This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 34 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 34 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Recruitment cost..... A) Shall form part of prime cost. B) Shall form part of works cost. C) Shall form part of overheads. D) Shall be ignored. Show Answer Correct Answer: C) Shall form part of overheads. 2. Determine Working capital turnover ratio if, Current assets is Rs 1, 50, 000, current liabilities is Rs 1, 00, 000 and Cost of goods sold is Rs 3, 00, 000. A) 5 times. B) 6 times. C) 3 times. D) 1.5 times. Show Answer Correct Answer: B) 6 times. 3. Management accounting provides information mainly to managers in: A) Planning. B) Organize implementation and review. C) Make a decision to take action. D) All of the above statements are correct. Show Answer Correct Answer: D) All of the above statements are correct. 4. Which of the following is an example of an asset? A) Vehicle. B) Electricity. C) Mortgage. D) None of above. Show Answer Correct Answer: A) Vehicle. 5. Loan Funds consists of ..... A) Working Capital + Loans. B) Bank Loan + Preliminary expenses. C) Shareholder's equity + Reserves and Surplus. D) Term Loan + Debentures. Show Answer Correct Answer: D) Term Loan + Debentures. 6. Find the odd one A) Comparative statement analysis. B) Common size statement analysis. C) Trend analysis. D) Ratio analysis. Show Answer Correct Answer: D) Ratio analysis. 7. THE ENVIRONMENTAL COST DEVIDED TO FOUR COSTS ..... A) PREVENTION COSTS, DETECTION COSTS, INTERNAL FAILURE COSTS AND EXTERNAL FAILURE COSTS. B) PREVENTION COSTS, ELIMINATION COSTS, INTERNAL FAILURE COSTS AND EXTERNAL FAILURE COSTS. C) PREVENTION COSTS, DETECTION COSTS, INTERNATIONAL FAILURE COSTS AND EXTERNAL FAILURE COSTS. D) PREVENTION COSTS, DETECTION COSTS, INTERNAL FAILURE COSTS AND EXTREME FAILURE COSTS. Show Answer Correct Answer: A) PREVENTION COSTS, DETECTION COSTS, INTERNAL FAILURE COSTS AND EXTERNAL FAILURE COSTS. 8. ISO 14001 certification is a requirement for organizations implementing Environmental Management Accounting. A) TRUE. B) FALSE. Show Answer Correct Answer: B) FALSE. 9. Interest paid is shown in A) Financial activity. B) Investing activity. C) Operating activity. D) None of above. Show Answer Correct Answer: A) Financial activity. 10. Budgeted financial statements are also referred to as pro forma statements. A) True. B) False. Show Answer Correct Answer: A) True. 11. Chargeable expenses is another name for direct expenses A) True. B) False. Show Answer Correct Answer: A) True. 12. The P/V ratio of a product is 0.6 and profit is Rs. 9, 000. The margin of safety is A) Rs. 5400. B) Rs. 15000. C) Rs. 22500. D) Rs. 3600. Show Answer Correct Answer: B) Rs. 15000. 13. Basic objective of cost accounting is A) Cost Ascertainment. B) Audit Purpose. C) Tax Compliance. D) None of the above. Show Answer Correct Answer: A) Cost Ascertainment. 14. Which of the following options is not characteristic of management accounting? A) Future-oriented. B) Accounting information. C) Compulsory accounting. D) Management oriented . Show Answer Correct Answer: C) Compulsory accounting. 15. What is ABC system? A) A method of dividing on hand inventory into 3 classifications,. B) A method of segregate the inventory into 3 classifications. Show Answer Correct Answer: A) A method of dividing on hand inventory into 3 classifications,. 16. When material prices are fluctuating rapidly, this is the best method to use A) LIFO. B) FIFO. C) AVCO. D) LICO. Show Answer Correct Answer: C) AVCO. 17. Current assets divided by current liabilities is the A) Current ratio. B) Net worth. C) Working capital. D) Quick ratio. Show Answer Correct Answer: A) Current ratio. 18. Quick assets are Current assets minus A) Bank. B) Stock. C) Cash. D) Bank overdraft. Show Answer Correct Answer: B) Stock. 19. Liability accounts increase with a A) Debit. B) Credit. Show Answer Correct Answer: B) Credit. 20. Which of the following is NOT an example of revenue Income A) Early Payment Discounts. B) Cash from sales. C) Owners Capital. D) Interest Received. Show Answer Correct Answer: C) Owners Capital. ← 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