7-D
8.
a.
b.
c.
d.
Which of the following is not a characteristic of a “Staff” authority?
It gives support, advise, and service to line managers.
It is exercised laterally or upward.
It has the authority to command action or give orders to subordinates.
None of the above
8-C
9. In financial accounting, certain rules and regulations must be followed on how
financial statements must be presented to the reader. In managerial accounting, no
such restrictions generally apply because it is:
a. An entirely different field that need not observe the broad guidelines in
financial accounting.
b. Designed to provide management with non-financial information for decisionmaking.
c. Designed to provide accounting and other financial data to assist management in
making business decisions.
d. A discipline that does not require preparation of other financial statements.
e. All of the above.
9-C
10.
Which of the following characteristics relate to Financial Accounting?
a. Reports are promptly prepared and submitted to preserve its usefulness.
b. Data may be both historical and estimates.
c. It must adhere to the generally accepted accounting principles.
d. It provides information needed by management in making decisions.
10-C
11.
The following characteristics refer to Financial Accounting except
a. Provides information to external users
b. Emphasizes on objective data
c. Has no externally imposed standards
d. Generates general purpose financial statements
11-C
12.
To distinguish between management accounting and financial accounting, the
following statements are correct, except
a. Management accounting, in view of its various integrated recipients should have a
separate data recording and retrieval system from financial accounting.
b. Financial accounting is bound by GAAP, and management accounting need not be in
conformity with GAAP.
c. Financial accounting can be regarded as the process while management accounting
can be regarded as the product of the process.
d. Management accounting output must be released on time so as not to erode its
usefulness; Financial accounting output can still be useful even when delayed.
12-A
13.
Which of the following is a Controller’s responsibility?
a. Tax planning and accounting
c. In charge of credit and collection
b. Custodian of funds
d. Arranging short-term financing
2