Reference no: EM132472056

Question 1: The treasury function is usually not concerned with

a. Financial reporting.

b. Short-term financing.

c. Cash custody and banking.

d. Credit extension and collection of bad debts.

Question 2: The responsibility for safeguarding financial assets and arranging financing is given to the

a. Controller

b. Chief financial officer

c. Comptroller

d. Treasurer

Question 3: Managerial accounting is similar to financial accounting in that

a. both are governed by generally accepted accounting principles.

b. both deal with economic events.

c. both concentrate on historical costs.

d. both classify reported information in the same way.

Question 4: Managerial accounting differs from financial accounting in that it is

a. more concerned with the future.

b. more concerned with segments of a company.

c. less constrained by rules and regulations.

d. all of the above.

Question 5: Which activity is NOT normally performed by managerial accountants?

a. Assisting managers to interpret data in managerial accounting reports.

b. Designing systems to provide information for internal and external reports.

c. Gathering data from sources other than the accounting system.

d. Deciding the best level of inventory to be maintained.

Question 6: Which function is most directly related to management by objectives?

a. Planning.

b. Control.

c. Decision making.

d. Reporting.

Question 7: Which consideration influences the frequency of an internal report?

a. The wishes of the managers receiving the report.

b. The frequency with which decisions are made that require the information in the report.

c. The cost of preparing the report.

d. All of the above.

Question 8: The professional certification most relevant for managerial accountants is the

a. CMA.

b. CPA.

c. CSA.

d. MAS.

Question 9. A firm that is competing using a _________________strategy is attempting to create a perception of uniqueness that will permit a higher selling price.

a. value chain

b. lowest cost

c. lead time

d. differentiation

Question 10: Planning and control are

a. different names for the same thing.

b. the basic functions of management.

c. described equally well by the terms "decision making" and "performance evaluation."

d. exemplified by, respectively, financial statements and budgeting.

Question 11: Managerial accounting is applicable to

a. business organizations only c. both businesses and non-profit organizations

b. non-profit organizations only d. neither business nor non-profit organizations

Question 12: Integrity is an ethical requirement for all management accountants. One aspect of integrity requires

a. Maintenance of an appropriate level of professional competence.

b. Performance of professional duties in accordance with applicable laws.

c. Refraining from improper use of confidential information.

d. Avoidance of actual or apparent conflicts of interest and advise all appropriate parties of any potential conflict.

Question 13: If a management accountant has a problem in resolving an ethical conflict, the first action that

should normally be taken is to

a. resign from the company.

b. notify the police.

c. discuss the problem with his/her immediate superior.

d. remain silent.

Question 14: The treasury function includes

a. preparation of tax returns.

b. cash custody and banking.

c. reporting to government.

d. financial reporting