McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Banking and Insurance (BBI) , Bachelor of Commerce (B Com) .
Chapters
| 301. |
External report use for _______________ . |
| A. | Top level management |
| B. | Middle level management |
| C. | Lower level management |
| D. | Shareholders |
| Answer» D. Shareholders | |
| 302. |
From following which is not a routine report ? |
| A. | Production report |
| B. | Sales report |
| C. | Investigation |
| D. | Administration report |
| Answer» C. Investigation | |
| 303. |
_______ is devoted to providing information for external users. |
| A. | Management accounting |
| B. | Financial accounting |
| C. | Internal accounting |
| D. | Cost accounting |
| Answer» B. Financial accounting | |
| 304. |
Financial accounting is primarily concerned with providing financial reports to all of the following EXCEPT |
| A. | creditors such as banks and other financial institutions. |
| B. | creditors such as suppliers. |
| C. | shareholders of the company. |
| D. | management of the firm. |
| Answer» D. management of the firm. | |
| 305. |
Management accounting and financial accounting differ in that management accounting information is prepared |
| A. | following prescribed rules. |
| B. | using whatever methods the company finds beneficial. |
| C. | for shareholders. |
| D. | to summarize the whole company with little detail. |
| Answer» B. using whatever methods the company finds beneficial. | |
| 306. |
The primary objective of management accounting is |
| A. | to provide shareholders and potential investors with useful information for decision making. |
| B. | to provide banks and other creditors with information useful in making credit decisions. |
| C. | to provide management with information useful for planning and control of operations. |
| D. | to provide the relevant taxation authorities with information about taxable income. |
| Answer» C. to provide management with information useful for planning and control of operations. | |
| 307. |
Management accounting is the branch of accounting concerned with reporting to |
| A. | internal managers. |
| B. | shareholders. |
| C. | the government. |
| D. | bankers. |
| Answer» A. internal managers. | |
| 308. |
Management accounting reports are prepared |
| A. | to meet the needs of decision makers within the firm. |
| B. | whenever shareholders request them. |
| C. | according to guidelines prepared by the shares and Financial Services Authority. |
| D. | according to financial accounting standards. |
| Answer» A. to meet the needs of decision makers within the firm. | |
| 309. |
Cost accounting |
| A. | is concerned with assigning costs to various cost objects. |
| B. | attempts to satisfy the costing objectives of both financial accounting and management accounting. |
| C. | provides cost information that supports planning, controlling, and decision making. |
| D. | All of the above descriptions are true. |
| Answer» D. All of the above descriptions are true. | |
| 310. |
Which of the following costing activities is associated with the financial accounting system? |
| A. | determining the cost of a department |
| B. | determining the cost of goods sold for financial statements |
| C. | preparing budgets |
| D. | determining the cost of a customer |
| Answer» B. determining the cost of goods sold for financial statements | |
| 311. |
Which of the following activities is NOT associated with the financial accounting information system? |
| A. | reporting on the cost of quality |
| B. | reporting to the shareholders |
| C. | preparing reports for the tax authorities |
| D. | preparing a statement of cash flows |
| Answer» A. reporting on the cost of quality | |
| 312. |
Which of the following cost management tools supports the firm's concentration on the delivery of value to the customer? |
| A. | service industry growth |
| B. | global competition |
| C. | preparing an earnings report for external reporting |
| D. | value-chain analysis |
| Answer» D. value-chain analysis | |
| 313. |
Factors that have led to a global market for manufacturing and service firms are |
| A. | improved transportation and communications systems. |
| B. | improved telemarketing and communications. |
| C. | improved distribution and transportation systems. |
| D. | None of these factors have contributed. |
| Answer» A. improved transportation and communications systems. | |
| 314. |
Which of the following activities is NOT significant to the advancement of information technology? |
| A. | enterprise resource planning software |
| B. | emergence of electronic commerce |
| C. | theory of constraints |
| D. | decision support systems |
| Answer» C. theory of constraints | |
| 315. |
Software that has integrated system capability using real time data is |
| A. | enterprise resource planning software. |
| B. | on-line analytic programs. |
| C. | computer-assisted engineering software. |
| D. | none of the above. |
| Answer» A. enterprise resource planning software. | |
| 316. |
Automation of the manufacturing environment is associated with increases in |
| A. | inventory. |
| B. | capacity. |
| C. | processing time. |
| D. | none of these. |
| Answer» B. capacity. | |
| 317. |
Total quality management emphasizes |
| A. | zero defects. |
| B. | continual improvement. |
| C. | elimination of waste. |
| D. | all of the above. |
| Answer» D. all of the above. | |
| 318. |
Which of the following emerging themes in cost accounting deals with managers striving to create an environment that will enable workers to manufacture perfect (zero-defect) products? |
| A. | advances in information technology |
| B. | time as a competitive element |
| C. | global competition |
| D. | total quality management |
| Answer» D. total quality management | |
| 319. |
Competitive advantage is established by |
| A. | providing more customer products than competitors. |
| B. | providing better quality than competitors. |
| C. | providing greater customer value for less cost than competitors. |
| D. | providing greater efficiencies than competitors. |
| Answer» C. providing greater customer value for less cost than competitors. | |
| 320. |
Improvement in time performance is most likely NOT enhanced by |
| A. | redesign of products. |
| B. | adding processes in production. |
| C. | eliminating waste. |
| D. | eliminating nonvalue-added activities. |
| Answer» B. adding processes in production. | |
| 321. |
Which of the following statements is NOT true about world-class firms? |
| A. | World-class firms are firms that are poor in customer support. |
| B. | World-class firms know their market and their products. |
| C. | World-class firms strive continually to improve product design, manufacture, and delivery. |
| D. | World-class firms can compete with the best of the best in a global environment. |
| Answer» A. World-class firms are firms that are poor in customer support. | |
| 322. |
Monitoring the number of defects produced is an example of the management function of |
| A. | planning. |
| B. | control. |
| C. | decision making. |
| D. | both a and c. |
| Answer» B. control. | |
| 323. |
Performance reports are accounting reports that compare |
| A. | planned data with actual data. |
| B. | audited data with actual data. |
| C. | managers' bonuses with performance ratings by supervisors. |
| D. | actual data with industry standards. |
| Answer» A. planned data with actual data. | |
| 324. |
Which of the following statements correctly distinguishes between financial and management accounting? |
| A. | Management accounting reports on the whole organization. |
| B. | Financial accounting is oriented toward the future. |
| C. | Financial accounting is primarily concerned with providing information for internal users. |
| D. | Management accounting is oriented more toward the planning and control |
| Answer» D. Management accounting is oriented more toward the planning and control | |
| 325. |
Setting the company's profit targets for the upcoming year is an example of the management function of |
| A. | planning. |
| B. | control. |
| C. | variance analysis. |
| D. | internal auditing. |
| Answer» A. planning. | |
| 326. |
The planning process includes |
| A. | setting objectives. |
| B. | identifying means of achieving the objectives. |
| C. | making decisions. |
| D. | all of the above. |
| Answer» D. all of the above. | |
| 327. |
Management accounting is concerned with which kind of decision? |
| A. | product costing and pricing |
| B. | continuous operational improvement |
| C. | financial control |
| D. | all of the above |
| Answer» D. all of the above | |
| 328. |
Management accounting: |
| A. | provides a framework to evaluate information in light of an organization's goals. |
| B. | provides relevant information to managers. |
| C. | provides relevant information to meet specific needs of persons inside the organization. |
| D. | all of the above |
| Answer» D. all of the above | |
| 329. |
Management accounting is primarily concerned with: |
| A. | providing investors with useful information for valuing securities. |
| B. | providing creditors information on the status of their loans. |
| C. | providing managers with relevant information to help achieve organizational goals. |
| D. | providing the relevant taxation authorities with information to determine the amount of taxes owed. |
| Answer» C. providing managers with relevant information to help achieve organizational goals. | |
| 330. |
Vertical analysis is made to review and analyze the financial statements of -----------------accounting period. |
| A. | One |
| B. | Two |
| C. | Three |
| D. | Four |
| Answer» A. One | |
| 331. |
Comparison of financial variables of a firm over a period of time is known as-------------- |
| A. | Comparative |
| B. | Common-size |
| C. | Trend analysis |
| D. | None of the above |
| Answer» C. Trend analysis | |
| 332. |
Interpretation requires analysis and ---------------------------------- |
| A. | Comparison |
| B. | Determination |
| C. | Decision Making |
| D. | Conclusion |
| Answer» A. Comparison | |
| 333. |
The process of deriving conclusions from the analysis is commonly termed as ---------------- |
| A. | Analysis |
| B. | Conclusion |
| C. | Comparison |
| D. | Interpretation |
| Answer» D. Interpretation | |
| 334. |
Common size Income Statement present the various items as a percentage of ---------------- |
| A. | Sales |
| B. | Credit sales |
| C. | Cash sales |
| D. | None of the above |
| Answer» A. Sales | |
| 335. |
External analysis is based on ------------- financial statements |
| A. | Annual |
| B. | Published |
| C. | Prepared |
| D. | Previous |
| Answer» B. Published | |
| 336. |
Financial Statements provide a summary of -------------------------- |
| A. | Accounts |
| B. | Assets |
| C. | Liabilities |
| D. | Expenses |
| Answer» A. Accounts | |
| 337. |
When financial statements for a number of years are reviewed and analyzed, the analysis is known as --------------------- |
| A. | Vertical Analysis |
| B. | Internal analysis |
| C. | Horizontal analysis |
| D. | External analysis |
| Answer» C. Horizontal analysis | |
| 338. |
When ratios are calculated from the financial statements of one year, it is known as --------------------- |
| A. | Horizontal analysis |
| B. | Vertical analysis |
| C. | Internal Analysis |
| D. | External analysis |
| Answer» B. Vertical analysis | |
| 339. |
Horizontal analysis is also known as ----------------------- |
| A. | Static analysis |
| B. | Structural analysis |
| C. | Dynamic analysis |
| D. | None of these |
| Answer» C. Dynamic analysis | |
| 340. |
Trend analysis is significant for |
| A. | Forecasting and budgeting |
| B. | Profit planning |
| C. | Capital rationing |
| D. | None of the above |
| Answer» A. Forecasting and budgeting | |
| 341. |
In trend percentage the base year is ---------------------------- |
| A. | The first year |
| B. | Last year |
| C. | Any year |
| D. | Second year |
| Answer» A. The first year | |
| 342. |
Comparative statements are a form of --------------------------- |
| A. | Horizontal analysis |
| B. | Vertical analysis |
| C. | Parallel analysis |
| D. | None of the above |
| Answer» A. Horizontal analysis | |
| 343. |
The term financial analysis include both --------- and interpretation |
| A. | Comparison |
| B. | Analysis |
| C. | Conclusion |
| D. | Constructions |
| Answer» B. Analysis | |
| 344. |
Vertical analysis is also known as ------------------ |
| A. | Dynamic analysis |
| B. | Static analysis |
| C. | External analysis |
| D. | Internal analysis |
| Answer» B. Static analysis | |
| 345. |
The statement prepared to disclose accounting information are known as----- |
| A. | Comparative statements |
| B. | Common size statements |
| C. | Financial statements |
| D. | None of the above |
| Answer» C. Financial statements | |
| 346. |
------------- gives a diagnosis of the profitability and financial position |
| A. | Analysis of financial statements |
| B. | Preparation of financial statements |
| C. | Construction of statements |
| D. | None of the above |
| Answer» A. Analysis of financial statements | |
| 347. |
------------------------ helps in drawing inferences of conclusions |
| A. | Analysis |
| B. | Interpretation |
| C. | Comparison |
| D. | None of the above |
| Answer» B. Interpretation | |
| 348. |
---------------- establishes the relationship of different individual items which same common items |
| A. | Common size statements |
| B. | Comparative statements |
| C. | Trend analysis |
| D. | Comparative Income Statement |
| Answer» A. Common size statements | |
| 349. |
Under ------------------------ each item of expenses taken as a percentage on net sales |
| A. | Comparative income statement |
| B. | Comparative balance sheet |
| C. | Common size Balance sheet |
| D. | Common size Income Statement |
| Answer» D. Common size Income Statement | |
| 350. |
----------- helps to disclose financial position |
| A. | Trial Balance |
| B. | Profit and Loss Account |
| C. | Balance sheet |
| D. | Income Statement |
| Answer» C. Balance sheet | |
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