Question 1

Which of the following reports would management find useful in decision making?

Accepted Answer

A)  monthly reports on activities to the Board of Directors
B)  quarterly reporting to the Toronto Stock Exchange
C)  specific purpose statements on services delivered
D)  audited financial information in the annual report to shareholdersE) B) and D)
F) C) and D)

Question 2

Managerial accounting

Accepted Answer

A)  is concerned with costing products.
B)  is governed by generally accepted accounting principles.
C)  pertains to the entity as a whole and is highly aggregated.
D)  places emphasis on special-purpose information.E) A) and B)
F) All of the above

Question 3

For a manufacturing company, the activities in the value chain would not include

Accepted Answer

A)  research and development.
B)  purchase of raw materials.
C)  customer relations.
D)  performance evaluation.E) All of the above
F) B) and C)

Question 4

Which of the following is not part of managerial accounting?

Accepted Answer

A)  determining whether planned goals are being met
B)  reporting financial information to the shareholders
C)  calculating product costs
D)  controlling costsE) B) and C)
F) A) and D)

Question 5

In Canada the three different professional accounting designations that merged into CPA Canada are

Accepted Answer

A)  CPA, CA, CMA.
B)  CMA, CGA, CPA.
C)  CA, CMA, CGA.
D)  MA, CPA, CA.E) None of the above
F) B) and D)

Question 6

What broad functions do the management of an organization perform?

Accepted Answer

A)  directing, manufacturing, and controlling
B)  planning, directing, and controlling
C)  planning, directing, and selling
D)  planning, manufacturing and controllingE) A) and D)
F) A) and C)

Question 7

A company must inform readers of its annual report of

Accepted Answer

A)  all changes in financial accounting policies.
B)  results of any overseas activities.
C)  all changes in internal accounting information.
D)  changes to management's bonus system.E) A) and B)
F) C) and D)

Question 8

What term describes all activities associated with providing a product or service?

Accepted Answer

A)  the manufacturing chain
B)  the product chain
C)  the supply chain
D)  the value chainE) All of the above
F) B) and C)

Question 9

Which one of the following is not a main component of the value chain sequence?

Accepted Answer

A)  ERP
B)  sales and marketing
C)  production
D)  customer relationsE) All of the above
F) A) and B)

Question 10

Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion?

Accepted Answer

A)  theory of constraints
B)  just-in-time inventory
C)  activity-based costing
D)  total-quality managementE) A) and D)
F) B) and C)

Question 11

Which one of the following is true concerning the managerial function of controlling?

Accepted Answer

A)  It includes performance evaluation by management.
B)  It is concerned mainly with operating a manufacturing segment.
C)  It is performed only by the controller of a company.
D)  It includes hiring and training employees.E) All of the above
F) B) and D)

Question 12

Managerial accounting has become more important in service industries due to

Accepted Answer

A)  the decline of the manufacturing sector has freed up many accountants.
B)  service delivery is extremely complex and requires proper monitoring.
C)  the economy has become more service-oriented recently.
D)  the increase in complexity in computer systems requires accounting specialists.E) B) and D)
F) B) and C)

Question 13

Which of the following statements about internal reports is true?

Accepted Answer

A)  Most internal reports are summarized rather than detailed.
B)  Internal reports focus on general-purpose needs of users.
C)  The content of internal reports extends beyond the double-entry accounting system.
D)  Internal reports are often very general.E) A) and B)
F) A) and C)

Question 14

Which description identifies financial statements that are prepared for external users?

Accepted Answer

A)  external reports
B)  special purpose
C)  user-specific
D)  general-purposeE) B) and C)
F) A) and D)

Question 15

Which management function is a manager performing when objectives are being established?

Accepted Answer

A)  regulating
B)  planning
C)  motivating
D)  directingE) B) and C)
F) None of the above

Question 16

How often should management receive or prepare reports on its external business process activities?

Accepted Answer

A)  as they correspond to external financial reporting
B)  never more than monthly
C)  according to the company's business cycle
D)  as often as is necessaryE) B) and C)
F) All of the above

Question 17

Choose the correct statement.

Accepted Answer

A)  CGA stands for Certified Generic Accountant.
B)  CMA stands for Certified Managing Accountant.
C)  CA stands for Chartered Accountant.
D)  CPA stands for Certified Professional Accountant.E) B) and C)
F) A) and D)

Question 18

A company acting ethically must adapt its external reports to any changes required

Accepted Answer

A)  instantly.
B)  as it is appropriate for its business cycle.
C)  as stipulated by the CPA Canada handbook and GAAP.
D)  if they are considered pertinent to its business activities.E) A) and B)
F) None of the above

Question 19

What is one primary benefit of an enterprise resource planning (ERP) system?

Accepted Answer

A)  It reduces inventory levels.
B)  It permits companies to be more streamlined in production.
C)  It replaces research and development in a company.
D)  It requires an increased emphasis on product quality.E) None of the above
F) A) and D)

Question 20

Which of the following is true?

Accepted Answer

A)  Generally Accepted Accounting Principles (GAAP) form the backbone of managerial accounting conventions, and local and/or regional standards and professional judgment allow for variations among practitioners.
B)  Each province in Canada has its own code of ethics and rules and guidelines of professional conduct.
C)  The Sarbanes-Oxley Act in the U.S.and similar legislation in Canada aims to guide ethical standards used in management accounting practices.
D)  Chartered Professional Accountants of Canada plays an important role in promoting high standards of ethics in the accounting profession, excluding managerial accounting.E) C) and D)
F) B) and C)

Exam 1: Managerial Accounting

Which of the following is not part of managerial accounting?

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Which of the following reports would management find useful in decision making?

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Managerial accounting has become more important in service industries due to

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What broad functions do the management of an organization perform?

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What term describes all activities associated with providing a product or service?

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A company must inform readers of its annual report of

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Which one of the following is true concerning the managerial function of controlling?

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In Canada the three different professional accounting designations that merged into CPA Canada are

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What is one primary benefit of an enterprise resource planning (ERP) system?

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Which of the following statements about internal reports is true?

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Which one of the following is not a main component of the value chain sequence?

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Which of the following is true?

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Which one of the following managerial accounting approaches attempts to allocate manufacturing overhead in a more meaningful fashion?

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How often should management receive or prepare reports on its external business process activities?

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Which description identifies financial statements that are prepared for external users?

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Which management function is a manager performing when objectives are being established?

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Managerial accounting

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A company acting ethically must adapt its external reports to any changes required

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For a manufacturing company, the activities in the value chain would not include

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Choose the correct statement.

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