Managerial Accounting MCQ Set-4

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-4

46. According to schedule VI Companies Act which item is not shown on Asset side of Balance sheet

1. Investment
2. Current Loan & Advances
3. Provision
4. Lease Holds

Correct answer: (C)
Provision

47. Salary paid to factory manager is an item of:

1. Prime cost
2. Factory overhead
3. Selling overhead
4. Office overhead

Correct answer: (B)
Factory overhead

48. Carriage outward is charged to

1. Debit side Profit & Loss a/c
2. Debit side Trading a/c
3. Credit side of Profit & Loss a/c
4. Credit side of trading a/c

Correct answer: (A)
Debit side Profit & Loss a/c

49. Payment received from Debtor

1. Decreases the Total Assets
2. Increases the Total Assets
3. Results in no change in the Total Assets
4. Increases the Total Liabilities

Correct answer: (C)
Results in no change in the Total Assets

50. Accounting does not record non-financial transactions because of:

1. Accrual concept
2. Cost concept
3. Continuity concept
4. Money measurement concept

Correct answer: (D)
Money measurement concept

51. Which one of the following is not an example of Intangible Assets?

1. Patents
2. Trade Marks
3. Copyright
4. Land

Correct answer: (D)
Land

52. Creating provision against fluctuation in the price of investment is application of accounting concept

1. Convention of conservatism
2. Convention of full disclosure
3. Convention of consistency
4. None of these

Correct answer: (A)
Convention of conservatism

53. Debit what come in Credit what goes out rule for

1. Real a/c
2. Personal a/c
3. Nominal a/c
4. None of these

Correct answer: (A)
Real a/c

54. The following comments each relate to the recording of journal entries. Which statement is true?

1. For any given journal entry, debits must exceed credits.
2. It is customary to record credits on the left and debits on the right.
3. The chart of accounts reveals the amount to debit and credit to the affected accounts.
4. Journalization is the process of converting transactions and events into debit/credit format.

Correct answer: (D)
Journalization is the process of converting transactions and events into debit/credit format.

55. Going concern concept assumes

1. Business as a dissolving concern
2. Business on relishing values
3. Business as a going concern
4. Asset = liability

Correct answer: (C)
Business as a going concern

56. Management Accounting relates to

1. Recording of accounting data
2. Recording of cost data
3. Presentation of account data
4. None of the above

Correct answer: (C)
Presentation of account data

57. Which items does not come under the balance sheet

1. sales
2. Share capital
3. Reserves and surplus
4. Unsecured loan

Correct answer: (A)
sales

58. Which of the following is not related with Money Measurement Concept ?

1. All business transaction should be expressed only in money
2. The transactions which cannot be expressed in money, will not be recorded in accounting books
3. Business is treated as separate from the proprietor
4. None of These

Correct answer: (B)
The transactions which cannot be expressed in money, will not be recorded in accounting books

59. Depreciation is a charge against

1. Profit
2. Assets
3. Company
4. Books of A/c

Correct answer: (A)
Profit

60. Fixed assets and current assets are categorized as per concept of:

1. Separate entity
2. Going concern
3. Consistency
4. Time period

Correct answer: (B)
Going concern

KEY TAKEAWAYS Managerial Accounting MCQ set-4