Accounting for Business Decisions | Chapter 1 | Part 1 | MBA MCQs | ABD

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1. ______________ is nothing but the right process of selecting an appropriate, logical, practical and achievable option from the available alternatives.
   1.   Organizing
   2.   Planning
   3.   Business Decision
   4.   Strategy
2. ______________ is a person who carried on business exclusively by and for himself.
   1.   Partner
   2.   Sole-trader
   3.   Executive
   4.   Manager
3. The relationship between persons who agree to carry on business in a common with a view to private gain.
   1.   Partnership Firm
   2.   Sole-trading Firm
   3.   Joint Stock Company
   4.   Co-operative Society
4. A ______________ is a form of business organization in which the funds of large number of investors are managed by a few persons for the purpose of earning profits.
   1.   Partnership Firm
   2.   Sole-trading Firm
   3.   Joint Stock Company
   4.   Co-operative Society
5. ______________ is the language of business
   1.   Marketing
   2.   Profit Earning Capacity
   3.   Accounting
   4.   Selling
6. The object/s of accounting ______________.
   1.   To calculate net profit or net loss of the business.
   2.   To know the financial condition of the firm.
   3.   To provide information to the management for important managerial decisions.
   4.   All of the above
7. Out of the following, which is not the branch of Accounting
   1.   Financial Accounting
   2.   Management Accounting
   3.   Human Resource Accounting
   4.   Cost Accounting
8. Accounting ______________ are the Rules of Action or the Methods and Procedures of Accounting commonly adopted while recording Business transactions.
   1.   Principles
   2.   Concepts
   3.   Conventions
   4.   Systems
9. According to ______________ concept, assets purchased are generally recorded in accounting books at the cost at which they are purchase
   1.   Business Entity Concept
   2.   Going Concern Concept
   3.   Money Measurement Concept
   4.   Cost Concept
10. According to ______________ concept, revenue is recognized only when the sale is performed.
    1.   Business Entity Concept
    2.   Going Concern Concept
    3.   Money Measurement Concept
    4.   Realization Concept
11. Managerial accounting information is generally prepared for …………………
    1.   Shareholders
    2.   Creditors
    3.   Managers
    4.   Regulatory agencies
12. Which of the following is not an internal user of management information?
    1.   Creditor
    2.   Department manager
    3.   Controller
    4.   Treasurer
13. Management accounting is applicable to-
    1.   Service entities
    2.   Manufacturing entities
    3.   Non profit entities
    4.   All of these
14. 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
15. The work of factory employees that can be physically associated with converting raw material into finished goods is classified as-
    1.   Manufacturing overhead
    2.   Indirect materials
    3.   Indirect labour
    4.   Direct labour
16. Double entry system is used in which type of accounting
    1.   Cost
    2.   Financial
    3.   Management
    4.   All
17. Management accounting concentrates on_____________
    1.   Opening books of account
    2.   Preparation of financial statements
    3.   Control of business activities
    4.   None of these
18. Which type of asset class includes those assets which have only definite use and become valueless when the yield is over?
    1.   Fixed asset
    2.   Current asset
    3.   Fictitious asset
    4.   Wasting asset
19. An accounting that deals with the accounting and reporting of information to management regarding the detail information is
    1.   Financial accounting
    2.   Management accounting
    3.   Cost accounting
    4.   Real Accounting
20. The primary objective of management accounting is
    1.   Prepare final a/c
    2.   Provide management complete and true information
    3.   Both
    4.   None of these