( Best 100+ ) Management Accounting MCQ
Management accounting helps managers within a company make decisions. Also known as cost accounting, management accounting is the process of identifying, analyzing, interpreting and communicating information to managers to help achieve business goals.
What do you mean by management accounting?
Managerial accounting is the practice of identifying, measuring, analyzing, interpreting, and communicating financial information to managers for the pursuit of an organization’s goals.
What is the main purpose of management accounting?
The main objective of managerial accounting is to maximize profit and minimize losses. It is concerned with the presentation of data to predict inconsistencies in finances that help managers make important decisions.
- Management accounting assists the management
- Only in control
- Only in direction
- Only in planning
- In planning, direction and control
- The term management accounting was first coined in
- 1960
- 1950
- 1945
- 1955
- Management accounting deals with
- Quantitative information
- Qualitative information
- Both a and b
- None of the above
- Which one of the following branches of accounting primarily deals with processing and presenting of accounting data for internal use?
- Financial accounting
- Tax accounting
- Management accounting
- Inflation accounting
- I nterpretation of accounts is the
- Art and science of translating the figures
- To know financial strengths and weaknesses of a business
- To know the causes for the prevailing performance of business
- All of the above
- The term current asset doesn’t cover _______.
- Car
- Debtors
- Stock
- Prepaid expenses
- Amount spent on an advertisement campaign, the benefit of which is likely to last for three years is a
- Capital expenditure
- Revenue expenditure
- Deferred revenue expenditure
- None of the above
- The use of management accounting is
- Optional
- Compulsory
- Legally obligatory
- Compulsory to some and optional to others
- Accounting is concerned with
- Monetary transactions
- Non-monetary transactions
- Monetary and non-monetary transactions
- None of the above
- Which of the following accounting equation is correct?
- Capital + Liabilities= Assets
- Capital = Assets + Liabilities
- Capital- Liabilities = Assets
- Capital + Assets = Liabilities
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