Test Bank for Introduction to Management Accounting,
17th Global Edition by Charles Horngren, Gary L. Sundem,
William O. Stratton, Dave Burgstahler, Jeff O. Schatzberg
,Introduction to Management Accounting, 17e (Horngren)
Chapter 1 Managerial Accounting, the Business
Organization, and Professional Ethics
1.1 Questions
1) Which credential is associated with management accountants?
A) CPA
B) CMA
C) CFP
D) IMA
Answer: B
Diff: 1
LO: 1-1
AACSB: Reflective thinking skills
Learning Outcome: Describe the basics of managerial accounting and its function within an organization
2) The largest U.S. association of professional accountants whose major interest is management
accounting is the .
A) American Institute of Certified Public Accountants
B) American Institute of Certified Management Accountants
C) Institute of Management Accountants
D) American Institute of Management Accountants
Answer: C
Diff: 1
LO: 1-1
AACSB: Reflective thinking skills
Learning Outcome: Describe the basics of managerial accounting and its function within an organization
3) is the field that produces information used primarily by managers within an organization.
A) Financial accounting
B) Management accounting
C) Internal auditing
D) External auditing
Answer: B
Diff: 1
LO: 1-1
AACSB: Reflective thinking skills
Learning Outcome: Describe the basics of managerial accounting and its function within an organization
,4) The primary users of management accounting information are
V V V. V V V V
A) bankers
B) governmental regulatory bodies V V
C) managers in organizations V V
D) managerial accountants V
VAnswer: C V V
Diff: 1 V
LO: 1-1 V V
AACSB: Reflective thinking skills
VV V V
Learning Outcome: Describe the basics of managerial accounting and its function within an organization
V V V V V V V V V V V V V
5) V is the field of accounting that develops information for external parties such as stockholders,
V V V V V V V V V V V V V
V suppliers, banks and governmental regulatory bodies.
V V V V V
A) Auditing
B) Internal auditing V
C) Management accounting V
D) Financial accounting V
VAnswer: D V
Diff: 1 V
LO: 1-1 V V
AACSB: Reflective thinking skills
VV V V
Learning Outcome: Describe the basics of managerial accounting and its function within an organization
V V V V V V V V V V V V V
6) Which of the following statements about management accounting is FALSE?
V V V V V V V V V
A) Management accounting is the process of identifying, measuring, accumulating, analyzing,
V V V V V V V V V
preparing, interpreting and communicating information.
V V V V V
B) Management accounting helps managers fulfill organizational objectives.
V V V V V V
C) Management accounting is used by managerial accountants to make strategic and
V V V V V V V V V V
operational decisions.
V V
D) Management accounting produces information for managers in an organization.
V V V V V V V V
VAnswer: C V
Diff: 1 V
LO: 1-1 V V
AACSB: Reflective thinking skills
VV V V
Learning Outcome: Describe the basics of managerial accounting and its function within an organization
V V V V V V V V V V V V V
, 7) When comparing management accounting and financial accounting, which of the following
V V V V V V V V V V
statements is FALSE?
V V V
A) Management accounting has a future orientation whereas financial accounting has a past
V V V V V V V V V V V
Vorientation.
B) Management accounting prepares detailed reports whereas financial accounting prepares
V V V V V V V V
Vsummary reports. V
C) Management accountants are constrained by the principles of reporting promulgated by the Institute
V V V V V V V V V V V V
V of Management Accountants whereas financial accountants are constrained by Generally Accepted
V V V V V V V V V V
V Accounting Principles. V
D) Behavioral considerations are of primary importance in management accounting, but not in
V V V V V V V V V V V
financial accounting.
V V
Answer: C V
VDiff: 1 V
LO: 1-1
V V
AACSB: Reflective thinking skills
VV V V
Learning Outcome: Describe the basics of managerial accounting and its function within an organization
V V V V V V V V V V V V V
8) Generally Accepted Accounting Principles are most closely connected to
V V . V V V V V V
A) management accounting V
B) financial accounting V
C) internal auditing V
D) management auditing V
VAnswer: B V
Diff: 1 V
LO: 1-1
V V
AACSB: Reflective thinking skills
VV V V
Learning Outcome: Describe the basics of managerial accounting and its function within an organization
V V V V V V V V V V V V V
9) Who provides assurance to external users about the reliability of a company's financial statements?
V V V V V V V V V V V V V
A) Certified Management Accountants and Certified Public Accountants
V V V V V V
B) Chartered Management Accountants and Certified Management Accountants
V V V V V V
C) Certified Public Accountants and Chartered Management Accountants
V V V V V V
D) Certified Public Accountants and Chartered Accountants
V V V V V
VAnswer: D V
Diff: 1 V
LO: 1-1
V V
AACSB: Reflective thinking skills
VV V V
Learning Outcome: Describe the basics of managerial accounting and its function within an organization
V V V V V V V V V V V V V
17th Global Edition by Charles Horngren, Gary L. Sundem,
William O. Stratton, Dave Burgstahler, Jeff O. Schatzberg
,Introduction to Management Accounting, 17e (Horngren)
Chapter 1 Managerial Accounting, the Business
Organization, and Professional Ethics
1.1 Questions
1) Which credential is associated with management accountants?
