Solutions Manual - Seventh Edition Karen Wilken Braun Wendy M. Tietz

Solutions Manual for

Managerial Accounting Seventh Edition

Karen Wilken Braun Wendy M. Tietz

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Copyright © 2024 Pearson Education, Inc. 1-1 Chapter 1

Introduction to Managerial Accounting

Quick Check

Answers

QC1-1. c QC1-2. d QC1-3. b QC1-4. d QC1-5. d QC1-6. c QC1-7. a QC1-8. c QC1-9. b QC1-10. a QC1-11. d QC1-12. b

Short Exercises

(5–10 min.) S1-1

• Planning
• Controlling
• Directing
• Directing
• Directing, Controlling

(5–10 min.) S1-2

• Financial accounting
• Financial accounting
• Financial accounting
• Managerial accounting
• Managerial accounting
• Managerial accounting
• Financial accounting
• Financial accounting
• Managerial accounting
• Managerial accounting
• Financial accounting
• Managerial accounting
• Financial accounting
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Managerial Accounting 7e Solutions Manual Copyright © 2024 Pearson Education, Inc. 1-2 (5–10 min.) S1-3

• Internal Auditing Department
• Controller
• Internal Auditing Department
• Internal Auditing Department
• Treasurer
• Controller
• Controller
• Controller
• Controller
• Controller
• Controller
• Treasurer
• Treasurer

(5–10 min.) S1-4

Characteristic Check (√) if related to internal auditing

• Reports directly to the audit committee √
• Reports to treasurer or controller
• Is part of the Accounting Department
• Helps to ensure that company’s internal controls are functioning

properly √

• Performs the same function as independent certified public

accountants

• Usually reports to a senior executive (CFO or CEO) for administrative

matters √

• External audits can be performed by the internal auditing department
• Required by the New York Stock Exchange if company stock is publicly

traded on the NYSE √

• Ensures that the company achieves its profit goals

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Chapter 1 Introduction to Managerial Accounting Copyright © 2024 Pearson Education, Inc. 1-3

(10 min.) S1-5

• The CEO is hired by the board of directors.
• A subcommittee of the board of directors is called the audit committee.
• Raising capital and investing funds are the direct responsibilities of the treasurer.
• The CFO and the COO report to the CEO.
• Financial accounting, managerial accounting, and tax reporting are the direct responsibilities of the controller.
• Management accountants often work on cross-functional teams.
• The internal audit function reports to the CFO or the CEO and the audit committee.
• The company’s operations are the direct responsibility of the COO.

(5 min.) S1-6

• The Institute of Management Accountants (IMA) issues the Certified Management Accountant (CMA)

certification.

• The certification offered by IMA, focuses on accounting and finance topics.
• The monthly professional magazine published by the Institute of Management Accountants is called Strategic

Finance.

• The certification launched in 2012 jointly by the Association of International Certified Professional

Accountants (AICPA) and the Chartered Institute of Management Accountants (CIMA) is called the Chartered Global Management Accountant (CGMA).

• To earn CMA certification, a candidate must have a(n) baccalaureate degree. The CMA exam can be taken,

however, before finishing this degree.

(5 min.) S1-7

• Failing to provide job description information to management because you fear it may be used to cut a position

in your department violates the credibility standard.

• Providing earnings information to your sister before it is publicly announced violates the confidentiality

standard.

• Failing to read the specifications of the software package before purchasing it violates the competence standard.
• Stealing from your employer is a violation of the integrity standard.
• Skipping continuing education sessions could violate the requirement to maintain professional competence. If

your company paid for you to attend the conference, skipping the sessions also violates the integrity standard.

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