Test Bank For Introduction To Management Accounting 16th Edition By Horngren

Test Bank For Introduction To Management Accounting 16th Edition By Horngren

ISBN: 978-0133058789, ISBN-10: 0133058786

Chapter 1   Managerial Accounting, the Business Organization, and Professional Ethics

1.1   Questions

1) Which credential is associated with management accountants?

1. A) CPA
2. B) CMA
3. C) CFP
4. D) IMA

Answer:  B

Diff: 1

LO:  1-1

AACSB:  Reflective thinking skills

Learning Outcome:  Describe the basics of managerial accounting and its function within an organization

2) The largest U.S. association of professional accountants whose major interest is management accounting is the ________.

1. A) American Institute of Certified Public Accountants
2. B) American Institute of Certified Management Accountants
3. C) Institute of Management Accountants
4. D) American Institute of Management Accountants

Answer:  C

Diff: 1

LO:  1-1

AACSB:  Reflective thinking skills

Learning Outcome:  Describe the basics of managerial accounting and its function within an organization

3) ________ is the field that produces information used primarily by managers within an organization.

1. A) Financial accounting
2. B) Management accounting
3. C) Internal auditing
4. D) External auditing

Answer:  B

Diff: 1

LO:  1-1

AACSB:  Reflective thinking skills

Learning Outcome:  Describe the basics of managerial accounting and its function within an organization

4) The primary users of management accounting information are ________.

1. A) bankers
2. B) governmental regulatory bodies
3. C) managers in organizations
4. D) managerial accountants

Answer:  C

Diff: 1

LO:  1-1

AACSB:  Reflective thinking skills

Learning Outcome:  Describe the basics of managerial accounting and its function within an organization

5) ________ is the field of accounting that develops information for external parties such as stockholders, suppliers, banks and governmental regulatory bodies.

1. A) Auditing
2. B) Internal auditing
3. C) Management accounting
4. D) Financial accounting

Answer:  D

Diff: 1

LO:  1-1

AACSB:  Reflective thinking skills

Learning Outcome:  Describe the basics of managerial accounting and its function within an organization

6) Which of the following statements about management accounting is FALSE?

1. A) Management accounting is the process of identifying, measuring, accumulating, analyzing, preparing, interpreting and communicating information.
2. B) Management accounting helps managers fulfill organizational objectives.
3. C) Management accounting is used by managerial accountants to make strategic and operational decisions.
4. D) Management accounting produces information for managers in an organization.

Answer:  C

Diff: 1

LO:  1-1

AACSB:  Reflective thinking skills

Learning Outcome:  Describe the basics of managerial accounting and its function within an organization

7) When comparing management accounting and financial accounting, which of the following statements is FALSE?

1. A) Management accounting has a future orientation whereas financial accounting has a past orientation.
2. B) Management accounting prepares detailed reports whereas financial accounting prepares summary reports.
3. C) Management accountants are constrained by the principles of reporting promulgated by the Institute of Management Accountants whereas financial accountants are constrained by Generally Accepted Accounting Principles.
4. D) Behavioral considerations are of primary importance in management accounting, but not in financial accounting.

Answer:  C

Diff: 1

LO:  1-1

AACSB:  Reflective thinking skills

Learning Outcome:  Describe the basics of managerial accounting and its function within an organization