Question 1

FRS is an acronym for Federal Reporting System.

True

False

Question 2

MRS is an acronym for Management Reporting System.

True

False

Question 3

Management reporting is often called discretionary reporting because it is not mandated as is financial reporting.

True

False

Question 4

A company with a wide span of control tends to have relatively more layers of management.

True

False

Question 5

The FRS is the Futures Recognition System.

True

False

Question 6

The employee who maintains the cash receipts journal also records transactions in the accounts receivable subsidiary ledger. This would be considered a control weakness.

True

False

Question 7

A fundamental principle of responsibility accounting is that

managers are accountable only for items they control

a manager’s span of control should not exceed eight people

structured reports should be prepared weekly

the information flow is in one direction, top-down