This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 14 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 14 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... is the practice of identifying, measuring, analyzing, interpreting, and communicating financial information to managers to achieve the organization's goals. A) Management Accounting. B) Financial Accounting. C) Cost Accounting. D) None of above. Show Answer Correct Answer: A) Management Accounting. 2. Which of the following is not a characteristic of a management account A) Planning, control and decision making. B) Look at both past and present. C) Not legally required. D) External reporting. Show Answer Correct Answer: D) External reporting. 3. When in a transaction, if both the aspects involved are either a current or non current, is there a flow of fund? A) NO. B) YES. Show Answer Correct Answer: A) NO. 4. Formula for net profit ratio A) Net profit-gross profitX100. B) Net profit after tax/Net sales X100. C) Net profit before tax /Net sales X 100. D) None of above. Show Answer Correct Answer: B) Net profit after tax/Net sales X100. 5. Composite cost unit for a hospital is: A) Per patient. B) Per day. C) Per patient-day. D) Per bed. Show Answer Correct Answer: C) Per patient-day. 6. This is one of the most useful financial indicators, since it represents the amount that is being paid to finance the business through its own resources. Through its metrics, a key reference point is achieved to improve the value of the company A) Debt ratio. B) Acid Ratio. C) Inventory Rotation. D) Capital Cost. Show Answer Correct Answer: D) Capital Cost. 7. Product (or manufacturing) costs consist of A) Direct materials, direct labor, and selling costs. B) Prime costs and manufacturing overhead. C) Administrative costs and conversion costs. D) Selling and administrative costs. Show Answer Correct Answer: B) Prime costs and manufacturing overhead. 8. What is the classification of the owner's capital account? A) Owner's Equity. B) Asset. C) Expense. D) Revenue. Show Answer Correct Answer: A) Owner's Equity. 9. A cost center and a cost unit are the same A) YES. Both are used to ascertain cost. B) YES. Both are used for cost control. C) NO. Cost center is a section of the business to which costs are charged. Cost unit helps to ascertain cost for a product or service. D) None of above. Show Answer Correct Answer: C) NO. Cost center is a section of the business to which costs are charged. Cost unit helps to ascertain cost for a product or service. 10. According to the Dual Aspect Concept Capital + Assets = Liability A) False. B) True. Show Answer Correct Answer: A) False. 11. Staff positions are those which do not support line positions. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 12. Short term financial position will improve with ..... A) Increase in current assets. B) Decrease in current assets in current assets. C) Increase in current Liabilities. D) None of theses. Show Answer Correct Answer: A) Increase in current assets. 13. A company began its operations by starting 40, 000 units in production. During the month, 22, 000 were completed and transferred out while the remaining units were 45% complete. The total equivalent units of production were ..... A) 25, 600 units. B) 30, 100 units. C) 30, 000 units. D) 22, 000 units. Show Answer Correct Answer: B) 30, 100 units. 14. What is the thing that makes the Financial Manager one of the scope of management accounting? A) Recording Financial Transactions & Company Activities that Require Funding. B) Details of Costs. C) Data containing all Cost Components. D) Company Financial Information. Show Answer Correct Answer: C) Data containing all Cost Components. 15. A company has Purchases of $ 1, 46, 000 and account payable of $ 1, 10, 000. What is its creditors turnover ratio? A) 1.327 times. B) 5 times. C) 0.2 times. D) 10 times. Show Answer Correct Answer: A) 1.327 times. 16. The formal process of choosing between alternatives is known as a(n): A) Alternative model. B) Prediction model. C) Relevant model. D) Decision model. Show Answer Correct Answer: D) Decision model. 17. The tool for evaluating the performance of two or more firms in same industry A) Inter firm comparison. B) Average analysis. C) Intra firm comparison. D) Comparative analysis. Show Answer Correct Answer: A) Inter firm comparison. 18. ..... sales revenue variance based on a flexed budget could arise when goods are sold above budgeted prices A) A favourable. B) An Adverse. C) A Balance. D) None of above. Show Answer Correct Answer: A) A favourable. 19. What is the increase side of Accounts Receivable ..... Little Tykes Nursery? A) Credit. B) Debit. Show Answer Correct Answer: B) Debit. 20. Helps managers run the business A) Financial accounting. B) Management accounting. Show Answer Correct Answer: B) Management accounting. 21. Which of the following will not impair the independence of a CPA in the rendition of Management Services? A) The CPA performs decision-making services for his client. B) The CPA performs services wherein he is in effect, acting as an employee of the client. C) The CPA losses his objectivity and acts in a manner as if he is advocating for the interest of his client. D) The CPA does not extend his services beyond the presentation of recommendation or giving advice. Show Answer Correct Answer: D) The CPA does not extend his services beyond the presentation of recommendation or giving advice. 22. Purchase of property for new office A) Capital Expenditure. B) Revenue Expenditure. Show Answer Correct Answer: A) Capital Expenditure. 23. Repayment of long term borrowings is shown in A) Financial activity. B) Operational activity. C) Investing activity. D) None. Show Answer Correct Answer: A) Financial activity. 24. ..... is stated as a budget which is made to change as per the levels of activity attained. A) Fixed budget. B) Flexible budget. C) Both a and b. D) None of the above. Show Answer Correct Answer: B) Flexible budget. 25. Following the Code of Ethics is really important within management accounting; name all 5 of them A) Professional Behaviour, Integrity, Professional competence and due care, Confidentiality and Objectivity. B) Professional Behaviour, Integrity, Professional due care and attention, Confidence and Objectivity. C) Professional Bad Behaviour, Integrity, Professional competence and due care, Confidentiality and Objection. D) None of above. Show Answer Correct Answer: A) Professional Behaviour, Integrity, Professional competence and due care, Confidentiality and Objectivity. 26. What is UnFavorable (U)? A) Revenue Increased, Spending Increased. B) Revenue Decreased, Spending Increased. C) Revenue Decreased, Spending Decreased. D) Revenue Increased, Spending Decreased. Show Answer Correct Answer: B) Revenue Decreased, Spending Increased. 27. It refers to a company's use of borrowed capital in order to acquire assets and increase its return on investments. A) InventoryTurnover Analysis. B) ConstraintAnalysis. C) FinancialLeverage Metrics. D) AccountsReceivable (AR) Management. Show Answer Correct Answer: C) FinancialLeverage Metrics. 28. Current assets (minus) current liabilities is the A) Current ratio. B) Net worth. C) Working capital. D) Quick ratio. Show Answer Correct Answer: C) Working capital. 29. Which are associated with Job Order Costing? A) Companies produce large quantities of identical items. B) Companies produce goods to a customer's unique specifications. C) Unit cost of items determined dividing costs of production by number of units produced. D) Cost accumulate by each operation. Show Answer Correct Answer: B) Companies produce goods to a customer's unique specifications. 30. What information is shown by a business's Trading Account? A) If the business has made a profit for the year. B) If the business has made a gross profit. C) If the business assets equal the liabilities. D) If the business income exceeds expenditure. Show Answer Correct Answer: B) If the business has made a gross profit. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesManagement Accounting Quiz 1Management Accounting Quiz 2Management Accounting Quiz 3Management Accounting Quiz 4Management Accounting Quiz 5Management Accounting Quiz 6Management Accounting Quiz 7Management Accounting Quiz 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books