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Management Accounting Test Bank
Management Accounting Test Bank
15. How does the management accounting information system differ from the financial
accounting system?
a. the management accounting information system produces information for external users;
the financial accounting system produces information for internal users
b. the management accounting information system uses rules promulgated by the SEC; the
financial accounting system uses rules promulgated by the ASC
c. the management accounting information system uses objective information; the financial
accounting system uses subjective information
d. none of the above
16. Accounting information that users can depend on to represent the economic condition
or events that it purports to represent best defines
17. The personnel, procedures, devices and records used by an entity to develop
accounting information and to communicate to decision makers is known as:
a. Responsibility accounting system c. Internal control system
b. Practice of accounting d. Accounting system
21. In which of the following points does managerial accounting similar to financial accounting?
22. A type of managerial accounting which refers to the tracing of costs to the responsibility
centers to pinpoint accountability and evaluate performance.
a. differential accounting
b. full cost accounting
c. responsibility accounting
d. profitability accounting
23. Which of the following characteristics does not relate to managerial accounting?
a. accounting reports may include non-monetary information
b. it is subject to restrictions imposed by GAAP
c. reports are often based on estimates and are seldom useful for anything other
than the purpose for which they are prepared
d. it provides data for internal users within the business organization
a. it is generally non-recurring
b. data may be both historical and estimates
c. it must be adhere to the generally accepted accounting principles.
d. it provides relevant information needed by management in making decisions
26. Which of the following will NOT impair independence of an MAS practitioner?