Question 1

In a firm that offers a bonus scheme based on accounting profit, managers can, in most cases, be expected to adopt a:

Accepted Answer

A)  profit-decreasing accounting policy. 
B)  profit-increasing accounting policy. 
C)  dividend-increasing accounting policy. 
D)  liability-increasing accounting policy. 
A)  profit-decreasing accounting policy. 
B)  profit-increasing accounting policy. 
C)  dividend-increasing accounting policy. 
D)  liability-increasing accounting policy.

Question 2

The basic difference between managerial accounting and financial accounting is that:

Accepted Answer

A)  the financial accounting system relies on accounting information whereas managerial accounting does not. 
B)  financial accounting relies on information gathered from sources outside the business whereas managerial accounting relies on internally generated information. 
C)  financial accounting is concerned with providing information to outsiders, whereas managerial accounting is concerned with providing information to managers for their use in directing the activities of the organisation. 
D)  managerial accounting information is useful to not-for-profit organisations, but financial accounting information is not. 
A)  the financial accounting system relies on accounting information whereas managerial accounting does not. 
B)  financial accounting relies on information gathered from sources outside the business whereas managerial accounting relies on internally generated information. 
C)  financial accounting is concerned with providing information to outsiders, whereas managerial accounting is concerned with providing information to managers for their use in directing the activities of the organisation. 
D)  managerial accounting information is useful to not-for-profit organisations, but financial accounting information is not.

Question 3

Accounting information is always quantitative and objective.

Accepted Answer

A) True 
 B)False

Question 4

Accounting firms generally provide the following services:

Accepted Answer

A)  Audit and assurance, insolvency and taxation 
B)  Audit, budgeting and management consulting 
C)  Audit, budgeting and cost accounting 
D)  Internal audit, budgeting and management consulting 
A)  Audit and assurance, insolvency and taxation 
B)  Audit, budgeting and management consulting 
C)  Audit, budgeting and cost accounting 
D)  Internal audit, budgeting and management consulting

Question 5

Examples of internal and external users of information are:

Accepted Answer

A)  suppliers and investors. 
B)  managers and unions. 
C)  suppliers and unions. 
D)  banks and government authorities. 
A)  suppliers and investors. 
B)  managers and unions. 
C)  suppliers and unions. 
D)  banks and government authorities.

Question 6

A possible limitation of accounting information is that accounting information:

Accepted Answer

A)  can only be used by bankers. 
B)  is relevant depending on the needs of users. 
C)  does not report in money terms. 
D)  relates to past information. 
A)  can only be used by bankers. 
B)  is relevant depending on the needs of users. 
C)  does not report in money terms. 
D)  relates to past information.

Question 7

Which of the following disclosures would you expect to be included by a company in a triple bottom line report?

Accepted Answer

A)  Greenhouse gas emissions 
B)  Donations to charities 
C)  Percentage of female staff in senior management positions 
D)  All of the above 
A)  Greenhouse gas emissions 
B)  Donations to charities 
C)  Percentage of female staff in senior management positions 
D)  All of the above

Question 8

Management is an external user of accounting information.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is an example of a stakeholder of a business?

Accepted Answer

A)  An owner 
B)  An investor 
C)  A manager 
D)  All of the above 
A)  An owner 
B)  An investor 
C)  A manager 
D)  All of the above

Question 10

Stewardship is the term used to refer to management's role in protecting an entity's economic resources from theft, fraud and wastage.

Accepted Answer

A) True 
 B)False

Question 11

Because triple bottom line reports are voluntary, the provision of an independent verification of the reports should enhance the reliability of the information provided.

Accepted Answer

A) True 
 B)False

Question 12

Management accounting is the process of:

Accepted Answer

A)  preparing and reporting accounting information for external decision makers. 
B)  preparing and reporting accounting information for an organisation's internal decision makers. 
C)  enacting generally accepted accounting principles. 
D)  preparing and reporting accounting information to lenders. 
A)  preparing and reporting accounting information for external decision makers. 
B)  preparing and reporting accounting information for an organisation's internal decision makers. 
C)  enacting generally accepted accounting principles. 
D)  preparing and reporting accounting information to lenders.

Question 13

Debt covenants primarily protect the interests of which of the following parties?

Accepted Answer

A)  Shareholders 
B)  Lenders 
C)  Employees 
D)  Companies 
A)  Shareholders 
B)  Lenders 
C)  Employees 
D)  Companies

Question 14

A triple bottom line report refers to the publication of economic, environmental and corporate governance information in an integrated report.

Accepted Answer

A) True 
 B)False

Question 15

The difference between management accounting and financial accounting is:

Accepted Answer

A)  management accounting focuses on external users whereas financial accounting focuses on internal users. 
B)  management accounting focuses only on the control function whereas financial accounting focuses on the reporting function. 
C)  management accounting focuses on internal users whereas financial accounting focuses on external users. 
D)  management accounting focuses on the reporting function whereas financial accounting focuses on the control function. 
A)  management accounting focuses on external users whereas financial accounting focuses on internal users. 
B)  management accounting focuses only on the control function whereas financial accounting focuses on the reporting function. 
C)  management accounting focuses on internal users whereas financial accounting focuses on external users. 
D)  management accounting focuses on the reporting function whereas financial accounting focuses on the control function.

Question 16

The difference between management accounting and financial accounting is that management accounting focuses on external users whereas financial accounting focuses on internal users.

Accepted Answer

A) True 
 B)False

Question 17

Managers may select accounting policies for which of the following reasons?

