1. In the calculation of return on shareholders investments the referred investment deals with
a) All reserves
b) Preference and equity capital only
c) All appropriations
d) All of the above
2. Which of the following is an advantage of standard costing?
a) Measuring efficiency
b) Facilitates cost control
c) Determination of variance
d) All of the above
3. The assets of a business can be classified as
a) Only fixed assets
b) Only current assets
c) Fixed and current assets
d) None of the above
4. Which of the following is the test of the long term liquidity of a business?
a) Interest coverage ratio
b) Stock turnover ratio
c) Operating ratio
d) Current ratio
5. The term management accounting was first coined in
a) 1960
b) 1950
c) 1945
d) 1955
6. Management accounting is
A) Subjective
B) Objective
a) Only A
b) Only B
c) Both A and B
d) None of the above
7. The use of management accounting is
a) Legally obligatory
b) Compulsory
c) Optional
d) Compulsory to some and optional to others
8. The management accounting can be stated an extension of
A) Cost Accounting
B) Financial Accounting
C) Responsibility Accounting
a) Both A and B
b) Both A and C
c) Both B and C
d) A, B, C
9. Which of the following is true about management accounting?
A) Management accounting is associated with presentation of accounting data.
B) Management accounting is extremely sensitive to investors needs.
a) Only A
b) Only B
c) Both A and B
d) None of the above
10. Management accounting assists the management
a) Only in control
b) Only in direction
c) Only in planning
d) In planning, direction and control