This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 58 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 58 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Given inventory of Rs. 24, 000 other current assets of Rs. 12, 000 and current liabilities of Rs. 20, 000 the acid test ratio will be, A) 0.6. B) 1.6. C) 1.8. D) 1.2. Show Answer Correct Answer: A) 0.6. 2. Cost accounting is needed most by which type of user? A) Internal users. B) External users. Show Answer Correct Answer: A) Internal users. 3. Securities premium will appear in the ..... side of the Balance Sheet. A) Asset. B) Liability. C) Assets & Liability. D) None of above. Show Answer Correct Answer: B) Liability. 4. Who should have overall responsibility for Corporate Governance? A) 1. Risk Management. B) 2. The Board. C) 3. Internal Audit. D) 4. The Strategy Department. E) 5. The Compliance function. Show Answer Correct Answer: B) 2. The Board. 5. A trader disposed of old office equipment with a book value $ 3500 for $ 3900. How would this transaction be treated by the business in its books? A) Revenue receipt $ 3900. B) Capital receipt $ 3900. C) Capital receipt $ 400, Revenue receipt $ 3500. D) Capital receipt $ 3500, Revenue receipt $ 400. Show Answer Correct Answer: D) Capital receipt $ 3500, Revenue receipt $ 400. 6. For a bookshop owner, which of the following item is a capital receipt? A) Receipt of sales commission from the publisher. B) Cash discount from a supplier of stationery. C) Proceeds from the disposal of old bookshelf. D) Cash from sale of notebooks. Show Answer Correct Answer: C) Proceeds from the disposal of old bookshelf. 7. Overheads that cannot be allocated to the production of a particular product and relate to the business as a whole. A) Direct costs. B) Unit cost. C) Indirect costs. D) Profit. Show Answer Correct Answer: C) Indirect costs. 8. Which of the following statements are true? A) Budget is prepared for an indefinite period. B) Budget can be expressed in form of physical units. C) It is no way related with the management plans and policies to be pursued in future. D) It provides a base for measuring the success of expected results. Show Answer Correct Answer: B) Budget can be expressed in form of physical units. 9. Presents cost data in product wise, process wise, department wise, branch wise and the like. A) Financial Planning. B) Financial Statement Analysis. C) Cost Accounting. D) Fund Flow Analysis. Show Answer Correct Answer: C) Cost Accounting. 10. Retained earnings belongs to ..... A) Preference shareholders. B) Equity shareholders. C) Lenders. D) Borrowers. Show Answer Correct Answer: B) Equity shareholders. 11. Manufacturing costs is also known as A) Inventoriable cost. B) Period cost. C) Conversion costs. D) Overhead costs. Show Answer Correct Answer: A) Inventoriable cost. 12. For ROI or RI, companies frequently choose to define investment as total assets available. EVA\textregistered users would normally use total assets employed minus: A) Long-term debt. B) Current liabilities. C) Stockholders' equity. D) Retained earnings. Show Answer Correct Answer: B) Current liabilities. 13. WHAT IS ENVIRONMENTAL MANAGEMENT ACCOUNTING (EMA)? A) Method that can help managers to make better decisions that can benefit the business and the environment. B) Focus on supplying information to management that accounts for the organization's impact on the natural environment. C) Information from the management perspective relates to costs, earnings, and savings. D) Costs incurred to prevent, monitor and report environmental impacts. Show Answer Correct Answer: A) Method that can help managers to make better decisions that can benefit the business and the environment. 14. Management accounting must comply with company law A) True. B) False. Show Answer Correct Answer: B) False. 15. If Assets are $ 15, 500 and Capital is $ 9, 600, how much are Liabilities? A) $ 5, 900. B) $ 15, 500. C) $ 25, 100. D) None of above. Show Answer Correct Answer: A) $ 5, 900. 16. Determine margin of safety if profit is Rs. 15, 000 and P/V ratio is 40% A) Rs. 37, 500. B) Rs. 33, 000. C) Rs. 38, 000. D) Rs. 40, 000. Show Answer Correct Answer: A) Rs. 37, 500. 17. Cost classification can be done in A) Two ways. B) Three ways. C) Four ways. D) Several ways. Show Answer Correct Answer: D) Several ways. 18. What Key Terminology Budget to Prepare Performance Analysis, except? A) Planning Budget. B) Actual Budget. C) Flexible Budget. D) Variances Budget. Show Answer Correct Answer: D) Variances Budget. 19. Report showing the status of a bank account (generally monthly). A) Cash flow statement. B) Bank reconciliation. C) Bank statement. D) Check register. Show Answer Correct Answer: C) Bank statement. 20. Dividends paid on Equity and Preference share Capital is cash flows from A) Operating Activities. B) Investing activities. C) Financing Activities. D) None of the above. Show Answer Correct Answer: C) Financing Activities. ← 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