ACCT 505 Week 1 Multiple Choice Quiz
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ACCT 505 Week 1 Multiple Choice Quiz
1 Managerial accounting is concerned with: A) reporting financial information to stockholders. B) reporting financial information to regulators. C) providing information for use within the organization. D) the financial consequences of past activities. 2 Which of the following statements is not correct? A) A plan is always expressed in formal quantitative terms. B) Planning involves establishing goals and specifying how to achieve them. C) Controlling involves gathering feedback to ensure that the plan is being properly executed or modified as circumstances change. D) Decision making involves selecting a course of action from competing alternatives. 3 A performance report: A) is part of the control process. B) compares budgeted data to actual data in an effort to identify and learn from excellent performance. C) is prepared to identify and eliminate sources of unsatisfactory performance. D) is all of the above. 4 In order to do their jobs, managers must possess a variety of skills including: A) enterprise risk management skills. B) process management skills. C) measurement skills. D) all of the above. 5 Which of the following statements is correct? A) A business process consists of the major business functions that add value to a company's products and services. B) Lean thinking bloats inventories and results in more defects. C) The Theory of Constraints is based on the insight that effectively managing what it is that prevents you from getting more of what you want is a key to success. D) All of the above statements are correct. 6 Which of the following is a procedure inherent in the Theory of Constraints? A) Identify the strongest link. B) Do not place a greater strain on the system that the strongest link can handle. C) Concentrate improvement efforts on strengthening the strongest link. D) Improvement efforts must be focused on the constraint. 7 The IMA's Statement of Ethical Professional Practice includes which of the following broad categories? A) Competence. B) Confidentiality. C) Integrity. D) All of the above. 8 Which of the following statements about the Sarbanes-Oxley Act of 2002 is not correct? A) The Act requires the Chief Financial Officer and the Controller certify in writing that their company's financial statements and accompanying disclosures fairly represent the results of operations. B) The Act requires that a company's annual report contain an internal control report. C) The Act establishes severe penalties of as many as 20 years in prison for altering or destroying any documents that may eventually be used in an official proceeding and as many as 10 years in prison for managers who retaliate against a whistle-blower who goes outside the chain of command to report misconduct. D) The Act places the power to hire, compensate, and terminate the public accounting firm that audits a company's financial reports in the hands of the audit committee. 9 Which of the following statements about the internal control is not correct? A) A company uses internal control to provide absolute assurance that its financial reports are reliable, to achieve efficient and effective operations, and to ensure compliance with applicable laws and regulations. B) The Sarbanes-Oxley Act of 2002 requires that a company's annual report contain an assessment by management of the effectiveness of the company's internal control structure. C) A preventative internal control deters undesirable events from occurring while a detective control detects undesirable events that have already occurred. D) All of the above statements are correct.
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