Managerial Accounting-MBA Prep Works Final Exam
and All Correct Verified Answers 2025.
as the production level increases, the cost per unit decreases for a fixed cost (true or false) - Answer- true
controller - Answer- controller
in the long run, all fixed costs become variable (true or false) - Answer- true
a certifies management accountant (CMA) is expected to live by a code of ethics promulgated by the
______ - Answer- IMA
A non-profit organization such as a school does not prepare reports for external users (true or false) -
Answer- False
The SEC is the rule-making body for generally accepted accounting principles (true or false) - Answer-
False
The annual report is a good example of tax accounting - Answer- False
Owners in corporations are liable only for the amount they have invested and no more (true or false) -
Answer- True
Academic accountants are members of which of the following associations:
a. FASB
b. AAA
c. CASB
d. SEC
e. none - Answer- AAA
Financial accounting involves reporting financial information to___ ____ - Answer- external users
,A company's annual report is used primarily by the taxing authorities (true or false) - Answer- False
the quality that assumes that information is reasonably free from error is:
a. relevant
b. conservatism
c. understandability
d. consistency
e. none of the above - Answer- None of the above
financial information reported in an annual report is _______ _________ - Answer- backward looking
financial information reported in internal management documents are ______ _____ - Answer- forward
looking
fixed cost per unit remains the same over all levels of production (true or false) - Answer- false
The director of auditing in most large corporations has two bosses, the ______ and ______ ___ _____ -
Answer- CFO and Board of Directors
what does CPA stand for? - Answer- certified public accountant
the budget is a document usually prepared by: - Answer- a managerial accountant
managerial accounting reports are prepared for: - Answer- management
which of the following is a managerial accounting GAAP? - Answer- there are none
what department has a flexible budget? - Answer- production department
costs that change in total with increased production are - Answer- variable costs
, decreasing cost per unit indicates an element of fixed cost is present (true or false) - Answer- true
which area houses the largest group of management accountants? - Answer- auditing
Elson Incorporated estimated the useful life of a patent and amortized it over its useful life. This GAAP is
known as ____ - Answer- Matching
preparing a production plan would be an example of _____ _____ - Answer- managerial accounting
power to regulate the form and content of financial reports of publicly-traded companies - Answer-
Securities and Exchange Commission
The primary accounting standard-setting body in the United States. authoritative voice of accounting
principles - Answer- Financial Accounting Standards Board
GAAP - Answer- Generally Accepted Accounting Principles
the collection of accounting standards and conventions that has evolved over the years to govern the
profession of accounting - Answer- GAAP
the concept that it is better to understate rather than overstate revenues and to overstate rather than
understate expenses is called __________ - Answer- conservatism
Ellen Jones owns a small proprietorship. She keeps her personal checking account separate from her
proprietorship's account. this is an example of the fundamental concept of ____ ____ - Answer-
Economic Entity
What is not a functional area of accounting - Answer- economic accounting
except for some minor differences, tax accounting and financial accounting are the same (true or false) -
Answer- False
and All Correct Verified Answers 2025.
as the production level increases, the cost per unit decreases for a fixed cost (true or false) - Answer- true
controller - Answer- controller
in the long run, all fixed costs become variable (true or false) - Answer- true
a certifies management accountant (CMA) is expected to live by a code of ethics promulgated by the
______ - Answer- IMA
A non-profit organization such as a school does not prepare reports for external users (true or false) -
Answer- False
The SEC is the rule-making body for generally accepted accounting principles (true or false) - Answer-
False
The annual report is a good example of tax accounting - Answer- False
Owners in corporations are liable only for the amount they have invested and no more (true or false) -
Answer- True
Academic accountants are members of which of the following associations:
a. FASB
b. AAA
c. CASB
d. SEC
e. none - Answer- AAA
Financial accounting involves reporting financial information to___ ____ - Answer- external users
,A company's annual report is used primarily by the taxing authorities (true or false) - Answer- False
the quality that assumes that information is reasonably free from error is:
a. relevant
b. conservatism
c. understandability
d. consistency
e. none of the above - Answer- None of the above
financial information reported in an annual report is _______ _________ - Answer- backward looking
financial information reported in internal management documents are ______ _____ - Answer- forward
looking
fixed cost per unit remains the same over all levels of production (true or false) - Answer- false
The director of auditing in most large corporations has two bosses, the ______ and ______ ___ _____ -
Answer- CFO and Board of Directors
what does CPA stand for? - Answer- certified public accountant
the budget is a document usually prepared by: - Answer- a managerial accountant
managerial accounting reports are prepared for: - Answer- management
which of the following is a managerial accounting GAAP? - Answer- there are none
what department has a flexible budget? - Answer- production department
costs that change in total with increased production are - Answer- variable costs
, decreasing cost per unit indicates an element of fixed cost is present (true or false) - Answer- true
which area houses the largest group of management accountants? - Answer- auditing
Elson Incorporated estimated the useful life of a patent and amortized it over its useful life. This GAAP is
known as ____ - Answer- Matching
preparing a production plan would be an example of _____ _____ - Answer- managerial accounting
power to regulate the form and content of financial reports of publicly-traded companies - Answer-
Securities and Exchange Commission
The primary accounting standard-setting body in the United States. authoritative voice of accounting
principles - Answer- Financial Accounting Standards Board
GAAP - Answer- Generally Accepted Accounting Principles
the collection of accounting standards and conventions that has evolved over the years to govern the
profession of accounting - Answer- GAAP
the concept that it is better to understate rather than overstate revenues and to overstate rather than
understate expenses is called __________ - Answer- conservatism
Ellen Jones owns a small proprietorship. She keeps her personal checking account separate from her
proprietorship's account. this is an example of the fundamental concept of ____ ____ - Answer-
Economic Entity
What is not a functional area of accounting - Answer- economic accounting
except for some minor differences, tax accounting and financial accounting are the same (true or false) -
Answer- False
