Page 1 of 2 | MAS Live Handouts No.
01
BASIC CONSIDERATIONS IN MAS
KARIM G. ABITAGO, CPA
BASIC CONSIDERATIONS IN MAS
KARIM G. ABITAGO, CPA
TOPIC OUTLINE
(1) Nature of Management Advisory Services
(2) Functions of Management
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(3) Management Accounting vs. Financial Accounting
(4) Line Function vs. Staff Function
(5) Treasurership vs. Controllership
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(6) Ethical Standards in MAS
MULTIPLE CHOICE QUESTIONS
1. Which of the following characterizes MAS?
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I. Broad and diversity in scope. III. Management is the main beneficiary of the service
II. Limited to CPAs.
A. I and II D. I, II and III
B. II and III E. Answer not given
C. I and III
2. Which of the following statements is false?
A.
B.
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CPAs have historically been business consultants to their clients.
Management consultants are licensed and regulated by laws.
C. The primary purpose of management consultancy is to improve the firm's use of its capabilities and
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resources to achieve its objectives.
D. Management consultancy services are provided not only to big business enterprises but also to medium-size
and small companies.
3. Reasons for hiring management consultant:
I. A consultant is considered as an additional employee of the company in solving problems faced by it.
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II. A management consultant is considered to be a catalyst change.
A. I only C. Both I and II
B. II only D. Neither I nor II
4. Which of the following statements is/are correct?
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A. Managers carry out their planning function by mobilizing the organization's resources and overseeing day-to-
day operations.
B. Managers carry out their decision-making function by obtaining feedback to ensure that the plans are being
followed.
C. The planning, directing and motivating, and controlling functions of a manager are kept separate from such
manager's decision-making activities.
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D. The manager's planning function involves setting of the organization's goals and identifying alternatives and
selecting the alternative that best furthers such goals set for the organization.
5. Which of the following activities is within the planning function of management?
I. predicting future conditions that are expected to prevail
II. overseeing the day-to-day activities
III. setting of immediate, as well as long-range goals
A. I and II D. I, II and III
B. II and III E. Answer not given
C. I and III
REO CPA REVIEW PHILIPPINES Effectiveness. Efficiency. Convenience
www.reocpareview.ph REAL EXCELLENCE ONLINE CPA REVIEW
(074) 665 6774 0916 840 0661 [email protected] OCTOBER 2022 CPA REVIEW SEASON
Page 2 of 2 | MAS Live Handouts No. 01
KARIM G. ABITAGO, CPA
BASIC CONSIDERATIONS IN MAS
6. Which of the following is most associated with financial accounting?
A. Can have both objective and subjective information.
B. Can be prepared periodically, or as needed.
C. Prepared in accordance with GAAP.
D. Can be prepared for the entity or segment.
7. The following are inherent to either management accounting or financial accounting:
1. External report 4. Generally accepted accounting principles
2. Historical information 5. Prospective financial statements
3. Contribution approach income statement
Which of the foregoing are related to management accounting and financial accounting, respectively?
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Management Accounting Financial Accounting
A. 3 1, 2, 4, 5
B. 2, 3 1, 4, 5
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C. 3, 5 1, 2, 4
D. 1, 2, 5 3, 4
8. Which of the following is a characteristic of managerial accounting reports?
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I. Detailed in nature rather than aggregated.
II. Presents monetary and non-monetary information.
III. Emphasizes precision rather than timeliness.
A. I and II D. I, II and III
B. II and III E. Answer not given
9.
C. I and III
Which of the following exhibits a line position?
I.
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Human resources manager of Ateneo De Manila University
II. Pilot at Philippine Airlines
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III. Store manager for Jolibee
A. I and II D. I, II and III
B. II and III E. Answer not given
C. I and III
10. Which of the following exhibits a staff position?
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I. Chairman of the board of directors of San Miguel Corporation
II. Cashier of a branch of McDonalds’
III. Bagger of Puregold Retail Store
A. I and II D. I, II and III
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B. II and III E. Answer not given
C. I and III
11. The treasurer function is usually not concerned with
A. investor relations. C. short-term financing
B. financial reports. D. credit extension and collection of bad debts.
12. Controllers are ordinarily concerned with
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A. investor relations. C. short-term financing.
B. credit extension and collection of bad debts. D. preparation of tax returns.
13. Under which ethical standard of conduct does the managerial accountant have the responsibility to disclose fully all
relevant information that could reasonably be expected to influence an intended user's understanding of the reports,
comments, and recommendations presented?
A. objectivity C. confidentiality
B. competence D. integrity
----- END OF HANDOUTS -----
REO CPA REVIEW PHILIPPINES Effectiveness. Efficiency. Convenience
www.reocpareview.ph REAL EXCELLENCE ONLINE CPA REVIEW
(074) 665 6774 0916 840 0661
[email protected] OCTOBER 2022 CPA REVIEW SEASON
