( Best ) Managerial Accounting MCQ Set-14

by Mr. DJ

Managerial Accounting MCQ Set-14

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-14

Managerial Accounting MCQ Set-14

  1. The main object of cost accounting is:
  1. To record day to day transactions of the business
  2. To reveal managerial efficiency
  3. To ascertain true cost of products and services
  4. To determine tender price

Correct answer: (C)
To ascertain true cost of products and services

  1. The nature of financial accounting is
  1. Historical
  2. Forward looking
  3. Analytical
  4. Social

Correct answer: (A)

  1. An accounting that deals with the accounting and reporting of information to management regarding the detail information is
  1. Financial accounting
  2. Management accounting
  3. Cost accounting
  4. Real Accounting

Correct answer: (B)
Management accounting

  1. Bad debt amount should be credited to
  1. Debtors account
  2. Bad debts account
  3. Sales account
  4. Creditors account

Correct answer: (A)
Debtors account

  1. Management accounting concentrates on ______________
  1. Opening books of account
  2. Preparation of financial statements
  3. Control of business activities
  4. None of these

Correct answer: (C)
Control of business activities

  1. Which of the following is not an internal user of management information?
  1. Creditor
  2. Department manager
  3. Controller
  4. Treasurer

Correct answer: (A)

  1. Double entry system is used in which type of accounting
  1. Cost
  2. Financial
  3. Management
  4. All

Correct answer: (B)

  1. Which type of asset class includes those assets which have only definite use and become valueless when the yield is over?
  1. Fixed asset
  2. Current asset
  3. Fictitious asset
  4. Wasting asset

Correct answer: (D)
Wasting asset

  1. Cost accounting is applied to:
  1. Public undertakings only
  2. Large business enterprise only
  3. Small business concerns only
  4. Manufacturing and service concern

Correct answer: (D)
Manufacturing and service concern

  1. Reserve for doubtful debts appearing in the trial balance should be:
  1. credited to P & L a/c
  2. Shown as liability side in balance sheet
  3. Reduced from related asset in the balance sheet
  4. Both a and b
  5. Both a and c

Correct answer: (E)
Both a and c

  1. Under which concept it is assumed that the enterprises has neither the intention nor the necessity of liquidation or of curtailing materiality the scale of operation
  1. Revenue realization concept
  2. Matching cost concept
  3. Going concern concept
  4. None of these

Correct answer: (C)
Going concern concept

  1. Bookkeeping is an ______________ of correctly recording of business transition.
  1. Art and Science
  2. Art
  3. Science
  4. Art or Science

Correct answer: (B)

  1. Journal Entries are known as book of ______________ Entry.
  1. Original
  2. Duplicate
  3. Personal
  4. Nominal

Correct answer: (A)

  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

  1. The allocation of owner’s private expenses to his/her business violates which of the following?
  1. Accrual concept
  2. Matching concept
  3. Separate business entity concept
  4. Consistency concept

Correct answer: (C)
Separate business entity concept

KEY TAKEAWAYS Managerial Accounting MCQ set-14

  • 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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