MS-01: MANAGEMENT ACCOUNTING VS. FINANCIAL MANAGEMENT

a. Planning and controlling

"Budgets" and "performance reports" respectively correspond to these management functions. a. Planning and controlling b. Planning and organizing c. Controlling and planning d. Organizing and controlling

c. The management function that involves overseeing day-to-day activities

"Directing and motivating" refers to a. The setting of objectives and the identification of methods to achieve those objectives b. The function of management that compares planned results against actual results c. The management function that involves overseeing day-to-day activities d. None of the choices

d. Supportive in nature since it provides assistance to other company segments

A staff position is a. Not essential in a business organization b. Exercised through giving orders to subordinates c. Directly involved in achieving the basic objectives of the organization d. Supportive in nature since it provides assistance to other company segments

c. Investor relations

CONTROLLERS are usually not concerned with a. Government reporting b. Tax administration c. Investor relations d. Data processing

d. Planning, organizing and control

Decision-making is required in which of the following management function(s)? a. Planning b. Planning and control c. Planning and organizing d. Planning, organizing and control

c. Reports are often based on estimates and are seldom useful for everything other than the purpose for which they are prepared

Determine the TRUE statement about managerial accounting. a. It complies with external reportorial requirements b. It is concerned with reporting to external users of accounting information c. Reports are often based on estimates and are seldom useful for everything other than the purpose for which they are prepared d. It specifically covers various cost accumulation procedures such as job order costing ,process costing, standard costing, backflush costing and activity-based costing (ABC)

c. Emergency room manager (line); Human resources manager (staff)

For a hospital, what type of position (line vs. staff) is each of the following? a. Emergency room manager (staff); Human resources manager (staff) b. Emergency room manager (staff); Human resources manager (line) c. Emergency room manager (line); Human resources manager (staff) d. Emergency room manager (line); Human resources manager (line)

d. Budgeted, informative, adaptable

In comparing financial and management accounting, which of the following more accurately describes management accounting information? a. Historical, precise, useful b. Required, estimated, internal c. Comparable, verifiable, monetary d. Budgeted, informative, adaptable

d. Both deal with economic events

Management accounting is similar to financial accounting in that a. Both are concerned with monetary information only b. Both classify reported information in the same way c. Both focus on business as a whole d. Both deal with economic events

b. Risk and cash flow

Profit maximization is not the primary goal of financial management as it does not take into consideration the following: a. Risk and EPS b. Risk and cash flow c. EPS and stock price d. Cash flow and stock price

a. Tax planning

TREASURERS are usually not concerned with a. Tax planning b. Short-term financing c. Cash custody and banking d. Credit extension and collection of bad debts

b. Staff position

The controller primarily occupies a a. Line position b. Staff position c. Non-supervisory rank-and-file position d. Position with very little influence in management decision-making

d. Maximize the value of the firm's common stock

The long-run objective of financial management is to: a. Maximize market share b. Maximize earnings per share c. Maximize return on investment d. Maximize the value of the firm's common stock

c. Help managers make decisions

The main purpose of management accounting is to a. Assess past performance b. Project future transactions c. Help managers make decisions d. Help investors & creditors make decisions

d. B, A, D, C

The management control process contains the following four sequential steps, including A) Measuring actual performance B) Establishing standards of performance C) Implementing a program of corrective action D) Comparing actual performance with standards What is the proper sequence of these activities? a. A, B, C, D b. A, B, D, C c. B, A, C, D d. B, A, D, C

d. To maximize shareholders' wealth

The primary goal of financial management is to: a. To maximize profit b. To minimize the risk c. To maximize the return d. To maximize shareholders' wealth

c. Cost accounting is a subset of both management & financial accounting

Which is the most accurate statement? a. Financial accounting is a subset of cost accounting b. Management accounting is a subset of cost accounting c. Cost accounting is a subset of both management & financial accounting d. Management accounting is a subset of both cost and financial accounting

b. Store manager of a retail convenience outlet

Which of the following is most likely a LINE position? a. VP for Research of a conglomerate firm b. Store manager of a retail convenience outlet c. Chief financial officer of a merchandising company d. Human resources manager for an educational institution

b. Internal control

Which of the following is not a function of financial management? a. Financing b. Internal control c. Capital budgeting d. Risk management

c. Staff managers always have authorities over persons occupying line functions.

Which of the following statements is FALSE concerning line and staff functions? a. Both line and staff functions are depicted on the organizational chart. b. Line functions are directly related to the basic objectives of an organization. c. Staff managers always have authorities over persons occupying line functions. d. Line units or departments tend to have more employees than staff units or departments.