Managerial Accounting MCQs Paper

Productive assets that are physically consumed in operations are:

Equipment.
Land.
Land improvements.
Natural resources. Detailed Answer

Management accounting primarily is concerned with providing

information to managers inside the organization as well as information to shareholders, creditors, and others outside the organization.
information to shareholders, creditors, and others outside the organization.
information to managers inside the organization. Detailed Answer
information to governmental regulatory agencies.

Managers involved in the planning function typically

avoid communicating their plans extensively throughout the organization in order to prevent competitors from learning of the plans.
deal only with long-term issues (leaving short-term considerations to lower-level employees) and communicate their plans throughout the organization in order to ensure that all employees are working toward the companyâ€™s objectives.
deal both with short-term and long-term issues and communicate their plans throughout the organization in order to ensure that all employees are working toward the companyâ€™s objectives. Detailed Answer
deal both with short-term and long-term issues but avoid communicating their plans throughout the organization in order to prevent competitors from learning of the plans.

In decision making, managers use

financial accounting information exclusively since it is more objective and precise due to well-established principles and conventions.
information regarding the organization as a whole rather than segments of the organization in order to capture a broader perspective of the companyâ€™s operations.
non-monetary information most frequently since monetary information ignores the effects of inflation and changes in technology.
whatever information is relevant to the decision even though the information does not conform to generally accepted accounting principles.Detailed Answer

The title of "controller" as applied to the manager in charge of the accounting department results from the fact that

the controller has final authority over all expenditures made by the organization.
the controller has line authority over the various managers of the organization.
the controller exercises control through the reporting and interpreting of data needed in decision making. Detailed Answer
the controller must maintain strict "control" over the financial resources of the organization in order to avoid the occurrence of theft

Managerial accounting places considerable weight on

generally accepted accounting principles.
the financial history of the entity.
ensuring that all transactions are properly recorded.
Non-monetary data that may be difficult to quantify.Detailed Answer

The concept of the European Community (EC) is that twelve European nations have abandoned most of the trade barriers that separated them for many centuries in order to

enhance the strength of companies within the EC so they can compete more effectively against U. S. and Japanese firms. Detailed Answer
facilitate mergers between European firms and firms of other nations.
enable EC firms to focus more on "niche" markets rather than on mass markets.
facilitate the entry of U. S. firms into the European markets.

The Standards of Ethical Conduct for Management Accountants developed by the Institute of Management Accountants contains a policy regarding confidentiality that requires that management accountants

refrain from disclosing confidential information acquired in the course of their work except when authorized by management.
refrain from disclosing confidential information acquired in the course of their work in all situations.
refrain from disclosing confidential information acquired in the course of their work except when authorized by management, unless legally obligated to do so. Detailed Answer
refrain from disclosing confidential information acquired in the course of their work in all cases since the law requires them to do so.

The Standards of Ethical Conduct for Management Accountants developed by the Institute of Management Accountants states that significant ethical issues should first be discussed with an immediate superior unless the superior is involved. If satisfactory resolution cannot be achieved when the problem is initially presented, then the issues should be

submitted to the next higher managerial level. Detailed Answer
submitted to the chief executive officer of the firm.
submitted to the audit committee, executive committee, board of directors, or owners.
submitted to outside legal counsel.

When faced with an ethical dilemma, a manager should first

confront the parties involved in the situation.
identify the persons or organizations affected by the outcome of the dilemma.
identify the ethical issues involved. Detailed Answer
determine the available courses of action that can be taken.

Result

Total Questions:
Correct Answers:
Wrong Answers:
Percentage:

Categories

Managerial Accounting Paper 8