Managerial Accounting MCQ Set-19

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.

311. If bank giving 12% interest rate per year, then per month it will be

1. 1%
2. 12%
3. 5%
4. 6%

Correct answer: (A)
1%

312. Market value determines

1. On running business
2. When company closedown
3. Before establishment of business
4. When asset sold individually

Correct answer: (A)
On running business

313. The Yield to Maturity on a bond is

1. Equal to the Coupon Rate divided by the Market Price
2. The Current Required Market Rate
3. Equal to the Annual Interest divided by the Face Value
4. Another name for the coupon rate.

Correct answer: (B)
The Current Required Market Rate

314. Muhammad Ali just received an interest payment that is equal to 7 percent of his Rs. 20,000 in Bond investment. This 7 percent is best described as a

1. Real Return
2. Deflated Return
3. Coupon Return
4. None

Correct answer: (C)
Coupon Return

315. A decrease in the firm’s receivable turnover ratio means that ______________.

1. Inventories have gone up
2. It is collecting credit sales more slowly than before
3. Cash sales have gone down
4. None of above

Correct answer: (B)
It is collecting credit sales more slowly than before

316. Marketable Securities, Account Receivables and Inventory are listed as

1. Current Asset
2. Current Liabilities
3. Long Term Asset
4. Long term liabilities

Correct answer: (A)
Current Asset

317. The Coupon Rate for a Bond is best defined as the

1. Annual interest divided by the current market price
2. Annual interest divided by the face value
3. Annual interest divided by the clean market price
4. All of Above

Correct answer: (B)
Annual interest divided by the face value

318. Which of the following is considered a Profitability measure?

1. Days Sales in Inventory
2. Fixed Asset Turnover
3. Cash Coverage Ratio
4. Return on Assets

Correct answer: (D)
Return on Assets

319. Quick ratios are also called ______________

1. Super ratios
2. Acid-test ratios
3. Cash ratios
4. None of the above

Correct answer: (B)
Acid-test ratios

320. Bond secured by lien on real property is

1. Debenture
2. Euro bond
3. Mortgage bond
4. Convertible bond

Correct answer: (C)
Mortgage bond