Question 1

The main responsibility for ethical behavior rests on:

Accepted Answer

A)  Professional bodies.
B)  The Government.
C)  Employers.
D)  The individuals involved.
E)  The legal system.F) A) and D)
G) A) and C)

Question 2

What is the first step in the decision-making process?

Accepted Answer

A)  Identify available options.
B)  Specify the problem and goals.
C)  Measure costs and benefits.
D)  Make a final decision.E) B) and D)
F) All of the above B

Question 3

Which part of the four step framework for making decisions is linked directly to the formulation of the decision maker's goals?

Accepted Answer

A)  Step 1: Specify the decision problem.
B)  Step 2: Identify options.
C)  Step 3: Measure benefits and costs.
D)  Step 4: Make the decision.E) C) and D)
F) B) and C)

Question 4

Which of the following is not a provision of the Sarbanes-Oxley Act of 2002?

Accepted Answer

A)  It mandates that executives of publicly traded companies take individual responsibility for the accuracy and completeness of financial reports.
B)  It requires executive and financial officers to certify, in writing, the truthfulness of quarterly and annual reports filed with the SEC.
C)  It provides for penalties, including fines and jail time, for executives who knowingly alter, destroy, conceal or falsify records.
D)  It prohibits managers from giving or taking bribes, even if such acts are part of the normal business practices in another country.
E)  All of the above are provisions of the Sarbanes-Oxley Act of 2002.F) B) and D)
G) D) and E)

Question 5

Managerial accounting is a branch of accounting which:

Accepted Answer

A)  Provides financial information to creditors and stockholders.
B)  Summarizes financial information.
C)  Assists in predicting future profits.
D)  Assists in making business decisions.E) C) and D)
F) All of the above

Question 6

Ethical standards are often considered difficult to enforce.Which one of the following is a good approach to ensuring ethics are followed?

Accepted Answer

A)  Randomly inquiring of certain employees whether they are being ethical or not.
B)  Routinely check to ensure that applicants make truthful statement on their employment applications.
C)  Ensuring the CEO always includes a comment on the newsletter that ethics are important and must be followed.
D)  Ensuring that key employees sign conflict of interest statements.E) A) and B)
F) B) and C)

Question 7

The value of an option must always be expressed in monetary terms.

Accepted Answer

A) True 
 B)False

Question 8

The planning and control cycle is a long-term cycle normally taking months to complete.

Accepted Answer

A) True 
 B)False  False

Question 9

In order to make a good decisions, management must rely on:

Accepted Answer

A)  The company's audited financial statements.
B)  Historical documents such as bank statements.
C)  Employee input.
D)  The evaluation of the costs and benefits of each decision.E) A) and D)
F) None of the above

Question 10

Business decisions generally have few options.

Accepted Answer

A) True 
 B)False

Question 11

Ethics relate primarily to the decision-making step of the Decision Framework.

Accepted Answer

A) True 
 B)False

Question 12

John has three options for summer work.He can do lawn work for $100 per week, babysit for $125 per week, or work at the local pool for $175 per week.All of the options would require approximately 20 hours of work per week.In addition, if he chooses to work at the pool, he will incur $20 in gas costs per week.The opportunity cost if he chooses to babysit is:

Accepted Answer

A)  $100
B)  $175
C)  $155
D)  $105E) None of the above
F) All of the above C

Question 13

In the planning and control cycle, the Evaluate stage deals with:

Accepted Answer

A)  Products and services.
B)  Resources necessary.
C)  Set performance targets.
D)  Achievement of performance targets.
E)  All of the above are part of the Evaluate stage.F) C) and D)
G) B) and C)

Question 14

Which one of the following is the best example of an organizational goal?

Accepted Answer

A)  Ensuring that costs exceed benefits.
B)  Maximizing shareholder value.
C)  Paying significant dividends.
D)  Launching a new product that is known to have potential defects.E) B) and C)
F) None of the above

Question 15

Which of the following is not a key difference between managerial accounting and financial accounting?

Accepted Answer

A)  The emphasis of financial accounting is information reliability while the emphasis of managerial accounting is information relevance.
B)  Financial accounting focuses on past financial data while managerial accounting uses all available data.
C)  Financial accounting focuses on external users while managerial accounting focuses on internal users.
D)  Financial accounting uses financial and non-financial data while managerial accounting only uses non-financial data.
E)  Financial accounting reports are released periodically while managerial accounting reports are generated on an as-needed basis.F) A) and D)
G) A) and E)

Question 16

The proper order for the steps in a planning and control cycle are:

Accepted Answer

A)  Plan, revise, implement, and evaluate.
B)  Implement, evaluate, revise, and plan.
C)  Implement, revise, evaluate, and plan.
D)  Plan, implement, evaluate, and revise.E) C) and D)
F) B) and C)

Question 17

Managerial accounting aims to satisfy the information needs of decision makers outside the firm.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is the best example of an opportunity cost?

