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WorksheetsIntroduction to Managerial Accounting
Total questions: 35
Worksheet time: 18mins
What is Managment Accounting?
planning
Organising
directing
All the above
The function of setting goals and objectives
Planning
Directing
Financial accounting
Controlling
Managerial accounting reports generally pertain to ______________ of a business and may be very detailed.
product
planning
special
subunits
The types of reports prepared in managerial accounting are often ______________-purpose reports prepared for a specific decision.
product
special
planning
materials
A field of accounting that provides economic and financial information for managers and other internal user is called:
Managerial Accounting
Financial Accounting
Cost Accounting
Auditing
Managerial accounting reports comply with generally accepted accounting principles (GAAP).
True
False
The goal of management accounting is to provide the information that managers need for all of the following EXCEPT:
Planning
Control
Decision Making
Review
Management accounting is designed for use by:
Internal users
Stockbrokers
External users
Clients
Which are true about Management accounting?
Places emphasis on future
Must comply with GAAP standards
Presents very detailed information
Presents only monetary information
Which of the following statements about management accounting are true?
i. It is a part of an organisation’s management information system.
ii. It is relied upon by managers to plan and control an organisation’s operations.
iii. It is relied upon by external users to make investment decisions.
i and ii
i, ii and iii
ii and iii
iii
Which of the following statements describes the goals or objectives of an organisation?
i. Profitability and growth.
ii. Cost minimization and product quality.
iii. Market diversification and community service.
i
i and ii
iii
i, ii and iii
Which of the following are associated with Control?
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.
The benefits of management accounting information include:
Improved decisions.
Providing a means of motivating workers and rewarding performance.
More effective planning.
All of the above
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 Australian accounting standards.
Both financial and management accounting:
Must be performed by all accountants.
Achieve the same objective.
Must conform to rules issued by government departments.
Use the same information system.
What is the type of users of managerial accounting?
Internal users ( managers, employees, partners...)
Internal and external user ( Owners of stockholders,lenders,customers...)
What is the frequency of report of managerial accounting?
Once at the end of accounting period
As frequently as needed
What is the characteristics of managerial accounting information?
Accuracy
Timeliness
Relevance
All of above
What is the roles of management accountant?
Provide information and accounting reports
Responsible for carrying out the task of helping the management
Assist departments in achieving the organization objectives.
All of above
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
_____________ requires the management to look a head and establish objectives. A key objective of management is to add value to the business.
Planning
Controlling
Decision Making
_____________ in the process of keeping the activities on track. Management determines whether goals are being met and what changes are necessary when there are deviation.
Planning
Controlling
Decision Making
Identify the correct characteristics of management accounting information that suitable to explain these statement :
"Any accounting information given must give EFFECT to the decision made"
accuracy
flexible
relevant
understandable
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
Identify whether the following statement are true or false.
Preparation of budget is part of Managerial accounting.
True
False
Managerial accounting information is generally prepared for
stockholders.
creditors.
managers.
regulatory agencies.
What activities and responsibilities are not associated with management's functions?
Planning
Accountability
Controlling
Directing
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.
Standard of ethical conduct for management accountant that provides by Institute of Management Accountants (IMA), except:
Competence
Confidentiality
Integrity
Controllability
Which of the following is not a management function?
Constraining
Planning
Controlling
Directing
Which of the following is not roles of Accounting Information in Management
Decision making
Stock valuation
Control and evaluate performance
Directing
Which of the following statements is FALSE about roles of Management Accountant?
Responsible for ensuring that the organization complies with all internal and external accounting requirements
Provide information and accounting reports
Influence management decisions on setting up production policy and decision making
Uses accounting, auditing and investigative skills to conduct into theft and fraud.
What is the potential consequence of misstating financial information in management accounting?
Increased transparency in reporting
Strengthened stakeholder trust
Legal penalties and loss of reputation
Improved decision-making processes
A management accountant knowingly approving falsified expense reports is violating which ethical principle?
Integrity
Professional behavior
