Accounting Chapter 1 Multiple Choice
What year was the Sarbanes-Oxley Act enacted?
2002
Which of the following is not a step in the outline for examining ethical issues?
Confirm decision with FASB.
Which of the following is not true regarding continuous improvement?
It can be applied only to improve processes and products but not services and practices.
Which of the following is false regarding strategic planning?
It is the sole responsibility of supervisors.
A quality control program that depends on multiple team members for removing waste and diminishing defects within products is ________.
Lean Six Sigma
Which of the following statements is incorrect?
Reports produced using management accounting must follow GAAP.
Which of the following is not an objective used in the balanced scorecard approach?
Vendor
The Chartered Financial Analyst (CFA) certification:
consists of three separate exams that must be taken in succession
Internal users of accounting information would not include ________.
creditors
Management accounting:
emphasizes special-purpose information
Managerial accounting produces information:
that is often focused on the future
The law that specifically prohibits payments to foreign officials in order to attain business is known as ________.
FCPA
What is the law that protects investors from fraudulent financial accounting activity?
SOX
When a representative of an organization gives money to another business official in order to gain favor and/or manipulate a business decision, this is known as ________.
bribery
Which of the following terms means the ability to work in cross-functional teams in order to complete a task?
collaboration
Which of the following terms means knowing how a business is run and how it is influenced by external forces, and knowing and understanding the overall industry?
commercial awareness
Which of the following is a primary aspect of the evaluating function within an organization?
comparing actual results against expected results for products, departments, divisions, or the company as a whole
A company's attempts to utilize sustainable business practices with regard to its employees, the environment, and society are known as ________.
corporate social responsibility
During the control function, the measurements taken of the performance must be accurate enough to see ________.
deviations and variances
The Certified Management Accountant (CMA) certification:
includes a two-part exam, education requirements, and a work experience requirement
External users of accounting information would include ________.
investors
An inventory system that organizations use to increase efficiency and decrease waste is ________.
just-in-time manufacturing
A process that is often linked to Six Sigma and is designed toward continuous improvement by eliminating waste is?
kaizen
The managers of an organization are responsible for performing several broad functions. They are ________.
planning, controlling, and evaluating
The controller of a corporation:
reports to the CFO and is in charge of the accounting side of the business
Management accountants help the management of an organization in their planning function through ________.
strategic planning
The stockholders of a company are:
the owners
