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Chapter 1-1A

Name___________________________________
Choose the best answer.

 

1. The day-to-day work of management teams will typically comprise all of the following activities except: 
A) decision making. 
B) planning. 
C) cost minimizing. 
D) directing operational activities. 
E) controlling. 

Ans: C

2. Which of the following involves the coordination of daily business functions within an organization? 
A) Decision making. 
B) Planning. 
C) Directing operational activities. 
D) Controlling. 
E) Motivating. 

Ans: C

3. The role of managerial accounting information in assisting management is a(n): 
A) financial-directing role. 
B) attention-directing role. 
C) planning and controlling role. 
D) organizational role. 
E) problem-solving role. 

Ans: B

4. Which of the following statements represents a similarity between financial and managerial accounting? 
A) Both are useful in providing information for external users. 
B) Both are governed by GAAP. 
C) Both draw upon data from an organization's accounting system. 
D) Both use similar methods of reporting financial statements. 
E) Both are solely concerned with historical transactions. 

Ans: C

5. Which of the following would likely be considered an internal user of accounting information rather than an external user? 
A) Stockholders. 
B) Consumer groups. 
C) Lenders. 
D) Middle-level managers. 
E) Government agencies. 

Ans: D

6. Managerial accounting has changed in recent years because of: 
A) a growing service economy in the United States. 
B) increased global competition. 
C) the emergence of new industries. 
D) an increased focus on the customer. 
E) all of the above factors. 

Ans: E

7. Metro Corporation recently implemented a just-in-time (JIT) production system along with a series of continuous improvement programs. If the firm is now considering adopting a total quality management (TQM) program, it would likely find that TQM: 
A) is inconsistent with both JIT and continuous improvement. 
B) is inconsistent with JIT but consistent with continuous improvement. 
C) is inconsistent with continuous improvement but consistent with JIT. 
D) is consistent with both JIT and continuous improvement. 
E) is an antiquated management technique. 

Ans: D

8. The activities performed by a manufacturing organization could be categorized as pre-production (such as research and development and product design), production-related, and post-production (such as marketing and customer service). Which activities should the firm focus on if management understands the value chain concept and desires to meet organizational goals? 
A) Pre-production activities. 
B) Product-related activities. 
C) Post-production activities. 
D) Pre-production, production-related, and post-production activities. 
E) Pre-production and production-related activities. 

Ans: D

 

9. Assume that a managerial accountant strives to fully disclose all relevant information that could be expected to influence a user's understanding of a monthly sales report. In so doing, the accountant will have applied the ethical standard of: 
A) objectivity. 
B) confidentiality. 
C) effectiveness. 
D) integrity. 
E) competence. 

Ans: A

10. Which of the following typically does not relate to the role of a controller? 
A) A controller supervises the accounting departments. 
B) A controller maintains custody of cash and other assets. 
C) A controller prepares reports required by taxation and governmental authorities. 
D) A controller is involved in planning and decision making. 
E) A controller normally assumes a narrow role within the organization, often preventing the individual's rise to the firm's top management ranks. 

Ans: B