Accepted Answer

A)  The cost of filling up the company car with gasoline.
B)  The time incurred in reviewing expense reports of key employees in the company.
C)  Taking two days' vacation at the end of the month instead of completing a project for a client.
D)  Asking the President of the company for a raise.E) A) and B)
F) All of the above

Question 19

Planning decisions relate to choices about acquiring and using resources to deliver products and services to customers.

Accepted Answer

A) True 
 B)False

Question 20

Many firms conduct surprise audits to increase the odds of detecting unethical behavior.

Accepted Answer

A) True 
 B)False

Exam 1: Accounting: Information for Decision Making

The main responsibility for ethical behavior rests on:

Correct Answer
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What is the first step in the decision-making process?

Correct Answer
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B

Which part of the four step framework for making decisions is linked directly to the formulation of the decision maker's goals?

Correct Answer
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Which of the following is not a provision of the Sarbanes-Oxley Act of 2002?

Correct Answer
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Managerial accounting is a branch of accounting which:

Correct Answer
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Ethical standards are often considered difficult to enforce.Which one of the following is a good approach to ensuring ethics are followed?

Correct Answer
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The value of an option must always be expressed in monetary terms.

Correct Answer
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The planning and control cycle is a long-term cycle normally taking months to complete.

Correct Answer
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False

In order to make a good decisions, management must rely on:

Correct Answer
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Business decisions generally have few options.

Correct Answer
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Ethics relate primarily to the decision-making step of the Decision Framework.

Correct Answer
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Correct Answer
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C

In the planning and control cycle, the Evaluate stage deals with:

Correct Answer
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Which one of the following is the best example of an organizational goal?

Correct Answer
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Which of the following is not a key difference between managerial accounting and financial accounting?

Correct Answer
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The proper order for the steps in a planning and control cycle are:

Correct Answer
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Managerial accounting aims to satisfy the information needs of decision makers outside the firm.

Correct Answer
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Which of the following is the best example of an opportunity cost?

Correct Answer
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Planning decisions relate to choices about acquiring and using resources to deliver products and services to customers.

Correct Answer
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Many firms conduct surprise audits to increase the odds of detecting unethical behavior.

Correct Answer
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Exam 1: Accounting: Information for Decision Making

The main responsibility for ethical behavior rests on:

Correct AnswerverifiedShow Answer

What is the first step in the decision-making process?

Correct AnswerverifiedB

Which part of the four step framework for making decisions is linked directly to the formulation of the decision maker's goals?

Correct AnswerverifiedShow Answer

Which of the following is not a provision of the Sarbanes-Oxley Act of 2002?

Correct AnswerverifiedShow Answer

Managerial accounting is a branch of accounting which:

Correct AnswerverifiedShow Answer

Ethical standards are often considered difficult to enforce.Which one of the following is a good approach to ensuring ethics are followed?

Correct AnswerverifiedShow Answer

The value of an option must always be expressed in monetary terms.

Correct AnswerverifiedShow Answer

The planning and control cycle is a long-term cycle normally taking months to complete.

Correct AnswerverifiedFalse

In order to make a good decisions, management must rely on:

Correct AnswerverifiedShow Answer

Business decisions generally have few options.

Correct AnswerverifiedShow Answer

Ethics relate primarily to the decision-making step of the Decision Framework.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedC

In the planning and control cycle, the Evaluate stage deals with:

Correct AnswerverifiedShow Answer

Which one of the following is the best example of an organizational goal?

Correct AnswerverifiedShow Answer

Which of the following is not a key difference between managerial accounting and financial accounting?

Correct AnswerverifiedShow Answer

The proper order for the steps in a planning and control cycle are:

Correct AnswerverifiedShow Answer

Managerial accounting aims to satisfy the information needs of decision makers outside the firm.

Correct AnswerverifiedShow Answer

Which of the following is the best example of an opportunity cost?

Correct AnswerverifiedShow Answer

Planning decisions relate to choices about acquiring and using resources to deliver products and services to customers.

Correct AnswerverifiedShow Answer

Many firms conduct surprise audits to increase the odds of detecting unethical behavior.

Correct AnswerverifiedShow Answer

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B

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False

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C

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