MULTIPLE CHOICE QUESTIONS

1. Management accounting can be viewed as

A) Marketing Oriented Accounting
B) Management Oriented Accounting
C) Accounting oriented Management
D) Manager Oriented Accounting

2. The term management accounting was first coined in

A) 1940
B) 1950
C) 1960
D) 1970

3. The main objective of management accounting is

A) To maintain the accounting records
B) To know the amount due from customer and supplier
C) To ascertain analyze and interpret the results of business operations.
D) To record all the business transactions

4. Managerial accounting information is generally prepared for

A) Managers
B) Stakeholders
C) Government Agencies
D) Competitors

5. Shareholders are interested in financial statement analysis to know the

_________ of the organization
A) Share capital
B) Profitability
C) Liability
D) Liquidity
 6.The form of Balance sheet is

A) Vertical

B) Horizontal

C)Horizontal and Vertical

D)Horizontal or Vertical

7. In Income Statement, GP is always equal to

A) Sales expenses

B) Income-expenses

C) Sales cost of goods sold

D) Sales selling costs

8. Trend Analysis is an example of

A) Dynamic analysis

B) Horizontal analysis

C)Vertical analysis

D)static analysis

9.Comparative statements can be prepared in how many ways?

A) Three

B) One
 C) Seven

D) Two

10. Trend analysis is significant for

A) Profit Planning

B) Forecasting and Budgeting

C) Capital Rationing

D) Working Capital Management

11. Dividing Net Sales by average debtors would yield

A) Acid Test Ratio

B) Return on Sales Ratio

C) Debtors Turnover Ratio

D)Debtors Velocity

12. Capital Gearing Ratio is

A) Market test Ratio

B) Long Term solvency Ratio

C) Liquid Ratio

D) Turnover Ratio

13.____________ is also known as Working Capital Ratio

 A) Current Ratio

B) Quick Ratio

C) Liquid Ratio

D) Debt-Equity Ratio

14. The quick ratio formula uses which of the following

A) Total Assets

B) Cash

C) Inventory

D) Total current assets

15. Economic Value Added in the year of

A) 1982

B)1984

C)1986

D) 1980

16. Stock Velocity Ratio is known as

A) Solvency Ratio

B) Liquidity Ratio

C) Profitability Ratio

D)Turnover Ratio
17.Current Assets-Current Liabilities=___________

A) Opening Capital

B) Fixed Capital

C) Working Capital

D) Closing capital

18. Management Accounting is a structure for

A) Cost Accounting

B) Financial Accounting

C) Decision Making

D) Management Accounting

19. Liquid Assets do not include

A) Bills Receivables

B) Debtors

C) Inventories

D) Banks Balance
20.When OP ratio is 2.5% and Capital T.O Ratio is 2%, what is the ROI?

A) 7.5%

B)50

C)25

D)None of the above

NAME: VINOKA R

REGISTER NO: 20BAF150