Managerial Accounting MCQ Set-11

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-11

156. Which of the following would not be included on a balance sheet?

1. Accounts payable
2. Accounts receivable
3. Sales
4. Cash

Correct answer: (C)
Sales

157. Contingent liabilities should be recorded in the accounts when:

1. It is probable that the future event will occur.
2. The amount of the liability can be reasonably estimated.
3. Both (a) and (b).
4. Either (a) or (b).

Correct answer: (C)
Both (a) and (b).

158. The cost concept records the figures at

1. Market values
2. Actual amount paid
3. Actual amount or market values whichever is less.
4. MRP maximum retail price

Correct answer: (B)
Actual amount paid

159. Financial statements are:

1. Estimates of facets
2. Anticipated facts
3. Recorded facts

Correct answer: (C)
Recorded facts

160. The term Management Accounting was first used in

1. 1910
2. 1939
3. 1950
4. 1960

Correct answer: (C)
1950

161. Which does not comes under the head of asset:

1. Fixed asset
2. Investment
3. Current asset
4. Owners equity

Correct answer: (D)
Owners equity

162. The word accounting can be classified in to:

1. Financial accounting and management accounting
2. Financial accounting and cost accounting
3. Financial accounting, management accounting and cost accounting
4. Cannot be classified

Correct answer: (C)
Financial accounting, management accounting and cost accounting

163. The work of a book keeper is ______________ in nature.

1. Analytical
2. Clerical
3. Executive
4. Non – executive

Correct answer: (B)
Clerical

164. 206. Which of the following is true for: – “In accounts recording is done of_ _ _ _ _”

1. only financial transaction
2. only non- financial transaction
3. Both
4. Personal transaction of Proprietor

Correct answer: (A)
only financial transaction

165. Salary is one of the ______________ expenses

1. Capital
2. Revenue
3. Direct
4. Non – cash

Correct answer: (B)
Revenue

KEY TAKEAWAYS Managerial Accounting MCQ set-11