Managerial Accounting MCQ Set-19

How Managerial Accounting Works

Managerial accounting encompasses many facets of accounting aimed at improving the quality of information delivered to management about business operation metrics. Managerial accountants use information relating to the cost and sales revenue of goods and services generated by the company. Cost accounting is a large subset of managerial accounting that specifically focuses on capturing a company’s total costs of production by assessing the variable costs of each step of production, as well as fixed costs. It allows businesses to identify and reduce unnecessary spending and maximize profits.

301. If you want to deposit money into bank, what will be yours choice?

1. Compounding annually
2. Compounding Semi-annually
3. Compounding monthly
4. Compounding daily

Correct answer: (D)
Compounding daily

302. Interest paid (earned) on both the original principal borrowed (lent) and previous interest allowed (earned) is often referred to as ______________.

1. Compound interest
2. Double interest
3. Simple interest
4. Present value

Correct answer: (A)
Compound interest

303. Which of the following is the activity which finance people are involved

1. Investing decisions
2. Marketing decisions
3. Promotion decisions
4. Non of Above

Correct answer: (A)
Investing decisions

304. The Bailey Brothers want to issue 20-year, zero coupon bonds that yield 9 percent. What price should it charge for these bonds if the face value is $1,000?

1. $ 157.25
2. $ 163.70
3. $ 178.43
4. $ 194.49

Correct answer: (C)
$ 178.43

305. When bonds are issued, under which of the following category the value of the bond appears?

1. Equity
2. Fixed assets
3. Short term loan
4. Long term loan

Correct answer: (D)
Long term loan

306. What type of long-term financing most likely has the following features: (1) it has an infinite and finite life (2) it pays dividends, and (3) its cash flows are expected to be a constant annuity stream.

1. Long-term debt
2. Preferred stock
3. Common stock
4. None of the given option

Correct answer: (B)
Preferred stock

307. PV of lump sum is simply termed as current value ofor

1. Present payment
2. Future payment
3. Annuity payment
4. Discount payment

Correct answer: (B)
Future payment

308. ______________ Ratios are used to measure a firm’s ability to meet short-term obligations.mpor

1. Asset management ratios
2. Debt management ratios
3. Liquidity ratios
4. Equity ratios

Correct answer: (C)
Liquidity ratios

309. Creditors turnover ratios comes under the category of

1. Activity ratios
2. Asset management ratios
3. All of the above
4. None of the above

Correct answer: (C)
All of the above

310. Dividend is approved by the shareholder in the ______________ at the recommendation of the directors.

1. Annual general meeting
2. Director meeting
3. Statutory meeting
4. Special meeting

Correct answer: (A)
Annual general meeting