POP QUIZ FMA 1

The following assertions relate to financial accounting and to cost accounting:

Which of the following statements are true?

i. The main users of financial accounting information are external to an organisation.

ii. Cost accounting is that part of financial accounting which records the cash received and payments made by an organisation.

• A. Assertions i and ii are both correct.

• B. Only assertion i is correct.

• C. Only assertion ii is correct

Data is information that has been processed in such a way as to be meaningful to its recipients.

Is this statement true or false?

• True

• False

The following statement refers to a quality of good information:

The cost of producing information should be greater than the value of the benefits of that information to management.

Is this statement true or false?

• True

• False

Which of the following is NOT CORRECT?

• Cost accounting can be used for stock valuation to meet the requirements of internal reporting only.

• Management accounting provides appropriate information for decision-making, planning, control and performance evaluation.

• Routine information can be used for both short-term and long run decision

• Financial accounting information can be used for internal reporting purposes.

The following could relate to optical mark readers:

i. Specialist pens are always required for use.

ii. Data entry is quick.

iii. Computers carry out most of the work.

Which of the above would be considered to be advantages of using optical mark readers?

• i and ii only

• i and iii only

• ii and iii only

• i, ii and iii

Monthly variance reports are an example of which one of the following types of management information?

• Tactical

• Strategic

• Planning

• Operational

Which of the following is correct?

• Qualitative data is numerical information only.

• Information can only be extracted from external sources.

• Operational information gives details of long-term plans only.

• Data can be either discrete or continuous.

The following statements have been made about operational control.

(1) Budgeting is commonly associated with decision-making at the operational planning level within a management hierarchy.

(2) Operational control decisions in general are more narrowly focused and have a shorter time horizon than management control decisions.

Which of the above statements is/are true?

• 1 only

• 2 only

• Neither 1 nor 2

• Neither 1 nor 2

If a population is very large but opinions need to be sourced in the most efficient way

from the entirety of a couple of groups, which method of sampling would be the most

appropriate?

• Random

• Multi‐stage

• Cluster

• Quota

Suppose you are interested in learning about how much time seventh grade students at your school spend outdoors on a typical school day.

Select all the samples that are a part of the population you are interested in.

• The 20 students in a seventh grade math class.

• The first 20 students to arrive at school on a particular day.

• The seventh grade students participating in a science fair put on by the four middle schools in a school district.

• The 10 seventh graders on the school soccer team.

• The students on the school debate team.