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Quiz 1

Question 1
Common outcomes desired form business planning and development
generally include the following except
Response: Better-trained personnel
Correct answer: Better-trained personnel
Score: 1 out of 1 Yes

Question 2
Services rendered to troubled businesses by emphasizing on the
implementation, rationalization, and recovery programs designed to
rebuild value
Response: Business recovery services
Correct answer: Business recovery services
Score: 1 out of 1 Yes

Question 3
The basic analytical process applied in consulting engagements
include
1) Definition of problem
2) Implementation of the recommended solution to the problem
3) Development of the solution
4) Identification of objectives
5) Fact-finding and analysis
The order in which the above-mentioned steps are generally applied
are
Response: 4,1,5,3,2
Correct answer: 4,1,5,3,2
Score: 1 out of 1 Yes

Question 4
The primary purpose of management advisory service is
Response: To improve the client’s use of its capabilities and resources
to achieve the objectives of such client’s organization.
Correct answer: To improve the client’s use of its capabilities and
resources to achieve the objectives of such client’s organization.
Score: 1 out of 1 Yes

Question 5
Management consulting
Response: is not limited to CPA’s
Correct answer: is not limited to CPA’s
Score: 1 out of 1 Yes

Question 6
These involve services related to mergers, acquisitions, divestitures,
joint ventures, spin-off and strategic alliance
Response: Due diligence audit
Correct answer: Due diligence audit
Score: 1 out of 1 Yes

Question 7
MAS may be classified according to the practitioner’s ability and/or
expertise. Those services which require special skills, aptitude, and
training which CPAs do not normally posses are called
Response: Highly specialized services
Correct answer: Highly specialized services
Score: 1 out of 1 Yes

Question 8
Following are possible end-products of an MAS engagement, except
Response: Blue print of construction project.
Correct answer: Blue print of construction project.
Score: 1 out of 1 Yes
Question 9
These are enterprises involved in varied business endeavors such as
merchandising, manufacturing, financial services and are potential
consultancy clients
Response: Privately-owned business firms
Correct answer: Privately-owned business firms
Score: 1 out of 1 Yes

Question 10
Management advisory service may be defined as
Response: The function of providing professional advisory services,
the primary purpose of which is to improve the client’s use of its
capabilities and resources to achieve the objectives of the
organization.
Correct answer: The function of providing professional advisory
services, the primary purpose of which is to improve the client’s use of
its capabilities and resources to achieve the objectives of the
organization.
Score: 1 out of 1 Yes

Question 11
Generally, the emergence and growth of management consultancy
may be attributed to the following factors, except
Response: Lack of incompetent staff
Correct answer: Lack of incompetent staff
Score: 1 out of 1 Yes

Question 12
The following are managerial accounting-related consultancy services
that a CPA may provide except
Response: Evaluation of Working Capital Requirements of the Business
Entity
Correct answer: Evaluation of Working Capital Requirements of the
Business Entity
Score: 1 out of 1 Yes

Question 13
MAS may be classified according to the practitioners’ ability and/or
expertise. Those services which are considered extensions of the
usual accounting work and require additional training and/or
experience
Response: Somewhat specialized services
Correct answer: Somewhat specialized services
Score: 1 out of 1 Yes

Question 14
This engagement involves the review of compliance with regulatory
requirement and ethical conduct standards
Response: Compliance risk management
Correct answer: Compliance risk management
Score: 1 out of 1 Yes

Question 15
Most definitions of consultancy would include such services related to
the following except
Response: Legal advisory
Correct answer: Legal advisory
Score: 1 out of 1 Yes

Question 16
The MAS engagement that involves providing assistance to
management in relation to planning, controlling and decision making is
Response: Management Accounting
Correct answer: Management Accounting
Score: 1 out of 1 Yes
Question 17
MAS may be classified according to the practitioners’ ability and/or
expertise. The services which may be offered readily by the
practitioner based on his basic training and background are called
Response: Usual services
Correct answer: Usual services
Score: 1 out of 1 Yes

Question 18
Which of the following is a characteristic of management services?
Response: It involves problem solving.
Correct answer: It involves problem solving.
Score: 1 out of 1 Yes

Question 19
Which of the following statements is true?
Response: Management audit is one of the areas of management
consultancy that is not directly related to accounting and finance.
Correct answer: Management audit is one of the areas of management
consultancy that is not directly related to accounting and finance.
Score: 1 out of 1 Yes

