Question

1. The process of selecting a course of action and specifying how the action will be implemented is referred to as

Multiple Choice

a) controlling

b) motivating

c) directing

d) planning

2. What is the primary difference between managerial and financial accounting?

Multiple Choice

a) Managerial accounting provides financial data for internal use within the organization, whereas financial accounting provides data to external users.

b) Financial accounting data is based on the business transactions of the business. Managerial accounting is based solely on estimated activity.

c) There is no difference between financial and managerial accounting.

d) Managerial accounting data is provided to shareholders and lenders to support decisions about lending and investing in the business.

3. The purpose of IFRS is:

Multiple Choice

a) To change how management accountants prepare reports.

b) To enhance the comparability and clarity of financial information on a global basis.

c) To encourage disclosure of Non-Financial data.

d) To encourage Strategic planning.

4. Which form of accounting is completely optional?

Multiple choiceTop of Form

a) Both managerial accounting and financial accounting are mandatorily required.

b) Financial accounting is optional.

c) Managerial accounting is optional.

d) Both managerial accounting and financial accounting are optional.

5. Every business strategy or decision involves risks. _________ is a process used by a company to proactively identify and manage those risks.

Multiple Choice

a) Lean production

b) Re-engineering

c) A value chain

d) Enterprise risk management

Answer 1

1.d)planning

Planning involves the process of selection of a course of action and specifying as to how the actions would be carried out or implemented.

2.a)Managerial accounting provides financial data for internal use within the organization,whereas financial accounting provides financial data to external users.

Managerial accounting provides financial information to internal users wheraes financial accounting provides financial information to external users.

3.b) To enhance the comparability and clarity of financial information on global basis

The purpose of IFRS is to enhace comparability as well as clarity of information globally.

4.c)managerial accounting is optional

Financial accounting is mandatory whereas managerial accounting is optional.

5.d)Enterprise risk management

Enterprise risk management is a process which is used by a company to proactively identify the risks that it faces as well as manages.