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Accounting For Manager MCQ

Accounting For Manager MCQ

( Best ) Managerial Accounting MCQ Set-5

by Mr. DJ
written by Mr. DJ

Managerial Accounting MCQ Set-5

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.

Managerial Accounting MCQ Set-5

Managerial Accounting MCQ Set-5

  1. Management accounting is applicable to
  1. Service entities
  2. Manufacturing entities
  3. Non profit entities
  4. All of these

Correct answer: (D)
All of these

  1. Insurance prepaid is shown as
  1. Current assets
  2. Current liabilities
  3. Fixed asset
  4. Fixed liability

Correct answer: (A)
Current assets

  1. Financial accounting is concerned with
  1. Recording of business expenses and revenue
  2. Recording of costs of products and services
  3. Recording of day to day business transactions
  4. None of the above

Correct answer: (C)
Recording of day to day business transactions

  1. Goods given as samples should be credited to:
  1. Advertisement account
  2. Sales account
  3. Purchase account
  4. None of the above

Correct answer: (C)
Purchase account

  1. Investment of X company profit in shares of other company PQR Pvt. ltd are recorded in
  1. Asset side of Balance Sheet
  2. Liability side of Balance Sheet
  3. Profit & Loss a/c
  4. Not recorded in Balance Sheet

Correct answer: (A)
Asset side of Balance Sheet

  1. Sales made to Mahesh for cash should be debited to
  1. Cash account
  2. Mahesh Account
  3. Sales account
  4. Purchase account

Correct answer: (A)
Cash account

  1. Income tax paid by a sole proprietor on his business income should be:
  1. Debited to trading account
  2. Debited to profit and loss account
  3. Deducted from capital account in the balance sheet
  4. None of the above

Correct answer: (C)
Deducted from capital account in the balance sheet

  1. What comes in is to be debited, what goes out is to be credited.
  1. Rules of Personal
  2. Rules of Real
  3. Rules of Nominal
  4. All of these

Correct answer: (B)
Rules of Real

  1. Which of the following is not an example of real a/c:
  1. Machinery
  2. Building
  3. Cash
  4. Creditor

Correct answer: (D)
Creditor

  1. Payment received from Debtor
  1. Decreases the Total Assets
  2. Increases the Total Assets
  3. Results in no change in the Total Assets
  4. Increases the Total Liabilities

Correct answer: (C)
Results in no change in the Total Assets

  1. Which of the following is a liability?
  1. Loan from Mr.Y
  2. loan to Mr.y
  3. Both (a) (b)
  4. None of these

Correct answer: (A)
Water

  1. Purchases of goods on credit from A is recorded as:
  1. Debit purchases a/c; credit cash a/c
  2. Debit A a/c; credit purchases a/c
  3. Debit purchases a/c; credit A a/c
  4. Debit A a/c; credit stock a/c

Correct answer: (C)
Debit purchases a/c; credit A a/c

  1. Payment received from debtor:
  1. Decreases the total assets
  2. Increases the total assets
  3. Results in no change in total assets
  4. Increase the total liabilities

Correct answer: (C)
Results in no change in total assets

  1. The transferring of debit and credit items from journal to the respective accounts in the ledger is called as
  1. Ledger
  2. Posting
  3. Forward journal
  4. None of these

Correct answer: (B)
Posting

  1. The following comments all relate to the recording process. Which of these statements is correct?
  1. The general ledger is a chronological record of transactions.
  2. The general ledger is posted from transactions recorded in the general journal.
  3. The trial balance provides the primary source document for recording transactions into the general journal.
  4. Transposition is the transfer of information from the general journal to the general ledger.

Correct answer: (B)
The general ledger is posted from transactions recorded in the general journal.

KEY TAKEAWAYS Managerial Accounting MCQ set-5

  • Managerial accounting involves the presentation of financial information for internal purposes to be used by management in making key business decisions.
  • Techniques used by managerial accountants are not dictated by accounting standards, unlike financial accounting.
  • The presentation of managerial accounting data can be modified to meet the specific needs of its end-user.
  • Managerial accounting encompasses many facets of accounting, including product costing, budgeting, forecasting, and various financial analysis.

