WorksheetsCh 1 : Introduction to MA
Total questions: 45
Worksheet time: 45mins
Determining the unit cost of manufacturing a product is an output of Financial Accounting.
TRUE
FALSE
Managerial Accounting internal reports are prepared more frequently than are classified as Financial Statements.
TRUE
FALSE
The management function of directing is mainly concerned with setting goals and objectives for the company.
TRUE
FALSE
Controlling is the process of determining whether planned goals are being met.
TRUE
FALSE
Decision-making is an integral part of the planning, directing, and controlling functions.
TRUE
FALSE
Managerial Accounting is primarily concerned with managers and external users.
TRUE
FALSE
Planning involves coordinating the diverse activities and human resources of a company to produce a smooth-running operation.
TRUE
FALSE
Managerial Accounting applies to which of the following types of firms?
service firms.
merchandising firms.
manufacturing firms.
Managerial accounting applies to all types of firms.
Managerial Accounting information is generally prepared for..
Investors
shareholders
managers
regulatory agencies
Managerial Accounting information..
pertains to the entity as a whole and is highly aggregated.
pertains to subunits of the entity and may be very detailed.
is prepared only once a year.
is constrained by the requirements of generally accepted accounting principles.
"The information provided must coincide with the needs of management functions". This statement is about which characteristic of managerial accounting information?
Relevance
Accuracy
Timeliness
Understandability
Managerial Accounting is also called..
management accounting.
controlling.
analytical accounting.
inside reporting.
Which of the following is not an internal user?
Department Manager
Creditor
Treasurer
Controller
Managerial Accounting focuses on all of these options except..
calculating product cost.
calculating annual profit.
determining cost behavior.
profit planning.
Managerial Accounting is applicable to..
service entities.
manufacturing entities.
non-profit entities.
all of these.
Management accountants would NOT...
assist in budget planning.
prepare reports primarily for external users.
determine cost behavior.
be concerned with the impact of cost and volume on profits.
Managerial Accounting reports can be described as..
general-purpose reports.
macro-reports.
special-purpose reports.
classified financial statements.
A distinguishing feature of Managerial Accounting is..
external users.
general-purpose reports.
very detailed reports.
quarterly and annual reports.
What activities and responsibilities are NOT associated with management's functions?
planning.
controlling.
accountability.
directing.
Planning is a management function that involves..
hiring the right people for a particular job.
coordinating the accounting information system.
setting goals and objectives for an entity.
analyzing financial statements.
The management function of controlling..
is performed only by the controller of a company.
is only applicable when the company sustains a loss.
is concerned mainly with operating a manufacturing segment.
includes performance evaluation by management.
The management function that requires managers to look ahead and establish objectives is..
controlling.
directing.
planning.
decision making.
Which of the following is not a separate management function?
controlling.
directing.
planning.
decision making.
Directing includes..
providing a framework for management to have criteria to terminate employees when needed.
running a department under quality control standards universally accepted.
coordinating a company's diverse activities and human resources to produce a smooth-running operation.
developing a complex performance ranking system to give certain high performers good raises.
Decision making involves the exercise of good judgment in performing planning, directing, and controlling.
TRUE
FALSE
"Must be understood by managers where most managers have no accounting or financial background". This statement is about which characteristic of managerial accounting information?
Relevance
Accuracy
Timeliness
Understandability
"Accounting information must provide different results for an activity". This statement is about which characteristic of managerial accounting information?
Relevance
Accuracy
Timeliness
Understandability
"Benefits of information must outweigh the cost of providing it". This statement is about which characteristic of managerial accounting information?
Cost-Effective
Accuracy
Timeliness
Flexibility
Financial Accounting reports help managers plan and control operations.
TRUE
FALSE
Management Accounting reports emphasizing products, processes, and departments; while Financial Accounting reports emphasize the whole organization.
TRUE
FALSE
Managerial accountants have a single role within an organization, collecting and reporting costs to management.
TRUE
FALSE
Financial Statements for external users can be described as..
user-specific reports.
general-purpose reports.
special-purpose reports.
managerial reports.
Which of the following does not represents the characteristics of Management Accounting?
Helps in finding out cost of products and control costs
Measures the operating efficiency of the enterprise
Helps in identifying the financial position of the business
Process of determining and accumulating the cost of products or activity
What is the reporting frequency for management accounting?
Once at the end of accounting period
As frequently as information needed for decision making purposes
Every 6 months.
Periodically.
What is the roles of management accountant?
Provide budgeting information and accounting reports
Responsible for carrying out the task of helping the management in making decision for production and process
Assist departments in achieving the organization objectives by assigning the appropriate costs
All of the above
The goal of management accounting is to provide the information that managers need for all of the following EXCEPT:
Planning
Control
Directing
Review
Which are true about Management Accounting?
The focus emphasis more on future
Must comply with accounting standards
Presents very detailed information
Presents only monetary information
Which of the following are associated with 'controlling'?
Specifies the resources needed to achieve the company goals
Communicate's a company's goals to employees
Evaluating managers to determine how their performance should be rewarded or punished
Evaluating operations to provide information as to whether they should be changed or not
Part of the planning process involves
The formulation of details of operations and finances for the next financial year.
Comparing actual performance against targets.
Motivating managers towards achieving organisational goals.
Making a choice between available alternatives.
Which of the following statements represents a similarity between financial and management accounting?
Both are useful in providing information for external users.
Both draw upon data from an organisation’s basic accounting system.
Reporting of financial statements is similar.
Both must comply with GAAP.
What are the component of management functions?
planning
controlling
decision making
All the above
Identify the correct characteristics of management accounting information that suitable to explain these statement :
"Accounting Information is ready at the time it is needed"
accuracy
flexible
relevant
timeliness
Part of the decision making process involves
The formulation of details of operations and finances for the next financial year.
Comparing actual performance against targets.
Motivating managers towards achieving organisational goals.
Making a choice between available alternatives.
Maintaining the general public trust in companies is a primary responsibility of managerial accountants.
TRUE
FALSE
Which accounting professional body is specifically responsible for making guidelines for the behavior and ethics of managerial accountants?
Malaysian Institute of Accountans
Malaysian Institute of Certified Public Accountant
Institute of Management Accountant
Malaysian Financial Reporting Standard
