Tutorial 1 - MA vs FA (set 2)

As a company’s management accountant you would :-

• Be involved in the yearly reporting of financial performance.

• Prepare plans and forecasts for the future activities of the business.

• Be primarily concerned with the reporting of past data.

• Be primarily concerned with providing information to shareholders on how management are doing.

Which statement regarding management accounts is true ?

• Management accounts are prepared for parties external to the organisation.

• Management accounts will be used by shareholders to compare one company against another.

• Management accounts are governed by standards and conventions.

• Management accounts are used by managers within the organisation.

Which of the following is not classed as a planning or decision making role of management accounting?

• Searching for alternative courses of action.

• Responding to divergences from plan.

• Identifying objectives.

• Gathering data about options that are available.

Which one of the following is not a function of management accounting ?

• To provide information to help in the planning of future operations.

• To aid shareholders in making wise investment decisions.

• To provide control reports that highlight differences between actual and plan.

• To provide information with which management can make better decisions.

__________ is devoted to providing information for external users.

• Management accounting

• Financial accounting

• Internal accounting

• Cost accounting

The primary objective of management accounting is:

• to provide shareholders and potential investors with useful information for decision-making.

• to provide banks and other creditors with information useful for credit decisions.

• to provide management with information useful for planning and control of operations.

• to provide the tax authorities with information about taxable income.

Which of the following characteristics does NOT pertain to management accounting?

• provides information and estimates about future activity

• generates specific-purpose reports

• provides financial and operating data

• has externally imposed standards

The process of ensuring that results agree with plans is referred to as:

• planning

• controlling

• decision-making

• organising

Which of the following is true ?

• Managerial accounting information is prepared for internal and external users

• Reporting managerial accounting information is a specific legal requirement

• Managerial accounting has very rigid reporting requirements

• The structure of managerial accounting practice is relatively flexible

In which of the following would there not be a difference between financial and managerial accounting?

• Users of the information

• Usefulness of the information in making decisions

• Flexibility of practices

• Timeliness and time dimension of the information reported