Management Accounting Quiz Questions And Answers

20 Questions | Total Attempts: 9953

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Management Accounting Quiz Questions And Answers

Here is an interesting 'Management accounting quiz' that is designed to test your knowledge about the concepts of accounting management. So, if you think you have a good understanding of accounting management subject, then you must prove your knowledge with this quiz. All you have to do is choose the correct option for all the multiple-choice questions. Are you ready to take the test? Let's start then. Wishing you all the best!


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. 
    The role of historical data from the accounting system in making managerial decisions is ________.
    • 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.

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