( Best )Managerial Accounting MCQ Set-15

by Mr. DJ

Managerial Accounting MCQ Set-15

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-15

Managerial Accounting MCQ Set-15

  1. Profit from sale of assets is example for–
  1. Revenue Profit
  2. Capital Profit
  3. Loss
  4. None of these

Correct answer: (B)
Capital Profit

  1. Book keeping is mainly concerned with
  1. Recording of financial data relating to business operation
  2. Designing the systems in recording classifying,summarizing the recorded data
  3. Interpreting the data for internal and external users

Correct answer: (A)
Recording of financial data relating to business operation

  1. The convention of conservatism when applied to the balance sheet result in.
  1. Understand the asset
  2. Understand the liabilities
  3. Overstatement of capital
  4. None of these

Correct answer: (A)
Understand the asset

  1. The amount brought in by the proprietor in the business should be credited to
  1. Cash a/c
  2. Capital a/c
  3. Drawing a/c
  4. Bank a/c

Correct answer: (B)
Capital a/c

  1. The return of goods by the customer should be debited to
  1. Customer a/c
  2. Sales return a/c
  3. Goods a/c
  4. Purchase return a/c

Correct answer: (B)
Sales return a/c

  1. sales made by Mahesh for cash should be debited to
  1. Cash a/c
  2. Mahesh a/c
  3. Sales a/c
  4. Sales return a/c

Correct answer: (A)
Cash a/c

  1. The rent paid to land lord to be credited to
  1. Land lord a/c
  2. Rent a/c
  3. Cash a/c
  4. Tenant a/c

Correct answer: (C)
Cash a/c

  1. Which of the following statements are false?
  1. All liability is a debt for your business
  2. Debtor are a asset for business
  3. The accounting equation shows how much of your assets belong to the owner, and how much belong to people outside business
  4. None of the above

Correct answer: (D)
None of the above

  1. A business has the following items in it:
    Land Rs.1,000,000
    Machinery Rs.20,000
    Cash Rs.10,000
    Debt Rs.0
    Owner’s equity?

    What is the valve of owner’s equity?

  1. Rs.1020000
  2. Rs.1010000
  3. Rs.1030000
  4. None of the above

Correct answer: (C)
Rs.1030000

  1. A business has the following items in it:
    Owners’ equity Rs.6,00, 000.
    Liabilities Rs.14,00,000.
    What is the value of Assets ______________

    What is the valve of owner’sequity?

  1. 600,000
  2. 1,400,000
  3. 2,000,000
  4. None of these

Correct answer: (C)
2,000,000

  1. A business has the following items in it:
    Land Rs.1, 500,000
    Machinery Rs.80, 000
    Cash Rs.20, 000
    Owners equity Rs.900, 000
    Loan Rs.500, 000
    Creditors?
  1. Rs.200, 000
  2. Rs.700, 000
  3. Rs.800, 000
  4. Rs1, 100,000

Correct answer: (A)
Rs.200, 000

  1. A business has following items in it Land?
    Vehicles Rs.600,000
    Debtors Rs. 1,20,000
    Cash Rs.30,000
    Owners’Equity Rs.1,000,000
    Loan 5,00,000
    Creditors Rs.50,000

    What is the value of the land ______________

  1. 1,000,000
  2. 1,550,000
  3. 800,000
  4. None of these

Correct answer: (C)
800,000

  1. XYZ ltd.has provided the following information about its balance sheet:
    Cash Rs.100
    Accounts Receivable Rs.500
    Stock holder equity Rs.700
    Accounts Payable Rs.200
    Bank Loan Rs.1,000

    Based on the information provided, how much are XYZ ltd.Total liabilities?

  1. Rs.200
  2. Rs.1900
  3. Rs.1200
  4. Rs.1700

Correct answer: (B)
s.1900

  1. Contingent liabilities should be recorded in the accounts when:
  1. It is probable that the future event will occur.
  2. The amount of the liability can be reasonably estimated.
  3. Both (a) and (b).
  4. Either (a) or (b).

Correct answer: (C)
Both (a) and (b).

  1. Accounting concepts are based on
  1. Certain assumptions
  2. Certain facts and figures
  3. Certain accounting records
  4. Practice experience

Correct answer: (B)
Certain facts and figures

KEY TAKEAWAYS Managerial Accounting MCQ set-15

  • 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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