Question 1

Which of the following best describes a profit center:

Accepted Answer

A)  authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply. 
B)  authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply, and significant control over the amount of invested capital. 
C)  authority to make decisions over the most significant costs of operations, including the power to choose the sources of supply. 
D)  authority to provide specialized support to other units within the organization. 
E)  responsibility for combining the raw materials, direct labor, and other factors of production into a final product. 
A)  authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply. 
B)  authority to make decisions affecting the major determinants of profit, including the power to choose its markets and sources of supply, and significant control over the amount of invested capital. 
C)  authority to make decisions over the most significant costs of operations, including the power to choose the sources of supply. 
D)  authority to provide specialized support to other units within the organization. 
E)  responsibility for combining the raw materials, direct labor, and other factors of production into a final product. A

Question 2

Primary recipients of financial statement information are internal management.

Accepted Answer

A) True 
 B)False  False

Question 3

Employees who are responsible for a task must have the __________________________ to make decisions within the limits of the responsibility delegated.

Accepted Answer

authority

Question 4

Which statement is not true? The manager's span of control

Accepted Answer

A)  is narrow for routine and repetitive tasks 
B)  is related to the number of layers of management 
C)  affects the amount of detail provided to a manager 
D)  can affect employee morale and motivation 
A)  is narrow for routine and repetitive tasks 
B)  is related to the number of layers of management 
C)  affects the amount of detail provided to a manager 
D)  can affect employee morale and motivation

Question 5

The manager of a cost center is responsible for cost control and revenue generation.

Accepted Answer

A) True 
 B)False

Question 6

Which statement is not correct?

Accepted Answer

A)  the post-closing trial balance reports the ending balance of each account in the general ledger 
B)  one purpose of preparing the unadjusted trial balance is to ensure that debits equal credits 
C)  financial statements are prepared based on the unadjusted trial balance 
D)  the unadjusted trial balance reports control account balances but omits subsidiary ledger detail 
A)  the post-closing trial balance reports the ending balance of each account in the general ledger 
B)  one purpose of preparing the unadjusted trial balance is to ensure that debits equal credits 
C)  financial statements are prepared based on the unadjusted trial balance 
D)  the unadjusted trial balance reports control account balances but omits subsidiary ledger detail

Question 7

Which statement is not true? Responsibility accounting

Accepted Answer

A)  involves both a top-down and bottom-up flow of information 
B)  acknowledges that some economic events cannot be traced to any manager 
C)  creates a budget 
D)  compares actual performance with budget 
A)  involves both a top-down and bottom-up flow of information 
B)  acknowledges that some economic events cannot be traced to any manager 
C)  creates a budget 
D)  compares actual performance with budget

Question 8

Contrast the four decision types, strategic planning, tactical planning, management control and operational control, by the five decision characteristics, time frame, scope, level of details, recurrence, and certainty.

Accepted Answer

Strategic planning decisions are 1) typi

Question 9

Which report is not an output of the Financial Reporting System (FRS)?

Accepted Answer

A)  variance analysis report 
B)  statement of cash flows 
C)  tax return 
D)  comparative balance sheet 
A)  variance analysis report 
B)  statement of cash flows 
C)  tax return 
D)  comparative balance sheet

Question 10

What type of data is found in the general ledger master file?

Accepted Answer

A)  a chronological record of all transactions 
B)  the balance of each account in the chart of accounts 
C)  budget records for each account in the chart of accounts 
D)  subsidiary details supporting a control account 
A)  a chronological record of all transactions 
B)  the balance of each account in the chart of accounts 
C)  budget records for each account in the chart of accounts 
D)  subsidiary details supporting a control account

Question 11

A fundamental principle of responsibility accounting is that

Accepted Answer

A)  managers are accountable only for items they control 
B)  a manager's span of control should not exceed eight people 
C)  structured reports should be prepared weekly 
D)  the information flow is in one direction, top-down 
A)  managers are accountable only for items they control 
B)  a manager's span of control should not exceed eight people 
C)  structured reports should be prepared weekly 
D)  the information flow is in one direction, top-down

Question 12

A report is said to have information content if it eliminates uncertainty associated with a problem facing the decision maker.

Accepted Answer

A) True 
 B)False

Question 13

Strategic decision are subordinate to tactical planning decisions.

Accepted Answer

A) True 
 B)False

Question 14

Define and discuss the journal voucher.

Accepted Answer

The source of input to the general ledge

Question 15

Which statement is not correct? The general ledger master file

Accepted Answer

A)  is based on the firm's chart of account 
B)  contains a record for control accounts 
C)  is an output of the Financial Reporting System (FRS) 
D)  supplies information for management decision making 
A)  is based on the firm's chart of account 
B)  contains a record for control accounts 
C)  is an output of the Financial Reporting System (FRS) 
D)  supplies information for management decision making

Question 16

Which of the following is not a report attribute needed to make a report effective?

