1. Which of the following statements refers to management accounting information?

a. The scope tends to be highly aggregate.

b. There are no regulations governing the reports.
c. The audience tends to be stockholders, creditors, and tax authorities.
d. The reports are generally delayed and historical.

2. The unit of measurement used in management accounting is

a. primarily the historical peso.
b. the measurement unit used by competing companies.
c. usually current replacement cost.
d. any measurement unit that is useful in a particular situation.

3. The IMA Code of Ethics requires a management accountant to follow the established policies of
the organization when facing an ethical conflict. When management accountants fail to resolve
an ethical conflict by talking with their immediate supervisor they should
a. notify the audit committee of the board of directors.
b. contact the next higher managerial level.
c. communicate the problem to authorities outside the organization.
d. contact the chief financial officer.

4. Which of the following statements is true?

a. External and internal users of accounting information have exactly the same information
needs.
b. Managerial emphasizes the organization as a whole more than financial accounting.
c. Financial accounting is less flexible than managerial accounting.
d. Managerial accounting provides the best information to external users.

5. Which of the following descriptions aptly refers to management accounting information?

a. It provides reasonable and timely estimates.
b. It is verifiable and reliable.
c. It is prepared for shareholders.
d. It is driven by rules.
6. Management accounting
a. is geared primarily to the past rather than the future
b. draws from disciplines other than accounting
c. places more emphasis on precision of data compared with financial accounting which
does not
d. is governed by generally accepted accounting principles

7. Which of the following statements about management or financial accounting is false?

a. Management accounting should be flexible.
b. Financial accounting must follow GAAP.
c. Both management and financial accounting are subject to mandatory recordkeeping
requirements.
d. Management accounting is not subject to regulatory reporting standards.

8. The primary role of today's managerial accountant is to:

a. enter data into the accounting system.
b. prepare tax returns.
c. analyze information and create knowledge.
d. collect data.
9. All of the following are “Who” questions that dictate a managerial report's format except
a. to whom should the report be distributed?
b. for whom is the report being prepared?
c. who will read the report?
d. who should write the report?

10. Which of the following does not apply to the content of managerial reports?
a. Pertain to subunits of the entity and may be very detailed.
b. Pertains to the entity as a whole and is highly aggregated.
c. Reporting standard is relevant to the decision to be made.
d. May extend beyond double-entry accounting system.

11. The primary objective of management accounting is to

a. provide the Bureau of Internal Revenue with information about taxable income
b. provide management with information useful for planning and control of operations
c. provide banks and other creditors with information useful in making credit decisions
d. provide stockholders and potential investors with useful information for decision making

12. Management accounting and financial accounting are similar in which of the following respects?
a. Both provide relevant and useful information to management.
b. Both produce almost all of their respective informational reports on a routine monthly
basis.
c. Both rely heavily on the double-entry system.
d. Both use the same unit of measurement.

13. A management accountant who fails to perform professional duties in accordance with relevant
standards is acting contrary to which of the following standards?
a. Objectivity
b. Integrity
c. Competency
d. Confidentiality

14. In comparing management accounting with financial accounting, which of the following
statements is true?
a. Financial accounting reports are more objective, whereas management accounting
reports are more subjective.
b. Both depend on the double-entry system of accounting.
c. Both use historical costs as their primary unit of measurement.
d. Both require adherence to GAAP.

15. Management accounting is as integral part of the management process. As such, it provides
essential information for the following objectives, except:
a. measuring and evaluating performance
b. planning strategies and controlling current activities of the organization
c. enhancing objectivity in decision-making
d. maintaining the current level of resource utilization, as well as internal and external
communication