Question 1

Performing duties in accordance with relevant laws,regulations,and technical standards make up which IMA professional ethics standard?

Accepted Answer

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

Question 2

Which of the following statements about XBRL is FALSE?

Accepted Answer

A) The US is the first country to mandate use of XBRL. 
B) XBRL will decrease the need for manual financial information searches. 
C) XBRL is only required for publicly-traded companies. 
D) XBRL should decrease the time companies spend converting their financial information into various government-prescribed formats. 
A) The US is the first country to mandate use of XBRL. 
B) XBRL will decrease the need for manual financial information searches. 
C) XBRL is only required for publicly-traded companies. 
D) XBRL should decrease the time companies spend converting their financial information into various government-prescribed formats. A

Question 3

Managerial accounting gathers,summarizes,and reports the cost and revenue data relevant to each decision that is made.

Accepted Answer

A) True 
 B)False  True

Question 4

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

Accepted Answer

A) ERP. 
B) JIT. 
C) Supply-chain management. 
D) TQM. 
A) ERP. 
B) JIT. 
C) Supply-chain management. 
D) TQM.

Question 5

Planning involves which of the following activities?

Accepted Answer

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

Question 6

The "Ethics Hotline" provides resolution for IMA members who want to discuss ethical dilemmas.

Accepted Answer

A) True 
 B)False

Question 7

The primary managerial accounting product is the company's audited financial statements.

Accepted Answer

A) True 
 B)False

Question 8

XBRL will be required of both public and private companies.

Accepted Answer

A) True 
 B)False

Question 9

The person MOST likely to use ONLY financial accounting information would be the:

Accepted Answer

A) bank loan officer. 
B) plant manager. 
C) vice president of plant operations. 
D) product manager. 
A) bank loan officer. 
B) plant manager. 
C) vice president of plant operations. 
D) product manager.

Question 10

Which would be a subgroup of the Board of Directors?

Accepted Answer

A) Audit committee 
B) Financial committee 
C) Managerial committee 
D) Stockholders' committee 
A) Audit committee 
B) Financial committee 
C) Managerial committee 
D) Stockholders' committee

Question 11

Wonder Company is considering installing an ERP system.To make a good decision,Wonder needs to conduct a(n):

Accepted Answer

A) JIT survey. 
B) TQM survey. 
C) ISO 9001:2000 survey. 
D) cost-benefit analysis. 
A) JIT survey. 
B) TQM survey. 
C) ISO 9001:2000 survey. 
D) cost-benefit analysis.

Question 12

Which of the following groups are external users of financial information?

Accepted Answer

A) Customers of the company 
B) Vendors of the company 
C) Potential investors of the company 
D) All of the above 
A) Customers of the company 
B) Vendors of the company 
C) Potential investors of the company 
D) All of the above

Question 13

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?

Accepted Answer

A) Costs outweigh 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. 
A) Costs outweigh 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.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Managerial accountants may be responsible for:

Accepted Answer

A) analyzing data. 
B) communicating results. 
C) providing decision support. 
D) all of the above. 
A) analyzing data. 
B) communicating results. 
C) providing decision support. 
D) all of the above.

Question 16

According to SOX,at least one member of the audit committee should be a financial expert.

Accepted Answer

A) True 
 B)False

Question 17

A company ships out pre-ordered merchandise the last week of December,instead of in mid- January as originally scheduled,to ensure a profit for the year.This action could be seen as a violation of what ethical standard?

Accepted Answer

A) Competence 
B) Confidentiality 
C) Integrity 
D) All of the above 
A) Competence 
B) Confidentiality 
C) Integrity 
D) All of the above

Question 18

Companies that wish to demonstrate their commitment to international quality standards may become certified by what organization?

Accepted Answer

A) SEC 
B) IFRS 
C) IMA 
D) ISO 
A) SEC 
B) IFRS 
C) IMA 
D) ISO

Question 19

The concept of the lean production philosophy is generally credited to General Motors.

Accepted Answer

A) True 
 B)False

Question 20

Managerial accountants only need a solid understanding of managerial accounting,and not financial accounting.

Accepted Answer

A) True 
 B)False

Performing duties in accordance with relevant laws,regulations,and technical standards make up which IMA professional ethics standard?

Which of the following statements about XBRL is FALSE?

Managerial accounting gathers,summarizes,and reports the cost and revenue data relevant to each decision that is made.

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

Planning involves which of the following activities?

The "Ethics Hotline" provides resolution for IMA members who want to discuss ethical dilemmas.

The primary managerial accounting product is the company's audited financial statements.

XBRL will be required of both public and private companies.

The person MOST likely to use ONLY financial accounting information would be the:

Which would be a subgroup of the Board of Directors?

Wonder Company is considering installing an ERP system.To make a good decision,Wonder needs to conduct a(n):

Which of the following groups are external users of financial information?

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

Managerial accountants may be responsible for:

According to SOX,at least one member of the audit committee should be a financial expert.

A company ships out pre-ordered merchandise the last week of December,instead of in mid- January as originally scheduled,to ensure a profit for the year.This action could be seen as a violation of what ethical standard?

Companies that wish to demonstrate their commitment to international quality standards may become certified by what organization?

The concept of the lean production philosophy is generally credited to General Motors.

Managerial accountants only need a solid understanding of managerial accounting,and not financial accounting.

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, lean Production, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Short Term Business Decisions

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 1: Introduction to Managerial Accounting

Performing duties in accordance with relevant laws,regulations,and technical standards make up which IMA professional ethics standard?

Which of the following statements about XBRL is FALSE?

Managerial accounting gathers,summarizes,and reports the cost and revenue data relevant to each decision that is made.

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

Planning involves which of the following activities?

The "Ethics Hotline" provides resolution for IMA members who want to discuss ethical dilemmas.

The primary managerial accounting product is the company's audited financial statements.

XBRL will be required of both public and private companies.

The person MOST likely to use ONLY financial accounting information would be the:

Which would be a subgroup of the Board of Directors?

Wonder Company is considering installing an ERP system.To make a good decision,Wonder needs to conduct a(n):

Which of the following groups are external users of financial information?

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

Managerial accountants may be responsible for:

According to SOX,at least one member of the audit committee should be a financial expert.

A company ships out pre-ordered merchandise the last week of December,instead of in mid- January as originally scheduled,to ensure a profit for the year.This action could be seen as a violation of what ethical standard?

Companies that wish to demonstrate their commitment to international quality standards may become certified by what organization?

The concept of the lean production philosophy is generally credited to General Motors.

Managerial accountants only need a solid understanding of managerial accounting,and not financial accounting.

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, lean Production, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Short Term Business Decisions

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Filters