1. Introduction to Managerial Accounting – Flashcards

AUDIT COMMITTEE {8}

American Institute of Certified Public Accountants

BOARD OF DIRECTORS {7}

BUDGET {4}

CERTIFIED MANAGEMENT ACCOUNTANT (CMA) {11}

CHIEF EXECUTIVE OFFICER (CEO) {7}

CHIEF FINANCIAL OFFICER (CFO) {7}

CHIEF OPERATING OFFICER (COO) {7}

CONTROLLER {8}

CONTROLLING {5}

COST-BENEFIT ANALYSIS {21}

CROSS-FUNCTIONAL TEAMS {8}

DECISION MAKING {4}

DIRECTING {4}

ENTERPRISE RESOURCE PLANNING (ERP) {20}

EXTENSIBLE BUSINESS REPORTING LANGUAGE (XBRL) {18}

INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) {18}

INSTITUTE OF MANAGEMENT ACCOUNTANTS {11}

integrated reporting

INTERNAL AUDIT FUNCTION {8}

ISO 9001:2008 {22}

JUST-IN-TIME (JIT) {21}

LEAN THINKING {21}

PLANNING {4}

SARBANES-OXLEY ACT OF 2002 (SOX) {17}

SUSTAINABILITY {19}

THROUGHPUT TIME {21}

TREASURER {8}

TRIPLE BOTTOM LINE {19}

TOTAL QUALITY MANAGEMENT {22}

[LEARNING OBJECTIVE] 1. Identify Managers three primary responsibilities.

[LEARNING OBJECTIVE] 2. Distinguish financial accounting from managerial accounting.

[LEARNING OBJECTIVE] 3. Describe organization structure and the roles and skills required of management accountants within the organization.

[LEARNING OBJECTIVE] 4. Describe the role of the Institute of Management Accountants (IMA) and use its ethical standards to make reasonable ethical judgments.

[LEARNING OBJECTIVE] 5. Discuss and analyze the implications of regulatory and business trends.

Which of the following is not one of the three primary responsibilities of management? a. Controlling b. Costing c. Directing d. Planning

Which of the following about managerial accounting is true? a. GAAP requires managerial accounting. b. Internal decision makers use managerial accounting. c. CPA's audit managerial accounting reports. d. Managerial accounting reports are usually prepared on an annual basis.

Which of the following is not a characteristic of managerial accounting information? a. Emphasizes relevance b. Focuses on the future more than the past c. Provides detailed information about parts of the company, not just the company as a whole d. Emphasizes reliability

What company position is in charge of raising the firm's capital? a. Director of internal audit b. Controller c. COO d. Treasurer

Which of the following statements is true? a. The COO reports to the CFO. b. The treasurer reports to the CEO. c. The Internal Audit Department reports to the audit committee. d. The controller reports to the internal auditor.

To get a job as a management accountant in most companies, you must: a. join the IMA. b. be certified as a CMA. c. be certified as a CPA. d. None of the above.

In addition to accounting knowledge, management accountants must possess all of the following skills except a. written communication skills. b. knowledge of how a business functions. c. computer programming skills. d. analytical skills.

A management accountant who refuses an expensive gift from a software salesperson meets the ethical standard of a. credibility. b. confidentiality. c. integrity. d. competence.

Which of the following is not one of the provisions of the Sarbanes-Oxley Act of 2002? a. The company's auditors assume responsibility for the financial statements. b. The penalties (i.e., prison time and fines) for corporate fraud were increased. c. At least one audit committee member should be a financial expert. d. The CEO and CFO must certify that the financial statements fairly present the company's operations and financial condition.

All of the following tools help companies compete in today's market except a. JIT. b. KJD. c. ERP. d. TQM.

Managerial accounting differs from financial accounting in several areas. Specify whether each of the following characteristics relates to managerial accounting or financial accounting. a. Focused on the future b. Reporting is based mainly on the company as a whole c. Reports are prepared usually quarterly and annually d. Information is verified by external auditors e. Focused on the past f. Main characteristic of data is that it must be relevant g. Reports tend to be prepared for the parts of the organization rather than the whole organization h. Primary users are internal (for example, company managers) i. Governed by Generally Accepted Accounting Principles (GAAP) j. Main characteristic of data is that it must be reliable and objective k. Reports are prepared as needed l. Not governed by legal requirements m. Primary users are external (i.e., creditors, investors)

The following is a list of job duties or descriptions. For each item, specify whether it would be most likely to describe the duties or responsibilities of someone working for the treasurer, the controller, or in the Internal Auditing Department. a. Calculate the cost of a product b. Issuing company bonds c. Check to make sure that company risk management procedures are being followed d. Work with various departments in preparing operating budgets for the upcoming year e. Oversee accounts payable activities f. Invests company funds g. Report to the audit committee of the board of directors and to a senior executive, such as the CFO or CEO h. Prepares company tax returns i. Performing cash counts at branch offices j. Preparing journal entries for month-end closing k. Issuing company stock l. Ensuring that the company's internal controls are functioning properly m. Creating an analysis about whether to lease or buy a delivery truck