Chapter 1

Introduction to Managerial Accounting

Quick Check

Answers

QC1-1. c

QC1-2. d

QC1-3. b

QC1-4. d

QC1-5. d

QC1-6. c

QC1-7. a

QC1-8. c

QC1-9. b

QC1-10. a

QC1-11. d

QC1-12. b

Short Exercises

(5–10 min.) S1-1

a. Planning

b. Controlling

c. Directing

d. Directing

e. Directing, Controlling

(5–10 min.) S1-2

a. Financial accounting

b. Financial accounting

c. Financial accounting

d. Managerial accounting

e. Managerial accounting

f. Managerial accounting

g. Financial accounting

h. Financial accounting

i. Managerial accounting

j. Managerial accounting

k. Financial accounting

l. Managerial accounting

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3

m. Financial accounting

(5–10 min.) S1-3

a. Internal Auditing Department

b. Controller

c. Internal Auditing Department

d. Internal Auditing Department

e. Treasurer

f. Controller

g. Controller

h. Controller

i. Controller

j. Controller

k. Controller

l. Treasurer

m. Treasurer

(5–10 min.) S1-4

Characteristic Check (√) if related to internal

auditing

a. Reports directly to the audit committee √

b. Reports to treasurer or controller

c. Is part of the Accounting Department

d. Helps to ensure that company’s internal controls are functioning

properly

√

e. Performs the same function as independent certified public

accountants

f. Usually reports to a senior executive (CFO or CEO) for administrative

matters

√

g. External audits can be performed by the internal auditing department

h. Required by the New York Stock Exchange if company stock is publicly

traded on the NYSE

√

i. Ensures that the company achieves its profit goals