Accounting Quiz

Which of the following is an example of the controlling function?

• Establishing goals for the company

• Gathering feedback to ensure plans are followed

• Selecting among competing alternatives

• Reducing production costs

According to the IMA's ethical guidelines, which of the following is part of integrity?

• Refraining from activities that might discredit the profession

• Disclosing confidential information for business gains

• Ignoring conflicts of interest

• Withholding financial reports from management

Which of the following best describes the main difference between financial accounting and managerial accounting?

• Financial accounting focuses on internal decision-making, while managerial accounting focuses on external reporting.

• Managerial accounting follows strict regulations, while financial accounting is flexible.

• Financial accounting is used for external reporting, while managerial accounting is used for internal decision-making.

• Both financial and managerial accounting serve the same purpose.

Who is the primary audience for financial accounting reports?

• Internal managers and employees

• Government agencies and the public

• External stakeholders like investors, creditors, and regulators

• Company suppliers and competitors

Managerial accounting reports are primarily prepared for:

• Shareholders and investors

• Government tax authorities

• Internal management and decision-makers

• External auditors

How often are financial accounting reports typically prepared?

• Daily

• Weekly

• Monthly, quarterly, or annually

• Only when requested by managers

How frequently are managerial accounting reports generated?

• Only at the end of the financial year

• Monthly, quarterly, or annually

• As needed for decision-making

• Every 10 years

Managerial accounting provides information primarily related to:

• Historical financial performance

• Future projections, budgets, and cost analysis

• Company-wide financial statements for external reporting

• Tax filing and compliance

Financial accounting reports focus on:

• Internal cost efficiency

• Future planning and budgeting

• Historical financial data for external users

• Employee performance evaluation

Compared to financial accounting, managerial accounting reports:

• Contain less detail and broader summaries

• Are more detailed and focused on specific departments or products

• Follow a standard format required by law

• Are primarily used by government agencies