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Acct 526 Midterm Exam Questions & answers
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Acct 526 Midterm ExamManagerial accounting is the provision of accounting for a company's external users.T
or F? - ANS-False
Providing an analysis for a company regarding adding a particular product line,
retracting sales markets, or dealing with risks or opportunities are some of the
responsibilities of managerial accountants. T or F? - ANS-True
. Managerial accounting follows the same rules as financial accounting. T or F -
ANS-False
Managerial accountants need to understand their company's strategy and key business
processes for accurate analysis of data which will result in smooth strategy execution by
business executives. T or F - ANS-True
Ethical behavior involves choosing actions that are right, proper, and just. T or F -
ANS-true
Ethical failures no longer occur in businesses across the globe. T or F - ANS-false
Which of the following is referred to as controlling?
The provision of accounting information for a company's internal users.
The process of choosing among competing alternatives.
The managerial activity of monitoring a plan's implementation and taking corrective
action as needed.
The detailed formulation of action to achieve a particular end. - ANS-The managerial
activity of monitoring a plan's implementation and taking corrective action as needed.
The management activity called _____ is detailed formulation of action to achieve a
particular end.
planning
controlling
decision making
none of the above - ANS-planning
Which of the following is true of financial accounting?
It is primarily concerned with producing information for internal users.
,It does not follow any externally imposed rules.
It strongly emphasizes providing information about future events.
It focuses on overall firm performance, providing a more aggregated viewpoint. - ANS-It
focuses on overall firm performance, providing a more aggregated viewpoint.
Which of the following is a difference between financial accounting and managerial
accounting?
Financial accounting focuses on providing information for internal users, while
managerial accounting focuses on providing information for external users.
Financial accounting has a historical orientation, while managerial accounting
emphasizes on the future.
Financial accounting includes various disciplines and is broad in scope, while
managerial accounting is more self-containing.
Financial accounting does not follow externally imposed rules, while managerial
accounting must follow externally imposed rules. - ANS-Financial accounting has a
historical orientation, while managerial accounting emphasizes on the future.
The set of activities required to design, develop, produce, market, and deliver products
and services, as well as provide support services to customers is termed as a:
strategic positioning.
supply chain.
value chain.
product differentiation. - ANS-Value chain
Platanus Inc. was one of the largest manufacturers of automobile engines and fixtures.
Platanus Inc.'s management created an automated process of improving efficiency and
minimizing human error in its production process so that the company produced
zero-defect engines. Employees were monetarily rewarded when their units were free
from defects. It also maintained relevant managerial accounting information regarding
the cost of existing poor quality and efforts to improve future quality. Based on the
information, which of the following is the most likely conclusion?
The management of Platanus Inc. has adopted the philosophy of strategic positioning.
The management of Platanus Inc. has adopted the philosophy of customer orientation.
The management of Platanus Inc. has adopted the philosophy of value chain
management.
The management of Platanus Inc. has adopted the philosophy of total quality
management. - ANS-The management of Platanus Inc. has adopted the philosophy of
total quality management.
, Which of the following is true of lean accounting? - ANS-It organizes costs according to
the value chain and collects both financial and nonfinancial information.
Which of the following is true of line positions?
Line positions account for less than 40% of the workforce for any corporations.
Line positions include critical business functions such as auditing and supply chain.
Line positions are supportive in nature.
Line positions have direct responsibility for the basic objectives of an organization. -
ANS-Line positions have direct responsibility for the basic objectives of an organization.
Which of the following officers is responsible for the finance function?
Chief operating officer
Treasurer
Controller
Chief accounting officer - ANS-Treasurer
Which of the following is a standard of ethical conduct for managerial accountants as
per the Institute of Management Accountants?
Competence
Confidence
Performance
Respect for others - ANS-Competence
The Statement of Ethical Professional Practice is issued by the:
U.S. Congress.
Securities and Exchange Commission.
New York Stock Exchange.
Institute of Management Accountants. - ANS-Institute of Management Accountants
Identify three forms of certification available to managerial accountants. - ANS-The
Certificate of Management Accounting serves managerial accountants.
The Certificate of Public Accounting serves and is required for those who practice public
accounting.
The Certificate of Internal Auditing serves internal auditors.
Explain the importance of ethical behavior for managers and managerial accountants. -
ANS-A strong ethical sense is needed to resist efforts to change economic information
that may present an untrue picture of firm performance.
Many firms have a written code of ethics or code of conduct.
The IMA has a code of ethics for managerial accountants.
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