This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 41 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 41 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following describes a situation in which an employee prefers to exert less effort than the effort the owner desires because the employee's effort cannot be accurately monitored and enforced? A) Goal incongruence. B) Moral hazard. C) Performance report variance. D) Incentive report variance. Show Answer Correct Answer: B) Moral hazard. 2. Formula for liquid ratio= A) Quick assets/Current liabilities. B) Current assets/current liabilities. C) Current liabilities/current assets. D) None of above. Show Answer Correct Answer: A) Quick assets/Current liabilities. 3. When was the term Management Accounting coined? A) 1970. B) 1950. C) 1940. D) 1931. Show Answer Correct Answer: B) 1950. 4. Variable costs are costs that change in direct proportion to the production unit. All direct costs including direct materials, direct labour and direct expenses are variable costs. A) True. B) False. Show Answer Correct Answer: A) True. 5. Interest expense on loan from bank A) Revenue Expenditure. B) Capital Expenditure. Show Answer Correct Answer: A) Revenue Expenditure. 6. Financial Year of Nini Business expires June 30, 2018.Select the correct title for this income statement. A) Income Statement on July 1, 2017. B) The income statement ends June 30, 2018. C) Income Statement for the year ended July 1, 2017. D) Income Statement for the year ended June 30, 2018. Show Answer Correct Answer: D) Income Statement for the year ended June 30, 2018. 7. Which of the following are characteristics of B E P A) No loss and no profit. B) Total revenue is equal to total cost. C) Contribution is equal to fixed cost. D) All the above. Show Answer Correct Answer: D) All the above. 8. The financial risk affects an organization's ability to obtain ongoing financing. A) Credit risk. B) Liquidity risk. C) Market risk. D) Financing risk. Show Answer Correct Answer: D) Financing risk. 9. If the total cost of 1000 units is Rs.60000 and that of 1001 units is Rs.60400, then the increase of Rs.400 in the total cost is ..... A) Prime cost. B) All variable overheads. C) Marginal cost. D) None of the above. Show Answer Correct Answer: C) Marginal cost. 10. "The term used to describe the accounting methods, systems and techniques which, couple with special knowledge and ability, assist management in its task of maximising profit or minimising losses" is defined by ..... A) I.C.M.A. B) J.Batty. C) Hawkins. D) Kohler. Show Answer Correct Answer: B) J.Batty. 11. Cost units used in power sector is: A) Kilo meter (K.M). B) Kilowatt-hour (kWh). C) Number of electric points. D) Number of hours. Show Answer Correct Answer: B) Kilowatt-hour (kWh). 12. Working capital turnover ratio can be determined by A) Gross profit/ Working capital. B) Cost of goods sold / Net Sales. C) Cost of goods sold/ working capital. D) None of the above. Show Answer Correct Answer: C) Cost of goods sold/ working capital. 13. Competitiveness can be best measured by A) Gross margin. B) Income margin. C) Sales margin. D) Cost margin. Show Answer Correct Answer: A) Gross margin. 14. The amount of revenue required to earn a targeted profit is equal to A) Total fixed cost plus targeted profit divided by contribution margin ratio. B) Total fixed cost divided by contribution margin. C) Targeted profit divided by the contribution margin ratio. D) Targeted profit divided by the variable cost ratio. Show Answer Correct Answer: A) Total fixed cost plus targeted profit divided by contribution margin ratio. 15. A board of directors (BoD) is an elected group of individuals that represent shareholders. A) True. B) False. Show Answer Correct Answer: A) True. 16. The debtor turnover ratio is calculated as: A) Total Credit Sales / Average Debtors. B) Average Debtors / Total Credit Sales. C) Total Debtors / Average Credit Sales. D) Average Credit Sales / Total Debtors. Show Answer Correct Answer: A) Total Credit Sales / Average Debtors. 17. Earnings per share (EPS) is a A) Profitability Ratio. B) Turnover Ratio. C) Liquidity Ratio. D) None of these. Show Answer Correct Answer: A) Profitability Ratio. 18. Identify the expense below that does not have GST A) Electricity. B) Interest Expense. C) Insurance. D) Advertising. Show Answer Correct Answer: B) Interest Expense. 19. Which of the following is NOT capital expenditure for a T-Shirt factory? A) Shop Rent. B) Office Furniture. C) Purchasing Land. D) Purchasing Machinery. Show Answer Correct Answer: A) Shop Rent. 20. Income tax paid is A) Current liability. B) Current asset. C) An application of funds. D) None of these. Show Answer Correct Answer: C) An application of funds. ← 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