Question 1

Which of the following is NOT a technical competency that a managerial accountant needs to possess?

Accepted Answer

A) Internal Controls 
B) Tax return preparation 
C) Decision Analysis 
D) Technology 
A) Internal Controls 
B) Tax return preparation 
C) Decision Analysis 
D) Technology

Question 2

Which of the following statements is true about managerial accounting?

Accepted Answer

A) Managerial accounting reports aid potential investors. 
B) Managerial accounting reports must follow GAAP. 
C) Managerial accounting reports are audited by CPAs. 
D) Managerial accounting reports provide detailed internal information. 
A) Managerial accounting reports aid potential investors. 
B) Managerial accounting reports must follow GAAP. 
C) Managerial accounting reports are audited by CPAs. 
D) Managerial accounting reports provide detailed internal information.

Question 3

________ are a company's decision makers.

Accepted Answer

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

Question 4

A wave of accounting scandals around the turn of the 21st century prompted which of the following?

Accepted Answer

A) XBRL 
B) IFRS 
C) SOX 
D) ISO 
A) XBRL 
B) IFRS 
C) SOX 
D) ISO

Question 5

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 CPAs 
C) The CFO and the independent CPAs 
D) The treasurer and controller 
A) The CFO and Internal Audit Department 
B) The Internal Audit Department and the independent CPAs 
C) The CFO and the independent CPAs 
D) The treasurer and controller

Question 6

Managerial accounting would use which of the following types of information?

Accepted Answer

A) Forecasts of future earnings 
B) Financial information 
C) Nonfinancial information 
D) All of the above 
A) Forecasts of future earnings 
B) Financial information 
C) Nonfinancial information 
D) All of the above

Question 7

Karlene is the new managerial accountant at the Bay Beach House Restaurant. Karlene complies with principles and standards that help accountants deal with ethical challenges that she can encounter in the workplace. The principles and standards ensure that management accountants exhibit the highest level of ethical behavior. The four ethical standards include competence, confidentiality, integrity, and credibility. Which of the following requires management accountants comply with the four ethical standards?

Accepted Answer

A) IMA's Statement on Ethical Professional Practice 
B) Certified Management Accountant (CM
A)  
C) Sarbanes-Oxley Act of 2002 
D) Certified Public Accountant (CP
A)  
E) The Federal Reserve Board 
A) IMA's Statement on Ethical Professional Practice 
B) Certified Management Accountant (CM
A)  
C) Sarbanes-Oxley Act of 2002 
D) Certified Public Accountant (CP
A)  
E) The Federal Reserve Board

Question 8

Management accounting requires an independent audit of the firm's books.

Accepted Answer

A) True 
 B)False

Question 9

Communicating information fairly and objectively is an example of which ethical standard?

Accepted Answer

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

Question 10

All of the following are advantages of an ERP except:

Accepted Answer

A) Streamlines operations which saves money for the company. 
B) Automates reporting which makes the role of the managerial accountant obsolete in turn saving money. 
C) Helps the company respond to changes quickly. 
D) Replaces different software allowing for more uniformity across functions and regions. 
A) Streamlines operations which saves money for the company. 
B) Automates reporting which makes the role of the managerial accountant obsolete in turn saving money. 
C) Helps the company respond to changes quickly. 
D) Replaces different software allowing for more uniformity across functions and regions.

Question 11

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

Accepted Answer

A) Provide decision support that is accurate, clear, concise and timely. 
B) Keep information confidential, except when disclosure is legally required. 
C) Communicate information fairly and objectively. 
D) Abstain from engaging in or supporting any activity that might discredit the profession. 
A) Provide decision support that is accurate, clear, concise and timely. 
B) Keep information confidential, except when disclosure is legally required. 
C) Communicate information fairly and objectively. 
D) Abstain from engaging in or supporting any activity that might discredit the profession.

Question 12

The Board of Directors is elected jointly by the CEO and CFO.