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Accounting For Manager MCQ

Best 550+ Managerial Accounting MCQ

by Mr. DJ
written by Mr. DJ

Best 550+ Managerial Accounting MCQ

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.

Managerial Accounting MCQ

List of 550+ Managerial Accounting MCQ

  1. Managerial Accounting MCQ Set-1
  2. Managerial Accounting MCQ Set-2
  3. Managerial Accounting MCQ Set-3
  4. Managerial Accounting MCQ Set-4
  5. Managerial Accounting MCQ Set-5
  6. Managerial Accounting MCQ Set-6
  7. Managerial Accounting MCQ Set-7
  8. Managerial Accounting MCQ Set-8
  9. Managerial Accounting MCQ Set-9
  10. Managerial Accounting MCQ Set-10
  11. Managerial Accounting MCQ Set-11
  12. Managerial Accounting MCQ Set-12
  13. Managerial Accounting MCQ Set-13
  14. Managerial Accounting MCQ Set-14
  15. Managerial Accounting MCQ Set-15
  16. Managerial Accounting MCQ Set-16
  17. Managerial Accounting MCQ Set-17
  18. Managerial Accounting MCQ Set-18
  19. Managerial Accounting MCQ Set-19
  20. Managerial Accounting MCQ Set-20
  21. Managerial Accounting MCQ Set-21
  22. Managerial Accounting MCQ Set-22
  23. Managerial Accounting MCQ Set-23
  24. Managerial Accounting MCQ Set-24
  25. Managerial Accounting MCQ Set-25
  26. Managerial Accounting MCQ Set-26
  27. Managerial Accounting MCQ Set-27
  28. Managerial Accounting MCQ Set-28
  29. Managerial Accounting MCQ Set-29
  30. Managerial Accounting MCQ Set-30
  31. Managerial Accounting MCQ Set-31
  32. Managerial Accounting MCQ Set-32
  33. Managerial Accounting MCQ Set-33
  34. Managerial Accounting MCQ Set-34
  35. Managerial Accounting MCQ Set-35
  36. Managerial Accounting MCQ Set-36
  37. Managerial Accounting MCQ Set-37
  38. Managerial Accounting MCQ Set-38
  39. Managerial Accounting MCQ Set-39
  40. Managerial Accounting MCQ Set-40
  41. Managerial Accounting MCQ Set-41
  42. Managerial Accounting MCQ Set-42
  43. Managerial Accounting MCQ Set-43
  44. Managerial Accounting MCQ Set-44
  45. Managerial Accounting MCQ Set-45
  46. Managerial Accounting MCQ Set-46
  47. Managerial Accounting MCQ Set-47
  48. Managerial Accounting MCQ Set-48
  49. Managerial Accounting MCQ Set-49
  50. Managerial Accounting MCQ Set-50
  51. Managerial Accounting MCQ Set-51
  52. Managerial Accounting MCQ Set-52
  53. Managerial Accounting MCQ Set-53
  54. Managerial Accounting MCQ Set-54
  55. Managerial Accounting MCQ Set-55
  56. Managerial Accounting MCQ Set-56
  57. Managerial Accounting MCQ Set-54

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Accounting For Manager MCQ

( Best 500+) Managerial Accounting MCQ set-4

by Mr. DJ
written by Mr. DJ

Managerial Accounting MCQ Set-4

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.

