MANAGENT ACCOUNTING Question And Answers
Best MANAGENT ACCOUNTING Question And Answers
- What is financial accounting?
Answer:- Financial accounting is the process of recording, summarizing and reporting the monetary transactions resulting from business operations over a period of time. These transactions are summarized in the preparation of financial statements, including the balance sheet, income statement and cash flow statement, that record the company’s operating performance over a specified period.
- Define management accounting.
Answer:- Management accounting is presentation of analysis of business activities to the internal management to facilitate decision making.
- Mention any two limitations of financial accounting.
Answer:- Supplies Insufficient Information, Controlling Cost not Possible, Historic in nature, Recording Actual Cost, Difficulty in Price Fixation
4. What is cost accounting?
Answer:- Cost accounting is the process of recording, classifying, analyzing, summarizing, and allocating costs associated with a process, and then developing various courses of action to control the costs.
- Mention any two limitations of cost accounting.
Answer:- Cost Accounting has certain limitations. Important among them are as follows:
a)Based on estimates, b)Lack of uniformity, c)Many conventions, d)Expensive, e)Result requires reconciliation.
- Mention any five tools used in management accounting.
Answer:- Financial statement analysis, cost accounting, fund flow analysis, cash flow analysis, standard costing, marginal costing, budgetary control.
- What are the types of accounting?
Answer:- Types of Accounting are Financial Accounting, Managerial Accounting, Cost Accounting.
- List any five accounting concepts.
Answer:- 1. Business Entity Concept 2. Going Concern Concept 3. Money Measurement Concept (Monetary Expression) 4. Cost Concept 5. Accounting Period Concept 6. Dual Aspect Concept 7. Matching Concept 8. Realisation Concept 9. Balance Sheet Equation Concept 10. Verifiable and Objective Evidence Concept.
- What is going concern concept?
Answer:- The going concern assumption is a basic underlying assumption of accounting. For a company to be a going concern, it must be able to continue operating long enough to carry out its commitments, obligations, objectives, and so on. In other words, the company will not have to liquidate or be forced out of business.
- What is business entity concept?
Answer:- The business entity concept states that the transactions associated with a business must be separately recorded from those of its owners or other businesses. This entity states that business is separate from its owners. The owners are treated as Financier eligible for profit or loss in the business.
