This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 38 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 38 (30 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) 1.8. B) 0.6. C) 1.2. D) 1.6. Show Answer Correct Answer: B) 0.6. 2. Cost accounting is needed most by which type of user? A) External users. B) Internal users. Show Answer Correct Answer: B) 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) 2. The Board. B) 3. Internal Audit. C) 5. The Compliance function. D) 1. Risk Management. E) 4. The Strategy Department. Show Answer Correct Answer: A) 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) Capital receipt $ 3500, Revenue receipt $ 400. B) Capital receipt $ 400, Revenue receipt $ 3500. C) Revenue receipt $ 3900. D) Capital receipt $ 3900. Show Answer Correct Answer: A) Capital receipt $ 3500, Revenue receipt $ 400. 6. For a bookshop owner, which of the following item is a capital receipt? A) Cash from sale of notebooks. B) Proceeds from the disposal of old bookshelf. C) Receipt of sales commission from the publisher. D) Cash discount from a supplier of stationery. Show Answer Correct Answer: B) 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) Unit cost. B) Direct costs. C) Profit. D) Indirect costs. Show Answer Correct Answer: D) 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 Statement Analysis. B) Financial Planning. C) Cost Accounting. D) Fund Flow Analysis. Show Answer Correct Answer: C) Cost Accounting. 10. Retained earnings belongs to ..... A) Equity shareholders. B) Borrowers. C) Lenders. D) Preference shareholders. Show Answer Correct Answer: A) Equity shareholders. 11. Manufacturing costs is also known as A) Inventoriable cost. B) Conversion costs. C) Overhead costs. D) Period cost. Show Answer Correct Answer: A) Inventoriable cost. 12. For ROI or RI, companies frequently choose to define investment as total assets available. EVAtextregistered users would normally use total assets employed minus: A) Stockholders' equity. B) Long-term debt. C) Current liabilities. D) Retained earnings. Show Answer Correct Answer: C) 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. 33, 000. B) Rs. 38, 000. C) Rs. 37, 500. D) Rs. 40, 000. Show Answer Correct Answer: C) Rs. 37, 500. 17. Cost classification can be done in A) Four ways. B) Several ways. C) Two ways. D) Three ways. Show Answer Correct Answer: B) Several ways. 18. What Key Terminology Budget to Prepare Performance Analysis, except? A) Flexible Budget. B) Planning Budget. C) Actual Budget. D) Variances Budget. Show Answer Correct Answer: D) Variances Budget. 19. Report showing the status of a bank account (generally monthly). A) Bank reconciliation. B) Bank statement. C) Check register. D) Cash flow statement. Show Answer Correct Answer: B) 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. 21. ..... the sub-field of accounting. A) Management accounting. B) Cost accounting. C) Financial accounting. D) All of the above. Show Answer Correct Answer: D) All of the above. 22. A production worker is paid a salary of $ 650 per month, plus an extra 5 cents for each unit produced during the month. How is this type of labour cost best described? A) A semi-variable cost. B) A fixed cost. C) A step cost. D) A variable cost. Show Answer Correct Answer: A) A semi-variable cost. 23. As per Accounting Standard-3, Cash Flow is classified into A) Operating activities and investing activities. B) Investing activities and financing activities. C) Operating activities and financing activities. D) Operating activities, financing activities and investing activities. Show Answer Correct Answer: D) Operating activities, financing activities and investing activities. 24. Which of the following is not an objective of cost accounting? A) Ascertainment of cost. B) Determination of selling price. C) Cost control and cost reduction. D) Assisting shareholders in decision making. Show Answer Correct Answer: D) Assisting shareholders in decision making. 25. Did the company earn a satisfactory income? A) Finance. B) Management. C) Investors. D) Creditors. Show Answer Correct Answer: C) Investors. 26. According to George R. Terry, ..... may be described as a process of finding out what is being done and comparing actual results with the corresponding budget data in order to approve accomplishment. A) Budgetary control. B) Budget. C) Budgeting. D) None of the above. Show Answer Correct Answer: A) Budgetary control. 27. Which of the following will not affect the Gross profit A) Import duty. B) Cost of transporting goods to customers. C) Purchase Returns. D) Sales Returns. Show Answer Correct Answer: B) Cost of transporting goods to customers. 28. An advantage of a negotiated transfer price of a product to be transferred between divisions is the: A) Close relationship between the negotiated price and the market price. B) Negotiated transfer price preserves divisional autonomy. C) Negotiations usually do not require much time and energy. D) Simplicity of its computations and close approximation to market price. Show Answer Correct Answer: B) Negotiated transfer price preserves divisional autonomy. 29. Miss Taylor owns a pizza business. Which transaction would be considered to be revenue receipts? A) Cash discount received from a supplier of tomato sauce. B) Cash received from an insurance claim. C) Cash received from the bank as a loan for expansion of the business. D) Cash received from the sale of an old pizza oven. Show Answer Correct Answer: A) Cash discount received from a supplier of tomato sauce. 30. Below is the factors that increase the need of management accounting, EXCEPT ..... A) Regulatory environment. B) Increase emphasis on profitability. C) World wide competition. D) Rapid development and implementation of technology. Show Answer Correct Answer: B) Increase emphasis on profitability. ← 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