This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 19 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 19 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Operating ratio is calculated by A) (Operating cost/ Gross Sales) * 100. B) (Operating cost/ Gross Sales) + 100. C) (Operating cost/ Net Sales) * 100. D) None of the above. Show Answer Correct Answer: C) (Operating cost/ Net Sales) * 100. 2. 1) Which of the following is correct about double entry system of accounting? A) Every business transaction brings at least two financial changes in business. B) Financial changes are recorded as debits or credits in two or more accounts. C) Every debit entry has a corresponding credit entry. D) All of the above. Show Answer Correct Answer: D) All of the above. 3. Tenant paid $ 300 for rent A) Capital Receipt. B) Revenue Receipt. Show Answer Correct Answer: B) Revenue Receipt. 4. Over-Absorption is Debited to the Overheads Control Accounts Credited to Profit and Loss Accounts A) True. B) False. Show Answer Correct Answer: A) True. 5. The difference between marginal costing profit and that of the absorption costing profit is usually the fixed cost included in the inventory valuation. A) True. B) False. Show Answer Correct Answer: A) True. 6. Management Accounting Focuses on External reporting A) True. B) False. Show Answer Correct Answer: B) False. 7. Total cost of a product:Rs. 10, 000 Profit:25% on Selling Price Profit is A) Rs. 2, 500. B) Rs. 3, 000. C) Rs. 3, 333. D) Rs. 2, 000. Show Answer Correct Answer: C) Rs. 3, 333. 8. The content of the management accounting explanatory report is provided by: A) Ministry of Economy, Finance and Law. B) Administration of the Board of Directors of Law. C) Legal Business Administrator. D) Management accountant designs his own style. Show Answer Correct Answer: C) Legal Business Administrator. 9. Financial accounting provides a historical perspective, whereas management accounting emphasizes A) The future. B) Past transactions. C) A current perspective. D) Reports to shareholders. Show Answer Correct Answer: A) The future. 10. Outstanding expenses are part of ..... A) Current Asset. B) Current Liability. C) Debt. D) CRR. Show Answer Correct Answer: B) Current Liability. 11. A responsibility center where managers are held responsible for both revenues and costs of the segment A) Cost center. B) Profit center. C) Revenue Center. D) Investment Center. Show Answer Correct Answer: B) Profit center. 12. Lee bought a printer for office use through an e-commerce website. He also paid for the cost of delivering the printer, maintenance for one year and printing paper. What would be included in Lee's income statement? A) Delivery cost, printing paper, maintenance. B) Delivery cost, printing paper, maintenance, printer. C) Maintenance, printing paper. D) Delivery cost, printer. Show Answer Correct Answer: C) Maintenance, printing paper. 13. Which of these is the correct order for the accounting cycle? A) Prepare unadjusted trial balance; create work papers to support the need for an adjustment; post adjusting entries; prepare an adjusted trial balance; prepare financial statements; post closing entries; prepare closing trial balance. B) Create work papers to support an adjustment; prepare an adjusted trial balance; prepare unadjusted trial balance; prepare closing trial balance; prepare financial statements; post adjusting entries. C) Prepare unadjusted trial balance; create work papers to support the need for an adjustment; prepare closing trial balance; prepare financial statements; post adjusting entries; prepare a large adjusted trial balance. D) None. An accounting cycle is like a bicycle with 1 extra large wheel and 1 extra small wheel. Show Answer Correct Answer: A) Prepare unadjusted trial balance; create work papers to support the need for an adjustment; post adjusting entries; prepare an adjusted trial balance; prepare financial statements; post closing entries; prepare closing trial balance. 14. There are 500 members in a club each paying ₹ .100 as annual subscription. Subscription due but not received for the current year is ₹ .200 Subscription received in advance is ₹ .300 find out the amount of subscription to be shown in the income and expenditure account ..... A) ₹ .50, 200. B) ₹ .50, 000. C) ₹ .49, 900. D) ₹ .49, 800. Show Answer Correct Answer: B) ₹ .50, 000. 15. From the following information find the value of closing stock Stock velocity:6 months Gross profit ratio:25% Gross profit for the year ended 31st March 2014: ₹ 1, 00, 000 Closing stock for the period- ₹ 20, 000 more than it was at the beginning of the year. A) 1, 60, 000. B) 1, 40, 000. C) 1, 30, 000. D) 1, 20, 000. Show Answer Correct Answer: A) 1, 60, 000. 16. Which of the following is an indirect cost? A) The cost of restriping the parking lot at a perfume factory. B) The cost of bottles in a shampoo factory. C) The cost of denim in a jeans factory. D) All of the above. Show Answer Correct Answer: A) The cost of restriping the parking lot at a perfume factory. 17. A favorable direct materials price variance occurs when: A) Actual rate of direct materials is equal to standard rate of direct materials. B) Actual rate of direct materials is less than standard rate of direct materials. C) Actual rate of direct materials is higher than standard rate of direct materials. D) Actual rate of direct materials is less than previous year's rate of direct materials. Show Answer Correct Answer: B) Actual rate of direct materials is less than standard rate of direct materials. 18. Which one of the following is not a limitation of Financial Accounting A) It ignores qualitative aspects. B) Window Dressing. C) It ignores quantitative aspects. D) It ignores Price level changes. Show Answer Correct Answer: C) It ignores quantitative aspects. 19. To prepare a flexible budget can be adjusted to recognize multiple cost drivers, which cost driver may not be needed to adequately of the cost in organization? A) Wages and salaries. B) Gasoline and supplies. C) Office and shop rent. D) Equipment maintenance. Show Answer Correct Answer: C) Office and shop rent. 20. Income from long term investments is A) Source of cash. B) Application of cash. C) Cash inflow from operations. D) None of these. Show Answer Correct Answer: A) Source of cash. ← PreviousNext →Related QuizzesAccounting QuizzesManagement Accounting Quiz 1Management Accounting Quiz 2Management Accounting Quiz 3Management Accounting Quiz 4Management Accounting Quiz 5Management Accounting Quiz 6Management Accounting Quiz 7Management Accounting Quiz 8Management Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books