intro to mas Flashcards
The major functions of management is (are):
a. strategic management and long-range planning.
b. planning and decision making.
c. identifying threats and opportunities for the firm.
d. all of the above.
d. all of the above
The process of identifying, measuring, analyzing, interpreting, and communicating information
in pursuit of an organization’s goals is called
a. managerial accounting
b. financial accounting
c. management
d. promotional activities
a. managerial accounting
The primary objective of management accounting is
a. to provide stockholders and potential investors with useful information for decision making.
b. to provide banks and other creditors with information useful in making credit decisions.
c. to provide management with information useful for planning and control of operations.
d. to provide supervising government agencies with information about the company’s management affairs.
c. to provide management with information useful for planning and control of operations.
Paying rent, purchasing supplies, and purchasing inventory are which of the day-to-day work
activities of the management team?
a. decision making
b. planning
c. directing operational activities
d. only A and B
c. directing operational activities
Which of the following statements is true when comparing managerial accounting to financial accounting?
a. Managerial accounting places more emphasis on precision than financial accounting.
b. Both are highly dependent on timely information.
c. Both rely on the same accounting information system.
d. Managerial accounting is concerned with external decision makers.
C. Both rely on the same accounting information system.
Which of the following is true of managerial accounting rather than financial accounting?
A. The outputs of this accounting system are the primary financial statements.
B. The methods of this accounting system are established by an overseeing board.
C. The accounting methods are standardized to allow comparisons among companies.
D. The accounting system would be unique to each company.
D. The accounting system would be unique to each company.
Which of the following statements are true regarding financial and managerial accounting?
I. Both are mandatory.
II. Both rely on the same underlying financial data.
III. Both emphasize the segments of an organization, rather than just looking at the
organization as a whole.
IV. Both are geared to the future, rather than to the past.
A. I, II, III, and IV
B. Only II, III and IV
C. Only II and III
D. Only II
D. Only II
Managerial accounting activity adds value to an organization by pursuing five major objectives,
which include
A. providing information for decision making and planning.
B. measuring the performance of activities within an organization.
C. assisting managers in directing and controlling operational activities.
D. all of them
D. all of them
The following characterize management advisory services except
A. It involves decision for the future
B. It broader in scope and varied in nature
C. It utilizes more junior staff than senior members of the firm
D. It relates to specific problems where expert help is required
C. It utilizes more junior staff than senior members of the firm
Which of the following activities is not usually performed by a management accountant?
A. Assisting managers to interpret data in managerial accounting reports.
B. Designing systems to provide information for internal and external reports.
C. Gathering data from sources other than the accounting system.
D. Deciding the best level of inventory to be maintained.
D. Deciding the best level of inventory to be maintained.
Managerial accounting places considerable weight on:
A. generally accepted accounting principles.
B. the financial history of the entity.
C. ensuring that all transactions are properly recorded.
D. detailed segment reports about departments, products, and customers.
D. detailed segment reports about departments, products, and customers.
Which of the following statement is FALSE?
A. Managerial accounting need not conform to GAAP.
B. Financial accounting reports focus on subunits of the organization.
C. Managerial accounting is not required
D. Managerial accounting focuses on the needs of internal users.
B. Financial accounting reports focus on subunits of the organization.
Managerial accounting differs from financial accounting in that it is
A. more concerned with segments of a company.
B. less constrained by rules and regulations.
C. more concerned with the future.
D. all of the above.
D. all of the above.
Management accountants would not
A. assist in budget planning.
B. prepare reports primarily for external users.
C. determine cost behavior.
D. be concerned with the impact of cost and volume on profits.
B. prepare reports primarily for external users.
Which of the following does not represent a problem with financial analysis?
A. Financial statement analysis is an art; it requires judgment decisions on the part of the analyst.
B. Financial analysis can be used to detect apparent liquidity problems.
C. There are as many ratios for financial analysis as there are pairs of figures.
D. Some industry ratio formulas vary from source to source.
B. Financial analysis can be used to detect apparent liquidity problems.
Suppose you are comparing two firms in the steel industry. One firm is large and the other is small. Which type of numbers would be most meaningful for statement analysis?
A. Absolute numbers would be most meaningful for both the large and small firm.
B. Absolute numbers would be most meaningful in the large firm; relative numbers would be most meaningful in the small firm.
C. Relative numbers would be most meaningful for the large firm; absolute numbers would be most meaningful for the small firm.
D. Relative numbers would be most meaningful for both the large and small firm, especially for interfirm comparisons.
D. Relative numbers would be most meaningful for both the large and small firm, especially for interfirm comparisons.
Which of the following generally is the most useful in analyzing companies of different sizes?
A. comparative statements
B. common-sized financial statements
C. price-level accounting
D. profitability index
B. common-sized financial statements
Statements in which all items are expressed only in relative terms (percentages of a base) are termed:
A. Vertical statements
B. Horizontal Statements
C. Funds Statements
D. Common-Size Statements
D. Common-Size Statements
The percent of property, plant and equipment to total assets is an example of:
A. Vertical analysis
B. solvency analysis
C. profitability analysis
D. horizontal analysis
A. Vertical analysis
