Question 1

When designing an accounting information system for management,which governmental regulations are NOT important?

Accepted Answer

A)  Sarbanes-Oxley Act 
B)  Foreign Corrupt Practices Act 
C)  Tax rules promulgated by Internal Revenue Service 
D)  Six Sigma Act 
A)  Sarbanes-Oxley Act 
B)  Foreign Corrupt Practices Act 
C)  Tax rules promulgated by Internal Revenue Service 
D)  Six Sigma Act

Question 2

Reports prepared by managerial accountants have a past orientation.

Accepted Answer

A) True 
 B)False

Question 3

Staff managers give advice to line managers and have authority over line managers.

Accepted Answer

A) True 
 B)False

Question 4

Here is a statement from the Statement of Ethical Professional Practice drafted by the Institute of Management Accountants: "Each member has a responsibility to perform professional duties in accordance with relevant laws,regulations and technical standards." This statement comes from the ________ standard.

Accepted Answer

A)  credibility 
B)  confidentiality 
C)  competence 
D)  professional responsibility 
A)  credibility 
B)  confidentiality 
C)  competence 
D)  professional responsibility

Question 5

Management-by-exception means that managers should ________.

Accepted Answer

A)  concentrate on areas that deviate from the plan 
B)  in the absence of other evidence, presume that areas that conform with plans are running smoothly 
C)  A and B 
D)  none of the above 
A)  concentrate on areas that deviate from the plan 
B)  in the absence of other evidence, presume that areas that conform with plans are running smoothly 
C)  A and B 
D)  none of the above

Question 6

Problem solving information would NOT be used in which of the following situations?

Accepted Answer

A)  decision to make or buy parts for a manufactured product 
B)  decision to replace equipment 
C)  decision to add or drop a division 
D)  evaluating the operating performance of a segment in the current year 
A)  decision to make or buy parts for a manufactured product 
B)  decision to replace equipment 
C)  decision to add or drop a division 
D)  evaluating the operating performance of a segment in the current year

Question 7

The Institute of Management Accountants has adopted a set of standards for ethical conduct which includes ________.

Accepted Answer

A)  competence, integrity, confidentiality and objectivity 
B)  competence, confidentiality, credibility and objectivity 
C)  competence, confidentiality, credibility and integrity 
D)  competence, integrity, morality and confidentiality 
A)  competence, integrity, confidentiality and objectivity 
B)  competence, confidentiality, credibility and objectivity 
C)  competence, confidentiality, credibility and integrity 
D)  competence, integrity, morality and confidentiality

Question 8

Financial accounting reports are usually prepared for a period of one year or less.

Accepted Answer

A) True 
 B)False

Question 9

Generally Accepted Accounting Principles play an important role in management accounting.

Accepted Answer

A) True 
 B)False

Question 10

A(n)________ is a review to determine whether the policies and procedures specified by top management have been implemented by lower managers.

Accepted Answer

A)  management audit 
B)  internal audit 
C)  internal control 
D)  internal accounting control 
A)  management audit 
B)  internal audit 
C)  internal control 
D)  internal accounting control

Question 11

Performance reports compare actual results to ________.Performance reports also report ________.

Accepted Answer

A)  budgeted results; bonuses awarded 
B)  objectives; variances 
C)  planned results; variances 
D)  projected results; stock options granted 
A)  budgeted results; bonuses awarded 
B)  objectives; variances 
C)  planned results; variances 
D)  projected results; stock options granted

Question 12

Which statement about service organizations is FALSE?

Accepted Answer

A)  Service organizations include law firms, banks, insurance companies and hospitals. 
B)  Service organizations do not make or sell tangible goods. 
C)  The service sector accounts for the majority of the employment in the United States. 
D)  Managers in service organizations do not need as much accounting information as their counterparts in other types of organizations. 
A)  Service organizations include law firms, banks, insurance companies and hospitals. 
B)  Service organizations do not make or sell tangible goods. 
C)  The service sector accounts for the majority of the employment in the United States. 
D)  Managers in service organizations do not need as much accounting information as their counterparts in other types of organizations.

Question 13

Research and development is the function of a value chain that involves ________.

Accepted Answer

A)  the detailed design and engineering of products, services or processes 
B)  the generation of ideas related to new products, services or processes 
C)  the generation of ideas related to new products only 
D)  the detailed design and engineering of new processes 
A)  the detailed design and engineering of products, services or processes 
B)  the generation of ideas related to new products, services or processes 
C)  the generation of ideas related to new products only 
D)  the detailed design and engineering of new processes

Question 14

Variances are deviations from planned results.

Accepted Answer

A) True 
 B)False

Question 15

One of a controller's responsibilities is risk management.

Accepted Answer

A) True 
 B)False

Question 16

To evaluate managers' decisions and the productivity of organizational units,organizations use ________.

Accepted Answer

A)  annual financial statements 
B)  quarterly financial statements 
C)  bimonthly financial statements 
D)  performance reports 
A)  annual financial statements 
B)  quarterly financial statements 
C)  bimonthly financial statements 
D)  performance reports

Question 17

Which company is NOT a service organization?

Accepted Answer

A)  Affiliated Dermatologists 
B)  Michael Flynn Dentistry 
C)  Lowe's Home Improvement Store 
D)  United Internists 
A)  Affiliated Dermatologists 
B)  Michael Flynn Dentistry 
C)  Lowe's Home Improvement Store 
D)  United Internists

When designing an accounting information system for management,which governmental regulations are NOT important?

Reports prepared by managerial accountants have a past orientation.

Staff managers give advice to line managers and have authority over line managers.

Management-by-exception means that managers should ________.

Problem solving information would NOT be used in which of the following situations?

The Institute of Management Accountants has adopted a set of standards for ethical conduct which includes ________.

Financial accounting reports are usually prepared for a period of one year or less.

Generally Accepted Accounting Principles play an important role in management accounting.

A(n)________ is a review to determine whether the policies and procedures specified by top management have been implemented by lower managers.

Performance reports compare actual results to .Performance reports also report .

Which statement about service organizations is FALSE?

Research and development is the function of a value chain that involves ________.

Variances are deviations from planned results.

One of a controller's responsibilities is risk management.

To evaluate managers' decisions and the productivity of organizational units,organizations use ________.

Which company is NOT a service organization?

Introduction to Cost Behavior and Cost Volume Profit Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 1: Managerial Accounting,the Business Organization,and Professional Ethics

When designing an accounting information system for management,which governmental regulations are NOT important?

Reports prepared by managerial accountants have a past orientation.

Staff managers give advice to line managers and have authority over line managers.

Management-by-exception means that managers should ________.

Problem solving information would NOT be used in which of the following situations?

The Institute of Management Accountants has adopted a set of standards for ethical conduct which includes ________.

Financial accounting reports are usually prepared for a period of one year or less.

Generally Accepted Accounting Principles play an important role in management accounting.

A(n)________ is a review to determine whether the policies and procedures specified by top management have been implemented by lower managers.

Performance reports compare actual results to ________.Performance reports also report ________.

Which statement about service organizations is FALSE?

Research and development is the function of a value chain that involves ________.

Variances are deviations from planned results.

One of a controller's responsibilities is risk management.

To evaluate managers' decisions and the productivity of organizational units,organizations use ________.

Which company is NOT a service organization?

Introduction to Cost Behavior and Cost Volume Profit Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Performance reports compare actual results to .Performance reports also report .