information includes the time spent by the user to read, understand and
use the information.
16. A management accountant should be concerned with:
A. providing daily information on physical measures of operational performance.
B. assisting in interdepartmental communications.
Full download please contact or qidiantiku.com
, Full download please contact or qidiantiku.com
C. developing and implementing information systems.
D. All of the given answers
17. The largest professional organisation for management accountants in Australia is the:
A. CPA Australia.
B. Australian Accounting Association.
C. Institute of Chartered Accountants in Australia.
D. Certified Institute of Management Accountants.
18. Which of the following does not represent the ethics of professional accountants?
A. Competence and confidentiality
B. Integrity and objectivity
C. Professional scepticism and efficiency
D. Objectivity and confidentiality
19. Which of the following statements regarding the competence of an accountant is true?
The accountant must:
A. strive continually to improve technical services and keep knowledge up-to-date.
B. not breach the trust of clients and employers.
C. not disclose information acquired in the course of professional work, except where there
is a legal or professional duty to disclose.
D. at all times safeguard the interest of the clients and employers, provided it does not
conflict with their duty to the community.
20. Which of the following statements is an element of confidentiality?
i. Accountants must not disclose information acquired in the course of their work.
ii. Accountants must disclose information if there is a professional duty to do so.
iii. Accountants may not use information gained in the course of their work for their own or
another's personal advantage.
A. i
B. ii
C. iii
D. i, ii and iii
21. The focus of management accounting over time has changed. Which is the correct
historical order for the following foci?
i. Cost
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