Cost and Management Accounting MCQs with Answers pdf

Cost and Management Accounting MCQs with Answers pdf

Cost and Management Accounting Solved MCQs with Answers pdf. Management Accounting Multiple Choice Questions and Answers pdf.

Are you looking for a comprehensive list of Cost and Management Accounting MCQs with Answers pdf? Preparing for exams or tests can be a daunting task, especially when it comes to accounting.

This article will provide you with an extensive selection of Cost and Management Accounting Multiple Choice Questions (MCQs) and their answers in pdf format. It will help you get the right kind of practice to ace your examinations and tests.

Cost and Management Accounting MCQs

What is Cost and Management Accounting

Cost and management accounting is a crucial tool for businesses of all sizes, helping them to manage finances, control costs, and make informed decisions. Cost accounting involves the collection, analysis, and reporting of financial information related to the cost of goods or services produced by a company.

This type of accounting helps managers identify areas where costs can be reduced or eliminated in order to improve profitability.

Management accounting is similar, but focuses on providing managers with information they need to make strategic business decisions. This includes data about sales trends, customer behavior patterns, and cost forecasts.

By analyzing this data, managers can determine which products or services are most profitable and allocate resources accordingly.

Together, cost and management accounting provide businesses with a comprehensive understanding of their financial situation. They help companies identify inefficiencies in their operations that could be affecting profitability and find ways to address those issues.

Cost and Management Accounting Solved MCQs with answer

1. The success of the business depends on the factor.
a. Land
b. Labor and capital
c. Management
d. All of the above
Ans. (d)

2. ___ States that “anticipate no profits but provide for all possible losses”.
a. The Realization concept
b. Concept of prudence
c. Both a & b
d. The Accrual concept
Ans. (b)

3. Luca Fra Pacioli, ___ mathematician.
a. An Italian
b. An Indian
c. An American
d. None of the above
Ans. (c)

4. Voucher can be of
a. Two types
b. Three types
c. Four types
d. Six types
Ans. (b)

5. There are ___ elements of profit and loss account.
a. Two
b. Three
c. Four
d. Five
Ans. (a)

6. The term Credit is derived from
a. French word
b. Greek word
c. Latin word
d. None of the above
Ans. (c)

7. ___ is the residual interest of owners in assets over liabilities.
a. Expenses
b. Income
c. Equity
d. None of the above
Ans. (d)

8. ___ records goods returned to the supplier (s).
a. Salas day book
b. Purchase day book
c. Returns Inward book
d. Return outward book
Ans. (d)

9. ___ records credit sale of traded goods.
a. Purchase day book
b. Sales day book
c. Cashbook
d. None of the above
Ans. (b)

10. ___ of the cash book is not balanced
a. Discount column
b. Bank
c. Cash
d. All of the above
Ans. (a)

11. There are ___ types of primary books.
a. Two
b. Four
c. Six
d. Eight
Ans. (a)

12. The suffix “c/d” denotes
a. Carried down
b. Count down
c. Credit or debit
d. None of the above
Ans. (a)

13. Which of the following is a book of secondary entries.
a. Posting
b. Ledger
c. Account
d. None of the above
Ans. (b)

14. The account maintained by the bank for its customer is-
a. Pay-in-slip
b. Passbook
c. Mirror – version
d. None of the above
Ans. (b)

15. The bank reconciliation statement is
a. Not a part of books of accounts
b. A part of books of accounts
c. A part and parcel of books of accounts
d. Both b & c
Ans. (a)

16. ___ gives the details of transactions between the bank and the customer.
a. Reconciliation statement
b. Bank statement
c. Passbook
d. Cashbook
Ans. (a)

17. ___ is not a part of books of account.
a. Trial balance
b. P & L A/c
c. Trading A/c
d. Balance sheet
Ans. (a)

18. Trading account shows
a. Gross profit
b. Net profit
c. Notional profit
d. Both a & b
Ans. (a)

19. Omission of recording a transaction in the primary book is called
a. Error of principle
b. The error of omission
c. Both a & b
d. Error of commission
Ans. (b)

20. ___ shows the position of Assets and Liabilities of a business entity as on a particular date.
a. P & L A/c
b. P & L appropriation A/c
c. Balance sheet
d. Suspense Account
Ans. (c)

21. In India Corporate entities are registered as per
a. Companies Act 1948
b. Companies Act 1956
c. Banking Regulation Act 1947
d. None of the above
Ans. (b)

22. Reserve is the part of
a. Profit
b. Dividend
c. Bonus
d. All of the above
Ans. (a)

23. Minute books are maintained as per
a. Sec 143
b. Sec 157
c. Sec 193
d. Sec 307
Ans. (c)

24. The abridged statements shall be audited and approved by the
a. Board of Directors
b. Accountant
c. Finance Manager
d. All of the above
Ans. (a)

25. Historical cost of inventories may be determined by using.
a. FIFO
b. LIFO
c. Both a & b
d. Variable Costing Method
Ans. (c)

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