Question : Objective 22.1 1) Which of the following a characteristic of a : 1211997

Objective 22.1

1) Which of the following is a characteristic of a management control system?

A) It aids and coordinates the process of making decisions.

B) It encourages short-term profitability and maximizing net income.

C) It helps individuals throughout the organization to act independently and maximize the profitability of their departments.

D) It deals with coordinating planning across the organization and is not concerned with behavioral aspects of management like employee motivation.

2) Which of the following is a part of the formal management control system?

A) mutual commitments among the members of the organization

B) the quality system which provides information about defective products

C) shared values and loyalties among the members of the organization

D) general understanding about acceptable behavior for managers

3) Which of the following is true of goal congruence?

A) It exists when the management’s strategy is in line with the shareholders’ requirements.

B) It exists when individuals and groups work toward achieving the organization’s goals.

C) It exists when both internal and external stakeholders of an organization have similar goals.

D) It exists when an organization’s goals are in line with the social acceptability of organizational goals.

4) A well-designed management control system uses information from ________.

A) internal sources only as they are the most reliable sources of information

B) external sources only as they are more dynamic and future oriented

C) both internal and external sources as a wide range of information is required

D) external sources only as they are the most reliable sources of information

5) If an oil refinery used refinery down-time as a Balanced Scorecard control measure, it would represent the ________ perspective.

A) financial

B) customer

C) internal business process

D) learning and growth

6) If a computer manufacturer used its common stock price as a Balanced Scorecard control measure, it would represent the ________ perspective.

A) financial

B) customer

C) internal business process

D) learning and growth

7) Line managers supervising individual refineries are concerned with ________.

A) obtaining information about the firm’s opportunity costs

B) obtaining information about the firm’s sunk costs

C) obtaining information about the firm’s equipment downtime and product quality

D) obtaining information about customer satisfaction and market share

8) ________, in the perspective of an effective management control, is the extent to which managers strive or endeavor in order to achieve a goal.

A) Efficiency

B) Effectiveness

C) Effort

D) Variance

9) The formal management control system includes the shared values, loyalties, and mutual commitments among members of the organization.

10) Management control systems is designed only for top level managers and is not applicable to line managers.

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July 1, 2023

11) Net income appears on the worksheet:

A) only in the balance sheet credit column.

B) only in the income statement credit column

C) in the income statement debit column and balance sheet debit column

D) in the income statement debit column and balance sheet credit column

12) Net loss appears on the worksheet:

A) in the income statement credit column and balance sheet debit column.

B) only in the income statement credit column.

C) in the income statement debit column and balance sheet credit column.

D) only in the balance sheet debit column.

13) The prepaid rent account has a balance that is $400 less in the worksheet's balance sheet debit column than in the worksheet's trial balance debit column. This would be the result of a:

A) $400 entry to prepaid rent in the worksheet's adjustments debit column.

B) $400 entry to prepaid rent in the worksheet's adjustments credit column.

C) $400 entry to rent expense in the worksheet's adjustments credit column.

D) mistake in cross-adding the worksheet.

14) Salary expense has a balance of $65,400 in the trial balance debit column of a worksheet. The adjustments credit column contains a $500 credit to salary payable. The adjusted trial balance column will show:

A) salary expense with a debit balance of $64,900.

B) salary expense with a debit balance of $6,500.

C) salary expense with a debit balance of $65,900.

D) salary payable with a credit balance of $65,900.

15) Interest expense on a worksheet's trial balance debit column has a $3,400 balance and a $4,000 balance on the worksheet's income statement debit column. The difference is due to:

A) an entry in the adjustments credit column for $600 to interest expense.

B) an entry in the adjustments debit column for $4,000 to interest expense.

C) an entry in the adjustments credit column for $4,000 to interest expense.

D) an entry in the adjustments credit column for $600 to interest payable.

16) On a worksheet, the income statement debit column equals $190,800 and the income statement credit column equals $195,600. From this data, it can be determined that:

A) the company had a net loss of $4,800 added to the income statement credit column.

B) the company had a net income of $4,800 added to the income statement debit column.

C) the company had a net loss of $4,800 added to the income statement debit column.

D) the company had a net income of $4,800 added to the income statement credit column.

17) Which of the following appears in the balance sheet debit column of a worksheet?

A) service revenue

B) income summary

C) owner withdrawals

D) accounts payable

18) Which of the following appears in the income statement credit column of a worksheet?

A) service revenue

B) income summary

C) owner withdrawals

D) accounts receivable

19) If the unearned service revenue account had an unadjusted normal balance of $4,800, and an adjustment was made debiting the account for $1,500, the account would appear on the adjusted trial balance of the worksheet as a:

A) $4,800 debit.

B) $6,300 credit.

C) $3,300 credit.

D) $3,300 debit.

20) After all the account balances have been extended to the balance sheet columns of the worksheet, the totals of the debit and credit columns are $35,350 and $38,750, respectively. It can be concluded the company has a:

A) net income of $3,400.

B) net loss of $3,400.

C) $74,100 net loss.

D) $74,100 net income.