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Exam 1: Introduction to Managerial Accounting

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Question 31

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In 2013,the employee at Lighthouse Services prepared an annual report for the bank that revealed total revenue in 2012 was $6,000,000.The manager needs the information to apply for a loan to purchase new equipment to maintain the operations at the organization.The report was prepared in accordance with GAAP and the report contained information about the 2012 financial performance at the company. Which of the following describes the role of the employee at Lighthouse Services?

A) Managerial Accountant
B) CFO
C) CEO
D) Board of Director
E) Financial Accountant

F) B) and E)
G) B) and D)

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Question 32

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XBRL can best be described as a

A) new set of auditing standards.
B) new set of accounting standards.
C) new set of ethical standards.
D) a standardized tagging system for financial statement data.

E) C) and D)
F) A) and B)

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Question 33

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In what year will XBRL be required for all publicly traded companies?

The IMA is the professional association for management accountants.

Preparing financial statements in accordance with GAAP is an example of

Managerial accounting reports are always prepared on a quarterly and annual basis.

According to SOX,at least one member of the audit committee should be a financial expert.

The primary goal of financial accounting is to provide information to

What is the business philosophy of providing superior goods and services?

Pete's Cola Company is investigating the possibility of adopting a lean thinking philosophy throughout their organization.Estimated costs to set up the computer system are $1,650,000;training employees in lean operations is estimated to cost $175,000;and the general expenses of establishing the program are estimated at $315,000.The estimated value of the potential savings is $1,975,000.Do the benefits outweigh the costs or do the costs outweigh the benefits,and by how much?

Planning,directing,and controlling are a manager's three primary responsibilities.

Controlling means overseeing the company's day-to-day operations.

Is financial accounting or managerial accounting more useful to a plant (factory)manager? Explain your answer.

The management accountant at Light Manufacturing oversees the company's day-to-day operations at the firm.The management accountant observed that the company generated $800,000 in product sales and the management accountant uses that information to run the daily business operations.The information is also to the management accountant because the data reveals which products generate the most sales;and,the management accountant uses that information to adjust products and develop the marketing strategy. Which of the following management accounting responsibilities is the management accountant using in this example?

Businesses are now viewing sustainability and social responsibility as opportunities for innovation and business development.

In 2013,the accountant at Star Incorporated,a national time-share company,focused on an internal sales report that illustrates the sales projections to ensure the sales representatives achieve their goals in 2013;however,the report was not prepared in accordance with GAAP.The accountant observed that the total sales produced by the sales representatives in 2012 were $250,000,000.The accountant is in the process of establishing the new 2013 sales goals for the sales representatives and the accountant is concerned about the new sales goals in 2013 since the economy is slow and many individuals and groups are not purchasing time-share condos. Is the accountant a management accountant or a financial accountant? What concept concerns the accountant when the new sales goals are revealed to the sales representatives and administrative staff? Why?

Tom is the new accounting supervisor at Maryland Distributors.Tom requires all accountants to join the IMA and Tom expects all accountants to commit to ethical professional practice.Tom is asked to review the previous quarter audit reports that were completed by the CPA firm.Tom reviews the reports and he discovers that an accountant in the sales division did not participate in continuing education as required.According to the IMA Statement of Ethical Professional Practice,which of the following did the accountant violate when the accountant did not participate in continuing education requirements?

Movements toward sustainability and corporate responsibility often

Using product cost information to determine sales prices is an example of

Gilmore Corporation is investigating the possibility of adopting a lean thinking philosophy in its manufacturing facilities.The plant manager has done a cost-benefit analysis and has found that the costs of the lean production program exceed the benefits by $115,000.You analyze the situation and make some adjustments to the cost estimates.After doing your analysis,you find that costs still outweigh benefits by less than 5%.Which of the following choices are possible strategies managerial accountants could implement to enhance the operational effectiveness at the manufacturing facilities?