Managerial Accounting: Practice Test

Topics: Cash flow statement, Generally Accepted Accounting Principles, Balance sheet Pages: 7 (1344 words) Published: April 15, 2015
Salem State University
ACC202 – Managerial Accounting – Practice Test
Chapters 14, 1, 2
Professor Paul F McGee, CPA

Name___________________________________________

Please indicate the best/correct answer by circling the appropriate letter.

1. Managerial accounting helps managers perform three vital activities. These activities include all of the following except:

a. Planning
b. Controlling
c. Decision making
d. Hiring Controllers

2. The act that was intended to protect the interests of those who invest in publically traded companies by improving the reliability and accuracy of corporate financial reports and disclosures is called

a. Sarbanes-Oxley Act of 2002
b. Securities and Exchange Act of 1934
c. Frank-Todd Act
d. Generally Accepted Accounting Principles Act

3. 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 recoded
d. Providing information to managers for use within the organization

4. The plans of management are often expressed formally in

a. financial statements
b. performance reports
c. budgets
d. ledgers

5. Which of the following is NOT one of the Institute of Management Accountants’ Standards of Ethical Conduct?

a. Competence
b. Confidentiality
c. Independence
d. Integrity

6. Which of the following functions of management involves the process of establishing goals and specifying how to achieve them?

a. Planning
b. Directing
c. Motivating
d. Decision making

7. The phase of accounting concerned with providing information to managers for use in planning and controlling operations and in decision making is called:

a. throughput time
b. managerial accounting
c. financial accounting
d. controlling

8. Given the following information which procedure would be considered the weakest link (constraint)

Doctor referral to an MRI100 a day
Appointments for an MRI200 a day
Follow-up visit75 a day
MRI test24 a day
Read MRI test results100 a day

a. Doctor referral to an MRI
b. Follow-up visit
c. MRI test
d. Read MRI test results

9. The Institute of Management Accountants’ Standards of Ethical Conduct contains a policy regarding confidentiality that requires management accounts:

a. refrain from disclosing confidential information acquired in the course of their work except when authorized by management b. refrain from disclosing confidential information acquired in the course of their work in all situations c. refrain from disclosing confidential information acquired in the course of their work except when authorized by management, unless legally obligated to do so. d. refrain from disclosing confidential information acquired in the course of their work in all cases since the law requires them to do so.

10. A management approach that organizes resources such as people and machines around the flow of business processes and that only produces units in response to customer orders is called

a. Lean Production (Just In Time)
b. Performance report
c. Segment
d. Strategy

11. Which of the following would be considered a cash outflow in the investing activities section of the statement of cash flows?

a. dividends paid to the company’s own stockholders
b. payment of interest to a lender
c. purchase of equipment
d. retirement of bonds payable

12. In a statement of cash flows, which of the following would be classified as an operating activity?

a. the purchase of equipment
b. dividends paid to the company’s own common stockholders c. payments of monthly rent
d. the cash paid to retire bonds payable

13. In a statement of cash flows, receipts from sales of property, plant and equipment should be classified as a(n):

a. operating activity
b. financing activity
c. investing activity
d....
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