THEORIES

Question 1

That kind of accounting concerned with
providing information to management in making
decisions about the operations of the business
a. Responsibility accounting
b. Management accounting
c. Cost accounting
d. Correct answer no given

Answer 1

b. Management accounting

Question 2

Management accounting
a. Is governed by generally accepted accounting
principles.
b. Draws from disciplines other than accounting.
c. Is geared primarily to the past rather than the
future.
d. Places more emphasis on precision of data
compared with financial accounting which does
snot.

Answer 2

b. Draws from disciplines other than accounting

Question 3

A type of managerial accounting which refers to
the determination of the operating cost regardless of
cost behavior is
a. Differential accounting
b. Responsibility accounting
c. Full cost accounting
d. Profitability accounting

Answer 3

c. Full cost accounting

Question 4

Which of the following characteristics does not
relate to management accounting?
a. Accounting reports may include non-monetary
information
b. It is subject to restrictions imposed by GAAP.
c. Reports are often based on estimates and are
seldom useful for anything other than the purpose
for which they are prepared.
d. It provides data for internal users within the
business organization.

Answer 4

b. It is subject to restrictions imposed by GAAP.

Question 5

9-10.Which type of authority do management
accountants generally exercise?
a. Functional b. Company c. Line d. Staff

Answer 5

d. Staff

Question 6

In financial accounting, certain rules and
regulations must be followed on how financial
statements must be presented to the reader. In
managerial accounting, no such restrictions
generally apply because it is:
a. An entirely different field that need not observe
the broad guidelines in financial accounting.
b. Designed to provide management with nonfinancial information for decision-making.
c.Designed to provide accounting and other
financial data to assist management in making
business decisions.
d. A discipline that does not require preparation of
other financial statements.
e. All of the above.

Answer 6

c. Designed to provide accounting and other
financial data to assist management in making
business decisions.

Question 7

Which of the following characteristics relate
to Financial Accounting?
a. Reports are promptly prepared and submitted to
preserve its usefulness.
b. Data may be both historical and estimates.
c. It must adhere to the generally accepted
accounting principles.
d. It provides information needed by management in
making decisions

Answer 7

c. It must adhere to the generally accepted
accounting principles.

Question 7

The following characteristics refer to
Financial Accounting except
a. Provides information to external users
b. Emphasizes on objective data
c. Has no externally imposed standards
d. Generates general purpose financial statements

Answer 7

c. Has no externally imposed standards

Question 8

To distinguish between management
accounting and financial accounting, the following
statements are correct, except
a. Management accounting, in view of its various
integrated recipients should have a separate data
recording and retrieval system from financial
accounting.
b. Financial accounting is bound by GAAP, and
management accounting need not be in conformity
with GAAP.
c. Financial accounting can be regarded as the
process while management accounting can be
regarded as the product of the process.
d. Management accounting output must be released
on time so as not to erode its usefulness; Financial
accounting output can still be useful even when
delayed.

Answer 8

a. Management accounting, in view of its various
integrated recipients should have a separate data
recording and retrieval system from financial
accounting.

Question 9

Which of the following is a Controller’s
responsibility?
a. Tax planning and accounting
b. In charge of credit and collection
c. Custodian of funds
d. Arranging short-term financing

Answer 9

a. Tax planning and accounting

Question 10

You were newly appointed as controller of
CZX Corporation. Among the jobs your
department would do include the following:
a. Cash receipts, cash disbursements, general
accounting, taxation, financial accounting analysis,
and internal auditing.
b. Financial reporting, strategic planning, managerial
accounting, taxation, financial statement analysis,
and internal accounting.
c. Financial accounting, managerial accounting, cost
accounting, inventory accounting, payroll
accounting, tax accounting and sales forecasting.
d. Tax accounting, managerial accounting, internal
auditing, general accounting.

Answer 10

d. Tax accounting, managerial accounting, internal
auditing, general accounting.

Question 11

The chief management accountant called
“controller” traditionally performs these functions
except:
a. The establishment and implementation of the
financial planning process.
b. Financial and management reporting and
interpretation.
c. Protection of company resources and economic
evaluation.
d. Preparation of proposals for product promotions.

Answer 11

d. Preparation of proposals for product promotions.

Question 12

Which of the following is not a Controller’s
function?
a. In charge of planning and control
b. Protection of assets such as adequate insurance
coverage. Etc.
c. Interpreting and reporting on effects of external
factors on the business
d. Arranging short-term financing

Answer 12

d. Arranging short-term financing

Question 13

Controllers are generally not concerned with
a. Reporting to government
b. Protection of assets
c. Preparation of tax returns
d. Investor relations

Answer 13

d. Investor relations

Question 14

Which of the following is a Controller’s
responsibility?
a. Tax planning and accounting
b. In charge of credit and collection
c. Custodian of funds
d. Arranging short-term financing

Answer 14

a. Tax planning and accounting

Question 15

Which of the following is not a
controllership function, as distinguished from a
treasury function?
a. Reporting and interpreting
b. Protection of assets
c. Credit and collection
d. Government reporting

Answer 15

c. Credit and collection

Question 16

The primary purpose of management
advisory services is
a. To conduct special studies, preparation of
recommendation, development plans and programs,
and provision of advise and assistance in their
implementation.
b. To provide service or to fulfill some social need
c.To improve the client’s use of its capabilities &
resources to achieve the objectives of the
organization.
d.To earn the best rate of return on resources
entrusted to its care with safety of investment being
taken into account and consistent with the firm’s
social and legal responsibilities.

Answer 16

c. To improve the client’s use of its capabilities &
resources to achieve the objectives of the
organization

Question 17

Which of the following statements is not
true?
a. In the rendition of MAS, independence must be
observed so as to maintain the essential requisites of
impartiality and objectivity.
b. All provisions of the code of professional ethics
are applicable to the practice of MAS except those
rules related to the expression of an opinion on
financial statements.
c. MAS serves only in the areas of accounting and
finance.
d. Before accepting an engagement, a practitioner
should notify the client of any reservations he has
regarding anticipated benefits.

Answer 17

c. MAS serves only in the areas of accounting and
finance.

Question 18

Which of the following is not a characteristic
of management services?
a. A wider variety of assignments are encountered in
MAS than in audit.
b. MAS engagements are recurring.
c. MAS pinpoint actions to be taken, the benefits of
which will be received in the future.
d. In MAS engagements, the nature of work
involved requires a lesser need for junior assistance.

Answer 18

b. MAS engagements are recurring