Managerial Accounting MCQ Set-4

Managerial Accounting MCQ Set-4

  1. According to schedule VI Companies Act which item is not shown on Asset side of Balance sheet
  1. Investment
  2. Current Loan & Advances
  3. Provision
  4. Lease Holds

Correct answer: (C)
Provision

  1. Salary paid to factory manager is an item of:
  1. Prime cost
  2. Factory overhead
  3. Selling overhead
  4. Office overhead

Correct answer: (B)
Factory overhead

  1. Carriage outward is charged to
  1. Debit side Profit & Loss a/c
  2. Debit side Trading a/c
  3. Credit side of Profit & Loss a/c
  4. Credit side of trading a/c

Correct answer: (A)
Debit side Profit & Loss a/c

  1. Payment received from Debtor
  1. Decreases the Total Assets
  2. Increases the Total Assets
  3. Results in no change in the Total Assets
  4. Increases the Total Liabilities

Correct answer: (C)
Results in no change in the Total Assets

  1. Accounting does not record non-financial transactions because of:
  1. Accrual concept
  2. Cost concept
  3. Continuity concept
  4. Money measurement concept

Correct answer: (D)
Money measurement concept

  1. Which one of the following is not an example of Intangible Assets?
  1. Patents
  2. Trade Marks
  3. Copyright
  4. Land

Correct answer: (D)
Land

  1. Creating provision against fluctuation in the price of investment is application of accounting concept
  1. Convention of conservatism
  2. Convention of full disclosure
  3. Convention of consistency
  4. None of these

Correct answer: (A)
Convention of conservatism

  1. Debit what come in Credit what goes out rule for
  1. Real a/c
  2. Personal a/c
  3. Nominal a/c
  4. None of these

Correct answer: (A)
Real a/c

  1. The following comments each relate to the recording of journal entries. Which statement is true?
  1. For any given journal entry, debits must exceed credits.
  2. It is customary to record credits on the left and debits on the right.
  3. The chart of accounts reveals the amount to debit and credit to the affected accounts.
  4. Journalization is the process of converting transactions and events into debit/credit format.

Correct answer: (D)
Journalization is the process of converting transactions and events into debit/credit format.

  1. Going concern concept assumes
  1. Business as a dissolving concern
  2. Business on relishing values
  3. Business as a going concern
  4. Asset = liability

Correct answer: (C)
Business as a going concern

  1. Management Accounting relates to
  1. Recording of accounting data
  2. Recording of cost data
  3. Presentation of account data
  4. None of the above

Correct answer: (C)
Presentation of account data

  1. Which items does not come under the balance sheet
  1. sales
  2. Share capital
  3. Reserves and surplus
  4. Unsecured loan

Correct answer: (A)
sales

  1. Which of the following is not related with Money Measurement Concept ?
  1. All business transaction should be expressed only in money
  2. The transactions which cannot be expressed in money, will not be recorded in accounting books
  3. Business is treated as separate from the proprietor
  4. None of These

Correct answer: (B)
The transactions which cannot be expressed in money, will not be recorded in accounting books

  1. Depreciation is a charge against
  1. Profit
  2. Assets
  3. Company
  4. Books of A/c

Correct answer: (A)
Profit

  1. Fixed assets and current assets are categorized as per concept of:
  1. Separate entity
  2. Going concern
  3. Consistency
  4. Time period

Correct answer: (B)
Going concern

KEY TAKEAWAYS Managerial Accounting MCQ set-4

  • Managerial accounting involves the presentation of financial information for internal purposes to be used by management in making key business decisions.
  • Techniques used by managerial accountants are not dictated by accounting standards, unlike financial accounting.
  • The presentation of managerial accounting data can be modified to meet the specific needs of its end-user.
  • Managerial accounting encompasses many facets of accounting, including product costing, budgeting, forecasting, and various financial analysis.

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Accounting For Manager MCQ

( Best 500+ ) Managerial Accounting MCQ Set-3

by Mr. DJ
written by Mr. DJ

Managerial Accounting MCQ Set-3

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.

