SECTION A: Each question is worth 1 mark each 1. The following statements relate to both financial accounting and cost accounting: (1) The main users of financial accounting information are external to an organization. (i) Cost accounting is that part of financial accounting which records the cash received and Payments made by an organization. Which of the following statements is true? a. Only statement (i) is correct. b. Statements (i) and (ii) are both correct. c. Only statement (ii) is correct 2. Which of the following best describes the purpose of cost and management accounting? a To detect fraud b. to comply to regulatory authorities c. provide information for planning, decision making and control 3. involves establishing objectives and selecting appropriate strategies to achieve these Objectives. a. Planning b. Organizing c. Controlling 4. Which of the following statements are correct? (i) Strategic information is mainly used by senior management in an organization. (ii) Productivity measurements are examples of tactical information. (iii) Operational information is required frequently by its main users. a. (i), (ii) and (iii) b. (i) and (ii) only c. (i) and (iii) only 5. Data is information that has been processed in such a way as to be meaningful to its recipients. Is this statement true or false? a. True b. False 6. The following statement refers to a quality of good information: The cost of producing information should be greater than the value of the benefits of that information to management. Is this statement true or false? a. True b. False c. True or false? 7. There is a possibility that management accounting information may fail to meet the objective of assisting management in the decision-making process due to its failure to meet the requirements of good information