Accepted Answer

A)  relevance 
B)  accuracy 
C)  detailed 
D)  exception orientation 
A)  relevance 
B)  accuracy 
C)  detailed 
D)  exception orientation

Question 17

With a limited work force and a desire to maintain strong internal control, which combination of duties performed by a single individual presents the least risk exposure?

Accepted Answer

A)  maintaining the inventory ledger and recording the inventory journal voucher in the general ledger 
B)  recording the inventory journal voucher in the general ledger and maintaining custody of inventory 
C)  maintaining the cash disbursements journal and recording direct labor costs applied to specific jobs 
D)  preparing the accounts payable journal voucher and recording it in the general ledger 
A)  maintaining the inventory ledger and recording the inventory journal voucher in the general ledger 
B)  recording the inventory journal voucher in the general ledger and maintaining custody of inventory 
C)  maintaining the cash disbursements journal and recording direct labor costs applied to specific jobs 
D)  preparing the accounts payable journal voucher and recording it in the general ledger

Question 18

The formalization of tasks principle suggests that management should structure the firm around the unique skills sets of key individuals.

Accepted Answer

A) True 
 B)False

Question 19

What three elements must be present for a problem to be "structured?"

Accepted Answer

data, proc

Question 20

What account appears on the post-closing trial balance?

Accepted Answer

A)  income summary 
B)  Machinery 
C)  rent expense 
D)  interest income 
A)  income summary 
B)  Machinery 
C)  rent expense 
D)  interest income

Which of the following best describes a profit center:

Primary recipients of financial statement information are internal management.

Employees who are responsible for a task must have the __________________________ to make decisions within the limits of the responsibility delegated.

Which statement is not true? The manager's span of control

The manager of a cost center is responsible for cost control and revenue generation.

Which statement is not correct?

Which statement is not true? Responsibility accounting

Contrast the four decision types, strategic planning, tactical planning, management control and operational control, by the five decision characteristics, time frame, scope, level of details, recurrence, and certainty.

Which report is not an output of the Financial Reporting System (FRS)?

What type of data is found in the general ledger master file?

A fundamental principle of responsibility accounting is that

A report is said to have information content if it eliminates uncertainty associated with a problem facing the decision maker.

Strategic decision are subordinate to tactical planning decisions.

Define and discuss the journal voucher.

Which statement is not correct? The general ledger master file

Which of the following is not a report attribute needed to make a report effective?

With a limited work force and a desire to maintain strong internal control, which combination of duties performed by a single individual presents the least risk exposure?

The formalization of tasks principle suggests that management should structure the firm around the unique skills sets of key individuals.

What three elements must be present for a problem to be "structured?"

What account appears on the post-closing trial balance?

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics, Fraud, and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, Program Changes, and Application Controls

Filters

Exam 8: Financial Reporting, and Management Reporting Systems

Which of the following best describes a profit center:

Primary recipients of financial statement information are internal management.

Employees who are responsible for a task must have the __________________________ to make decisions within the limits of the responsibility delegated.

Which statement is not true? The manager's span of control

The manager of a cost center is responsible for cost control and revenue generation.

Which statement is not correct?

Which statement is not true? Responsibility accounting

Contrast the four decision types, strategic planning, tactical planning, management control and operational control, by the five decision characteristics, time frame, scope, level of details, recurrence, and certainty.

Which report is not an output of the Financial Reporting System (FRS)?

What type of data is found in the general ledger master file?

A fundamental principle of responsibility accounting is that

A report is said to have information content if it eliminates uncertainty associated with a problem facing the decision maker.

Strategic decision are subordinate to tactical planning decisions.

Define and discuss the journal voucher.

Which statement is not correct? The general ledger master file

Which of the following is not a report attribute needed to make a report effective?

With a limited work force and a desire to maintain strong internal control, which combination of duties performed by a single individual presents the least risk exposure?

The formalization of tasks principle suggests that management should structure the firm around the unique skills sets of key individuals.

What three elements must be present for a problem to be "structured?"

What account appears on the post-closing trial balance?

The Information System: an Accountants Perspective

Introduction to Transaction Processing

Ethics, Fraud, and Internal Control

The Revenue Cycle

The Expenditure Cycle Part I: Purchases and Cash Disbursements Procedures

The Expenditure Cycle Part II: Payroll Processing and Fixed Asset Procedures

The Conversion Cycle

Database Management Systems

The Rea Approach to Business Process Modeling

Enterprise Resource Planning Systems

Electronic Commerce Systems

Managing the Systems Development Life Cycle

Construct, Deliver, and Maintain Systems Projects

IT Controls Part I: Sarbanes-Oxley and It Governance

IT Controls Part II: Security and Access

IT Controls Part III: Systems Development, Program Changes, and Application Controls

Filters