Test Bank all Chapters

Introduction to Management Accounting 16e Horngren Sundem, Schatzberg Burgstahler

(Test Bank all Chapters)

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1 Copyright © 2014 Pearson Education, Inc.Introduction to Management Accounting, 16e (Horngren) Chapter 1 Managerial Accounting, the Business Organization, and Professional Ethics

1.1 Questions

1) Which credential is associated with management accountants?

A) CPA

B) CMA

C) CFP

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 ________.

• American Institute of Certified Public Accountants
• American Institute of Certified Management Accountants
• Institute of Management Accountants
• 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.

• Financial accounting
• Management accounting
• Internal auditing
• 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

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2 Copyright © 2014 Pearson Education, Inc.4) The primary users of management accounting information are ________.

• bankers
• governmental regulatory bodies
• managers in organizations
• 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.

• Auditing
• Internal auditing
• Management accounting
• 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?

• Management accounting is the process of identifying, measuring, accumulating, analyzing, preparing,

interpreting and communicating information.

• Management accounting helps managers fulfill organizational objectives.
• Management accounting is used by managerial accountants to make strategic and operational

decisions.

• 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

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3 Copyright © 2014 Pearson Education, Inc.7) When comparing management accounting and financial accounting, which of the following statements is FALSE?

• Management accounting has a future orientation whereas financial accounting has a past orientation.
• Management accounting prepares detailed reports whereas financial accounting prepares summary

reports.

• 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.

• 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

8) Generally Accepted Accounting Principles are most closely connected to ________.

• management accounting
• financial accounting
• internal auditing
• management 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 9) Who provides assurance to external users about the reliability of a company's financial statements?

• Certified Management Accountants and Certified Public Accountants
• Chartered Management Accountants and Certified Management Accountants
• Certified Public Accountants and Chartered Management Accountants
• Certified Public Accountants and Chartered Accountants

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

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