Managerial Accounting Quiz

Which of the following are a manager’s three primary responsibilities?

• Planning, directing, controlling

• Budgeting, planning, controlling

• Budgeting, directing, lean thinking

• Budgeting, planning, directing

Which of the following is integrated throughout a manager’s primary responsibilities?

• Lean thinking

• Quality management

• Decision making

• Budgeting

Which of the following is FALSE about managerial accounting versus financial accounting?

• Managerial reports are prepared annually, whereas financial reports are prepared when required.

• Managerial accounting is primarily utilized by internal users, whereas financial accounting is primarily utilized by external users.

• The primary information characteristic for managerial accounting is relevance, whereas the primary information characteristics for financial accounting are reliability and objectivity.

• No authoritative body requires managerial accounting reports, whereas the SEC requires financial accounting reports for publicly traded companies.

Which of the following statements is TRUE?

• Managers are concerned with the external use of accounting information.

• Managerial accounting information relies heavily on its reliability and objectivity.

• The format of managerial accounting reports is determined by GAAP.

• Managerial accounting information must be relevant.

Which of the following statements is TRUE?

• The CEO is elected by the managers.

• The CFO is responsible for the company’s operations.

• The board of directors is elected by the stockholders.

• The internal audit department reports solely to the CFO.

The individual responsible for managing all of the financial aspects of the organization is the:

• COO.

• CFO.

• CEO.

• CPA.

Which of the following skills are required of management accountants?

• Knowledge of both financial and managerial accounting

• Knowledge of how a business functions

• Oral and written communication skills

• All of the above

All of the following are ethical principles identified in the IMA’s Statement of Ethical Professional Practice EXCEPT:

• honesty.

• teamwork.

• objectivity.

• responsibility.

Which of the following is used in decision making to weigh the expected costs of taking a specific action against the expected benefits of the action?

• Cross-functional costing

• Enterprise resource planning

• Extensible business reporting language (XBRL)

• Cost-benefit analysis.

Which of the following is NOT one of the three factors influencing a company’s triple bottom line?

• People

• Development

• Planet

• Profit