Exam 1: Introduction to Managerial Accounting

Just because a behavior is legal does not always mean that the behavior is ethical.

Jim works at Master Remodeling Company.Jim was elected by the stockholders at Master Remodeling Company to oversee the internal audit company and the annual financial statement audit by independent CPAs.Jim does not have a set schedule;and,Jim meets with others at the company only periodically.What is Jim's role at Master Remodeling Company?

Managerial accounting information emphasizes relevance over reliability and objectivity.

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

Which of the following is an example of the IMA's credibility standard?

Which of the following is a software system that integrates all of a company's departments?

Which of the following is being fulfilled when management compares the budget to actual results?

The Sarbanes-Oxley Act of 2002 (SOX)was designed to hold corporations accountable for internal control and financial reporting requirements.

The Sarbanes-Oxley Act requires the CPA firm to rotate the audit partner off of the audit engagement every ________ year(s).

The standards of the IMA Statement of Ethical Professional Practice include which of the following?

Which person or group is not an employee of the corporation?

The individuals at the International Fireplace Shoppe perform the following duties: Identify individual E and individual F at International Fireplace Shoppe.

Johnson Scooter Company is considering whether or not to expand into a new area of the United States.They produce high-performance gas scooters with moderate gas mileage,but have developed a new battery technology that combines a small amount of electrical energy with the existing gas power.This new technology will significantly increase the fuel economy of their bikes.They will need to spend $5,075,000 to retrofit a building to incorporate the new fuel-saving technology.New worker training will cost $1,984,000.Other expenses involved to set up and run the new plant are $332,000.The CEO anticipates that,with gas price increases,the profit potential of this expansion is $7,588,000.Do the benefits outweigh the costs,or do the costs outweigh the benefits,and by how much?

Company initiatives to address sustainability and corporate responsibility not only "do the right thing," but also can lead to economic profits by increasing demand for the company's products and services.

The design of a management accounting system should consider how reports affect employees' behavior.

Which ethical standard is demonstrated when you attend a class to maintain your professional knowledge?

What do managers weigh to develop and run their accounting systems?

Implementing a program to bill customers electronically,therefore saving paper,is a green initiative that reduces not only waste,but it also reduces company costs.

Management accountants rarely interact with employees from other business functions such as marketing and customer service.

Bridgette is a managerial accountant at the Middle Peninsula Manufacturing Company.Recently,Bridgette received a Certified Management Accountant (CMA)certification.To receive the certification,Bridgette was required to attend classes and she had to pass a rigorous examination and maintain continuing professional education now and as designated in the future.To prepare for the exam,Bridgette focused on managerial accounting topics,economic topics,and business finance topics.The exam permits Bridgette to earn a competitive salary and to obtain a promotion to a higher-level position within the company.Which of the following is the name of the regulatory body that issues the Certified Management Accountant (CMA)certification?