chapter 1 Flashcards
(23 cards)
What is managerial accounting
the process of providing accounting information to help managers make
decisions.
A public corporation is owned by
Shareholders
The board hires the
Ceo who manages the company on a daily basis and
sets company’s strategic objectives.
The CEO hires the
COO who is responsible for all company’s
operations and the CFO for all financial matters.
The controller
prepares managerial and financial accounting reports.
The treasurer is
responsible for investing and raising funds
The internal
auditor
reviews company’s risk management and internal controls processes and reports to the audit committee which provides oversight of the financial reporting process including reviewing
the work of the external auditor.
Traditionally, managerial accountants’ role was
confined to providing information to departmental managers to make decisions. They were physically separated as their role was limited to scorekeeping or number-crunching.
Contemporarily, managerial accountants
serve on cross-functional teams with other members of the value chain to tackle a decision problem collectively so they’re taking an
active role in the decision making process.
Managerial accounting focuses on providing shareholders and creditors with the information they need to make investment and lending decisions.
false
International Financial Reporting Standards (IFRS) must be followed when managerial accounting reports are prepared.
false
Accounting Standards for Private Enterprise (ASPE) must be followed when managerial accounting reports are prepared.
false
Management accounting requires independent audits of the firm’s books.
false
Management accounting focuses on _______.
internal reporting
The person MOST likely to use ONLY financial accounting information would be the _______.
Bank loan officer
Which of the following persons or groups would be LEAST likely to receive detailed managerial accounting reports?
Current shareholders
Which of the following is TRUE about managerial accounting vs. financial accounting?
A. Both managerial and financial reports are prepared quarterly and annually.
B. Managerial accounting is primarily utilized by internal users, while
financial accounting is primarily utilized by external users.
C. Financial statements include non-financial information.
D. The external auditor requires managerial accounting reports and the SEC requires financial accounting reports.
B
Which of the following statements is FALSE?
A. Managers are concerned with the internal use of accounting information.
B. Managerial accounting information is historical.
C. Managerial accounting reports are not required by any authoritative body.
D. Managerial accounting information must be relevant.
B
Which of the following statements is FALSE?
A. The treasurer and controller report directly to the CFO.
B. The COO is responsible for the company’s operations.
C. The board of directors hires the CEO to manage the company on a daily basis.
D. The internal audit department reports solely to the CFO.
D
The individual responsible for managing all of the operations of the organization, such as product packaging, is the:
A. COO.
B. CFO.
C. CEO.
D. CPA.
A
Which of the following about managerial accounting is true?
A. IFRS and ASPE require managerial accounting.
B. Internal decision makers use management accounting.
C. Public accountants audit managerial accounting reports.
D. Managerial accounting reports are usually prepared on an annual basis
B
Which of the following is a characteristic of management accounting information?
A. Subject to an external audit.
B. Focuses on the past more than the future.
C. Includes both financial and non-financial information
D. F. inancial statements are examples of management accounting information
C
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
C
