This quiz works best with JavaScript enabled. Home > Finance > Accounting > Management Accounting > Management Accounting – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 6 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is a basic feature of a managerial accounting system? A) External audience. B) Reports are current and future oriented. C) Objective data only. D) Reports on the entire organization. Show Answer Correct Answer: B) Reports are current and future oriented. 2. Budget is in nature A) Prediction. B) Definitely. C) Historical. D) All true. Show Answer Correct Answer: A) Prediction. 3. Among the following are non-funding sources. A) Issue of shares. B) Sale of property. C) Increase in debt. D) Payment of tax. Show Answer Correct Answer: D) Payment of tax. 4. Cost of Goods Sold = Beginning Finished Goods + Cost of Goods Manufactured-Ending Finished Goods A) True. B) False. C) None. D) Both. Show Answer Correct Answer: A) True. 5. Management accounting is considered successful when it A) Helps creditors evaluate the company's performance. B) Helps managers improve their decisions. C) Is accurate. D) Is relevant and reported annually. Show Answer Correct Answer: B) Helps managers improve their decisions. 6. Direct costs are costs that can be easily traced to a business activity, for example, direct material cost or direct labour cost. A) True. B) False. Show Answer Correct Answer: A) True. 7. Prepaid expenses is an element of ..... A) Quick Liabilities. B) Non-quick Liabilities. C) Non-quick Assets. D) Quick Assets. Show Answer Correct Answer: C) Non-quick Assets. 8. Given Net profit for the year Rs 2, 50, 000 Transferred to general reserves Rs 40, 000 and old machinery bought for Rs 50, 000 was sold for Rs 20, 000. Calculate funds from operations. A) Rs 3, 00, 000. B) Rs 2, 20, 000. C) Rs 2, 80, 000. D) Rs 2, 90, 000. Show Answer Correct Answer: C) Rs 2, 80, 000. 9. Please select the most appropriate answer for the statement.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. Income and expenditure Account is prepared ..... A) By Non-for-profit Organization. B) By Business Organization. C) By Industrial Organization. D) By All Organizations. Show Answer Correct Answer: A) By Non-for-profit Organization. 11. The balance of property at cost has been Rs 20, 000 and Rs 17, 000 in 2013 and 2014 respectively. The profit on sale of property of Rs 2000 is credited to Capital Reserves Account. New property costing Rs 5000 bought in 2014. Determine sale of proceeds from land. A) Rs 3000. B) Rs 15, 000. C) Rs 10, 000. D) Rs 7000. Show Answer Correct Answer: C) Rs 10, 000. 12. Under a job-order costing system, the dollar amount transferred from Work in Process to Finished Goods is the sum of the costs charged to all jobs: A) Started in process during the period. B) In process during the period. C) Completed and sold during the period. D) Completed during the period. Show Answer Correct Answer: D) Completed during the period. 13. Which of the following is not a period cost? A) Rent. B) Office Employees Salary. C) Material Cost. D) All of the above. Show Answer Correct Answer: C) Material Cost. 14. ..... cost is decided scientifically. A) Actual. B) Standard. C) Flexed. D) Marginal. Show Answer Correct Answer: B) Standard. 15. Subscriptions received in cash during the year ₹ .5, 000. Amount received in advance for the next year is ₹ .300 amount outstanding for current year was ₹ .400.The amount to credited to the income and Expenditure A/C A) ₹ .4, 000. B) ₹ .4, 600. C) ₹ .4, 100. D) ₹ .5, 100. Show Answer Correct Answer: D) ₹ .5, 100. 16. Budget is prepared for following period A) For any period. B) 12 months. C) 6 months. D) Monthly. Show Answer Correct Answer: A) For any period. 17. Turnover ratios measure A) Sales turnover. B) Profitability. C) Solvency. D) Activity levels. Show Answer Correct Answer: D) Activity levels. 18. It is used to management in the discharge of its basic functions of forecasting, planning, coordination, communication and control. A) Ratio Analysis. B) Statistical Techniques. C) Historical Cost Accounting. D) Decision-making Accounting. Show Answer Correct Answer: A) Ratio Analysis. 19. Prepare of cash flow statement A) Mandatory. B) Recommendatory. C) Required under the companies act. D) None of these. Show Answer Correct Answer: A) Mandatory. 20. Current assets does not include A) Prepaid expenses. B) Preliminary expenses. C) Cash. D) Bank. Show Answer Correct Answer: B) Preliminary expenses. 21. What is the third level of pricing decision making? A) Market strategy decision making. B) Tactical decision making. C) Operational decision making. D) Strategic decision making. Show Answer Correct Answer: C) Operational decision making. 22. Financial Failures such as Wirecard, Enron and WorldCom are result of: A) Failure in the corporate governance structure. B) Faults in the Public Accounting Profession. C) Greedy professionals and management. D) All options are correct. Show Answer Correct Answer: D) All options are correct. 23. Management accounting A) Is more concerned with the future than is financial accounting. B) Is less concerned with segments of a company than is financial accounting. C) Is more constrained by rules and regulations than is financial accounting. D) All of the above are true. Show Answer Correct Answer: A) Is more concerned with the future than is financial accounting. 24. Which of the following is a period cost? A) Property taxes on the office building. B) Direct labor. C) The production supervisor's salary. D) Property taxes on the production facilities. Show Answer Correct Answer: A) Property taxes on the office building. 25. The wealth maximization to the shareholders will be delivered by: A) Dividend payments. B) Increase in market value of shares. C) Both of the above. D) None of the above. Show Answer Correct Answer: C) Both of the above. 26. Sale of office equipment A) Capital Receipt. B) Revenue Receipt. Show Answer Correct Answer: A) Capital Receipt. 27. An important aspect of CIA is the recognition that cash flows received in later years have ..... value than those received in earlier years. A) Less. B) Equal. C) More. D) None of above. Show Answer Correct Answer: A) Less. 28. Litres were used to ascertain cost of ..... A) Sugar. B) Petrol. C) Flour. D) Cooking oil. Show Answer Correct Answer: B) Petrol. 29. Unskilled 12000 hours required for a new contract. Current Workforce is fully utilised.Rate per hour is Rs.2.What is relevant labour cost? A) 6000. B) Nil. C) 24000. D) 12000. Show Answer Correct Answer: C) 24000. 30. What are the 4 activities involved in management accounting? A) Planning, Controlling, Organising, Decision Making. B) Planning, Organising, Controlling, Decision Making. C) Planning, Organising, Decision Making, Controlling. D) Organising, Planning, Controlling, Decision Making. Show Answer Correct Answer: B) Planning, Organising, Controlling, Decision Making. ← PreviousNext →Related QuizzesAccounting QuizzesFinance QuizzesManagement Accounting Quiz 1Management Accounting Quiz 2Management Accounting Quiz 3Management Accounting Quiz 4Management Accounting Quiz 5Management Accounting Quiz 7Management Accounting Quiz 8Management Accounting Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books