A) CPA
B) CMA
C) CFP
D) IMA
Answer: B
Diff: 1
LO: 1-1
AACSB: Reflective thinking skills
Learning Outcome: Describe the basics of managerial accounting and its function within an organization
2) The largest U.S. association of professional accountants whose major interest is management
accounting is the .
A) American Institute of Certified Public Accountants
B) American Institute of Certified Management Accountants
C) Institute of Management Accountants
D) American Institute of Management Accountants
Answer: C
Diff: 1
LO: 1-1
AACSB: Reflective thinking skills
Learning Outcome: Describe the basics of managerial accounting and its function within an organization
3) is the field that produces information used primarily by managers within an organization.
A) Financial accounting
B) Management accounting
C) Internal auditing
D) External auditing
Answer: B
Diff: 1
LO: 1-1
AACSB: Reflective thinking skills
Learning Outcome: Describe the basics of managerial accounting and its function within an organization
,4) The primary users of management accounting information are
V V V. V V V V
A) bankers
B) governmental regulatory bodies V V
C) managers in organizations V V
D) managerial accountants V
VAnswer: C V V
Diff: 1 V
LO: 1-1 V V
AACSB: Reflective thinking skills
VV V V
Learning Outcome: Describe the basics of managerial accounting and its function within an organization
V V V V V V V V V V V V V
5) V is the field of accounting that develops information for external parties such as stockholders,
V V V V V V V V V V V V V
V suppliers, banks and governmental regulatory bodies.
V V V V V
A) Auditing
B) Internal auditing V
C) Management accounting V
D) Financial accounting V
VAnswer: D V
Diff: 1 V
LO: 1-1 V V
AACSB: Reflective thinking skills
VV V V
Learning Outcome: Describe the basics of managerial accounting and its function within an organization
V V V V V V V V V V V V V
6) Which of the following statements about management accounting is FALSE?
V V V V V V V V V
A) Management accounting is the process of identifying, measuring, accumulating, analyzing,
V V V V V V V V V
preparing, interpreting and communicating information.
V V V V V
B) Management accounting helps managers fulfill organizational objectives.
V V V V V V
C) Management accounting is used by managerial accountants to make strategic and
V V V V V V V V V V
operational decisions.
V V
D) Management accounting produces information for managers in an organization.
V V V V V V V V
VAnswer: C V
Diff: 1 V
LO: 1-1 V V
AACSB: Reflective thinking skills
VV V V
Learning Outcome: Describe the basics of managerial accounting and its function within an organization
V V V V V V V V V V V V V
, 7) When comparing management accounting and financial accounting, which of the following
V V V V V V V V V V
statements is FALSE?
V V V
A) Management accounting has a future orientation whereas financial accounting has a past
V V V V V V V V V V V
Vorientation.
B) Management accounting prepares detailed reports whereas financial accounting prepares
V V V V V V V V
Vsummary reports. V
C) Management accountants are constrained by the principles of reporting promulgated by the Institute
V V V V V V V V V V V V
V of Management Accountants whereas financial accountants are constrained by Generally Accepted
V V V V V V V V V V
V Accounting Principles. V
D) Behavioral considerations are of primary importance in management accounting, but not in
V V V V V V V V V V V
financial accounting.
V V
Answer: C V
VDiff: 1 V
LO: 1-1
V V
AACSB: Reflective thinking skills
VV V V
Learning Outcome: Describe the basics of managerial accounting and its function within an organization
V V V V V V V V V V V V V
8) Generally Accepted Accounting Principles are most closely connected to
V V . V V V V V V
A) management accounting V
B) financial accounting V
C) internal auditing V
D) management auditing V
VAnswer: B V
Diff: 1 V
LO: 1-1
V V
AACSB: Reflective thinking skills
VV V V
Learning Outcome: Describe the basics of managerial accounting and its function within an organization
V V V V V V V V V V V V V
9) Who provides assurance to external users about the reliability of a company's financial statements?
V V V V V V V V V V V V V
A) Certified Management Accountants and Certified Public Accountants
V V V V V V
B) Chartered Management Accountants and Certified Management Accountants
V V V V V V
C) Certified Public Accountants and Chartered Management Accountants
V V V V V V
D) Certified Public Accountants and Chartered Accountants
V V V V V
VAnswer: D V
Diff: 1 V
LO: 1-1
V V
AACSB: Reflective thinking skills
VV V V
Learning Outcome: Describe the basics of managerial accounting and its function within an organization
V V V V V V V V V V V V V
