Management Accounting 16 A

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Unique difficulties of management accounting in service organizations do not include:
diverse output.
The management controlling function includes which of the following?

a. Implementing plans, evaluating results, and providing feedback.

b. Formulating plans, evaluating results, and providing feedback.

c. Evaluating results and providing feedback.

d. Implementing plans and evaluating results.
Implementing plans, evaluating results, and providing feedback.
Information produced by accounting systems is categorized as:

a. attention-directing, scorekeeping, and problem solving.

b. attention-directing, time-saving, and scorekeeping.

c. time-saving, scorekeeping, and problem solving.

d. attention-directing and problem solving.

e. scorekeeping and problem solving.
attention-directing, scorekeeping, and problem solving.
The most useful scorekeeping information is the evaluation of performance made by comparing actual results for a month with:

a. the budget for that month.

b. actual results of the preceding month.

c. actual results of the same month a year ago.

d. actual results with results of a competitor.
the budget for that month.
Sheena Bright writes the checks for a business and her brother, Andrew, does the accounting work and is in charge of ensuring that the accounting process is done correctly. What might be Andrew's official title?

a. Controller

b. Senior Accountant

c. Treasurer

d. Partner
Controller
The primary goal of financial accounting is to provide information to which of the following?

a. Creditors

b. Regulatory bodies

c. Company managers

d. Auditors

e. The Federal Reserve
Creditors
Management accounting for an organization is aimed mainly at the decision needs of:

a. internal managers.

b. its creditors.

c. government regulators.

d. its stockholders.
internal managers.
Which is not a characteristic of managerial accounting information?


a. Emphasizes the external financial statements

b. Provides detailed information about individual parts of the company

c. Emphasizes relevance

d. Focuses on the future
Emphasizes the external financial statements
As the accountant of Casey Computer, Co., you are aware of Casey's weak financial condition. Casey is close to signing a lucrative contract that should ensure its future. The controller states that the company must report a profit this year. He suggests, "Two customers have placed orders that are scheduled to be shipped January 3, when production of those orders is completed. Let's record the goods as finished and bill the customer on December 31 so we can show the profit from those orders in the current year."

Which IMA standards of ethical practice would the controller be violating?

a. Competence, integrity, and credibility

b. Competence, confidentiality, integrity, and credibility

c. Competence, confidentiality, and credibility

d. Confidentiality, Integrity, and credibility

e. Competence, confidentiality, and integrity
Competence, integrity, and credibility
World-class businesses use which of these systems to integrate all of the company's world-wide functions, departments, and data into a single system?

a. Enterprise resource planning

b. Cost standards

c. Just-in-time management

d. Six Sigma
Enterprise resource planning
Analyzing variances from the budget of the cost of materials used in making a particular product should be classified as:

a. attention directing.

b. problem solving.

c. scorekeeping.

d. financial auditing.
attention directing.
Which of the following is true about management accounting?

a. Management accounting is not restricted by GAAP.

b. Management accounting provides information to customers.

c. Management accounting provides information that is required to be audited by certified public accountants.

d. Management accounting primarily focuses on reporting on the company as a whole on a quarterly or annual basis.
Management accounting is not restricted by GAAP.
What is the name of the entity created by the Sarbanes-Oxley Act of 2002?

a. PCAOB

b. AICPA

c. AAA

d. FASB

e. GASB
PCAOB
Sarah Baker is examining the ending inventory records for the year-end financial statements at Top-Flight's warehouses in Arizona. She discovers an inventory purchase of $1,000 that was counted as part of the ending inventory, but the inventory was shipped F.O.B. destination and arrived January 3. When asked about the invoice, Mike Flinders, the purchasing manager, admits that he included the inventory in his ending count, though the goods were not yet in the warehouse. After all, the company would have the inventory in just a few days.

Which of the IMA standards of ethical practice has/have been violated by Flinder?

a. Integrity

b. Competence

c. Credibility

e. Confidentiality
Integrity
Budgets primarily serve:

a. the planning function.

b. the financial reporting function.

c. the feedback function.

d. the controlling function.
the planning function.
All of the following were provisions of the Sarbanes-Oxley Act of 2002 except:

a. the requirement of boards of directors of publicly held companies to appoint an audit committee composed only of internal company directors.

b. the establishment of the public company accounting oversight board with powers to regulate many aspects of public accounting and to set standards for audit procedures.

c. the prohibition of public accounting firms from providing certain non audit services to audit clients.

d. the required rotation of the lead audit or coordinating partner and the reviewing partner on an audit every five years.
the requirement of boards of directors of publicly held companies to appoint an audit committee composed only of internal company directors.
Sheena Bright writes the checks for a business and her brother, Andrew, does the accounting work and is in charge of ensuring that the accounting process is done correctly. What might be Sheen's official title?

a. Treasurer

b. Senior Accountant

c. Controller

d. Partner
Treasurer
A certified accountant that works for a single company is a:

a. CMA

b. CPA

c. CFE

d. CIA
CMA
Which of the following is an example of a service organization?

a. A yoga studio

b. A dairy farm

c. A convenience store

d. A computer factory
A yoga studio
Which of the following accounts does a manufacturing company, but not a service company, have?

a. Cost of Goods Sold

b. Advertising Expense

d. Salary Payable

e Retained Earnings
Cost of Goods Sold
What are the four major ethical standards in the IMA statement of ethical professional practice?

a. Competence, confidentiality, integrity, and credibility

b.Competence, confidentiality, integrity, and accessibility

c. Competence, integrity, credibility, and accessibility

d.Confidentiality, integrity, credibility, and accessibility
Competence, confidentiality, integrity, and credibility
Performance reports serve two functions

a. evaluation function and feedback function.

b. evaluation function and planning function.

c. audit function and feedback function.

d. planning function and audit function.
evaluation function and feedback function.
Sarah Baker is examining the ending inventory records for the year-end financial statements at Top-Flight's warehouses in Arizona. She discovers an inventory purchase of $1,000 that was counted as part of the ending inventory, but the inventory was shipped F.O.B. destination and arrived January 3. When asked about the invoice, Mike Flinders, the purchasing manager, admits that he included the inventory in his ending count, though the goods were not yet in the warehouse. After all, the company would have the inventory in just a few days.

Which of the IMA standards of ethical practice has/have been violated by Sarah if she neglects to report the actions of Flinder?

a. Integrity and Credibility

b. Competence and Integrity

c. Credibility

d. Competence and Credibility

e. Integrity
Integrity and Credibility
The effective restrictions on measurements that can be reported by a management accounting system do not include:

a. GAAP.

b. the cost-benefit philosophy.

c. behavioral impacts.

d. adaptation to change
GAAP.
Today's business environment is characterized by:

a. global competition, time-based competition, and a shift toward a service company.

b. global competition, time-based competition, and enterprise resource planning.

c. time-based competition, a shift toward a service company, and enterprise resource planning.

d. global competition, a shift toward a service company, and enterprise resource planning.
global competition, time-based competition, and a shift toward a service company.
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