A) Research and development, production, and distribution
B) Financial, managerial, and tax accounting
C) Internal controls
D) The annual audit
Answer: A
91) Which of the following report to the audit committee of the Board of Directors?
A) The CFO and internal audit department
B) The treasurer and controller
C) The internal audit department and the independent CPA firm
D) The CFO and the independent CPA firm
Answer: C
92) Which of the following report to the CFO?
A) The internal audit department
B) The treasurer and controller
C) The internal audit department and the independent CPA firm
D) The the independent CPA firm
Answer: B
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93) Who is primarily responsible for raising capital and investing funds?
A) The CFO B) The CEO C) The COO D) The Treasurer
Answer: D
94) What has been the key factor in changing the role of managerial accountants?
A) Government licensing B) Stricter audit standards
C) Stricter GAAP standards D) Technology
Answer: D
95) Which would be a subgroup of the Board of Directors?
A) Financial committee B) Managerial committee
C) Stockholders' committee D) Audit committee
Answer: D
96) Which person is hired directly by the board of directors to run the company?
A) The COO B) The Treasurer C) The CFO D) The CEO
Answer: D
97) Managerial accountants often work on teams called
A) cross- functional teams. B) work groups.
C) audit teams. D) multi- functional teams.
Answer: A
98) A company's Board of Directors meets
A) periodically, and at least annually. B) annually.
C) monthly. D) quarterly.
Answer: A
99) The Toronto Stock Exchange (TSE/TSX) requires that members of a board of directors for a listed company have
A) members experienced in business.
B) two independent members.
C) only stockholders as members.
D) membership that represents the diversity of Canada.
Answer: B
100) The person or position who is directly responsible for all financial concerns is the
A) CFO. B) Treasurer. C) COO. D) CEO.
Answer: A
101) Which of the following statements is true regarding the changing role of management accountants?
A) Because of the increased emphasis on analyzing business operations, management accountants have
become key organizational decision makers.
B) Technology has changed the role of management accountants.
C) Management accountants are no longer involved with recording transactions.
D) The increasing scope of the regulatory environment has changed the focus of management accountants.
Answer: B
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ESSAY. Write your answer in the space provided or on a separate sheet of paper.
102) Why is it important that all managerial accountants adhere to professional and ethical standards as codified by
the profession?
Answer: At the root of all business relationships is trust. Without trust, business cannot function.
103) Describe the position of the CFO, the treasurer, and the controller within the organization. Describe the main
functions of the treasurer and the controller.
Answer: The treasurer and controller both report to the CFO. The treasurer is responsible for the investing
functions of the organization (i.e., obtaining financing, paying down debt, issuing stock, etc.). The
controller is responsible for the financial accounting system and the managerial accounting system of the
organization.
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
104) Identify the skills required of a management accountant
Answer: Knowledge of both financial and managerial accounting
Problem solving and decision making
Ability to lead and work on a team
Professionalism
Ethical standards
Oral and Written communication skills
105) What is the most important skill for a management accountant to possess? Why?
Answer: Student answers will vary. Examples can include:
Communication skills to explain the impact of management decisions on the financial results and to explain
financial reports in a manner understood by the company's managers.
Ethical standards because business is built on trust.
TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement is false.
106) Recognition of ethical issues that may arise in work to be performed is evidence of Adhering to Integrative
Analysis in the CPA Guidelines for Ethical Behaviour.
Answer: True False
107) Anticipation of issues and identification of possible alternatives is evidence of Adhering to Integrative Analysis
in the CPA Guidelines for Ethical Behaviour.
Answer: True False
108) Having the requisite knowledge to perform certain tasks is an example of Adherence to Rules of Professional