Accounting For Managers
21. The amount of salary paid to Suresh should be debited to
- The account of Suresh
- Salaries a/c
- Cash a/c
- Bank a/c
Correct answer: (B)
Salaries a/c
22. The cash discount allowed to a debtor should be credited to
- Discount a/c
- Customer a/c
- Sales a/c
- None of these
Correct answer: (B)
Customer a/c
23. Accounting does not record non-financial transactions because of:
- Accrual concept
- Cost concept
- Continuity concept
- Money measurement concept
Correct answer: (D)
Money measurement concept
24. The concept of separate entity is applicable to which of following types of businesses?
- Sole proprietorship
- Corporation
- Partnership
- All of them
Correct answer: (D)
All of them
25. Accounting is the process of matching
- Benefits & Costs
- Revenues & Costs
- Cash Inflow & Cash Outflow
- Potential & Real Performance
Correct answer: (B)
Revenues & Costs
26. The primary objective of cost accounting is
- Ascertain the cost of goods and services
- Ascertain the profit
- Presentation of all data
- None of these
Correct answer: (A)
Ascertain the cost of goods and services
27. Of the following account types, which would be increased by a debit?
- Liabilities and expenses.
- Assets and equity.
- Assets and expenses.
- Equity and revenues.
Correct answer: (C)
Assets and expenses.
28. Which of the following statements about differences between financial and managerial accounting is incorrect?
- Managerial accounting information is prepared primarily for external parties such as stockholders and creditors; financial accounting is directed at internal users.
- Financial accounting is aggregated; managerial accounting is focused on products and departments.
- Managerial accounting pertains to both past and future items; financial accounting focuses primarily on past transactions and events.
- Financial accounting is based on generally accepted accounting practices; managerial accounting faces no similar constraining factors.
Correct answer: (A)
Managerial accounting information is prepared primarily for external parties such as stockholders and creditors; financial accounting is directed at internal users.
29. Custom and traditions which guide the accountant while preparing the accounting statements
- Accounting convention
- Accounting concepts
- Accounting principles
- None of these
30. Balance Sheet is a statement of
- Assets
- Liabilities
- Capital
- All of these
Correct answer: (D)
All of these
Wednesday, December 29, 2021