11.

The following characteristics refer to Financial Accounting except

a. Provides information to external users

b. Emphasizes on objective data

c. Has no externally imposed standards

d. Generates general purpose financial statements

11-C

12. To distinguish between management accounting and financial accounting, the following
statements are correct, except

a. Management accounting, in view of its various integrated recipients should have a

separate data recording and retrieval system from financial accounting.

b. Financial accounting is bound by GAAP, and management accounting need not be in

conformity with GAAP.

c. Financial accounting can be regarded as the process while management accounting can
be regarded as the product of the process.

d. Management accounting output must be released on time so as not to erode its

usefulness; Financial accounting output can still be useful even when delayed.

12-A

13. Which of the following is a Controller’s responsibility?

a. Tax planning and accounting c. In charge of credit and collection

b. Custodian of funds d. Arranging short-term financing

13-A

14. You were newly appointed as controller of CZX Corporation. Among the jobs your
department would do include the following:
a. Cash receipts, cash disbursements, general accounting, taxation, financial accounting
analysis, and internal auditing.

b. Financial reporting, strategic planning, managerial accounting, taxation, financial

statement analysis, and internal accounting.

c. Financial accounting, managerial accounting, cost accounting, inventory accounting,

payroll accounting, tax accounting and sales forecasting.

d. Tax accounting, managerial accounting, internal auditing, general accounting.

14-D

15. Controllership has attained special recognition in corporate management as business

expands 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.

2. Financial reporting and interpretation.

3. Credit management.

4. Sourcing and investing of funds.

5. Reporting to government regulatory agencies.

6. Risk management.

7. Economic appraisal.

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. 2, 3, 5, and 7, and 8 only.

15-B

16. 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 resources and economic evaluation.

d. Preparation of proposals for product promotions.

16-D

17. As business increase in complexity, the function of controllership has attained top level
recognition in the corporate area. Many areas related to finance and accounting have been
identified with controllership. One area that becomes controversial when included under the
controller and viewed that such inclusion violates basic internal control is

a. Credit and collection.

b. Internal auditing.

c. Long-range financial planning.

d. Taxation and reporting to government agencies.

17-B

18. Which of the following is not usually a controller’s function?

a. Planning for control. c. Tax administration.

b. Protection of assets. d. Credit and collection.

18-D

19. Which of the following is not a Controller’s function?

a. In charge of planning and control

b. Protection of assets such as adequate insurance coverage. Etc.

c. Interpreting and reporting on effects of external factors on the business

d. Arranging short-term financing

19-D

20. Controllers are generally not concerned with

a. Reporting to government c. Protection of assets

b. Preparation of tax returns d. Investor relations

20-D