Accounting 202 - Chapter 1

35 Questions  I  By Jc173
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  • 1. 
    Which one of the following manager responsibilities encompass the other three?
    • A. 

      Decision-making

    • B. 

      Feedback

    • C. 

      Planning

    • D. 

      Controlling


  • 2. 
    Budgets are the way that managers can express their:
    • A. 

      Plans

    • B. 

      Decision making

    • C. 

      Control

    • D. 

      Hiring practices


  • 3. 
    Comparing actual results to budgets is an example of the management function of:
    • A. 

      Controlling

    • B. 

      Decision making

    • C. 

      Directing

    • D. 

      Planning


  • 4. 
    Overseeing the day-to-day operations of a company is an example of the management function of:
    • A. 

      Controlling

    • B. 

      Decision making

    • C. 

      Directing

    • D. 

      Planning


  • 5. 
    Management accounting focuses on:
    • A. 

      External reporting

    • B. 

      Internal reporting

    • C. 

      Tax preparation

    • D. 

      Auditing


  • 6. 
    Which of the following types of information are used in managerial accounting?
    • A. 

      Financial information

    • B. 

      Nonfinancial information

    • C. 

      Forecasts of future earnings

    • D. 

      All of the above


  • 7. 
    The primary goal of managerial accounting is to provide information to:
    • A. 

      Shareholders

    • B. 

      Creditors

    • C. 

      Internal decision-makers

    • D. 

      Both shareholders and creditors


  • 8. 
    Which of the following are the internal decision-makers of a company?
    • A. 

      Vendors

    • B. 

      Customers

    • C. 

      Managers

    • D. 

      Shareholders


  • 9. 
    Which of the following groups are external users of financial information?
    • A. 

      Customers of the company

    • B. 

      Vendors of the company

    • C. 

      Potential investors of the company

    • D. 

      All of the above


  • 10. 
    Which of the following groups are most likely to use a company's budget information?
    • A. 

      Managers

    • B. 

      Customers

    • C. 

      Creditors

    • D. 

      Suppliers


  • 11. 
    Owners of a company (corporation) are its:
    • A. 

      Creditors

    • B. 

      Customers

    • C. 

      Managers

    • D. 

      Shareholders


  • 12. 
    Information for external parties about past performance is provided by:
    • A. 

      Budget reports

    • B. 

      Financial accounting reports

    • C. 

      Managerial accounting reports

    • D. 

      Planning reports


  • 13. 
    Information for internal parties about past performance is provided by:
    • A. 

      Budget reports

    • B. 

      Financial accounting reports

    • C. 

      Managerial accounting reports

    • D. 

      Planning reports


  • 14. 
    A CFO would have all of the following responsibilites EXCEPT:
    • A. 

      Preparing all corporate tax returns

    • B. 

      Managing corporate financing

    • C. 

      Providing reports to creditors as required

    • D. 

      Investing in new equipment


  • 15. 
    Who typically manages the daily operations of a company?
    • A. 

      Stockholders

    • B. 

      The controller

    • C. 

      The company's board of directors

    • D. 

      The CEO


  • 16. 
    Who typically provides oversight for large corporations?
    • A. 

      Stockholders

    • B. 

      The CEO

    • C. 

      The board of Directors

    • D. 

      The company president


  • 17. 
    What has been the determining factor in the way that we now view managerial accountants?
    • A. 

      Stricter audit standards

    • B. 

      Stricter GAAP standards

    • C. 

      Technology

    • D. 

      None of the above


  • 18. 
    Managerial accountants perform which of the following tasks?
    • A. 

      Ensure financial records are correct

    • B. 

      Help design information systems

    • C. 

      Provide decision support

    • D. 

      All of the above


  • 19. 
    Managerial accounts may be responsible for:
    • A. 

      Analyzing data

    • B. 

      Communicating results

    • C. 

      Providing decision support

    • D. 

      All of the above


  • 20. 
    Which of the following skills are required of managerial accountants?
    • A. 

