# Managerial Accounting MCQ Set-18

## 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 companyâ€™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.

1. ______________ are analysts who use information concerning current and prospective profitability of firms to assess the firmâ€™s fair market value.
1. Credit analysts
2. Fundamental analysts
3. Systems analysts
4. Technical analysts

Fundamental analysts

1. Those liabilities which arise only on the happening of some event are called
1. Current liabilities
2. Outstanding liabilities
3. Deferred liabilities
4. Contingent liabilities

Contingent liabilities

1. There are ______________ types of financial statements analysis
1. 1
2. 2
3. 3
4. 4

3

1. ______________ tells us after how much time period the amount of money will become double.
1. Real interest rate
2. Nominal interest rate
3. Rule of 72
4. Time value of money

Rule of 72

1. Horizontal analysis is also called
1. Ratio change analysis
2. Common size analysis
3. Trend analysis
4. Ratio analysis

Trend analysis

1. Interest paid (earned) on only the original principal borrowed (lent) is often referred to as ______________.
1. Compound interest
2. Simple interest
3. Present value
4. Future value

Simple interest

1. If gross profit is Rs 5,000 and the net profit is 25% of the gross profit the expenses must be
1. Rs 3,750
2. Rs 1,250
3. Rs 4,150
4. Rs 6,250

Rs 3,750

1. What are the earnings per share (EPS) for a company that earned Rs.100, 000 last year in after-tax profits, has 200,000 common shares outstanding and Rs.1.2 million in retained earning at the year end?
1. Rs.1.00
2. Rs. 6.00
3. Rs. 0.50
4. Rs. 6.50

Rs. 0.50

1. Which of the following affects the price of the bond?
1. Market interest rate
2. Required rate of return
3. Interest rate risk
4. All of the given options