Much of managerial accounting information is based on:

Cost minimization.

Profit maximization.

The generation of external information.

Effectiveness but not efficiency.

A cost-benefit theme.

Which of the following acts is not performed by an independent CPA engaged to install an accounting
system?
Formulation of the chart of accounts
Design of business and accounting forms
Supervision of application of system and procedures recommended
Preparation of an accounting manual.

Only a _________ is permitted by law to serve as an external auditor.

Certified Management Accountant

Certified Financial Analyst

Certified External Auditor

Certified Public Accountant

Certified Financial Manager

Which of the following is not a characteristic of management services?

A wider variety of assignments are encountered in MAS than in audit.
MAS engagements are recurring.
MAS pinpoint actions to be taken, the benefits of which will be received in the future.
In MAS engagements, the nature of work involved requires a lesser need for junior assistance.

Planning is a function that involves:

Hiring the right people for a particular job.

Analyzing financial statements.

Coordinating the accounting information system.

Setting goals and objectives for an entity.

Controlling the resources of the company.

Which of the following types of management services is normally related to accounting and finance?
Management audit.
Marketing forecasts.
Costs determination of alternatives in collective bargaining agreements.
Job evaluation and salary administration.

The following statements about management accountants are true, except:

Management accountants more and more are considered “business partners”.

Management accountants often are part of cross-functional teams.

An increasing number of organizations are segregating management accountants in separate

management accounting departments.

In a number of companies, management accountants make significant business decisions and resolve
operating problems.

The role of management accountants has changed considerably over the past decade.

A certified public accountant’s scope of management services is broad and covers all of the following
except
Change management engagements.
Computerization engagements.
Audit engagements.
Re-engineering jobs.

Managerial accounting does not encompass:

Calculating product cost.

Determining cost behavior.

Profit planning.

CVP analysis.

Calculating earnings per share.

Which of the following is not classifiable as a management advisory service by CPAs?

Annual financial planning and budgeting.
Public relations work.
Information systems.
Lease-or-buy analysis.

Cost and management accounting:

Require an entirely separate group of accounts than financial accounting uses.

Focus solely on determining how much it costs to manufacture a product or provide a service.

Provide product/service cost information as well as information for internal decision making.

Are required for business recordkeeping as are financial and tax accounting.

Two or more of these.

Which of the following does not relate to management services by CPAs?

Design and/or installation of accounting systems.
Financial analysis for project feasibility studies.
Cost analysis of major investment decisions.
None of the above.

The professional certification developed by the IMA is the:

CIA.

CMA.

CPA.

CFA.

CFM.

A management advisory services engagement involves the following activities in what order?
I. Post-engagement follow-up.
II. Implementing the recommendation.
III. Conducting the engagement.
IV. Negotiating the engagement.
V. Preparing for and starting the engagement.
VI. Evaluating the engagement.
VII. Preparing and presenting report and recommendations.
VII, VI, V, IV, III, II and I.
III, IV, V, VI, VII, I and II.
IV, III, V, VI, II, VII, and I.
IV, V, III, VII, II, VI, and I.

The CMA designation is issued to accountants after they have:

Graduated from a four-year program with their bachelor’s degree in accounting.

Passed the national CMA examinations.

Spent ten years in an managerial accounting related job.

Completed a college education, met certain work requirements, and passed the CMA examination.

Adhered to the code of ethics for management accountants.

Which of the following statements is True?

Adequate training and experience in both the analytical approach and process in the particular
undertaking are requisites for the CPA to be involved in a management service engagement.
A CPA with MBA and PhD degrees is automatically qualified to render management services.
Competence as a standard in the rendition of management services by a CPA may be equated to
having excellent scholarly preparation to include the usual baccalaureate degree, an MBA, and
other post graduate studies.
A certified public accountant by virtue of having the necessary academic preparation and by
hurdling the licensure examinations required to have a CPA license can readily render
management services to the public.

Modern management accounting can be characterized by its:

Standardization.

Complexity.

Flexibility.

Precision.

Uniqueness.

Which of the following is not a qualification of a CPA in MAS practice?

Familiarity with the client’s financial accounting and internal control systems
Analytical experience in problem solving
Professional independence, objectivity and integrity
Auditor of the client

The position of the top accounting officer in an organization is occupied by the:

Controller.

Chief executive officer.

Comptroller.

Chief financial officer.

Either A or C.
The Revised Accountancy Law incorporates the Code of Professional Ethics for CPAs. The provision of
management advisory services is among the areas of public accounting. It is, however, not exclusive to
CPAs. Considering these premises, which of the following statements is applicable?
Management advisory services as a field of practice is considered as an integral part of public
accounting thus, the Code of Professional Ethics for CPAs covers management advisory services.
CPAs in the practice of audit and management consulting services may advertise and charge
contingent fees.
The practice of management advisory services should not be extended to existing audit clients
since this will adversely affect the CPA’s independence.
CPAs in the practice of management advisory services are not bound by the Board of
Accountancy but are bound by the said law in the practice of audit.

Which of the following statements is not acceptable?

A CPA represents three major players in the industry in rationalizing the industry’s incentive
before the government public hearing.
A CPA shares with a new client substantial information regarding another client belonging to the
same industry.
A CPA provides consulting services to an existing audit client.
A CPA offers and provides consulting services to two major competing clients.

Which of the following acts is not performed by an independent CPA engaged to design the accounting
system?
Formulation of the chart of accounts.
Design of business and accounting forms.
Supervision of implementation of system and procedures recommended
Preparation of an accounting manual.

A CPA should reject management advisory services engagement if

It would require him to make management decisions for an audit client.
The proposed engagement is not accounting related.
His recommendations are to be subjected to a review by the client.
He audits the financial statements of a subsidiary of the prospective client.