Managerial Accounting MCQ Set-3

Managerial Accounting MCQ Set-3

    1. The convention of disclosure implies that all material information should be
    1. Disclosed in the account
    2. Disclosed in the accounts which is required to owner
    3. Not disclosed
    4. None of these

    Correct answer: (A)
    Disclosed in the account

    1. Outstanding salary is shown as:
    1. An asset in the balance sheet
    2. A liability
    3. By adjusting it in the P & L a/c
    4. Both a and c above
    5. Both b and c above

    Correct answer: (E)
    Both b and c above

    1. Proprietor (owner) is treated as creditor of business due to:
    1. Periodicity concept
    2. Materiality Principle
    3. Entity Concept
    4. Consistency concept

    Correct answer: (C)
    Entity Concept

    1. Which of the following is correct
    1. Profit does not alter capital
    2. Capital can only come from profit
    3. Profit reduces capital
    4. Profit increases capital

    Correct answer: (D)
    Profit increases capital

    1. Interest , rent, electricity bill are types of account
    1. Personal a/c
    2. Impersonal a/c
    3. Real a/c
    4. Nominal a/c

    Correct answer: (D)
    Nominal a/c

    1. Cost of asset should always be equal to the cost of the liabilities. This concept is
    1. Double Entry Bookkeeping
    2. Matching Concept
    3. Consistency
    4. Money measurement Concept

    Correct answer: (B)
    Matching Concept

    1. P& l a/c is prepared for a period of one year by following:
    1. Consistency concept
    2. Conservatism concept
    3. Accounting period concept
    4. Cost Concept

    Correct answer: (C)
    Accounting period concept

    1. Prepaid expense is treated as
    1. Current asset
    2. Current liability
    3. Short term liability
    4. None of these

    Correct answer: (A)
    Current asset

    1. Which of the following is a liability?
    1. Loan from Mr.Y
    2. loan to Mr.y
    3. Both (a) (b)
    4. None of these

    Correct answer: (A)
    Loan from Mr.Y

    1. Advantages of cost accounting accrue:
    1. Only to workers
    2. Only to government
    3. Only to consumers
    4. To management, workers, consumers and government

    Correct answer: (D)
    To management, workers, consumers and government

    1. Marginal costing is concerned with:
    1. Fixed cost
    2. Variable cost
    3. Semi variable cost
    4. None of the above

    Correct answer: (B)
    Variable cost

    1. The books to be compulsorily maintained by a company are:
    1. Cash book and ledger
    2. Sales and purchase book
    3. Journal
    4. Both a and b
    5. All of a, b, c above

    Correct answer: (E)
    All of a, b, c above

    1. Which of the following best describes a trial balance?
    1. It is a list of balances on the books
    2. It is a special account
    3. Shows the financial position of a business
    4. Shows all the entries in the books

    Correct answer: (A)
    It is a list of balances on the books b) It is a special account

    1. Which of the following equation is related with Dual Aspect Concept ?
    1. Total Assets = Total Liabilities
    2. Total Assets = Capital + Outsider’s Liabilities
    3. Capital = Total Assets – Outsider’s Liabilities
    4. All of the above

    Correct answer: (D)
    All of the above

    1. The prime function of accounting is to
    1. To record economic data
    2. Provide the information basis of action
    3. Classifying and recording business transaction
    4. Attainmentofeconomic goal

    Correct answer: (C)
    Classifying and recording business transaction

KEY TAKEAWAYS Managerial Accounting MCQ set-3

  • Managerial accounting involves the presentation of financial information for internal purposes to be used by management in making key business decisions.
  • Techniques used by managerial accountants are not dictated by accounting standards, unlike financial accounting.
  • The presentation of managerial accounting data can be modified to meet the specific needs of its end-user.
  • Managerial accounting encompasses many facets of accounting, including product costing, budgeting, forecasting, and various financial analysis.

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Accounting For Manager MCQ

( Best 500+ ) Managerial Accounting MCQ Set-2

by Mr. DJ
written by Mr. DJ

Managerial Accounting MCQ Set-2

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.

