Managerial Accounting: Practice Test 
Salem State University
ACC202 – Managerial Accounting – Practice Test
Chapters 14, 1, 2
Professor Paul F McGee, CPA
Name___________________________________________
Please indicate the best/correct answer by circling the appropriate letter.
1. Managerial accounting helps managers perform three vital activities. These activities include all of the following except:
a. Planning
b. Controlling
c. Decision making
d. Hiring Controllers
2. The act that was intended to protect the interests of those who invest in publically traded companies by improving the reliability and accuracy of corporate financial reports and disclosures is called
a. Sarbanes-Oxley Act of 2002
b. Securities and Exchange Act of 1934
c. Frank-Todd Act
d. Generally Accepted Accounting Principles Act
3. Managerial Accounting places considerable weight on:
a. Generally Accepted Accounting Principles
b. The financial history of the entity
c. Ensuring that all transactions are properly recoded
d. Providing information to managers for use within the organization
4. The plans of management are often expressed formally in
a. financial statements
b. performance reports
c. budgets
d. ledgers
5. Which of the following is NOT one of the Institute of Management Accountants’ Standards of Ethical Conduct?
a. Competence
b. Confidentiality
c. Independence
d. Integrity
6. Which of the following functions of management involves the process of establishing goals and specifying how to achieve them?
a. Planning
b. Directing
c. Motivating
d. Decision making
7. The phase of accounting concerned with providing information to managers for use in planning and controlling operations and in decision making is called:
a. throughput time
b. managerial accounting
c. financial accounting
d. controlling
8. Given the following information which procedure would be considered the weakest link (constraint)
Doctor referral to an MRI 100 a day Appointments for an MRI 200
ACC202 – Managerial Accounting – Practice Test
Chapters 14, 1, 2
Professor Paul F McGee, CPA
Name___________________________________________
Please indicate the best/correct answer by circling the appropriate letter.
1. Managerial accounting helps managers perform three vital activities. These activities include all of the following except:
a. Planning
b. Controlling
c. Decision making
d. Hiring Controllers
2. The act that was intended to protect the interests of those who invest in publically traded companies by improving the reliability and accuracy of corporate financial reports and disclosures is called
a. Sarbanes-Oxley Act of 2002
b. Securities and Exchange Act of 1934
c. Frank-Todd Act
d. Generally Accepted Accounting Principles Act
3. Managerial Accounting places considerable weight on:
a. Generally Accepted Accounting Principles
b. The financial history of the entity
c. Ensuring that all transactions are properly recoded
d. Providing information to managers for use within the organization
4. The plans of management are often expressed formally in
a. financial statements
b. performance reports
c. budgets
d. ledgers
5. Which of the following is NOT one of the Institute of Management Accountants’ Standards of Ethical Conduct?
a. Competence
b. Confidentiality
c. Independence
d. Integrity
6. Which of the following functions of management involves the process of establishing goals and specifying how to achieve them?
a. Planning
b. Directing
c. Motivating
d. Decision making
7. The phase of accounting concerned with providing information to managers for use in planning and controlling operations and in decision making is called:
a. throughput time
b. managerial accounting
c. financial accounting
d. controlling
8. Given the following information which procedure would be considered the weakest link (constraint)
Doctor referral to an MRI 100 a day Appointments for an MRI 200