Managerial Accounting Exam with
Complete Solutions
The person MOST likely to use management accounting information is a(n):
A) banker evaluating a credit application.
B) shareholder evaluating a stock investment.
C) governmental taxing authority.
D) assembly department supervisor. - Answer-assembly department supervisor.
Which of the following is NOT a function of a management accounting system?
A) strategic development
B) financial reporting
C) control
D) product costing - Answer-financial reporting
Financial accounting information:
A) provides a signal that something is wrong.
B) identifies what is wrong.
C) explains what is wrong.
D) simply summarizes information but gives no indication that anything is wrong. -
Answer-A) provides a signal that something is wrong.
Management accounting information is BEST described as:
A) providing a signal that something is wrong.
B) identifying and helping to explain what is wrong.
C) simply summarizing information, but giving no indication that anything is wrong.
D) measuring overall organizational performance. - Answer-B) identifying and helping to
explain what is wrong.
The focus of Financial accounting is on - Answer-on the past, since historical cost data
are generally accurate and reliable.
Financial accounting - Answer-is governed by generally accepted accounting principles
(GAAP).
Financial accounting is concerned - Answer-with providing information to creditors and
others outside of an organization.
Complete Solutions
The person MOST likely to use management accounting information is a(n):
A) banker evaluating a credit application.
B) shareholder evaluating a stock investment.
C) governmental taxing authority.
D) assembly department supervisor. - Answer-assembly department supervisor.
Which of the following is NOT a function of a management accounting system?
A) strategic development
B) financial reporting
C) control
D) product costing - Answer-financial reporting
Financial accounting information:
A) provides a signal that something is wrong.
B) identifies what is wrong.
C) explains what is wrong.
D) simply summarizes information but gives no indication that anything is wrong. -
Answer-A) provides a signal that something is wrong.
Management accounting information is BEST described as:
A) providing a signal that something is wrong.
B) identifying and helping to explain what is wrong.
C) simply summarizing information, but giving no indication that anything is wrong.
D) measuring overall organizational performance. - Answer-B) identifying and helping to
explain what is wrong.
The focus of Financial accounting is on - Answer-on the past, since historical cost data
are generally accurate and reliable.
Financial accounting - Answer-is governed by generally accepted accounting principles
(GAAP).
Financial accounting is concerned - Answer-with providing information to creditors and
others outside of an organization.
