Managerial Accounting

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Multiple choice weekly assignment.

1. Which of the following is true of Managerial Accounting?
a. Complies with Securities and Exchange Commission rules and regulations.
b. Uses cost-benefit analysis to determine the amount of detail presented.
c. Prepares general-purpose reports for people outside an organization.
d. Presents summary historical data in compliance with generally accepted accounting principles.

b. Uses cost-benefit analysis to determine the amount of detail presented.

2. In 2002, Congress passed the Sarbanes-Oxley Act. Which of the following is not a provision of that act?
a. The law empowered the American Institute of Certified Public Accountants (AICPA) to oversee licensure of auditors.
b. The Chief Executive Officer (CEO) must sign the company's financial statements attesting to the inclusion of all material information.
c. The Public Company Accounting Oversight Board (PCAOB) was created.
d. The CEO and Chief Financial Officer (CFO) must indicate that they are responsible for the company's system of internal control.

a. The law empowered the American Institute of Certified Public Accountants (AICPA) to oversee licensure of auditors.
http://en.wikipedia.org/wiki/Sarbanes%E2%80%93Oxley_Act.

Its Public Company Accounting Oversight Board (PCAOB) which was instituted to oversee licensure of auditors

3. What is an opportunity cost?
a. The difference in total costs which results from selecting one choice instead of another.
b. The profit forgone by selecting one choice instead of another.
c. A cost that may be saved by not adopting an alternative.
d. A cost that may be shifted to the future with little or no effect on current operations.

The profit forgone by selecting one choice instead of another.

As per net mba, Opportunity cost is based on what must be given up (the next best alternative) as a result of the decision. Any ...