Question 1

ISO 9001:2008 is a(n)

Accepted Answer

A)  effective exchange of information between vendors and customers.
B)  system where production occurs only when needed.
C)  software system which integrates all departments.
D)  certification that a company complies with international quality standards.E) B) and C)
F) A) and D)

Question 2

It would be a violation of which ethical standard to withhold relevant information?

Accepted Answer

A)  Confidentiality
B)  Competency
C)  Integrity
D)  CredibilityE) A) and D)
F) None of the above

Question 3

Lean thinking is both a philosophy and a business strategy of manufacturing without waste.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following positions report to the audit committee of the Board of Directors?

Accepted Answer

A)  The CFO and internal audit department
B)  The internal audit department and the independent CPA firm
C)  The CFO and the independent CPA firm
D)  The treasurer and controllerE) B) and C)
F) A) and D)

Question 5

The primary goal of managerial accounting is to provide information to

Accepted Answer

A)  internal decision-makers.
B)  shareholders.
C)  creditors.
D)  both shareholders and creditors.E) All of the above
F) C) and D)

Question 6

Managerial accountants no longer perform routine mechanical accounting tasks in most companies.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not one of the IMA's credibility standards?

Accepted Answer

A)  To disclose all relevant information
B)  To disclose deficiencies in internal control
C)  To communicate information fairly and objectively
D)  All of the above are part of IMA's credibility standard.E) A) and B)
F) All of the above

Question 8

What is a business philosophy that focuses on providing customers with superior products and services?

Accepted Answer

A)  IFRS
B)  TQM
C)  ERP
D)  XBRLE) A) and B)
F) B) and C)

Question 9

The purpose of managerial accounting is to gather, summarize, and report the cost and revenue data relevant to each decision that is made.

Accepted Answer

A) True 
 B)False

Question 10

XBRL will be required of both public and private companies.

Accepted Answer

A) True 
 B)False

Question 11

The IMA issues the CMA designation.

Accepted Answer

A) True 
 B)False

Question 12

External parties receive information about past performance from

Accepted Answer

A)  planning reports.
B)  budget reports.
C)  financial accounting reports.
D)  managerial accounting reports.E) All of the above
F) A) and B)

Question 13

Is financial accounting or managerial accounting more useful to a plant (factory)manager? Explain your answer.

Accepted Answer

Managerial accounting is likely to be mu...

Question 14

What ethical standard is being violated when you tell a friend that the company you work for is going to report lower than expected earnings next week?

Accepted Answer

A)  Credibility
B)  Integrity
C)  Confidentiality
D)  CompetenceE) B) and C)
F) A) and D)

Question 15

When management reviews hourly sales reports to determine the level of staffing needed to service customers, which of management's three primary responsibilities is fulfilled?

Accepted Answer

A)  Controlling and planning
B)  Directing and planning
C)  Directing, controlling, and planning
D)  Analyzing, directing, and planningE) A) and B)
F) A) and C)

Question 16

Managerial accounting information emphasizes relevance over reliability and objectivity.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following persons or groups would be least likely to receive detailed managerial accounting reports?

Accepted Answer

A)  CEO
B)  Plant managers
C)  Current shareholders
D)  Sales territory managersE) A) and C)
F) B) and C)

Question 18

All of the following are overarching principles in the IMA Statement of Ethical Professional Practice except

Accepted Answer

A)  responsibility.
B)  objectivity.
C)  integrity.
D)  fairness.E) A) and D)
F) All of the above

Question 19

The SEC is considering the move to adopt IFRS for which types of companies?

Accepted Answer

A)  All U.S. companies
B)  All U.S. publicly traded companies
C)  All U.S. private companies
D)  Only foreign companies operating in the U.S.E) None of the above
F) B) and D)

Question 20

The ability to meet the needs of the present without compromising the needs of the future is often referred to as

Accepted Answer

A)  the bottom line.
B)  total quality management.
C)  sustainability.
D)  just-in-time.E) A) and B)
F) A) and C)

Exam 1: Introduction to Managerial Accounting

ISO 9001:2008 is a(n)

Correct AnswerverifiedShow Answer

Which of the following positions report to the audit committee of the Board of Directors?

Correct AnswerverifiedShow Answer

The purpose of managerial accounting is to gather, summarize, and report the cost and revenue data relevant to each decision that is made.

Correct AnswerverifiedShow Answer

The SEC is considering the move to adopt IFRS for which types of companies?

Correct AnswerverifiedShow Answer

Lean thinking is both a philosophy and a business strategy of manufacturing without waste.

Correct AnswerverifiedShow Answer

Which of the following persons or groups would be least likely to receive detailed managerial accounting reports?

Correct AnswerverifiedShow Answer

What ethical standard is being violated when you tell a friend that the company you work for is going to report lower than expected earnings next week?

Correct AnswerverifiedShow Answer

Which of the following is not one of the IMA's credibility standards?

Correct AnswerverifiedShow Answer

Managerial accounting information emphasizes relevance over reliability and objectivity.

Correct AnswerverifiedShow Answer

The ability to meet the needs of the present without compromising the needs of the future is often referred to as

Correct AnswerverifiedShow Answer

Managerial accountants no longer perform routine mechanical accounting tasks in most companies.

Correct AnswerverifiedShow Answer

All of the following are overarching principles in the IMA Statement of Ethical Professional Practice except

Correct AnswerverifiedShow Answer

Is financial accounting or managerial accounting more useful to a plant (factory)manager? Explain your answer.

Correct AnswerverifiedManagerial accounting is likely to be mu...View AnswerShow Answer

XBRL will be required of both public and private companies.

Correct AnswerverifiedShow Answer

The IMA issues the CMA designation.

Correct AnswerverifiedShow Answer

The primary goal of managerial accounting is to provide information to

Correct AnswerverifiedShow Answer

When management reviews hourly sales reports to determine the level of staffing needed to service customers, which of management's three primary responsibilities is fulfilled?

Correct AnswerverifiedShow Answer

What is a business philosophy that focuses on providing customers with superior products and services?

Correct AnswerverifiedShow Answer

External parties receive information about past performance from

Correct AnswerverifiedShow Answer

It would be a violation of which ethical standard to withhold relevant information?

Correct AnswerverifiedShow Answer

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Managerial accounting is likely to be mu...
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