1. Managerial accounting is used by managers to a. Plan. b. Evaluate. c. Control. d. All of the above. 2. The leading professional organization for management accountants is the a. American Association of Management Accountants. b. Institute of Management Accountants. c. National Association of Accountants. d. Society of Management Accountants. 3. In the context of managerial accounting relevant information a. Is information that will make a difference in the decision. b. Is information that has been provided by the controller. c. Must be provided in quantitative terms. d. Must be analyzed by the chief financial officer before being provided to managers. 4. Good managerial accounting information helps a. Creditors decide on good credit risks. b. Managers to do their jobs. c. Stockholders make informed investment decisions. d. All of the above. 5. Managerial accounting is used by managers to a. Assure appropriate use of an organization’s resources. b. Assure accountability for an organization’s resources. c. Provide information used in planning evaluation and controlling functions within an organization. d. All of the above. 6. Which of the following is not a way managers use managerial accounting? a. Provide information used in planning evaluation and controlling functions within an organization. b. To assure appropriate use of its resources c. To assure accountability for its resources d. To communicate information to stockholders 7. The purpose of financial statements contained in annual reports is to a. Communicate information about the financial health of a company to external users. b. Assist internal managers in making pricing decisions. c. Both A and B. d. Neither A nor B. 8. An example of an external user is a a. Company president. b. Plant manager. c. Payroll supervisor d. Creditor. 9. An example of an external user is a a. Managerial accountant. b. Vice-President of Marketing. c. Potential Investor. d. Payroll Manager. 10. Which of the following is not a correct statement? a. Managerial accounting benefits internal users. b. Managerial accounting reports must comply with generally accepted accounting principles. c. Managerial accounting includes reports and information prepared for a range of decision makers with the organization. d. Managerial accounting reports come in a variety of formats.
