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AIS Quiz

The document contains 25 true/false questions about management accounting and reporting concepts. 11 of the questions were marked as true and 14 were marked as false. Key concepts covered include the purpose of management reporting systems, responsibility accounting, the general ledger, and XBRL taxonomies.

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PCCI Muntinlupa City Inc.
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55 views2 pages

AIS Quiz

The document contains 25 true/false questions about management accounting and reporting concepts. 11 of the questions were marked as true and 14 were marked as false. Key concepts covered include the purpose of management reporting systems, responsibility accounting, the general ledger, and XBRL taxonomies.

Uploaded by

PCCI Muntinlupa City Inc.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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11/25 - 11 F

1. Primary recipients of financial statement information are internal management.


ANSWER: FALSE

2. The most common means of making entries in the general ledger is via the journal
voucher.
ANSWER: (True)

3. Designing an effective management reporting system does not require an understanding


of the information managers need to deal with the problems they face.
ANSWER: FALSE

4. A firm with a wide span of control tends to have relatively more layers of management.
ANSWER: FALSE

5. A report is said to have information content if it eliminates uncertainty associated with a


problem facing the decision maker.
ANSWER: FALSE

6. Management reporting is often called discretionary reporting because it is not mandated


as is financial reporting.
ANSWER: (True)

7. A principle of responsibility accounting is that managers are responsible for controllable


and uncontrollable costs.
ANSWER: TRUE

8. Each account in the chart of accounts has a separate record in the general ledger master
file.
ANSWER: (True)

9. The formalization of tasks principle suggests that management should structure the firm
around the unique skill sets of key individuals.
ANSWER: FALSE

10. When evaluating decision alternatives, one option is to take no action.


ANSWER: (True)

11. The journal voucher is the document that authorizes entries to be made to the general
ledger.
ANSWER: (True)

12. An income statement is an example of an XBRL instance document


ANSWER: (True)
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13. The control function entails evaluating a process against a stand and, if necessary,
taking corrective action.
ANSWER: (True)

14. If a manager delegates responsibility to a subordinate, he or she must also grant the
subordinate authority to make decisions.
ANSWER: (True)

15. According to Hall, individuals with access authority to general ledger accounts should not
prepare journal vouchers.
ANSWER: (True)

16. Responsibility refers to an individual’s obligation to achieve desired results.


ANSWER: (True)

17. An inventory out-of-stock report is an example of a programmed, on-demand report


ANSWER: (True)

18. The Management Reporting System is a nondiscretionary system.


ANSWER: FALSE

19. Strategic decisions are subordinate to tactical planning decisions


ANSWER: FALSE

20. Standards are the basis for evaluating actual performance


ANSWER: (True)

21. The manager of a cost center is responsible for cost control and revenue generation
ANSWER: FALSE

22. The responsibility center file is primarily used by the Financial Reporting System.
ANSWER: FALSE

23. Operational control involves motivating managers at all levels to use resources, including
materials, personnel, and financial assets, as productively as possible.
ANSWER: FALSE

24. In most cases intangible decision criteria can be quantified.


ANSWER: FALSE

25. XBRL taxonomies are classification schemes that are compliant with the XBRL
specifications to accomplish a specific information exchange
ANSWER: (True)

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