1. Which task should the general ledger perform?
a. update the general ledger
b. prepare journal vouchers
c. have custody of physical assets
d. have record-keeping responsibility for special journals of subsidiary ledgers
2. The Ozment Corporation uses a performance reporting system that shows online the data for each subordinate who reports to a supervisor. The data presented show the actual costs incurred during the period, the budgeted costs, and all variances from budget for that subordinate's department.
The name of this system of reporting is a. contribution accounting.
b. responsibility accounting.
c. flexible budgeting.
d. program budgeting.
e. cost-benefit accounting.
3. Which of the following is not a characteristic of the strategic planning process?
a. emphasis on both the short and long run
b. analysis of external economic factors
c. review of the attributes and behavior of the organization's competition
d. analysis and review of departmental process
e. analysis of consumer demand
4. The following are all output reports of the financial reporting system, EXCEPT
a. variance analysis report.
b. statement of cash flows.
c. tax return.
d. comparative balance sheet.
5. Which of the following budgeting processes is LEAST likely to motivate managers toward organizational goals?
a. setting budget targets at attainable levels
b. participation by subordinates in the budgetary process
c. use of management by exception
d. holding subordinates accountable for the items they control
e. having top management set budget levels