Module 1

Name: __________________________________________ Date: _______________

Quiz name: Introduction to Management Accounting

1. Managerial accounting applies to each of the following types of businesses
except
A) service firms.
B) merchandising firms
C) manufacturing firms
D) Managerial accounting applies to all types of firms.
2. Managerial accounting information is generally prepared for
A) stockholders.
B) creditors.
C) managers.
D) regulatory agencies.
3. Managerial accounting information
A) pertains to the entity as a whole and is highly aggregated.
B) pertains to subunits of the entity and may be very detailed
C) is prepared only once a year
D) is constrained by the requirements of generally accepted accounting
principles.
4. Which of the following is not an internal user?
A) Creditor
B) Department manager
C) Controller
D) Treasurer
5. Internal reports must be communicated
A) daily.
B) monthly.
C) annually.
D) as needed
6. Financial statements for external users can be described as
A) user-specific
B) general-purpose.
C) special-purpose.
D) managerial reports.
7. Managerial accounting reports can be described as
A) general-purpose
B) macro-reports
C) special-purpose
D) classified financial statements.
8. A distinguishing feature of managerial accounting is
A) external users.
B) general-purpose reports
C) very detailed reports
D) quarterly and annual reports
9. Planning is a function that involves
A) hiring the right people for a particular job
B) coordinating the accounting information system
C) setting goals and objectives for an entity
D) analyzing financial statements.
10. The managerial function of controlling
A) is performed only by the controller of a company
B) is only applicable when the company sustains a loss
C) is concerned mainly with operating a manufacturing segment
D) includes performance evaluation by management.
11. In determining whether planned goals are being met, a manager is
performing the function of
A) planning.
B) follow-up.
C) directing.
D) controlling
12. Directing includes
A) providing a framework for management to have criteria to terminate
employees when needed.
B) running a department under quality control standards universally accepted
C) coordinating a company's diverse activities and human resources to produce
a smooth-running operation.
D) developing a complex performance ranking system to give certain high
performers good raises
13. Planning is a function that involves
A) coordinating the accounting information system
B) hiring the right people for a particular job
C) analysing financial statements
D) setting goals and objectives for an entity
14. the managerial function of controlling
A) is concerned mainly with operating a manufacturing segment
B) includes performance evaluation by management
C) is only applicable when the company sustains a loss
D) is performed only by the controller of a company
15. the management function that requires managers to look ahead and
establish objectives is
A) directing
B) controlling
C) planning
D) constraining
16. in determining whether planned goals are being met, a manager is
performing the function of
A) planning
B) follow-up
C) directing
D) controlling
17. another title for the income statement is the operating statement. You are
being more effective if you can achieve the same output using less inputs. You
are being more efficient if you can achieve more output using the same inputs.
18. reports prepared in financial accounting are general-purpose reports,
whereas reports prepared in managerial accounting are usually special-
purpose reports
A) true
B) false
19. managerial accounting information generally pertains to an entity as a
whole and highly aggregated
A) true
B) false
20. managerial accounting internal reports are prepared more frequently
than are classified financial statement
A) True
B) false
21. financial accounting information is prepared mainly for external users,
while managerial accounting information is prepared primarily for internal
users. The types of reports prepared in managerial accounting are often special
purpose reports prepared for a specific decision. Managerial accounting
reports generally pertain to subunits of a business and may be very detailed.
Three broad managerial functions are: (1) planning (2) directing (3) controlling.
The planning function is concerned with setting goals and objectives for the
entity. Exercising good judgment in performing the managerial functions and
choosing among alternative courses of action is called decision making.
22. controlling is the process of determining whether planned goals are being
met
A) true
B) false
23. decision-making is an integral part of the planning, directing and
controlling functions
A) true
B) false
23. the management function of organizing and directing is mainly concerned
with setting goals and objectives for the entity
A) true
B) false
24. managerial accounting applies to all forms of business organizations
A) true
B) false
25. managerial accounting information generally pertains to an entity as a
whole and is highly aggregated
A) true
B) false
26. managerial accounting internal reports are prepared more frequently
than are classified financial statements
A) true
B) false
27. managerial accounting information is generally prepared for managers
28. managerial accounting information pertains to subunits of the entity and
may be very detailed
29. which of the following is not an internal user? Creditor
30. planning is a function that involves setting goals and objectives for an entity
31. the managerial function of controlling includes performance evaluation by
management
32. in determining whether planned goals are being met, a manager is
performing the function of controlling
34. directing includes coordinating a company’s diverse activities and human
resources to produce a smooth-running operation