Management Accounting

Topic 1 Introduction to MA Practice Questions

1 | Which of the following statements is true: |

| A. | The focus of managerial accounting is on the past, since historical cost data are generally accurate and reliable and are the basis for forecasting purposes. |

| B. | Financial and managerial accounting are similar in that both involve summarizing financial data for the various users of financial statements. |

| C. | Managerial accounting is only concerned with providing information to creditors and others outside of an organization. |

| D. | Managerial accounting is governed by accounting principles issued by the Institute of Chartered Management Accountants (ICMA). |

| E. | Managerial accountants prepare a variety of reports for different purposes to assist management in decision-making. |

| F. | None of the above. |

2 | Management accountants deal with the following kind of information: |

| A. | financial information |

| B. | non-financial information |

| C. | product costs |

| D. | employees’ job-satisfaction score |

| E. | statistical information |

| F. | All of the above |

3 | In order to be useful to managers, management accounting reports: |

| A. | should be prepared according to the Generally Accepted Accounting Principles (GAAP). |

| B. | should be prepared according to the respective Institute of Management Accounting standards. |

| C. | should be prepared to meet the individual needs of all decision makers. |

| D. | should be prepared to meet all the individual needs of decision makers within the organization. |

| E. | should be prepared only at the end of the fiscal reporting period. |

| F. | should be prepared to meet the individual needs of decision makers within the organization given the resource availability of the organisation. |

4 | Managerial accounting: |

| A. | involves the financial history of an organization. |

| B. | is governed by GAAP. |

| C. | focuses...