Question 1

The Sarbanes-Oxley Act was enacted

Accepted Answer

A) to prevent accounting scandals like Enron. 
B) to restore trust in publicly traded companies. 
C) to hire better qualified managerial accountants. 
D) none of the above 
A) to prevent accounting scandals like Enron. 
B) to restore trust in publicly traded companies. 
C) to hire better qualified managerial accountants. 
D) none of the above A

Question 2

The employees at Table Manufacturing perform the following tasks as indicated in Table A and Table B.   Which of the following is the role of Employee A and Employee B?

Accepted Answer

A) CFO; CEO 
B) Managerial Accountant; Financial Accountant 
C) Treasurer; Controller 
D) Audit Committee; Cross-Functional Team 
E) Cross-Functional Teams; Treasurer 
A) CFO; CEO 
B) Managerial Accountant; Financial Accountant 
C) Treasurer; Controller 
D) Audit Committee; Cross-Functional Team 
E) Cross-Functional Teams; Treasurer C

Question 3

According to the textbook, a managerial accountant often works on a (an)

Accepted Answer

A) cross-functional team. 
B) workgroup. 
C) audit team. 
D) multi-functional team. 
A) cross-functional team. 
B) workgroup. 
C) audit team. 
D) multi-functional team. A

Question 4

Refusing gifts or favors that could be perceived to influence your actions is an example of which ethical standard?

Accepted Answer

A) Credibility 
B) Integrity 
C) Confidentiality 
D) Competence 
A) Credibility 
B) Integrity 
C) Confidentiality 
D) Competence

Question 5

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

Accepted Answer

A) A member of the audit committee 
B) The treasurer 
C) The VP of manufacturing 
D) The CFO 
A) A member of the audit committee 
B) The treasurer 
C) The VP of manufacturing 
D) The CFO

Question 6

Which of following statements is true?

Accepted Answer

A) Managerial accounting focuses on historical transactions. 
B) Financial accounting focuses on future data. 
C) Management accounting focuses on relevant data. 
D) Managerial accounting uses the cash basis for recording transactions. 
A) Managerial accounting focuses on historical transactions. 
B) Financial accounting focuses on future data. 
C) Management accounting focuses on relevant data. 
D) Managerial accounting uses the cash basis for recording transactions.

Question 7

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

Accepted Answer

A) ERP 
B) Total Integrated Software 
C) JIT 
D) TQM 
A) ERP 
B) Total Integrated Software 
C) JIT 
D) TQM

Question 8

________ is designed to meet the needs of internal decision makers.

Accepted Answer

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

Question 9

________ are owners of a company.

Accepted Answer

A) Customers 
B) Shareholders 
C) Creditors 
D) Managers 
A) Customers 
B) Shareholders 
C) Creditors 
D) Managers

Question 10

Describe the position of the CFO, the main function of the treasurer, and the main function of the controller within the organization.

Accepted Answer

The treasurer and controller both report

Question 11

Managerial accounting reports are always prepared on a quarterly and annual basis.

Accepted Answer

A) True 
 B)False

Question 12

Which one of the following financial reports is required to be audited by an outside entity?

Accepted Answer

A) Monthly financial statements 
B) Annual financial budgets 
C) Annual financial statements 
D) All of the above 
A) Monthly financial statements 
B) Annual financial budgets 
C) Annual financial statements 
D) All of the above

Question 13

The IMA suggests that members discuss ethical dilemmas with the company's board of directors.

Accepted Answer

A) True 
 B)False

Question 14

Review the following individual accounting system components that contain the skills and capabilities of individuals in Chart A and review the accounting system components that contain the skills and capabilities of individuals in Chart B.     Which of the following describes the individual required to perform the accounting system skills and capabilities in Chart A and which individual is the responsible individual required to perform the skills and capabilities in Chart B?

Accepted Answer

A) Chart A: Independent Auditor; Chart B: Internal Audit Function 
B) Chart A: Managerial Accountant; Chart B: Financial Accountant 
C) Chart A: Audit Committee; Chart B: Cross Functional Teams 
D) Chart A: Cross Functional Teams; Chart B: Treasurer 
E) Chart A: Controller; Chart B: Treasurer 
A) Chart A: Independent Auditor; Chart B: Internal Audit Function 
B) Chart A: Managerial Accountant; Chart B: Financial Accountant 
C) Chart A: Audit Committee; Chart B: Cross Functional Teams 
D) Chart A: Cross Functional Teams; Chart B: Treasurer 
E) Chart A: Controller; Chart B: Treasurer

Question 15

Despite the proliferation of technology, managerial accountants are still needed to provide professional judgment in which of the following areas?

