Chapter 1 Problems

Which of the following is a primary aspect of the evaluating function within an organization? A. Comparing actual results against expected results for products, departments, divisions, or the company as a whole. B. Reviewing only the quantitative or financial results of the company. C. Setting goals. D. Putting controls in place for the upcoming year.

A. Comparing actual results against expected results for products, departments, division, or the company as a whole.

A company's attempts to utilize sustainable business practices with regards to its employees, the environment, and society are known as __________. A. corporate social responsibility B. total quality management C. value chain D. a balanced scorecard

A. Corporate Social Responsibility

During the control function, the measurement taken of the performance must be accurate enough to see __________. A. deviations and variances B. the primary focus C. only positive results D. only the negative results

A. deviations and variances

Which of the following is false regarding strategic planning? A. Strategic objectives will be diverse and vary from company to company. B. It will span many years. C. It is the sole responsibility of supervisors. D. It should include both short-term and long-term goals.

C. It is the sole responsibility of supervisors.

Which of the following statements is incorrect? A. The practice of management accounting is fairly flexible. B. The information gathered from management accounting is not required by law. C. Reports produced using management accounting must follow GAAP. D. Management accounting focuses mainly on the internal user.

C. Reports produced using management accounting must follow GAAP.

Which of the following is not an objective used in the balanced scorecard approach? A. Financial B. Customer C. Vendor D. Learning and growth

C. Vendor

Certification for those with a career in finance and investment areas

Certified Financial Analyst

Designation that proves proficiency in fraud prevention, detection, and deterrence

Certified Fraud Examiner

Designation that is exclusively for auditors of the public sector

Certified Government Auditing Professional

Credential for auditors who work within organizations and is one of a few that is accepted worldwide

Certified Internal Auditor

Specialist in corporate accounting management; favors financial analytics, budgeting, and strategic domains.

Certified Management Accountant

Considered the top tier in accounting certifications; must pass a four-part exam, with education and work experience requirements

Certified Public Accountant

The focus is on quality throughout the entire process.

Continuous improvements

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? A. Conceptualization B. Collaboration C. Imagination D. Commercial awareness

D. Commercial Awareness

Which of the following is not a step in the outline for examining ethical issues? A. Evaluate each course of action. B. Make a decision. C. Establish the facts of the situation. D. Confirm decision with FASB.

D. Confirm decision with FASB.

Which of the following is not true regarding continuous improvement? A. It applies to both service and manufacturing companies. B. It rejects the idea of "good enough." C. It is used to reduce performance costs. D. It can be applied only to improve processes and products but not to services and practices.

D. It can be applied only to improves processes and products but not to services and practices.

Management accountants help the management of an organization in their Planning function through ________. A. monitoring anti-theft systems B. evaluating costs C. analyzing profits D. strategic planning

D. Strategic Planning

The managers of an organization are responsible for performing several broad function. They are ___________. A. directing, controlling, and evaluating B. planning, evaluating, and manufacturing C. planning, controlling, and selling D. planning, controlling, and evaluating

D. planning, controlling, and evaluating

T or F: Managerial accounting reports must comply with the rules set in place by the FASB.

False

T or F: Managers are required to follow specific rules issued by the IMA for internal financial reporting.

False

T or F: The Foreign Corrupt Practices Act was implemented in the aftermath of disclosures that businesses were violating the IMA Code of Ethics.

False

T or F: The main users of the financial accounting information are the internal users.

False

Inventory is attained or produced only as needed.

Just-in-time manufacturing

A combined effort of team members is used to eliminate waste and defects.

Lean Six Sigma

All managers and employees are always looking for ways to improve operations.

Total quality management

T or F: Bribery in the world of business typically happens when an organization or representative of an organization gives financial benefits to an official to gain favor or manipulate a business decision.

True

T or F: Ethics is more than obeying laws.

True

T or F: Financial accounting reports are typically general-purpose reports.

True

T or F: Financial accounting reports often must be audited at least annually by an independent auditor.

True

T or F: Financial accounting reports pertain to the entity as a whole, whereas managerial accounting focuses more on subunits of the organization.

True

T or F: Managerial reports are prepared on an as-needed basis.

True

T or F: The Sarbanes-Oxley Act addressed public company accounting reform.

True