Managerial Accounting Exams

Management accounting reports might include information about:

A) customer complaints. B) net income for the year on budgeted income statement. C) total assets on budgeted balance sheet. D) All of the above are correct.

Which of the following types of information are used in management accounting?

A) financial information B) nonfinancial information

Financial accounting information: A) provides a signal that something is wrong. B) identifies what is wrong. C) explains what is wrong. D) simply summarizes information but gives no indication that anything is wrong.

A) provides a signal that something is wrong.

Management accounting information is BEST described as: A) providing a signal that something is wrong. B) identifying and helping to explain what is wrong. C) simply summarizing information, but giving no indication that anything is wrong. D) measuring overall organizational performance.

B) identifying and helping to explain what is wrong.

6. Information about customer satisfaction is an example of

Managerial Accounting

Budgets are

a formal expression of management's plans.

A good management accounting system can become

a source of competitive advantage for a company.

Management accounting measures can provide

advance warnings of problems.

The person MOST likely to use management accounting information is a(n): A) banker evaluating a credit application. B) shareholder evaluating a stock investment. C) governmental taxing authority. D) assembly department supervisor.

assembly department supervisor.

The process of overseeing day-to-day activities and keeping the organization functioning smoothly is called: A) directing. B) controlling. C) planning. D) decision making

directing

Which of the following is NOT a function of a management accounting system? A) strategic development B) financial reporting C) control D) product costing

financial reporting

Managerial accounting

has its primary emphasis on the future

Financial accounting

is governed by generally accepted accounting principles (GAAP).

Financial Accounting information

is primarily oriented to external stakeholders, such as investors, creditors, regulators, and tax authorities.

Management accounting information

is sometimes predictive and forward looking.

In a centralized organization

most decisions are made by top management

The focus of Financial accounting is on

on the past, since historical cost data are generally accurate and reliable.

Management accounting has no

prescribed rules about its content, how the content is to be developed, and how the content is to be presented.

The managerial accounting reports of a company The managerial accounting reports of a company would be of most interest and benefit to the company's: A) bankers. B) shareholders. C) bondholders. D) vice president of manufacturing.

vice president of manufacturing.

In decision making, managers use

whatever information is relevant to the decision even though the information may not conform to generally accepted accounting principles.

Financial accounting is concerned

with providing information to creditors and others outside of an organization.