      The ability to work on a team

    • B. 

      Analytical skills

    • C. 

      Oral and written communication skills

    • D. 

      All of the above


  • 21. 
    A company's Board of Directors meets:
    • A. 

      Annually

    • B. 

      Monthly

    • C. 

      Periodically, as needs dictate

    • D. 

      Quarterly


  • 22. 
    To resolve ethical dilemmas, the IMA suggests that management accountants should FIRST:
    • A. 

      Follow their company's established policies for reporting unethical behavior.

    • B. 

      Discuss the unethical situation with their immediate supervisor

    • C. 

      Consult and attorney

    • D. 

      Call the IMA "Ethics Hotline"


  • 23. 
    SOX (Sarbanes-Oxley) requires that the company's financial statements be certified by the company's:
    • A. 

      CFO

    • B. 

      CEO

    • C. 

      CFO and CEO

    • D. 

      Controller


  • 24. 
    The SEC has moved to adopt IFRS (International Financial Reporting Standards.) for which types of companies?
    • A. 

      All U.S. companies

    • B. 

      Only foreign companies operating in the US

    • C. 

      All U.S. publicly traded companies

    • D. 

      All U.S. private companies


  • 25. 
    The philosophy and a business strategy of manufacturing without waste is referred to as:
    • A. 

      Lean production

    • B. 

      Thin manufacturing

    • C. 

      TQM

    • D. 

      ISO 9001


  • 26. 
    Companies attempt to increase their competitive edge by adopting:
    • A. 

      Green initiatives

    • B. 

      Lean production

    • C. 

      TQM

    • D. 

      All of the above


  • 27. 
    Why was the Sarbanes-Oxley Act enacted?
    • A. 

      To hire better qualified managerial accountants

    • B. 

      To prevent accounting scandals like Enron

    • C. 

      To restore trust in publicly traded companies

    • D. 

      None of the above


  • 28. 
    Which of the following describes a system in which suppliers deliver materials at the time they are needed?
    • A. 

      ERP

    • B. 

      JIT (Just in Time)

    • C. 

      TQM

    • D. 

      ISO


  • 29. 
    ISO 9001:2008 is a(n):
    • A. 

      Certification that a company compiles with International quality standards.

    • B. 

      Software system which integrates all departments

    • C. 

      System where production occurs only when needed.

    • D. 

      Effective exchange of information between vendors and customers


  • 30. 
    Managerial accounting is needed by which type of company?
    • A. 

      Manufactures

    • B. 

      Retailers

    • C. 

      Service

    • D. 

      All of the above


  • 31. 
    Exchanging information to reduce costs, speed delivery, and improve quality is the definition of:
    • A. 

      ERP

    • B. 

      JIT

    • C. 

      Supply-chain management

    • D. 

      TQM


  • 32. 
    The philosophy that centers on production as needed is known as:
    • A. 

      ERP

    • B. 

      JIT

    • C. 

      Supply-Chain management

    • D. 

      TQM


  • 33. 
    The philosophy of providing superior goods and services is:
    • A. 

      ERP

    • B. 

      JIT

    • C. 

      Supply-Chain management

    • D. 

      TQM


  • 34. 
    Which of the following would have little effect on a cost-benefit analysis?
    • A. 

      Constant prices

    • B. 

      Steady rising prices

    • C. 

      Rapidly declining prices

    • D. 

      None of the above


  • 35. 
    Electric Engines Company is considering opening a plant in Brazil. It will cost $4,000,000 to set up the plant and $750,000 to train employees. An additional $80,000 will be spent to build relationships with the local suppliers. the company anticipates gross profit of $4,800,000 from this new plant. Do the benefits outweigh the costs or do the costs outweigh the benefits, and by how much?
    • A. 

      Costs outweigh the benefits by $30,000

    • B. 

      Benefits outweigh costs by $30,000

    • C. 

      Costs outweigh benefits by $50,000

    • D. 

      Benefits outweigh costs by $50,000


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