Tag: KS3

Alex Ltd’s finance director Lucy wants to establish an effective system in the accounting and finance function for producing management accounting reports for the senior management team led by the Chief Executive, Ken.

In establishing such a reporting system, which of the following issues should be Lucy’s primary consideration?

Select ONE answer:

1. The information needs of the company’s senior managers
2. The need for effective internal control mechanisms
3. The need for cost-effectiveness
4. The need for effective information security

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > Management accounting is driven not by rules or standards but by the need to meet the information requirements of the senior managers led by Ken within Alex Ltd, who will use the information to plan, control, make decisions and monitor performance.
2. Not correct
3. Not correct
4. Not correct

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Ken is an accountant with Alex plc.

Ken was recently asked to join a project team looking into Alex plc’s compliance with both FRC and IASB standards.

It appears, therefore, that Ken has been recruited into this project team in order to exploit his expertise in?

Select ONE answer:

1. Financial reporting
2. Performance measurement
3. Capital budgeting
4. Strategic management accounting

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > Financial reporting involves preparing financial information including the financial statements, tax and regulatory reporting.
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which ONE of the following are characteristics of management accounting information rather than financial reporting information?

Select ONE answer:

1. It is governed by statute
2. It is likely to include a cash flow forward forecast
3. It is primarily used by shareholders
4. It is likely to include a statement of cash flows

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct == > Management accounts are internal accounts used for managing the business. Financial reporting is regulated by accounting standards and statute and report on historical results; is used by shareholders; and will probably have a cash flow forecast – a statement of cash flows is an historical summary of cash flows and forms part of the financial statements
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which ONE of the following are characteristics of management accounting information rather than financial reporting information?

Select ONE answer:

1. It is both forward looking and historical
2. It is governed by statute
3. It is primarily used by shareholders
4. It is likely to include a statement of cash flows

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct == > Management accounts are internal accounts used for managing the business. Financial reporting is regulated by accounting standards and statute and report on historical results; is used by shareholders; and will probably have a cash flow forecast – a statement of cash flows is an historical summary of cash flows and forms part of the financial statements
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.