Managerial Accounting: Practice Test
These activities include all of the following except: planning b.
Controlling . Decision making d. Hiring Controllers 2. The act that was intended to protect the interests of those who invest in biblically traded companies by improving the reliability and accuracy of corporate financial reports and disclosures is called Serbians-Solely Act of 2002 .Securities and Exchange Act of 1934 Frank-Todd Act Generally Accepted Accounting Principles Act Managerial Accounting places considerable weight on: 3. A. Generally Accepted Accounting Principles The financial history of the entity .
Ensuring that all transactions are properly recoded Providing information to managers for use within the organization 4. The plans of management are often expressed formally in financial statements performance reports . Budgets 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? Planning Directing . Motivating 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 M RI 100 a day Appointments for an MR. 200 a day Follow-up visit 75 a day MR. test 24 a day 9.Read MR. test results 1 O a day Doctor referral to an MR. 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 heir work except when authorized by management, unless legally obligated to do so. . Refrain from disclosing confidential information acquired in the course of their work in all cases since the law ARQ rises 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? . Dividends paid to the company’s own stockholders b. Moment 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): operating activity financing activity c. Investing activity ling activity 14.Which of the following should be classified as a financing activity on a statement Of cash flows? Interest Dividends paid paid a. Yes Yes b. No Yes c. Yes No d. No No 15.
A company that had a $500 decrease in accounts receivable during a period would be which of the following on its statement of cash flows prepared using the indirect method? A. Add the $500 to net income in order to arrive at net cash provided by operating activities b. Subtract the $500 from net income in order to arrive at net cash provided by operating activities c. Add the $500 to the net cash revived by investing activities d. Ad the $500 to the net cash provided by financing activities 16. Last year Bradford Company’s cash account decreased by $19,000. Net cash used in investing activities was $9,000.
Net cash provided by financing activities was $16,000. On the statement of cash flows, the net cash flow provided by (used in) operating activities was: d. $7,000 17. The following events occurred last year at Detours Company: Purchase of plant and equipment $33,000 Sale of long-term investment 1 2,000 Paid off bonds payable 1 5,000 Depreciation expense Dividends received 7,000 6,000Based on the above information, the cash provided (used) by investing activities for the year on the statement of cash flows would net to: 18. Payment of income taxes would appear on the statement of cash flows as part of a. Operating activities b. Investing activities c.
Financing activities d. Liabilities activities 19. Depreciation expense, on a statement of cash flows would appear as a A. Decrease in investing section b. Increase in operating section c. Decrease in financing activities d. Decrease in operating section 20.
The system by which a company is directed and controlled is called a. Corporate governance . Social responsibility c. Internal control d. Generally accepted accounting principles 21. The difference between total sales in dollars and total variable expenses is called a. Net operating income b.
Net profit c. The gross margin d. The contribution margin 22. A company makes custom boats. The wages paid to assemblers who assemble the boats would most likely be classified as a. Indirect labor b. Direct labor c.
Manufacturing overhead d. Selling expenses 23.