Management Accounting - Unit 1

20 Questions | Total Attempts: 4037

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Account Management Quizzes & Trivia

Answer the following Multiple Choice Questions


Questions and Answers
  • 1. 
    The term management accountancy was first used in___________
    • A. 

      A. 1950

    • B. 

      B. 1939

    • C. 

      C. 1910

    • D. 

      D. 1947

  • 2. 
    Management accounting is also known as____________
    • A. 

      A. price level accounting

    • B. 

      B. historical cost accounting.

    • C. 

      C. financial accounting.

    • D. 

      D. decision accounting.

  • 3. 
    The prime function of management accounting is to _______.
    • A. 

      A. assist tax authorities

    • B. 

      B. assist the management in performing its functions effectively

    • C. 

      C. interpret the financial data

    • D. 

      D. record business transactions

  • 4. 
    Management accounting provides valuable services to management in performing ____.
    • A. 

      A. coordinating functions.

    • B. 

      B. controlling functions.

    • C. 

      C. planning functions

    • D. 

      D. all managerial functions

  • 5. 
    Management accounting is an offshoot of _____.
    • A. 

      A. financial accounting

    • B. 

      B. cost accounting

    • C. 

      C. cost accounting and financial accounting

    • D. 

      D. cost accounting and inflation accounting.

  • 6. 
    Management accounting analyses accounting data with the help of ______.
    • A. 

      A. auditors

    • B. 

      B. statutory forms

    • C. 

      C. tools and techniques

    • D. 

      D. formula

  • 7. 
    Management accounting use _____________.
    • A. 

      A. quantitative data only

    • B. 

      B. qualitative data only

    • C. 

      C. descriptive data only

    • D. 

      D. both qualitative and qualitative data

  • 8. 
    Management accounting is suitable for _______.
    • A. 

      A. large industries and trading concerns

    • B. 

      B. co-operative societies

    • C. 

      C. small businesses

    • D. 

      D. non-profit organizations

  • 9. 
    In making managerial decisions, relevant information is ______.
    • A. 

      A. future cost that differ between alternatives

    • B. 

      B. future costs that do not differ between alternatives

    • C. 

      C. past costs that differ between alternatives

    • D. 

      D. past costs that do not differ between alternatives

  • 10. 
    • A. 

      A. to assist in making productions that inputs to a decision model

    • B. 

      B. to serve directly as inputs in decision models

    • C. 

      C. to assist in making predictions about other information needed for making decisions

    • D. 

      D. to assist in making productions that inputs to a management

  • 11. 
    Managerial accounting information is generally prepared for _____________________.
    • A. 

      A. Shareholders

    • B. 

      B. Creditors

    • C. 

      C. Managers

    • D. 

      D. Regulatory agencies

  • 12. 
    Which of the following is not an internal user of management information? 
    • A. 

      A. Creditor

    • B. 

      B. Department manager

    • C. 

      C. Controller

    • D. 

      D. Treasurer

  • 13. 
    Managerial accounting does not encompass _____________
    • A. 

      A. Calculating product cost

    • B. 

      B. Calculating earnings per share

    • C. 

      C. Determining cost behavior

    • D. 

      D. Profit planning

  • 14. 
    Management accounting is applicable to ___________
    • A. 

      A. Service entities

    • B. 

      B. Manufacturing entities

    • C. 

      C. Not-for-profit entities

    • D. 

      D. All of these

  • 15. 
    Management accounting reports can be described as ___________________
    • A. 

      A. General-purpose

    • B. 

      B. Macro-reports

    • C. 

      C. Special-purpose

    • D. 

      D. Classified financial statements

  • 16. 
    The reporting standard for external financial reports is ____________________
    • A. 

      A. Industry-specific

    • B. 

      B. Company-specific

    • C. 

      C. Generally accepted accounting principles

    • D. 

      D. Department-specific

  • 17. 
    Working capital = _________________
    • A. 

      A. Current assets minus Current liability

    • B. 

      B. Current assets minus Past liability.

    • C. 

      C. Current assets minus Current payments.

    • D. 

      D. Current assets minus Current assets.

  • 18. 
    The term funds refer to_________________.
    • A. 

      A. cost.

    • B. 

      B. liability.

    • C. 

      C. working capital.

    • D. 

      D. none of the above

  • 19. 
    There is how many steps involved in fund flow statement ___________.
    • A. 

      A. 2

    • B. 

      B. 3

    • C. 

      C. 4

    • D. 

      D. 5

  • 20. 
    Which among the following is true?
    • A. 

      A. increase in current asset decrease in working capital.

    • B. 

      B. decrease in current asset decrease in working capital

    • C. 

      C. increase in current asset increase in working capital.

    • D. 

      D. decrease in current asset decrease in working capital.