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Chapter 01 Test Bank – Static KEY 1. What type of accounting system is part of an organisation's management information system for internal use only? A. Financial accounting B. Management accounting C. Governmental accounting D. All of the given answers AACSB: Reflective Difficulty: Easy Learning Objective: 1.03 Describe the major differences between management accounting and financial accounting information Topic: Role of Management Accountant in Value Creation 2. Which of the following statement/s about management accounting is/are true? i. It is a part of an organisation's management information system. ii. It is relied on by managers to plan and control an organisation's operations. iii. It is relied on by external users to make investment decisions. A. i and ii B. i, ii and iii C. iii D. ii AACSB: Reflective Difficulty: Easy Learning Objective: 1.02 Define management accounting in terms of value creation Topic: Role of Management Accountant in Value Creation 3. Which of the following statement/s about management accounting is/are true? i. It is concerned only with information obtained from the accounting records. ii. It is concerned with financial and non-financial information. iii. It can provide information useful for making decisions. A. i B. i and ii C. ii and iii D. ii AACSB: Reflective Difficulty: Medium Learning Objective: 1.02 Define management accounting in terms of value creation Topic: Role of Management Accountant in Value Creation 4. A strategy is i. another name for a long-term objective ii. the same as an objective iii. a means by which an organisation plans to meet its mission and achieve its objectives A. i B. ii C. iii D. i and ii AACSB: Reflective Difficulty: Medium Learning Objective: 1.06 Explain the basic concepts of strategy and how management accounting systems can support strategies Topic: Fundamental Management Processes 5. Which of the following is not an objective of management accounting? A. Providing information for making decisions B. Providing information for planning C. Providing information for control D. Providing information for profit and loss statements 1-1 Copyright © 2018 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw- Hill Education. Which of the following is not associated with financial accounting?
Which of the following is not a characteristic of financial accounting *?Answer and Explanation: The correct answer is b. Information is used primarily by internal parties.
Which of the following costing activities is associated with the financial accounting system?
Which of the following is not generally a characteristic of management accounting information and management accounting reports?B is the correct option
This is the correct option because mandatory external reports are not a characteristic of management accounting. The characteristic of management accounting is objectivity, comparability, reliability, and relevance.
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