Managerial Accounting MCQ Set-2

Managerial Accounting MCQ Set-2

    1. Financial information should be neutral and bias free” is the dictation of which one of the following?
    1. Completeness concept
    2. Faithful representation Concept
    3. Objectivity Concept
    4. Duality Concept

    Correct answer: (C)
    Objectivity Concept

    1. Which of the following statements is not an objective of financial reporting?
    1. Provide information that is useful in investment and credit decisions.
    2. Provide information regarding policy of organisation
    3. Provide information that is useful in assessing cash flow prospective
    4. None of theses

    Correct answer: (B)
    Provide information regarding policy of organisation

    1. A company’s telephone bill consisting of a Rs.200 monthly base amount, plus long distance charges, would be classified as a:
    1. Variable cost
    2. Committed fixed cost
    3. Direct cost
    4. Semi variable cost

    Correct answer: (D)
    Semi variable cost

    1. A book containing a chronological record of business transaction & original record
    1. Journal
    2. Ledger
    3. Trial balance
    4. None of these

    Correct answer: (A)
    Journal

    1. Which of these items would be accounted for as an expense?
    1. Repayment of bank Loan
    2. Dividend to stock holders
    3. The purchase of land
    4. Payment of current period rent

    Correct answer: (D)
    Payment of current period rent

    1. The amount of salary paid to Suresh should be debited to
    1. The account of Suresh
    2. Salaries a/c
    3. Cash a/c
    4. Bank a/c

    Correct answer: (B)
    Salaries a/c

    1. The cash discount allowed to a debtor should be credited to
    1. Discount a/c
    2. Customer a/c
    3. Sales a/c
    4. None of these

    Correct answer: (B)
    Customer a/c

    1. Accounting does not record non-financial transactions because of:
    1. Accrual concept
    2. Cost concept
    3. Continuity concept
    4. Money measurement concept

    Correct answer: (D)
    Money measurement concept

    1. The concept of separate entity is applicable to which of following types of businesses?
    1. Sole proprietorship
    2. Corporation
    3. Partnership
    4. All of them

    Correct answer: (D)
    All of them

    1. Accounting is the process of matching
    1. Benefits & Costs
    2. Revenues & Costs
    3. Cash Inflow & Cash Outflow
    4. Potential & Real Performance

    Correct answer: (B)
    Revenues & Costs

    1. The primary objective of cost accounting is
    1. Ascertain the cost of goods and services
    2. Ascertain the profit
    3. Presentation of all data
    4. None of these

    Correct answer: (A)
    Ascertain the cost of goods and services

    1. Of the following account types, which would be increased by a debit?
    1. Liabilities and expenses.
    2. Assets and equity.
    3. Assets and expenses.
    4. Equity and revenues.

    Correct answer: (C)
    Assets and expenses.

    1. Which of the following statements about differences between financial and managerial accounting is incorrect?
    1. Managerial accounting information is prepared primarily for external parties such as stockholders and creditors; financial accounting is directed at internal users.
    2. Financial accounting is aggregated; managerial accounting is focused on products and departments.
    3. Managerial accounting pertains to both past and future items; financial accounting focuses primarily on past transactions and events.
    4. Financial accounting is based on generally accepted accounting practices; managerial accounting faces no similar constraining factors.

    Correct answer: (A)
    Managerial accounting information is prepared primarily for external parties such as stockholders and creditors; financial accounting is directed at internal users.

    1. Custom and traditions which guide the accountant while preparing the accounting statements
    1. Accounting convention
    2. Accounting concepts
    3. Accounting principles
    4. None of these

    Correct answer: (C)
    Accounting principles

    1. Balance Sheet is a statement of
    1. Assets
    2. Liabilities
    3. Capital
    4. All of these

    Correct answer: (D)
    All of these

KEY TAKEAWAYS Managerial Accounting MCQ set-2

  • Managerial accounting involves the presentation of financial information for internal purposes to be used by management in making key business decisions.
  • Techniques used by managerial accountants are not dictated by accounting standards, unlike financial accounting.
  • The presentation of managerial accounting data can be modified to meet the specific needs of its end-user.
  • Managerial accounting encompasses many facets of accounting, including product costing, budgeting, forecasting, and various financial analysis.

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Accounting For Manager MCQ

( Best ) Managerial Accounting MCQ Set-1

by Mr. DJ
written by Mr. DJ

Managerial Accounting MCQ Set-1

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.

