Accounting for Managers Questions and Answers Part-14

1. The main object of cost accounting is:
a) To record day to day transactions of the business
b) To reveal managerial efficiency
c) To ascertain true cost of products and services
d) To determine tender price

Answer: c

2. The nature of financial accounting is
a) Historical
b) Forward looking
c) Analytical
d) Social

Answer: a

3. An accounting that deals with the accounting and reporting of information to management regarding the detail information is
a) Financial accounting
b) Management accounting
c) Cost accounting
d) Real Accounting

Answer: b

4. Bad debt amount should be credited to
a) Debtors account
b) Bad debts account
c) Sales account
d) Creditors account

Answer: a

5. Management accounting concentrates on ______________
a) Opening books of account
b) Preparation of financial statements
c) Control of business activities
d) None of these

Answer: c

6. Which of the following is not an internal user of management information?
a) Creditor
b) Department manager
c) Controller
d) Treasurer

Answer: a

7. Double entry system is used in which type of accounting
a) Cost
b) Financial
c) Management
d) All

Answer: b

8. Which type of asset class includes those assets which have only definite use and become valueless when the yield is over?
a) Fixed asset
b) Current asset
c) Fictitious asset
d) Wasting asset

Answer: d

9. Cost accounting is applied to:
a) Public undertakings only
b) Large business enterprise only
c) Small business concerns only
d) Manufacturing and service concern

Answer: d

10. Reserve for doubtful debts appearing in the trial balance should be:
a) credited to P & L a/c
b) Shown as liability side in balance sheet
c) Reduced from related asset in the balance sheet
d) Both a and c

Answer: d