Accounting For Managers
81. Sunk costs are:
- relevant for decision making
- Not relevant for decision making
- cost to be incurred in future
- future costs
Correct answer: (B)
Not relevant for decision making
82. Information about an item is ______________ if its omission or misstatement might influence the financial decision of the users taken on the basis of that information
- Concrete
- Complete
- Immaterial
- Material
Correct answer: (D)
Material
83. Proposed dividends" is shown in the Balance Sheet of a company under the head:
- Provisions
- Reserves and Surplus
- Current Liabilities
- Other Liabilities
Correct answer: (A)
Provisions
84. Authorized capital, also known as
- ominal capital
- Paid up capital
- Issues capital
- None of these
Correct answer: (A)
Nominal capital
85. Trade Payables are recorded in ______________
- Asset side of B/S
- Liability side of B/S
- P & L a/c
- None of the above
Correct answer: (B)
Liability side of B/S
86. Cost accounting emerged mainly on account of:
- Statutory requirements
- Competition in the market
- Labour unrest
- Limitations of financial accounting
Correct answer: (D)
Limitations of financial accounting
87. Rent paid to landlord should be credited to
- Landlords account
- Rent account
- Cash account
- Expense account
Correct answer: (C)
Cash account
88. The primary objective of management accounting is
- Prepare final a/c
- Provide management complete and true information
- Both (a) & (b)
- None of these
Correct answer: (B)
Provide management complete and true information
89. Cost of goods sold= opening stock+ net purchases+ expenses on Purchases – sales Which part of formula is wrong?
- opening stock
- net purchases
- expenses on Purchases
- sales
Correct answer: (D)
sales
90. Interest on drawings is:
- Expenditure for the business
- Cost for the business
- Gain for the business
- None of the above
Correct answer: (C)
Gain for the business
Wednesday, December 29, 2021