ACCT 230 - Chapter 1

Financial and managerial accounting are similar in that both: a. are required by regulatory bodies such as the SEC. b. are useful for making decisions. c. involve following externally imposed rules. d. emphasize the organization as a whole.

...are useful for making decisions.

The IMA's Statement of Ethical Professional Practice: a. lists overarching ethical principles for IMA members which include honesty, fairness, objectivity, and responsibility. b. has not been revised since the Sarbanes-Oxley Act of 2002 was enacted. c. is different depending on the state where the accountant is practicing. d. applies to all accountants with accounting degrees.

...lists overarching ethical principles for IMA members which include honesty, fairness, objectivity, and responsibility.

Managerial accounting is focused: a. on providing information to internal management only. b. on following externally imposed rules. c. on providing only the externally focused financial information about a firm. d. on providing objective financial information about the firm as a whole.

...on providing information to internal management only.

Continuous improvement includes efforts to: a. reduce costs while improving overall quality. b. improve profitability without considering quality implications. c. increase an organization's overall level of activity with little attention to the impact on quality. d. reduce quality by decreasing the cost of raw materials.

...reduce costs while improving overall quality.

One of the main purposes of a Certified Management Accountant (CMA) certification is: a. to license management accountants in the state that they work. b. to provide minimal professional qualifications for external auditors. c. to provide assurance concerning the reliability of the firm's financial statements. d. to establish managerial accounting as a recognized, professional discipline.

...to establish managerial accounting as a recognized, professional discipline.

A detailed approach to determine the cost of goods and services that improves costing accuracy is called:

Activity-based costing

The managerial activity of monitoring a plan's implementation and taking corrective action as needed is referred to as:

Controlling

Identify a true statement about the controlling function in managerial accounting. a. It is followed by the planning activity. b. It is preceded by the decision making activity. c. It is achieved by choosing among competing alternatives available at a point of time. d. It is achieved by comparing actual performance with expected performance.

It is achieved by comparing actual performance with expected performance.

Positions that have direct responsibility for the basic objectives of an organization are referred to as:

Line Positions

Organizations establish standards of conduct referred to as Company Codes of Conduct to promote ethical behavior by:

Managers and employees

Identify a true statement about the controller of an organization. a. The controller has full authority over the managers in the production areas of an organization. b. The controller is a member of the middle-level management. c. The controller participates in the decision-making activity of managerial accounting. d. The controller has only indirect responsibility for an organization's basic objectives.

The controller participates in the decision-making activity of managerial accounting.

Which of the following certifications do managerial accountants obtain?

a. The Certificate in Management Accounting b. The Certificate in Public Accounting c. The Certificate in Internal Auditing d. All of these answer choices are correct.