Accepted Answer

A)  To provide useful information to users 
B)  To avoid violating debt contracts 
C)  To influence compensation plans 
D)  All of the above are correct 
A)  To provide useful information to users 
B)  To avoid violating debt contracts 
C)  To influence compensation plans 
D)  All of the above are correct

Question 18

Accounting information:

Accepted Answer

A)  is helpful for financing decisions but not for marketing decisions. 
B)  is useful for profit-making entities but is not needed for not-for-profit entities. 
C)  must follow accounting principles provided by management. 
D)  is useful for all economic organisations. 
A)  is helpful for financing decisions but not for marketing decisions. 
B)  is useful for profit-making entities but is not needed for not-for-profit entities. 
C)  must follow accounting principles provided by management. 
D)  is useful for all economic organisations.

Question 19

Match the type of accounting information to the term that best describes it. Information prepared Information prepared
For suppliers' use for creditors' use

Accepted Answer

A)  Managerial accounting Financial accounting 
B)  Managerial accounting Managerial accounting 
C)  Financial accounting Financial accounting 
D)  Financial accounting Managerial accounting 
A)  Managerial accounting Financial accounting 
B)  Managerial accounting Managerial accounting 
C)  Financial accounting Financial accounting 
D)  Financial accounting Managerial accounting

Question 20

Arguments in favour of triple bottom line reporting include:

Accepted Answer

A)  enhanced all-round company credibility from greater transparency. 
B)  that it facilitates the implementation of an environmental strategy. 
C)  enhanced communication with stakeholders. 
D)  all of the above. 
A)  enhanced all-round company credibility from greater transparency. 
B)  that it facilitates the implementation of an environmental strategy. 
C)  enhanced communication with stakeholders. 
D)  all of the above.

In a firm that offers a bonus scheme based on accounting profit, managers can, in most cases, be expected to adopt a:

The basic difference between managerial accounting and financial accounting is that:

Accounting information is always quantitative and objective.

Accounting firms generally provide the following services:

Examples of internal and external users of information are:

A possible limitation of accounting information is that accounting information:

Which of the following disclosures would you expect to be included by a company in a triple bottom line report?

Management is an external user of accounting information.

Which of the following is an example of a stakeholder of a business?

Stewardship is the term used to refer to management's role in protecting an entity's economic resources from theft, fraud and wastage.

Because triple bottom line reports are voluntary, the provision of an independent verification of the reports should enhance the reliability of the information provided.

Management accounting is the process of:

Debt covenants primarily protect the interests of which of the following parties?

A triple bottom line report refers to the publication of economic, environmental and corporate governance information in an integrated report.

The difference between management accounting and financial accounting is:

The difference between management accounting and financial accounting is that management accounting focuses on external users whereas financial accounting focuses on internal users.

Managers may select accounting policies for which of the following reasons?

Accounting information:

Match the type of accounting information to the term that best describes it. Information prepared Information prepared For suppliers' use for creditors' use

Arguments in favour of triple bottom line reporting include:

Types of Organisations and the Financial Reporting Framework

Ethics and Corporate Governance

Wealth and the Measurement of Profit

Presentation of Financial Position and the Worksheet

Presentation of Financial Performance and the Worksheet

Presentation of Cash Flows

Accounting for Selected Assets

Liabilities and Sources of Financing

Financial Statement Analysis

Worksheet to Debits and Credits

An Introduction to Management Accounting: a Strategic Perspective

Performance Measurement and the Balanced Scorecard

Costs and Cost Behaviour

Budgets

Cost-Volume-Profit Analysis

Accounting for Decision Making: With and Without Resource Constraints

Capital Investment Decisions

Filters

Exam 1: Introduction to Accounting

In a firm that offers a bonus scheme based on accounting profit, managers can, in most cases, be expected to adopt a:

The basic difference between managerial accounting and financial accounting is that:

Accounting information is always quantitative and objective.

Accounting firms generally provide the following services:

Examples of internal and external users of information are:

A possible limitation of accounting information is that accounting information:

Which of the following disclosures would you expect to be included by a company in a triple bottom line report?

Management is an external user of accounting information.

Which of the following is an example of a stakeholder of a business?

Stewardship is the term used to refer to management's role in protecting an entity's economic resources from theft, fraud and wastage.

Because triple bottom line reports are voluntary, the provision of an independent verification of the reports should enhance the reliability of the information provided.

Management accounting is the process of:

Debt covenants primarily protect the interests of which of the following parties?

A triple bottom line report refers to the publication of economic, environmental and corporate governance information in an integrated report.

The difference between management accounting and financial accounting is:

The difference between management accounting and financial accounting is that management accounting focuses on external users whereas financial accounting focuses on internal users.

Managers may select accounting policies for which of the following reasons?

Accounting information:

Match the type of accounting information to the term that best describes it. Information prepared Information prepared For suppliers' use for creditors' use

Arguments in favour of triple bottom line reporting include:

Types of Organisations and the Financial Reporting Framework

Ethics and Corporate Governance

Wealth and the Measurement of Profit

Presentation of Financial Position and the Worksheet

Presentation of Financial Performance and the Worksheet

Presentation of Cash Flows

Accounting for Selected Assets

Liabilities and Sources of Financing

Financial Statement Analysis

Worksheet to Debits and Credits

An Introduction to Management Accounting: a Strategic Perspective

Performance Measurement and the Balanced Scorecard

Costs and Cost Behaviour

Budgets

Cost-Volume-Profit Analysis

Accounting for Decision Making: With and Without Resource Constraints

Capital Investment Decisions

Filters