Unit Test – 01

1. Which one of the following fundamental principles within the CIMA code of ethics represent being
honest and straightforward in all business dealings?
A. Integrity
B. Professional Behaviour
C. Confidentiality
D. Professional competence and due care

2. Which of the following statements is false?

A. Management accounts focus only on future predicted information
B. The production of financial accounts is a legal requirement
C. Management accounts can be in any format which is useful to the user
D. The users of financial accounts are largely external

3. Which of the following statements is incorrect regarding Business Process Outsourcing?

A. Businesses loses of control outsourced work
B. Losing confidentiality of business information
C. There will be lack of expertise of the BPO provider
D. Overreliance of the business on external provider

4. Which of the following is NOT a characteristic of good information?

A. Authoritative
B. Complete
C. Error free
D. Easy to use

5. What is the purpose of management accounting?

A. Planning only
B. Planning and control only
C. Planning, control and decision making only
D. Planning, control, decision making and research and development

BA2 Nov. 2020 – Unit Test 01 – K. Sivagar 1

6. For whom are management accounts prepared?
A. Employees
B. Internal managers
C. Shareholders
D. Suppliers

7. The management accountant of ABC has produced a monthly report for managers. Some of the
managers have complained that the report is unhelpful as it misses out some key figures and that they
are not always familiar with the terminology used in the report.

Which of the characteristics of good information are missing in this report?

A. Accurate and relevant
B. Complete and understandable
C. Easy to use and accurate
D. Understandable and authoritative

8. Which one of the following is NOT one of the roles of management accounting as defined by CIMA:
A. Plan long-, medium- and short-run operations
B. Design reward strategies for executives and shareholders
C. Prepare statutory accounts consisting of income statements, statements of financial position and
cash flow statements
D. Control operations and ensure the efficient use of resources

9. Which of the following is NOT a Global Management Accounting Principles?

A. Stewardship builds trust
B. Sustainable organisations achieve long term economic performance
C. Information is relevant
D. Information on value is analysed

10. Which of the following statement about CIMA is true?

A. CIMA’s main focus is financial accounting
B. CIMA was established over 110 years ago
C. Members of CIMA are known as Chartered Global Management Accountants
D. CIMA only covers orgnisations based in the UK

BA2 Nov. 2020 – Unit Test 01 – K. Sivagar 2