Accounting For Managers MCQs

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Creating Provision against fluctuation in the price of investment is an example of which accounting convention






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Return of goods by a customer should be debited to






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Cash discount allowed to a debtor should be credited to






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The concept of separate entity is applicable to which of following types of businesses?






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Accounting principles are generally based upon:






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Debit the receiver credit the giver rule for






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Managerial accounting information is generally prepared for






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True & fair profit and loss a/c of a company know by






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Which one of the following items would fall under the definition of a liability






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The basic sequence in the accounting process can best be described as:






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Amount brought in by proprietor should be credited to






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Which of the following is a real (permanent) account?






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Which of the following errors will be disclosed in the preparation of a trial balance?






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Management Accounting provides invaluable services to management in performing






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If closing stock appears in the trial balance, it should be






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Financial information should be neutral and bias free" is the dictation of which one of the following?






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Which of the following statements is not an objective of financial reporting?






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A company’s telephone bill consisting of a Rs.200 monthly base amount, plus long distance charges, would be classified as a:






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A book containing a chronological record of business transaction & original record






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Which of these items would be accounted for as an expense?






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The amount of salary paid to Suresh should be debited to






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The cash discount allowed to a debtor should be credited to






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Accounting does not record non-financial transactions because of:






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Accounting is the process of matching






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The primary objective of cost accounting is






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Of the following account types, which would be increased by a debit?






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Which of the following statements about differences between financial and managerial accounting is incorrect?






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Custom and traditions which guide the accountant while preparing the accounting statements






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Balance Sheet is a statement of






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The convention of disclosure implies that all material information should be






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Outstanding salary is shown as:






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Proprietor (owner) is treated as creditor of business due to:






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Which of the following is correct






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Interest , rent, electricity bill are types of account






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Cost of asset should always be equal to the cost of the liabilities. This concept is






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P& l a/c is prepared for a period of one year by following:






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Prepaid expense is treated as






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Which of the following is a liability?






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Advantages of cost accounting accrue:






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Marginal costing is concerned with:






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The books to be compulsorily maintained by a company are:






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Which of the following best describes a trial balance?






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Which of the following equation is related with Dual Aspect Concept?






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The prime function of accounting is to






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






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Salary paid to factory manager is an item of:






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Carriage outward is charged to






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Payment received from Debtor






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






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






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Debit what come in Credit what goes out rule for






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






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Going concern concept assumes






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Management Accounting relates to






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Which items does not come under the balance sheet






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






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Depreciation is a charge against






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






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Management accounting is applicable to






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Insurance prepaid is shown as






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Financial accounting is concerned with






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Goods given as samples should be credited to:






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Investment of X company profit in shares of other company PQR Pvt. ltd are recorded in






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Sales made to Mahesh for cash should be debited to






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Income tax paid by a sole proprietor on his business income should be:






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What comes in is to be debited, what goes out is to be credited.






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Which of the following is not an example of real a/c:






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Purchases of goods on credit from A is recorded as:






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The transferring of debit and credit items from journal to the respective accounts in the ledger is called as






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The following comments all relate to the recording process. Which of these statements is correct?






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Cost accounting information can be used for:






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Current liability does not include






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The term Management Accounting was first used in






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______________ system records only actual cash receipts and payments






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Aggregate of direct costs is known as:






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Information about an item is ______________ if its omission or misstatement might influence the financial decision of the users taken on the basis of ...






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Proposed dividends" is shown in the Balance Sheet of a company under the head:






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Authorized capital, also known as






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Trade Payables are recorded in ______________






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Cost accounting emerged mainly on account of:






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Rent paid to landlord should be credited to






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The primary objective of management accounting is






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Cost of goods sold= opening stock+ net purchases+ expenses on Purchases – sales Which part of formula is wrong?






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Interest on drawings is:






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The basic concepts related to p& l a/c are:






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All those to whom business owes money are:






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All direct & indirect expenses related to business are charged:






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If loan have been guaranteed by managers and directors is called as






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Opening stock + ______________ + Direct Expenses (Carriage on Raw material)-Closing Stock = ______________






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Credit balance of profit & loss a/c shown on






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Outstanding expenses are charged to






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The revenue recognition principal dictates that all types of incomes should be recorded or recognized when






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Which of the following is time span into which the total life of a business is divided for the purpose of preparing financial statements?






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If the total assets of the company amount to Rs 1,50,000 and owner’s equity is Rs 70,000,the amount of liabilities will be






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The system of recording transaction based on dual aspect concept is called






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The convention of conservatism is applicable






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Rules of action or conduct adopted by the accountants universally while recording accounting transaction






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Which of the following items would not fall under the definition of an asset?






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Basic assumptions or conditions upon which the science of accounting is based.






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Which of the following is time span into which the total life of a business is divided for the purpose of preparing financial statements?