Accepted Answer

A) True 
 B)False

Question 13

Preparing budgets is an example of which of the following management functions?

Accepted Answer

A) Planning 
B) Directing 
C) Analyzing 
D) Controlling 
A) Planning 
B) Directing 
C) Analyzing 
D) Controlling

Question 14

Which of the following would have the least effect on a cost-benefit analysis?

Accepted Answer

A) Steadily rising prices 
B) Rapidly declining prices 
C) Constant prices 
D) None of the above 
A) Steadily rising prices 
B) Rapidly declining prices 
C) Constant prices 
D) None of the above

Question 15

When management reviews product sales reports to set goals and objectives and then evaluates the results of sales operations against the plan and performance results, 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 planning 
A) Controlling and planning 
B) Directing and planning 
C) Directing, controlling, and planning 
D) Analyzing, directing, and planning

Question 16

The IMA's confidential "Ethics Hotline" provides specific resolutions (answers)to IMA members who face ethical dilemmas.

Accepted Answer

A) True 
 B)False

Question 17

A company's budget information is most likely to be used by which of the following groups?

Accepted Answer

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

Question 18

Planning involves which of the following activities?

Accepted Answer

A) Evaluating the results of operations 
B) Overseeing the company's day-to-day operations 
C) Setting goals and objectives for the company 
D) None of the above 
A) Evaluating the results of operations 
B) Overseeing the company's day-to-day operations 
C) Setting goals and objectives for the company 
D) None of the above

Question 19

Movements toward sustainability and corporate responsibility often

Accepted Answer

A) result in increased demand for the company's product or service. 
B) include monetary support of local schools and charities. 
C) include green initiatives. 
D) All of the above are correct. 
A) result in increased demand for the company's product or service. 
B) include monetary support of local schools and charities. 
C) include green initiatives. 
D) All of the above are correct.

Question 20

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

Accepted Answer

A) True 
 B)False

Which of the following is NOT a technical competency that a managerial accountant needs to possess?

Which of the following statements is true about managerial accounting?

________ are a company's decision makers.

A wave of accounting scandals around the turn of the 21st century prompted which of the following?

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

Managerial accounting would use which of the following types of information?

Management accounting requires an independent audit of the firm's books.

Communicating information fairly and objectively is an example of which ethical standard?

All of the following are advantages of an ERP except:

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

The Board of Directors is elected jointly by the CEO and CFO.

Preparing budgets is an example of which of the following management functions?

Which of the following would have the least effect on a cost-benefit analysis?

When management reviews product sales reports to set goals and objectives and then evaluates the results of sales operations against the plan and performance results, which of management's three primary responsibilities is fulfilled?

The IMA's confidential "Ethics Hotline" provides specific resolutions (answers)to IMA members who face ethical dilemmas.

A company's budget information is most likely to be used by which of the following groups?

Planning involves which of the following activities?

Movements toward sustainability and corporate responsibility often

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

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

Which of the following is NOT a technical competency that a managerial accountant needs to possess?

Which of the following statements is true about managerial accounting?

________ are a company's decision makers.

A wave of accounting scandals around the turn of the 21st century prompted which of the following?

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

Managerial accounting would use which of the following types of information?

Management accounting requires an independent audit of the firm's books.

Communicating information fairly and objectively is an example of which ethical standard?

All of the following are advantages of an ERP except:

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

The Board of Directors is elected jointly by the CEO and CFO.

Preparing budgets is an example of which of the following management functions?

Which of the following would have the least effect on a cost-benefit analysis?

When management reviews product sales reports to set goals and objectives and then evaluates the results of sales operations against the plan and performance results, which of management's three primary responsibilities is fulfilled?

The IMA's confidential "Ethics Hotline" provides specific resolutions (answers)to IMA members who face ethical dilemmas.

A company's budget information is most likely to be used by which of the following groups?

Planning involves which of the following activities?

Movements toward sustainability and corporate responsibility often

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

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