Accounting For Managers MCQs With Answers 1 to 10

 

Accounting For Managers

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

1. Convention of conservatism
2. Convention of full disclosure
3. Convention of materiality
4. Convention of consistency

Correct answer: (A)
Convention of conservatism

2. Return of goods by a customer should be debited to

1. Customers account
2. Sales return account
3. Goods account
4. Purchase account

Correct answer: (B)
Sales return account

3. Cash discount allowed to a debtor should be credited to

1. Discount account
2. Customer’s account
3. Sales account
4. Cash account

Correct answer: (B)
Customer’s account

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

1. Sole proprietorship
2. Corporation
3. Partnership
4. All of them

Correct answer: (D)
All of them

5. Accounting principles are generally based upon:

1. Practicability
2. Subjectivity
3. Convenience in recording
4. None of the above

Correct answer: (A)
Practicability

6. Debit the receiver credit the giver rule for

1. Real a/c
2. Personal a/c
3. Nominal a/c
4. None of these

Correct answer: (B)
Personal a/c

7. Managerial accounting information is generally prepared for

1. Shareholders
2. Creditors
3. Managers
4. Regulatory agencies

Correct answer: (C)
Managers

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

1. Preparing trial balance
2. Preparing respective ledger of account
3. Preparing trading a/c
4. Preparing trading & profit & loss a/c

Correct answer: (D)
Preparing trading & profit & loss a/c

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

1. Cash
2. Debtor
3. Owner’s equity
4. None of these

Correct answer: (C)
Owner’s equity

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

1. Transaction, journal entry, source document, ledger account, trial balance.
2. Source document, transaction, ledger account, journal entry, trial balance.
3. Transaction, source document, journal entry, trial balance, ledger account.
4. Transaction, source document, journal entry, ledger account, trial balance.

Correct answer: (D)
Transaction, source document, journal entry, ledger account, trial balance.

Accounting For Managers

Wednesday, December 29, 2021

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