Question 20
Which of the following statements is false?
Response: Because of the more stringent and technical qualifications
required in management consulting, more not-so-bright graduates of
accounting, management and business school will be attracted to
careers in this area.
Correct answer: Because of the more stringent and technical
qualifications required in management consulting, more not-so-bright
graduates of accounting, management and business school will be
attracted to careers in this area.
Score: 1 out of 1
Question 1
The MAS engagement that involves providing assistance to
management in relation to planning, controlling and decision making is
Response: Management Accounting
Correct answer: Management Accounting
Score: 1 out of 1 Yes

Question 2
Following are possible end-products of an MAS engagement, except
Response: Blue print of construction project.
Correct answer: Blue print of construction project.
Score: 1 out of 1 Yes

Question 3
Which of the following statement(s) is (are) true?
1. MAS relates to the future.
2. MAS cover’s a wider area than the usual audit and tax work.
3. Because of the broad scope covered by MAS, a wider variety of
assignments are usually encountered.
4. MAS’ engagements require highly qualified staff.
Response: All the statements are true.
Correct answer: All the statements are true.
Score: 1 out of 1 Yes

Question 4
Which of the following areas will not be classified as Accounting and
Finance services?
Response: Personnel recruitment and training
Correct answer: Personnel recruitment and training
Score: 1 out of 1 Yes

Question 5
Following are possible end-products of an MAS engagement, except
Response: Blue print of construction project.
Correct answer: Blue print of construction project.
Score: 1 out of 1 Yes

Question 6
Which of the following statements is false?
Response: Management consultancy services are provided not only to
big business enterprises but also to medium-size and small companies.
Correct answer: Management consultants are licensed and regulated
by laws.
Score: 0 out of 1 No

Question 7
It is an area of management science which uses mathematical
techniques like linear programming, queuing theory and simulation to
solve complicated operational problems.
Response: Operation research
Correct answer: Operation research
Score: 1 out of 1 Yes

Question 8
The fields of cost accounting and financial management are among
the MAS areas that are normally related to the accounting and finance
functions. Financial management cases may involve the following,
except
Response: Variance analysis
Correct answer: Variance analysis
Score: 1 out of 1 Yes

Question 9
Management consulting
Response: is not limited to CPA’s
Correct answer: is not limited to CPA’s
Score: 1 out of 1 Yes

Question 10
MAS may be classified according to the practitioners’ ability and/or
expertise. Those services which are considered extensions of the
usual accounting work and require additional training and/or
experience
Response: Somewhat specialized services
Correct answer: Somewhat specialized services
Score: 1 out of 1 Yes

Question 11
The following are managerial accounting-related consultancy services
that a CPA may provide except
Response: Evaluation of Working Capital Requirements of the Business
Entity
Correct answer: Evaluation of Working Capital Requirements of the
Business Entity
Score: 1 out of 1 Yes

Question 12
Which of the following statements is true?
Response: Management audit is one of the areas of management
consultancy that is not directly related to accounting and finance.
Correct answer: Management audit is one of the areas of management
consultancy that is not directly related to accounting and finance.
Score: 1 out of 1 Yes

Question 13
MAS classified as highly specialized services include the following,
except
Response: Research and evaluation of alternative methods of handling
a transaction for its effect on finance and tax consequence.
Correct answer: Research and evaluation of alternative methods of
handling a transaction for its effect on finance and tax consequence.
Score: 1 out of 1 Yes

Question 14
This engagement involves the review of compliance with regulatory
requirement and ethical conduct standards
Response: Compliance risk management
Correct answer: Compliance risk management
Score: 1 out of 1 Yes

Question 15
Management advisory services classified as usual services include
Response: Giving advice on dividend policy and plans for expansion.
Correct answer: Analysis of financial and operating statements for
management, stockholders, banks, and others.
Score: 0 out of 1 No

Question 16
MAS may be classified according to the practitioners’ ability and/or
expertise. The services which may be offered readily by the
practitioner based on his basic training and background are called
Response: Usual services
Correct answer: Usual services
Score: 1 out of 1 Yes

Question 17
MAS classified as somewhat specialized services include
Response: Assisting in bankruptcy and receivership proceedings.
Correct answer: Assisting in bankruptcy and receivership proceedings.
Score: 1 out of 1 Yes

Question 18
One of the factors that contributed to the emergence and growth of
management consultancy is
Response: The development of techniques for the solution of
management problems, and the businessmen’s awareness of how to
use them.
Correct answer: The trend towards computerization.
Score: 0 out of 1 No

Question 19
The type of problems faced by an entity that involves conditions that
have worsened and demands urgent actions is known as:
Response: [none]
Correct answer: Corrective problem
Score: 0 out of 1 No

Question 20
The following are areas of consideration in determining the scope of
services that a CPA may perform except
Response: [none]
Correct answer: Range of fees that the consultant will earn in each
type of service
Score: 0 out of 1

