Accounting for Management MCQ
Given below are Accounting for Management MCQ with answers. These MCQs are equally useful for managerial accounting, accounting for managers & accounting for management subject. This is also useful to explore subtopics like Financial Statements, Budgeting, cost accounting, marginal costing, corporate accounting etc.
MBA, BBA, B Com, M Com, MMS, PGDBM, PGDM, BA, MA and CA students can use these multiple choice questions for university exams. These solved MA MCQ sets are also helpful for entrance exams like UPSC, UGC NET, SET, MPSC etc.
Accounting for Management MCQ
1. …………….is concerned with recording transactions and preparing financial
reports for the external and internal users of accounting.
2. The Branch of accounting concerned with collection, determining and
controlling cost of products and services is called………………
3. ……………is concerned with providing information to management for taking
managerial decisions.
4. The father of Double Entry system is………………
5. ……………….is the art of recording, classifying and summarizing in a
significant manner and in terms of money, transactions and events, which are in part, at least of financial character and interpreting the results there of.
Also Read :-
6. Which among the following do not belong to the category of Accounting ?
7. The objective of financial accounting is to find out…………………..
8. ……………….journal is used to record credit sale of goods
9. The ………….Management is mainly concerned with the policy decisions.
10. The Prime function of accounting is to ………………………..
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
- Creating Provision against fluctuation in the price of investment is an example of which accounting convention
- Convention of conservatism
- Convention of full disclosure
- Convention of materiality
- Convention of consistency
Correct answer: (A)
Convention of conservatism
- Return of goods by a customer should be debited to
- Customers account
- Sales return account
- Goods account
- Purchase account
Correct answer: (B)
Sales return account
- Cash discount allowed to a debtor should be credited to
- Discount account
- Customer’s account
- Sales account
- Cash account
Correct answer: (B)
Customer’s account
- The concept of separate entity is applicable to which of following types of businesses?
- Sole proprietorship
- Corporation
- Partnership
- All of them
Correct answer: (D)
All of them
- Accounting principles are generally based upon:
- Practicability
- Subjectivity
- Convenience in recording
- None of the above
Correct answer: (A)
Practicability
- Debit the receiver credit the giver rule for
- Real a/c
- Personal a/c
- Nominal a/c
- None of these
Correct answer: (B)
Personal a/c
- Managerial accounting information is generally prepared for
- Shareholders
- Creditors
- Managers
- Regulatory agencies
Correct answer: (C)
Managers
- True & fair profit and loss a/c of a company know by
- Preparing trial balance
- Preparing respective ledger of account
- Preparing trading a/c
- Preparing trading & profit & loss a/c
Correct answer: (D)
Preparing trading & profit & loss a/c
- Which one of the following items would fall under the definition of a liability
- Cash
- Debtor
- Owner’s equity
- None of these
Correct answer: (C)
Owner’s equity
- The basic sequence in the accounting process can best be described as:
- Transaction, journal entry, source document, ledger account, trial balance.
- Source document, transaction, ledger account, journal entry, trial balance.
- Transaction, source document, journal entry, trial balance, ledger account.
- Transaction, source document, journal entry, ledger account, trial balance.
Correct answer: (D)
Transaction, source document, journal entry, ledger account, trial balance.
- Amount brought in by proprietor should be credited to
- cash account
- capital account
- drawings account
- creditors account
Correct answer: (B)
capital account
- Which of the following is a real (permanent) account?
- Goodwill
- Sales
- Accounts Receivable
- Both Goodwill and Accounts Receivable
Correct answer: (D)
Both Goodwill and Accounts Receivable
- Which of the following errors will be disclosed in the preparation of a trial balance?
- Recording transactions in the wrong account.
- Duplication of a transaction in the accounting records.
- Posting only the debit portion of a particular journal entry.
- 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.
- Management Accounting provides invaluable services to management in performing
- All management function
- Interpret financial data
- Controlling function
- None of these
Correct answer: (A)
All management function
- If closing stock appears in the trial balance, it should be
- Credited to the trading account
- Credited to the profit and loss account
- Deducted from the purchases in the trading account
- 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.