Managerial Accounting MCQ Set-16

How Managerial Accounting Works

Managerial accounting encompasses many facets of accounting aimed at improving the quality of information delivered to management about business operation metrics. Managerial accountants use information relating to the cost and sales revenue of goods and services generated by the company. Cost accounting is a large subset of managerial accounting that specifically focuses on capturing a company’s total costs of production by assessing the variable costs of each step of production, as well as fixed costs. It allows businesses to identify and reduce unnecessary spending and maximize profits.

Managerial Accounting MCQ Set-16

221. Retained earnings statement depicts:

1. Appropriation of profits
2. Estimates of profits
3. Estimates of costs

Correct answer: (A)
Appropriation of profits

222. Financial accounting deals with:

1. Determination of cost
2. Determination of profit
3. Determination of price
4. Determination of selling price

Correct answer: (B)
Determination of profit

223. Financial account record only

1. Actual figures
2. Budgeted figures
3. Standard figures
4. Management Figure

Correct answer: (A)
Actual figures

224. Content of income statement

1. Trading account
2. Profit and loss account
3. Balance sheet
4. All of the above

Correct answer: (D)
All of the above

225. Depreciation is a ______________

1. Cash operating expenditure
2. Non cash operating expenditure
3. Cash non-operating expenditure
4. Non cash non-operating expenditure

Correct answer: (B)
Non cash operating expenditure

226. Outstanding salary account is a ______________ account

1. Nominal account
2. Real Account
3. Artificial person’s account
4. Representative personal account

Correct answer: (D)
Representative personal account

227. The work of factory employees that can be physically associated with converting raw material into finished goods is classified as ––

1. Manufacturing overhead
2. Indirect materials
3. Indirect labour
4. Direct labour

Correct answer: (D)
Direct labour

228. Aggregate of prime cost and Factory overhead is known as:

1. Work on cost
2. Work Cost
3. Cost of Production
4. Direct Cost

Correct answer: (B)
Work Cost

229. Conversion cost includes cost of onverting ______________ into ______________

1. Raw material, WIP
2. Raw material, Finished goods
3. WIP, Finished goods
4. Finished goods, Saleable goods

Correct answer: (B)
Raw material, Finished goods

230. All costs other than direct materials cost, direct labour cost and direct expenses are known as:

1. Indirect material cost
2. Overhead
3. Indirect labour cost
4. Indirect expenses

Correct answer: (B)
Overhead

231. ______________ is a summary of all transactions relating to particular account.

1. Balance sheet
2. Trial Balance
3. Ledger
4. Journal

Correct answer: (C)
Ledger

232. Amount of salary paid to Suresh should be debited to ______________

1. Account of Suresh
2. Salaries account
3. Cash account
4. Outstanding expenses

Correct answer: (B)
Salaries account

233. Modern Method of Accounting was introduced by

1. M. S. Gosav
2. Wheldon
3. LucoPacioli
4. R. N. Carter

Correct answer: (C)
LucoPacioli

234. If a company has contingent liabilities, they appear in the ______________

1. Balance Sheet
2. Director’s Report
3. Foot note down the balance sheet
4. Chairman’s report

Correct answer: (A)
Balance Sheet

235. The use of management accounting is

1. Compulsory
2. Optional
3. Obligation
4. Statutory requirement

Correct answer: B)
Optional

KEY TAKEAWAYS Managerial Accounting MCQ set-16