Law Questions and Answers Project
|Topic||Law Questions and Answers Project|
7. The treasury function is usually not concerned with
a. Financial reporting.
b. Short-term financing.
c. Cash custody and banking.
d. Credit extension and collection of bad debts.
8. The responsibility for safeguarding financial assets and arranging financing is given to the:
b. Chief financial officer
9. Managerial accounting is similar to financial accounting in that
a. both are governed by generally accepted accounting principles.
b. both deal with economic events.
c. both concentrate on historical costs.
d. both classify reported information in the same way.
10. Managerial accounting differs from financial accounting in that it is
a. more concerned with the future.
b. more concerned with segments of a company.
c. less constrained by rules and regulations.
d. all of the above.
11. Which activity is NOT normally performed by managerial accountants?
a. Assisting managers to interpret data in managerial accounting reports.
b. Designing systems to provide information for internal and external reports.
c. Gathering data from sources other than the accounting system.
d. Deciding the best level of inventory to be maintained.
12. Which function is most directly related to management by objectives?
c. Decision making.
13. Which consideration influences the frequency of an internal report?
a. The wishes of the managers receiving the report.
b. The frequency with which decisions are made that require the information in the report.
c. The cost of preparing the report.
d. All of the above.
14. The professional certification most relevant for managerial accountants is the
15. A firm that is competing using a _________________strategy is attempting to create a perception of uniqueness that will permit a higher selling price.
a. value chain
b. lowest cost
c. lead time
16. Planning and control are
a. different names for the same thing.
b. the basic functions of management.
c. described equally well by the terms “decision making” and “performance evaluation.”
d. exemplified by, respectively, financial statements and budgeting.
17. Managerial accounting is applicable to
a. business organizations only c. both businesses and non-profit organizations
b. non-profit organizations only d. neither business nor non-profit organizations
18. Integrity is an ethical requirement for all management accountants. One aspect of integrity
a. Maintenance of an appropriate level of professional competence.
b. Performance of professional duties in accordance with applicable laws.
c. Refraining from improper use of confidential information.
d. Avoidance of actual or apparent conflicts of interest and advise all appropriate parties of any potential conflict.
19. If a management accountant has a problem in resolving an ethical conflict, the first action that
should normally be taken is to
a. resign from the company.
b. notify the police.
c. discuss the problem with his/her immediate superior.
d. remain silent.
20. The treasury function includes
a. preparation of tax returns.
b. cash custody and banking.
c. reporting to government.
d. financial reporting
TRUE OR FALSE
1. In performing his functions, the manager should rely solely on accounting information.
2. Managerial accounting information merely assists managers in rendering judgment, but it is not a substitute for judgment.
3. Management accounting reports should always be prepared in accordance with generally accepted accounting principles.
4. Management accounting reports are mandatory while those of financial accounting are optional.
5. Aside from monetary information, management accounting deals also with nonmonetary information like units of products sold or produced numbers of workers, labor hours, quantity of materials, etc.
6. In management accounting, precision is more important than timelines and relevance of information.
7. Reports prepared under financial accounting are more extensive and detailed as compared with the reports prepared under managerial accounting.
8. Management accounting information is only a means to an end, the end being the financial statements.
9. Both financial and management accounting adhere to objectivity and cost concepts.
10. The chief management accounting executive of an organization is called a controller.
11. In an organizational set-up, the controller’s immediate superior is the controller.
12. Controllership may be defined as the function of business management which combines the responsibility for accounting, reporting, measurement, auditing, taxes, operating controls and other related areas.
13. Strictly speaking, the controller controls operations.
14. The controller is responsible for providing capital and short-term financing for the firm.
15. Cost accounting is a toll of both financial and managerial accounting.
16. Managerial accounting draws heavily on economics, statistics, operations research, and other disciplines as necessary in providing accounting information.
17. In management accounting, emphasis is given to identifying or matching costs with functions, projects or responsibilities rather than with time periods.
18. Financial accounting provides information to individuals within the business organization while management accounting provides information to parties outside the business entity.
19. Accounting reports are not prepared for the supervisory management level because foremen and supervisors exercise control through direct personal supervision.
20. A controller does not control operations.
21. The development of management accounting systems involves behavioral problems.
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