Management Accounting Quiz Questions And Answers

20 Questions | By Vinoth | Last updated: Mar 22, 2022 | Total Attempts: 10891

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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.