Exercise 1-1:

True or False

Write true or false on the space provided opposite each number and statement. If the statement is false, explain why.

01. The controller controls directly and entirely the functions and activities of other departments in the organization.

02. The controller supplies only quantitative information to top management

03. Short and long range goals of the organization are set by the controller.

04. In a big organization, the positions of controller and treasurer are co-equal.

05. The chief managerial accounting executive of an organization is the controller.

06. Protection of company assets is the sole responsibility of the internal auditor.

07. The design, installation and maintenance of the accounting, cost and internal control systems are the responsibility of the internal auditor.

08. In the absence of a controller in an organization, the treasurer can act as its controller.

09. In a small enterprise, the owner/manager performs the functions of the controller.

10. The chief accountant prepares the financial reports which the controller analyzes andinterprets.

11. The provision of accounting information for internal users is known as managerial accounting.

12. Setting objectives and identifying methods to achieve those objectives is called controlling.

13. Managerial accounting is narrow but multidisciplinary

14. Managerial accounting evaluates information about the organization and its activities.

15. Managerial accounting provides emphasis on the future.