1. Which option contains the best attributes that good information should have?
A. Accurate, Complete, Timely
B. Authoritative, Cost-effective, Numerical
C. Accurate, Extensive, User-friendly
D. Historical, Complete, Relevant
2. What is an example of information rather than data?
A. Number of products sold last year
B. Total value of expense claims authorised so far this year
C. Number of new starters appointed last month
D. Actual spending against budget analysed by month
3. What are examples of internal information for an organisation’s management?
I. Health and safety regulations
II. Discounts given to customers
III. Production output report
A. I and II only
B. II and III only
C. I and III only
D. I, II and III
4. Which statement correctly reflects the distinction between data and
information?
A. Data comprises quantitative items only, whereas information contains both
quantitative and qualitative items
B. Data comprises historical items only, whereas information contains future-orientated
and historical items
C. Data comprises internal facts, whereas information contains internal and external
facts
D. Data comprises raw facts and figures, whereas information has been processed to
provide meaning for the user
5. What is NOT usually a feature of useful management information?
A. It contains all the information that can be reasonably expected to be included to
make a management accounting decision.
B. The information is reliably sourced.
C. The cost of generating the information is more than its benefit.
D. The information is received on time.
6. The following is an extract from monthly management accounts.
June May
Gross Profit margin (%) 22.6 24.8
Sales ($000) 1,250 1,135
An extract from the accounts says, “Sales in June have increased by 10% due to
offering discounts to our major customer. This is reflected in the fall in gross profit
margin.”
(1) The extract contains forecasted information.
(2) Information contained in the extract is useful to management to assess whether the
discount offered in June was worthwhile.
Are statements (1) and (2) true or false?
Statement
Statement (1) (2)
A
. True False
B.
True True
C.
False False
D.
False True
7. Which data source is LEAST likely to be used by a trainee management
accountant as part of their work?
A. Accounting records
B. Timesheets
C. Corporation tax records
D. Production budget
8. What is NOT a characteristic of useful information?
A. Accurate whatever the cost
B. Arrives on time
C. Understandable to the user
D. Easy to use
A trainee management accountant analyses departmental expense claims submitted
during the previous quarter.
9. Which option describes the source and nature of this information?
A. External and historical
B. External and future-orientated
C. Internal and historical
D. Internal and future-orientated
10. Which of the following is NOT an accurate distinction between external
financial reporting and management accounting?
Financial Reporting Management Accounting
A. Statutory requirement Optional
B. Describes the entire business Can focus on smaller parts of the business
C. Annual requirement Required more frequently
D. Reports historical information Reports future information only
11. Which statements are true?
Statement (1) – Rules and regulations govern external financial reporting and
management accounting.
Statement (2) – External financial reporting satisfies the needs of external parties,
whereas management accounting satisfies the requirements of internal and external
parties.
A. 1 only
B. 2 only
C. 1 and 2
D. Neither
12. Which option is NOT a purpose of management information?
A. To help management plan
B. To comply with statutory requirements
C. To assist management with controlling operations
D.To help ensure the efficient use of resources
13. What is NOT a focus of management accounting?
A. Planning
B. Control
C. Financial statements
D. Decision making
Two incomplete statements follow.
1. A trainee management accountant would prepare information intended mainly for
_____ use.
2. Financial statements are prepared mainly for _____ use.
14. Which words correctly complete each statement?
A. 1 External, 2 Internal
B. 1 Internal, 2 Internal
C. 1 External, 2 External
D. 1 Internal, 2 External
Two statements relating to management activities are shown below.
1. Planning involves monitoring of actions and comparing them to expected outcomes.
2. An example of planning is choosing between various business options.
15. Is each statement true or false?
a. Statement 1 is true, Statement 2 is false
b. Both statements are true
c. Statement 1 is false, Statement 2 is true
d. Both statements are false