Managerial Accounting MCQ Set-1

Managerial Accounting MCQ Set-1

  1. Creating Provision against fluctuation in the price of investment is an example of which accounting convention
  1. Convention of conservatism
  2. Convention of full disclosure
  3. Convention of materiality
  4. Convention of consistency

Correct answer: (A)
Convention of conservatism

  1. Return of goods by a customer should be debited to
  1. Customers account
  2. Sales return account
  3. Goods account
  4. Purchase account

Correct answer: (B)
Sales return account

  1. Cash discount allowed to a debtor should be credited to
  1. Discount account
  2. Customer’s account
  3. Sales account
  4. Cash account

Correct answer: (B)
Customer’s account

  1. The concept of separate entity is applicable to which of following types of businesses?
  1. Sole proprietorship
  2. Corporation
  3. Partnership
  4. All of them

Correct answer: (D)
All of them

  1. Accounting principles are generally based upon:
  1. Practicability
  2. Subjectivity
  3. Convenience in recording
  4. None of the above

Correct answer: (A)
Practicability

  1. Debit the receiver credit the giver rule for
  1. Real a/c
  2. Personal a/c
  3. Nominal a/c
  4. None of these

Correct answer: (B)
Personal a/c

  1. Managerial accounting information is generally prepared for
  1. Shareholders
  2. Creditors
  3. Managers
  4. Regulatory agencies

Correct answer: (C)
Managers

  1. True & fair profit and loss a/c of a company know by
  1. Preparing trial balance
  2. Preparing respective ledger of account
  3. Preparing trading a/c
  4. Preparing trading & profit & loss a/c

Correct answer: (D)
Preparing trading & profit & loss a/c

  1. Which one of the following items would fall under the definition of a liability
  1. Cash
  2. Debtor
  3. Owner’s equity
  4. None of these

Correct answer: (C)
Owner’s equity

  1. The basic sequence in the accounting process can best be described as:
  1. Transaction, journal entry, source document, ledger account, trial balance.
  2. Source document, transaction, ledger account, journal entry, trial balance.
  3. Transaction, source document, journal entry, trial balance, ledger account.
  4. Transaction, source document, journal entry, ledger account, trial balance.

Correct answer: (D)
Transaction, source document, journal entry, ledger account, trial balance.

  1. Amount brought in by proprietor should be credited to
  1. cash account
  2. capital account
  3. drawings account
  4. creditors account

Correct answer: (B)
capital account

  1. Which of the following is a real (permanent) account?
  1. Goodwill
  2. Sales
  3. Accounts Receivable
  4. Both Goodwill and Accounts Receivable

Correct answer: (D)
Both Goodwill and Accounts Receivable

  1. Which of the following errors will be disclosed in the preparation of a trial balance?
  1. Recording transactions in the wrong account.
  2. Duplication of a transaction in the accounting records.
  3. Posting only the debit portion of a particular journal entry.
  4. Recording the wrong amount for a transaction to both the account debited and the account credited.

Correct answer: (C)
Posting only the debit portion of a particular journal entry.

  1. Management Accounting provides invaluable services to management in performing
  1. All management function
  2. Interpret financial data
  3. Controlling function
  4. None of these

Correct answer: (A)
All management function

  1. If closing stock appears in the trial balance, it should be
  1. Credited to the trading account
  2. Credited to the profit and loss account
  3. Deducted from the purchases in the trading account
  4. Shown on the liability side of the Balance sheet

Correct answer: (A)
Credited to the trading account

KEY TAKEAWAYS Managerial Accounting MCQ set-1

  • Managerial accounting involves the presentation of financial information for internal purposes to be used by management in making key business decisions.
  • Techniques used by managerial accountants are not dictated by accounting standards, unlike financial accounting.
  • The presentation of managerial accounting data can be modified to meet the specific needs of its end-user.
  • Managerial accounting encompasses many facets of accounting, including product costing, budgeting, forecasting, and various financial analysis.

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