QUIZ FOR CHAPTER 1 – INTRODUCTION TO MANAGEMENT ACCOUNTING

MW 300-430 PM
09/16/2020

1. Management accounting is an integral part of the management process. As such, it provides

essential information for the following objectives except
A. Maintaining the current level of resources utilization as well as internal and external
communication.
B. Measuring and evaluating performances.
C. Planning strategies and controlling current activities of the organization.
D. Enhancing objectivity in decision-making.

2. The chief management accountant called “controller” traditionally performs these functions
except
A. The establishment and implementation of the financial planning process.
B. Financial and management reporting and interpretation.
C. Protection of company’s resources and economic conditions.
D. Preparation of proposals for product promotions.

3. Which of the following areas is not emphasized on the CMA examination?

A. External auditing and business law
B. Economics, finance and management
C. Decision analysis and information systems
D. Financial accounting and reporting

4. What are the 3 Pillars of Management Accounting? Explain each briefly.

5. What are the 3 similarities between Financial Accounting and Management Accounting?

6. Give at least 5 differences between Financial Accounting and Management Accounting.

7. What do you mean by “management accountants are value-creators”?

8. Give at least 3 skills needed of Management Accountants and explain each briefly.

9. Engaging in or supporting an activity that would discredit the profession would relate to which
part of the IMA Code of Conduct?

A. Competence
B. Credibility
C. Independence
D. Integrity

10. Management Accountants

A. Are found primarily at lower levels of the organizational hierarchy.
 B. Often work on cross-functional teams.
C. Are found throughout an organization.
D. Are found throughout an organization and work on cross-functional teams.

11. In comparing management and financial accounting, which of the following more accurately
describes management accounting information?
A. Comparable, verifiable, monetary
B. Budgeted, informative, adaptable
C. Required, estimated, internal
D. Historical, precise, useful

12. Statement 1 – Management control and engineering control are synonymous.

Statement 2 – Control from the viewpoint of management accounting is defined as the process
of setting maximum limits on financial expenditures.
A. Both statements are true.
B. Both statements are false.
C. Statement 1 is true. Statement 2 is false.
D. Statement 1 is false. Statement 2 is true.
13. Management accounting is considered successful when it
A. Is relevant.
B. Is accurate.
C. Helps managers improve their decisions.
D. Is in accordance with GAAP.

14. Controllership has attained special recognition in corporate management as businesses expand
in complexity and reach, and as the controller exerts influence for management to take
organization’s goals. Controllership and treasurership constitute corporate finance. These are
among the controller’s traditional functions:
1. Tax management. 5. Reporting to government regulatory agencies.
2. Financial reporting and interpretation. 6. Risk management.
3. Credit management. 7. Economic appraisal.
4. Sourcing and investing funds. 8. Planning for control.

A. All eight items. C. Items 1, 2, 3, 4, 5, 7, and 8 only.

B. Items 1, 2, 5, 7 and 8 only. D. Items 2, 3, 5, and 7 and 8 only.