Preliminary Examination in BA2

Management accounting focuses primarily on providing data for:

• A. internal uses by managers,

• B. external uses by stockholders and creditors.

• C. external uses by the Internal Revenue Service.

• D. external uses by the Securities and Exchange Commission

Managerial accounting:

• A. is more future oriented than financial accounting.

• B. tends to summarize information more than financial accounting

• C. is primarily concerned with providing information to external users.

• D. is more concerned with precision than timeliness.

Compared to financial accounting, managerial accounting places more emphasis on:

• A. the flexibility of information.

• B. the precision of information.

• C. the timeliness of information.

• D. both A and C above.

The function of management that compares planned results to actual results is known

as:

• A. planning.

• B. directing and motivating.

• C. controlling.

• D. decision making.

Which of the functions of management involves overseeing day-to-day activities?

• A. Planning

• B. Directing and motivating

• C. Controlling

• D. Decision making

A detailed financial plan for the future is known as a:

• A. budget.

• B. performance chart.

• C.organization chart.

• D. segment.

Which of the following is not one of the three basic activities of a manager?

• A. Planning

• B. Controlling

• C. Directing and motivating

• D. Compiling management accounting reports

A performance report is:

• A. a detailed report comparing budgeted data to actual data for specific time period.

• B. a formal statement of plans for the upcoming period.

• C. required to be filed monthly by the Securities and Exchange Commission.

• D. not used in decentralized organizations.

The Standards of Ethical Conduct for Management Accountants developed by the Institute of Management Accountants contain a policy regarding confidentiality that

requires management accountants to refrain from is closing confidential information acquired in the course of their work:

• A. except when authorized by management.

• B. in all situations.

• C. except when authorized by management, unless legally obligated to do so.

• D. in all cases not prohibited by law.

Wide-spread adherence to ethical standards in an advanced market economy tends to result in all of the following except:

• A. higher prices.

• B. higher quality goods and services.

• C. greater variety of goods and services available for sale.

• D. safer products.