This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 29 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 29 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The creditors turnover ratio is used to measure: A) The average time taken by debtors to pay their debts. B) The average time taken by creditors to pay their debts. C) The profitability of a company. D) The liquidity of a company. Show Answer Correct Answer: B) The average time taken by creditors to pay their debts. 2. The process of decreasing the time and resources required by an activity is known as A) Activity reduction. B) Activity output measure. C) Activity attributes. D) Activity analysis. Show Answer Correct Answer: A) Activity reduction. 3. The financial risks that arise because of possible losses due to changes in future market prices or rates. A) Credit risk. B) Liquidity risk. C) Market risk. D) Financing risk. Show Answer Correct Answer: C) Market risk. 4. Current ratio indicates A) Ability to meet short term obligations. B) Efficiency of Management. C) Profitability. D) None of these. Show Answer Correct Answer: A) Ability to meet short term obligations. 5. What would a savings & loan institution likely focus on? A) Investments and business loans. B) Ways to save money and ways to charge fees. C) Offering ways to save money and loaning money. D) Biscuits & gravy. Show Answer Correct Answer: C) Offering ways to save money and loaning money. 6. Which of the following is an advantage of decentralization? A) Leads to gains from rapid decision making by subunit managers. B) Focuses manager's attention on the organization as a whole. C) Does not result in a duplication of activities. D) Reduces the cost of gathering information. Show Answer Correct Answer: A) Leads to gains from rapid decision making by subunit managers. 7. The use of fixed costs to extract higher percentage changes in profits as sales activity changes involves A) Operating leverage. B) Degree of operating leverage. C) Margin of safety. D) Variable cost reduction. Show Answer Correct Answer: A) Operating leverage. 8. Sale of fixed assets are included in cash flow from A) Operating. B) Financing. C) Investing. D) None of the above. Show Answer Correct Answer: C) Investing. 9. Which of the following statements are not true about budget, budgeting & budgetary control? A) Budgetary control works on the basis of best option. B) Budget is one of the important mediums of communication. C) Budgeting develops the quality of objectivity in planning. D) None of the above. Show Answer Correct Answer: D) None of the above. 10. ..... is the first step of budgetary system and all other budgets depends on it. A) Cost budget. B) Sales budget. C) Production budget. D) None of the above. Show Answer Correct Answer: B) Sales budget. 11. MA Stands for A) Management Accounting. B) Master Accounting. C) Management Accountancy. D) None of the above. Show Answer Correct Answer: A) Management Accounting. 12. The Accounting Equation must always be in balance? A) True. B) False. Show Answer Correct Answer: A) True. 13. When are loans a good option to use? A) To pay for airline tickets to your dream vacation. B) When paying for higher education. C) To buy that new television. D) For a dream wedding. Show Answer Correct Answer: B) When paying for higher education. 14. Consider the following data produced by a company over the last two years. Activity level (000 units) Total production cost ($ 000)20X1Q1 15 30020X1 Q2 45 61520X1 Q3 25 47020X1 Q4 55 68020X2 Q1 30 52020X2 Q2 20 35020X2 Q3 35 59020X2 Q4 60 740Using regression analysis calculate r2 A) .98. B) .93. C) .92. D) .96. Show Answer Correct Answer: B) .93. 15. Financial Accounting is summarised balance sheet, profit and loss, and cash flow, meanwhile Management Accounting is a range very detailed and speacifically focused reports. Is the difference between Financial Accounting and Management Accounting in terms of? A) Frequency. B) Format of Accounting Government by. C) Primary Users. D) Type of Information. Show Answer Correct Answer: D) Type of Information. 16. Which is the correct formula to calculate the Cost of materials consumed? A) Opening raw materials + Purchase of raw materials + Carriage inwards-Closing raw materials. B) Closing raw materials-Purchase of raw materials + Opening raw materials-Carriage outwards. C) Opening raw materials + Purchase of raw materials + Carriage outwards-Closing raw materials. D) Closing raw materials + Raw materials purchase + Carriage outwards-Closing raw materials. Show Answer Correct Answer: A) Opening raw materials + Purchase of raw materials + Carriage inwards-Closing raw materials. 17. Which of the following is true: A) When a second hand asset is purchased than any expenditure incurred on it to put it into working condition is a capital expenditure. B) Carriage cost paid on purchase of goods is classified as revenue expenditure. C) Cost of demolishing an old building to replace it with a new one is a capital expenditure. D) All are true. Show Answer Correct Answer: D) All are true. 18. Which cost is more useful for decision making? A) Marginal cost. B) Fixed cost. C) Total cost. D) Opportunity cost. Show Answer Correct Answer: A) Marginal cost. 19. EOQ means A) Economic Ordering Quantity. B) Economic Ordering Quality. C) Economic Order Quality. D) None. Show Answer Correct Answer: A) Economic Ordering Quantity. 20. A combination of all the functional budgets of an organisation is A) Sales budget. B) Cash budget. C) Functional budget. D) Master budget. Show Answer Correct Answer: D) Master budget. ← 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