This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 22 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 22 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Stock is considered as a liquid asset as anytime it can be converted into cash immediately. A) Yes. B) No. Show Answer Correct Answer: B) No. 2. A professional accountant should be straight forward, honest in all professional business relationship A) Professional behaviour. B) Professional competence and due care. C) Objectivity. D) Integrity. Show Answer Correct Answer: D) Integrity. 3. Management accounting highlights staff relationship with top management as well as other personnel. A) True. B) False. Show Answer Correct Answer: B) False. 4. The..... is the percentage indicator of Capital that is transformed into Profits. It measures the profitability obtained by each peso that the company has invested in its own business, relating the profits generated to the company's assets. A) RFR (Risk Free Rate). B) ROA (Return on Assets). C) ROIC (Return on Invested Capital). D) ROE (Return on Equity). Show Answer Correct Answer: C) ROIC (Return on Invested Capital). 5. Production supervisor A) Internal User. B) External User. Show Answer Correct Answer: A) Internal User. 6. WHAT IS THE MEANING OF THE ENVIRONMENT ACCORDING TO ISO 14001? A) ENVIRONMENT IS THE CONDITION OF THE SURROUNDING WHERE THE ORGANIZATION OPERATS, ie AIR, WATER, SOIL, NATURAL RESOURCES, FLORA, FAUNA, HUMANS AND ALL ITS INTERACTIONS. B) ENVIRONMENT IS THE CONDITION OF THE SURROUNDING WHERE AN ORGANIZATION IS AUTHORIZED, ie AIR, WATER, SOIL, NATURAL RESOURCES, FLORA, FAUNA, HUMANS AND ALL ITS INTERACTIONS. C) ENVIRONMENT IS THE CONDITION OF THE SURROUNDING WHERE AN ORGANIZATION OPERATES, ie AIR, WATER, SOIL, NATURAL RESOURCES, FLORA, FAUNA, HUMANS AND THEIR SELLING AND SELLING INTERACTIONS. D) ENVIRONMENT IS THE CONDITION OF THE SURROUNDING WHERE THE ORGANIZATION OPERATS, ie SOIL, NATURAL RESOURCES, FLORA, FAUNA, HUMANS AND ALL ITS INTERACTIONS. Show Answer Correct Answer: A) ENVIRONMENT IS THE CONDITION OF THE SURROUNDING WHERE THE ORGANIZATION OPERATS, ie AIR, WATER, SOIL, NATURAL RESOURCES, FLORA, FAUNA, HUMANS AND ALL ITS INTERACTIONS. 7. Goodwill is ..... A) Intangible Asset. B) Current Asset. C) Tangible Asset. D) Fictitious Asset. Show Answer Correct Answer: A) Intangible Asset. 8. The Accounting Entity means ..... A) The business is a separate accounting entity from its owner. B) The business is not a separate accounting entity from its owner. C) The owner has permission to takes finance from the business and spend it on personal expenses. D) None of above. Show Answer Correct Answer: A) The business is a separate accounting entity from its owner. 9. Variable Costs..... A) Change with the volume of production. B) Remain the same irrespect of the number of units produced. C) Are all the valueable cost items in production. D) Are rent and insurance costs. Show Answer Correct Answer: A) Change with the volume of production. 10. Miss Griffin owns a bookstore, which of the following would be revenue receipts? A) Cash discount from a supplier of stationery. B) Money received from selling an old bookshelf. C) Purchase of new stock from a publisher. D) Money received from the bank for expansion of the bookstore. Show Answer Correct Answer: A) Cash discount from a supplier of stationery. 11. Gross profit is incurred when A) Sales exceed the cost of sales. B) Net Sales are equal to Net Purchases. C) Sales are less than cost of goods sold. D) Net Purchase is more than Net Sales. Show Answer Correct Answer: A) Sales exceed the cost of sales. 12. Cost re classified into four main categories which are function, behaviour, traceability and relevancy. A) True. B) False. Show Answer Correct Answer: A) True. 13. 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. 14. 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) 1.5 times. B) 6 times. C) 5 times. D) 3 times. Show Answer Correct Answer: B) 6 times. 15. 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. 16. 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. 17. 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. 18. Find the odd one A) Ratio analysis. B) Trend analysis. C) Comparative statement analysis. D) Common size statement analysis. Show Answer Correct Answer: A) Ratio analysis. 19. 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. 20. ISO 14001 certification is a requirement for organizations implementing Environmental Management Accounting. A) FALSE. B) TRUE. Show Answer Correct Answer: A) FALSE. 21. 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. 22. Budgeted financial statements are also referred to as pro forma statements. A) True. B) False. Show Answer Correct Answer: A) True. 23. Chargeable expenses is another name for direct expenses A) True. B) False. Show Answer Correct Answer: A) True. 24. The P/V ratio of a product is 0.6 and profit is Rs. 9, 000. The margin of safety is A) Rs. 22500. B) Rs. 15000. C) Rs. 3600. D) Rs. 5400. Show Answer Correct Answer: B) Rs. 15000. 25. 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. 26. Which of the following options is not characteristic of management accounting? A) Compulsory accounting. B) Future-oriented. C) Management oriented . D) Accounting information. Show Answer Correct Answer: A) Compulsory accounting. 27. 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,. 28. When material prices are fluctuating rapidly, this is the best method to use A) LIFO. B) LICO. C) AVCO. D) FIFO. Show Answer Correct Answer: C) AVCO. 29. Current assets divided by current liabilities is the A) Quick ratio. B) Current ratio. C) Net worth. D) Working capital. Show Answer Correct Answer: B) Current ratio. 30. Quick assets are Current assets minus A) Cash. B) Stock. C) Bank. D) Bank overdraft. Show Answer Correct Answer: B) Stock. ← 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