Accepted Answer

A) Recording non-routine transactions 
B) Adjusting the financial records 
C) Designing information systems 
D) All of the above activities require professional judgment 
A) Recording non-routine transactions 
B) Adjusting the financial records 
C) Designing information systems 
D) All of the above activities require professional judgment

Question 16

A company's audit committee meets

Accepted Answer

A) quarterly. 
B) periodically, as needs dictate. 
C) monthly. 
D) annually. 
A) quarterly. 
B) periodically, as needs dictate. 
C) monthly. 
D) annually.

Question 17

The primary purpose of managerial accounting information is to help external users make investing and lending decisions.

Accepted Answer

A) True 
 B)False

Question 18

The managerial accountant reviews the report from the internal audit function that ensures the company's internal controls and risk management policies are functioning properly. According to the report, there were discrepancies in the internal controls that are not in conformance with the organizational policy and applicable law. The managerial accountant suspects that the CEO is embezzling $30,000 per quarter. What should the managerial accountant do about this discrepancy? If the accountant fails to act on this issue, what standard according to the IMA Statement of Ethical Professional Practice does the accountant violate?

Accepted Answer

Since the CEO oversees the operations, t

Question 19

Under SOX, a CPA firm is permitted to perform which of the following services for an audit client with pre-approval from the client's audit committee?

Accepted Answer

A) Tax 
B) Financial information design 
C) Bookkeeping 
D) Consulting 
A) Tax 
B) Financial information design 
C) Bookkeeping 
D) Consulting

Question 20

To resolve ethical dilemmas, the IMA suggests that management accountants should first

Accepted Answer

A) consult an attorney. 
B) call the IMA "Ethics Hotline." 
C) follow their company's established policies for reporting unethical behavior. 
D) discuss the unethical situation with their immediate supervisor. 
A) consult an attorney. 
B) call the IMA "Ethics Hotline." 
C) follow their company's established policies for reporting unethical behavior. 
D) discuss the unethical situation with their immediate supervisor.

The Sarbanes-Oxley Act was enacted

The employees at Table Manufacturing perform the following tasks as indicated in Table A and Table B. Which of the following is the role of Employee A and Employee B?

According to the textbook, a managerial accountant often works on a (an)

Refusing gifts or favors that could be perceived to influence your actions is an example of which ethical standard?

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

Which of following statements is true?

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

________ is designed to meet the needs of internal decision makers.

________ are owners of a company.

Describe the position of the CFO, the main function of the treasurer, and the main function of the controller within the organization.

Managerial accounting reports are always prepared on a quarterly and annual basis.

Which one of the following financial reports is required to be audited by an outside entity?

The IMA suggests that members discuss ethical dilemmas with the company's board of directors.

Despite the proliferation of technology, managerial accountants are still needed to provide professional judgment in which of the following areas?

A company's audit committee meets

The primary purpose of managerial accounting information is to help external users make investing and lending decisions.

Under SOX, a CPA firm is permitted to perform which of the following services for an audit client with pre-approval from the client's audit committee?

To resolve ethical dilemmas, the IMA suggests that management accountants should first

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evalulation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters

Exam 1: Introduction to Managerial Accounting

The Sarbanes-Oxley Act was enacted

The employees at Table Manufacturing perform the following tasks as indicated in Table A and Table B. Which of the following is the role of Employee A and Employee B?

According to the textbook, a managerial accountant often works on a (an)

Refusing gifts or favors that could be perceived to influence your actions is an example of which ethical standard?

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

Which of following statements is true?

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

________ is designed to meet the needs of internal decision makers.

________ are owners of a company.

Describe the position of the CFO, the main function of the treasurer, and the main function of the controller within the organization.

Managerial accounting reports are always prepared on a quarterly and annual basis.

Which one of the following financial reports is required to be audited by an outside entity?

The IMA suggests that members discuss ethical dilemmas with the company's board of directors.

Despite the proliferation of technology, managerial accountants are still needed to provide professional judgment in which of the following areas?

A company's audit committee meets

The primary purpose of managerial accounting information is to help external users make investing and lending decisions.

Under SOX, a CPA firm is permitted to perform which of the following services for an audit client with pre-approval from the client's audit committee?

To resolve ethical dilemmas, the IMA suggests that management accountants should first

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evalulation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters