Management Accounting Set 9

Bachelor of Business Administration (BBA),

Bachelor of Banking and Insurance (BBI),

Bachelor of Commerce (B Com)

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This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Management Accounting Set 9

Q1 | Setting the company's profit targets for the upcoming year is an example of the management function of
  • planning.
  • control.
  • variance analysis.
  • internal auditing.
Answer: planning.
Q2 | The planning process includes
  • setting objectives.
  • identifying means of achieving the objectives.
  • making decisions.
  • all of the above.
Answer: all of the above.
Q3 | Management accounting is concerned with which kind of decision?
  • product costing and pricing
  • continuous operational improvement
  • financial control
  • all of the above
Answer: all of the above
Q4 | Management accounting:
  • provides a framework to evaluate information in light of an organization's goals.
  • provides relevant information to managers.
  • provides relevant information to meet specific needs of persons inside the organization.
  • all of the above
Answer: all of the above
Q5 | Management accounting is primarily concerned with:
  • providing investors with useful information for valuing securities.
  • providing creditors information on the status of their loans.
  • providing managers with relevant information to help achieve organizational goals.
  • providing the relevant taxation authorities with information to determine the amount of taxes owed.
Answer: providing managers with relevant information to help achieve organizational goals.
Q6 | Vertical analysis is made to review and analyze the financial statements of -----------------accounting period.
  • One
  • Two
  • Three
  • Four
Answer: One
Q7 | Comparison of financial variables of a firm over a period of time is known as--------------
  • Comparative
  • Common-size
  • Trend analysis
  • None of the above
Answer: Trend analysis
Q8 | Interpretation requires analysis and ----------------------------------
  • Comparison
  • Determination
  • Decision Making
  • Conclusion
Answer: Comparison
Q9 | The process of deriving conclusions from the analysis is commonly termed as ----------------
  • Analysis
  • Conclusion
  • Comparison
  • Interpretation
Answer: Interpretation
Q10 | Common size Income Statement present the various items as a percentage of ----------------
  • Sales
  • Credit sales
  • Cash sales
  • None of the above
Answer: Sales
Q11 | External analysis is based on ------------- financial statements
  • Annual
  • Published
  • Prepared
  • Previous
Answer: Published
Q12 | Financial Statements provide a summary of --------------------------
  • Accounts
  • Assets
  • Liabilities
  • Expenses
Answer: Accounts
Q13 | When financial statements for a number of years are reviewed and analyzed, the analysis is known as ---------------------
  • Vertical Analysis
  • Internal analysis
  • Horizontal analysis
  • External analysis
Answer: Horizontal analysis
Q14 | When ratios are calculated from the financial statements of one year, it is known as ---------------------
  • Horizontal analysis
  • Vertical analysis
  • Internal Analysis
  • External analysis
Answer: Vertical analysis
Q15 | Horizontal analysis is also known as -----------------------
  • Static analysis
  • Structural analysis
  • Dynamic analysis
  • None of these
Answer: Dynamic analysis
Q16 | Trend analysis is significant for
  • Forecasting and budgeting
  • Profit planning
  • Capital rationing
  • None of the above
Answer: Forecasting and budgeting
Q17 | In trend percentage the base year is ----------------------------
  • The first year
  • Last year
  • Any year
  • Second year
Answer: The first year
Q18 | Comparative statements are a form of ---------------------------
  • Horizontal analysis
  • Vertical analysis
  • Parallel analysis
  • None of the above
Answer: Horizontal analysis
Q19 | The term financial analysis include both --------- and interpretation
  • Comparison
  • Analysis
  • Conclusion
  • Constructions
Answer: Analysis
Q20 | Vertical analysis is also known as ------------------
  • Dynamic analysis
  • Static analysis
  • External analysis
  • Internal analysis
Answer: Static analysis
Q21 | The statement prepared to disclose accounting information are known as-----
  • Comparative statements
  • Common size statements
  • Financial statements
  • None of the above
Answer: Financial statements
Q22 | #NAME?
  • Analysis of financial statements
  • Preparation of financial statements
  • Construction of statements
  • None of the above
Answer: Analysis of financial statements
Q23 | #NAME?
  • Analysis
  • Interpretation
  • Comparison
  • None of the above
Answer: Interpretation
Q24 | #NAME?
  • Common size statements
  • Comparative statements
  • Trend analysis
  • Comparative Income Statement
Answer: Common size statements
Q25 | Under ------------------------ each item of expenses taken as a percentage on net sales
  • Comparative income statement
  • Comparative balance sheet
  • Common size Balance sheet
  • Common size Income Statement
Answer: Common size Income Statement
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