( Best 100+ ) Management Accounting MCQ
Management accounting helps managers within a company make decisions. Also known as cost accounting, management accounting is the process of identifying, analyzing, interpreting and communicating information to managers to help achieve business goals.
What do you mean by management accounting?
Managerial accounting is the practice of identifying, measuring, analyzing, interpreting, and communicating financial information to managers for the pursuit of an organization’s goals.
What is the main purpose of management accounting?
The main objective of managerial accounting is to maximize profit and minimize losses. It is concerned with the presentation of data to predict inconsistencies in finances that help managers make important decisions.
- A ____ is a simple arithmetical expression of the relationship between two numbers.
- Fund flow analysis
- Cash flow analysis
- Ratio
- Marginal costing
- If the stock turnover ratio is 4 times and the collection period is 30 days the operating cycle would be _____ days.
- 30
- 60
- 90
- 120
- Given that current liabilities are at Rs. 300,000, current ratio is 3:1 and quick ratio is 1:1, the value of stock will be:
- 6,00,000
- 16,00,000
- 9,00,000
- 12,00,000
- The stock turnover ratio is ____ .
- Financial ratio
- Activity ratio
- Solvency ratio
- Profitability ratio
- The stock turnover ratio may be calculated as ___.
- Cost of goods sold / Average stock
- Turnover at cost / stock at cost
- Turnover at selling price / Stock at selling price
- Any of the above
- ROI stands for?
- Return on Investment
- Ratio of Investment
- Return of Income
- None of these
- The gross profit ratio is the ratio of gross profit to ______.
- Net sales
- Net purchase
- Closing stock
- Net total sales
- Acid test ratio is equal to quick current assets divided by ____.
- Current liabilities
- Current assets
- Total liabilities
- Total assets
- In the debt equity ratio, external equity refers to_____.
- Only Debentures
- Only current liabilities
- Debentures and current liability
- Reserves
- Acid test ratio should normally be —-
- 2:1
- 1:1
- 1:2
- 2:2
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