Accounting Ch.1

Which of the following is NOT a business trend impacting management accounting?

A shift toward a manufacturing-based economy.

Which of the following characteristics does NOT pertain to management accounting?

Abides by externally imposed standards such as GAAP

The IMA Statement of Ethical Professional Practice standard of integrity mandates that each member has a responsibility to ________.

Abstain from engaging in or supporting any activity that might discredit the profession.

An enterprise resource planning (ERP) system ________.

Assists companies in streamlining their operations, responding quickly to changes, and replacing hundreds of separate software systems.

Who reports directly to the board of directors?

Audit Committee

Who is responsible for all the company's financial concerns.

CFO

Providing decision support that is accurate, clear, concise, and timely is in accordance with which standard of ethical professional practice?

Competence

The IMA's ethical standards include all of the following EXCEPT ________.

Confidence

Disclosing confidential information of a past employer to gain advantage at a new job is a violation of the ________ standard of ethics?

Confidentiality

Financial Accounting involves each of the following tasks EXCEPT ________.

Controlling, which involves evaluating the results of business operations against the plan and making adjustments to keep the company pressing toward its goals

A factor which has been a major reason for heightened interest in business ethics is ________.

Corporate Collapses

The IMA standard that includes disclosing all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses, or recommendations is ________.

Credibility

________ consist(s) of employees representing various functions of the company, such as R&D, design, production, marketing, distribution, and customer service.

Cross-Functional Teams

An explanation as to why entities act in a socially responsible manner is ________.

Customers and the community expect socially responsible entities

_______ NOT a "soft skill" competency needed by a management accountant

Decision Analysis

Which of the following is integrated throughout all managerial accounting responsibilities?

Decision-Making

Identify which user of accounting information would mainly use financial accounting information.

External Auditor

Characteristic of Managerial Accounting

Geared toward producing annual and quarterly consolidated statements.

The IMA standard of ________ mandates that individuals refrain from engaging in any conduct that would prejudice carrying out duties in an ethical manner.

Integrity

Who is responsible for ensuring that the company's internal controls and risk management policies are functioning properly?

Internal Auditor

Duties someone working for the treasurer would do?

Investing Company Funds

_______ would mainly use managerial accounting information. The others would mainly use financial accounting.

Manager of the sales department

NOT a current role of the managerial accountant

Managerial accountants prepare the financial statements for an organization.

The IMA's Statement of Ethical Professional Practice requires management accountants to do all of the following EXCEPT ________.

Pass the CPA exam

The IMA Statement of Ethical Professional Practice standard of competence outlines that each member has a responsibility to ________.

Provide decision support information and recommendations that are accurate, clear, concise, and timely.

The three main responsibilities of a managerial accountant include all of the following EXCEPT ________.

Reporting, which involves providing stockholders and creditors with the information they need to make investment and lending decisions

Which of these was established as a result of corporate scandals?

Sarbanes Oxley Act of 2002

______ refers to meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Sustainability

Which of the following is the responsibly of a CFO?

The CFO is responsible for all of the company's financial concerns.

Which is most representative of managerial accounting?

The accounting systems vary from company to company

Which of the following is a job function of the controller?

The controller is usually responsible for general financial accounting, managerial accounting, and tax reporting.

What is the role of the internal auditor in an organization?

The role of an internal auditor is to ensure that the company's internal controls and risk management policies function properly.

What is the role of a treasurer in an organization?

The treasurer is primarily responsible for raising capital (through issuing stocks and bonds) and investing funds.

________ recognizes that a company's performance should be viewed not only in terms of its ability to generate economic profits for its owners, as has traditionally been the case, but also in terms of its impact on people and the planet.

Triple Bottom Line

The IMA Statement of Ethical Professional Practice standard of credibility mandates that each member has a responsibility to ________.

disclose all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses, or recommendations

A violation of a professional code of conduct is most likely to occur when a managerial accountant ________.

discloses confidential information of a past employer to gain advantage