Question 1
Which of the following statements is false?
Response: Because of the more stringent and technical qualifications
required in management consulting, more not-so-bright graduates of
accounting, management and business school will be attracted to
careers in this area.
Correct answer: Because of the more stringent and technical
qualifications required in management consulting, more not-so-bright
graduates of accounting, management and business school will be
attracted to careers in this area.
Score: 1 out of 1 Yes
Question 2
Following are possible end-products of an MAS engagement, except
Response: Blue print of construction project.
Correct answer: Blue print of construction project.
Score: 1 out of 1 Yes

Question 3
MA’s areas which are not normally related to the accounting and
finance functions may include
Response: Operations research
Correct answer: Operations research
Score: 1 out of 1 Yes

Question 4
The actual output of a consulting engagement centers on providing
the business organization with the following, except
Response: Support for contesting tax assessments by the BIR
Correct answer: Support for contesting tax assessments by the BIR
Score: 1 out of 1 Yes

Question 5
It is an area of management science which uses mathematical
techniques like linear programming, queuing theory and simulation to
solve complicated operational problems.
Response: Operation research
Correct answer: Operation research
Score: 1 out of 1 Yes

Question 6
The following are areas of consideration in determining the scope of
services that a CPA may perform except
Response: Range of fees that the consultant will earn in each type of
service
Correct answer: Range of fees that the consultant will earn in each
type of service
Score: 1 out of 1 Yes

Question 7
Which of the following statements is false?
Response: Management consultants are licensed and regulated by
laws.
Correct answer: Management consultants are licensed and regulated
by laws.
Score: 1 out of 1 Yes

Question 8
These involve services related to mergers, acquisitions, divestitures,
joint ventures, spin-off and strategic alliance
Response: Due diligence audit
Correct answer: Due diligence audit
Score: 1 out of 1 Yes

Question 9
The MAS engagement that involves providing assistance to
management in relation to planning, controlling and decision making is
Response: Management Accounting
Correct answer: Management Accounting
Score: 1 out of 1 Yes

Question 10
MAS classified as somewhat specialized services include
Response: Assisting in bankruptcy and receivership proceedings.
Correct answer: Assisting in bankruptcy and receivership proceedings.
Score: 1 out of 1 Yes

Question 11
The basic analytical process applied in consulting engagements
include
1) Definition of problem
2) Implementation of the recommended solution to the problem
3) Development of the solution
4) Identification of objectives
5) Fact-finding and analysis
The order in which the above-mentioned steps are generally applied
are
Response: 4,1,5,3,2
Correct answer: 4,1,5,3,2
Score: 1 out of 1 Yes

Question 12
Which of the following statements is incorrect?
Response: The use of consultants is generally much more expensive to
the company than hiring full time new managers and employees to
provide professional advisory services.
Correct answer: The use of consultants is generally much more
expensive to the company than hiring full time new managers and
employees to provide professional advisory services.
Score: 1 out of 1 Yes

Question 13
Which of the following statements is true?
Response: Management audit is one of the areas of management
consultancy that is not directly related to accounting and finance.
Correct answer: Management audit is one of the areas of management
consultancy that is not directly related to accounting and finance.
Score: 1 out of 1 Yes

Question 14
Most definitions of consultancy would include such services related to
the following except
Response: Legal advisory
Correct answer: Legal advisory
Score: 1 out of 1 Yes

Question 15
Generally, the emergence and growth of management consultancy
may be attributed to the following factors, except
Response: Lack of incompetent staff
Correct answer: Lack of incompetent staff
Score: 1 out of 1 Yes

Question 16
The fields of cost accounting and financial management are among
the MAS areas that are normally related to the accounting and finance
functions. Financial management cases may involve the following,
except
Response: Variance analysis
Correct answer: Variance analysis
Score: 1 out of 1 Yes

Question 17
Management consulting
Response: is not limited to CPA’s
Correct answer: is not limited to CPA’s
Score: 1 out of 1 Yes

Question 18
MAS classified as highly specialized services include the following,
except
Response: Research and evaluation of alternative methods of handling
a transaction for its effect on finance and tax consequence.
Correct answer: Research and evaluation of alternative methods of
handling a transaction for its effect on finance and tax consequence.
Score: 1 out of 1 Yes

Question 19
Which of the following is a characteristic of management services?
Response: It involves problem solving.
Correct answer: It involves problem solving.
Score: 1 out of 1 Yes

Question 20
The primary purpose of management advisory service is
Response: To improve the client’s use of its capabilities and resources
to achieve the objectives of such client’s organization.
Correct answer: To improve the client’s use of its capabilities and
resources to achieve the objectives of such client’s organization.
Score: 1 out of 1