Managerial Accounting Quiz

What is the primary responsibility of mid-level managers in managerial accounting?

• Planning

• Directing

• Auditing

• Marketing

What does controlling involve in the management cycle?

• Setting up new product lines

• Using feedback to ensure plans are followed and achieved

• Hiring new employees

• Conducting market research

What does management do in the planning and control cycle?

• Plans for the future, allocates resources, monitors progress, and fine-tunes operations

• Only plans for the future

• Only allocates resources

• Only monitors progress

Which type of accounting is not bound by authoritative rules?

• Financial accounting

• Managerial accounting

• Tax accounting

• Auditing

What is the primary objective of financial accounting?

• Cost control

• Full disclosure

• Behavioral analysis

• Future forecasting

Diagram comparing Managerial Accounting and Financial Accounting

• Managerial Accounting focuses on internal decision-making, while Financial Accounting focuses on external reporting.

• Managerial Accounting is primarily for external stakeholders, while Financial Accounting is for internal stakeholders.

• Managerial Accounting follows GAAP, while Financial Accounting does not.

• Managerial Accounting reports are usually published annually, while Financial Accounting reports are more frequent.

What has the evolution of management accountants' roles allowed them to do?

• Focus solely on data entry

• Analyze and interpret accounting information

• Avoid decision-making processes

• Specialize in one area only

How many hours of continuing professional education must CMAs complete each year?

• 20 hours

• 25 hours

• 30 hours

• 35 hours

What portion of the continuing professional education for CMAs must focus on ethics and professional conduct?

• A small portion

• A significant portion

• Half

• All

Which of the following is a mission of the IMA?

• To provide legal advice

• To offer financial loans

• To provide a forum for research, education, and practice development

• To manage investments