Managerial Accounting: Tools for Business Decision-Making 6th Canadian Edition by Jerry J. Weygandt

 
 
31. Which one of the following involves coordinating a company’s activities to produce a smooth-running operation?
a) auditing
b) controlling
c) planning
d) directing
 
 
32. Which one of the following does the planning function involve?
a) analyzing financial statements
b) setting goals and objectives for an entity
c) hiring the right people for a particular job
d) coordinating the accounting information system
 
 
33. Which one of the following is true concerning the managerial function of controlling?
a) It includes performance evaluation by management.
b) It is concerned mainly with operating a manufacturing segment.
c) It is performed only by the controller of a company.
d) It includes hiring and training employees.
 
 
34. Which of the following represents two management functions?
a) regulating and directing
b) controlling and directing
c) controlling and auditing
d) auditing and planning
 
 
35. Which management function is a manager performing when objectives are being established?
a) regulating
b) planning
c) motivating
d) directing
 
 
36. The organizational chart of a company shows
a) the interrelationships of activities within a company.
b) the delegation of authority within a company.
c) the delegation of responsibility within a company.
d) all of the above.
 
 
37. Which function is achieved when a manager is determining whether planned goals are being met?
a) controlling
b) motivating
c) planning
d) directing
 
 
38. What activities and responsibilities are not associated with management’s functions?
a) planning
b) accountability
c) controlling
d) directing
 
 
39. Directing includes
a) providing a criteria framework for management when needed, to assist in  terminating employees.
b) running a department under quality control standards that are universally accepted.
c) coordinating a company’s diverse activities and human resources to produce a smooth-running operation.
d) developing a performance ranking system to give certain high performers substantial raises.
 
 
40. Which of the following is true?
a) Generally Accepted Accounting Principles (GAAP) form the backbone of managerial accounting conventions, and local and/or regional standards and professional judgment allow for variations among practitioners.
b) Each province in Canada has its own code of ethics and rules and guidelines of professional conduct.
c) The Sarbanes-Oxley Act in the U.S. and similar legislation in Canada aims to guide ethical standards used in management accounting practices.
d) Chartered Professional Accountants of Canada plays an important role in promoting high standards of ethics in the accounting profession, excluding managerial accounting.
 
 
 
 
41. Corporate social responsibility only considers:
a) profitability.
b) sustainable business practices with regards to the environment.
c) the triple bottom line including performance with regard to people, plant and profit.
d) sustainable business practices with regards to employees.
 
 
42. Which of the following is true?
a) Managerial accountants are the employees who are principally responsible for ethical behaviour.
b) Investment losses have been precipitated by lax ethical standards.
c) Corporate fraud was found to have decreased between the years 1998 and 2003.
d) Expense account abuse has been cited as one of the rarest forms of unethical employee behaviour.
 
 
43. Choose the incorrect answer.
a) While generally not encouraged, lapses in ethical behaviour are irrelevant to a company’s operating income.
b) Proper incentives need to be implemented to foster an ethical business environment.
c) Manufacturing companies need to establish effective and realistic production goals for their processes.
d) As a result of the Sarbanes-Oxley Act, companies now pay more attention to the composition of the board of directors.
 
 
44. Which is the best definition of fraud?
a) unknowingly misrepresenting the facts
b) using business supplies for personal use
c) the intentional misstatement of facts
d) misappropriating funds for personal financial gain
 
 
45. Which of the following is true?
a) Dissatisfied employees cite a decline in ethical behaviour is a result of a change in corporate culture.
b) Unethical corporate behaviour occurs only in the United States because of its capitalistic environment.