MAS- Q1 Prelims

Although financial and managerial accounting differ in many ways, they are similar in that both rely on the same underlying financial data.

• True

• False

Managerial accounting is a branch of financial accounting and serves essentially the same purposes as financial accounting.

• True

• False

Managerial accounting places greater emphasis on the future than financial accounting, which is primarily concerned with the past.

• True

• False

Managerial accounting is not needed in a non-profit or governmental organization.

• True

• False

If ethical standards were not generally followed, one of the results would probably be fewer goods and services available in the marketplace.

• True

• False

The Standards of Ethical Conduct for Management Accountants promulgated by the Institute of Management Accountants specifically state that management accountants' sole ethical responsibility is to not break any laws.

• True

• False

When carrying out their planning activities, managers obtain feedback to ensure that the plan is actually carried out and is appropriately modified as circumstances change.

• True

• False

When carrying out their planning activities, managers select a course of action and specify how the action will be implemented.

• True

• False

The Chief Financial Officer of an organization is responsible for ensuring that line operations run smoothly.

• True

• False

Traditionally, companies have maintained large amounts of raw materials, work in process, and finished goods inventories to act as buffers so that operations can proceed smoothly even if there are unanticipated disruptions.

• True

• False