Accounting for Business Decisions | Chapter 1 | Part 4 | MBA MCQs | ABD

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1. ______________ are economic resources of an enterprise that can be usefully expressed in monetary terms.
   1.   Assets
   2.   Liabilities
   3.   Cash & Bank Balance
   4.   Funds
2. ______________ are commodities, purchased or manufactured for resale with a view to earn profit.
   1.   Assets
   2.   Goods
   3.   nvestments
   4.   Resources
3. ______________ are the amounts the business earns by selling its products or providing services to customers.
   1.   Assets
   2.   Goods
   3.   Investments
   4.   Revenues
4. ______________ are the costs incurred by a business in the process of earning revenue.
   1.   Assets
   2.   Expenses
   3.   Investments
   4.   Revenues
5. ______________ are persons and/or other entities who owe to an enterprise an amount for receiving goods and services on credit
   1.   Debtors
   2.   Creditors
   3.   Shareholders
   4.   Suppliers
6. ______________ are persons and/or other entities that have to be paid by an enterprise an amount for providing the enterprise goods and services on credit.
   1.   Debtors
   2.   Creditors
   3.   Shareholders
   4.   Customers
7. ______________ is a list of the entire general ledger account names and balances; it is prepared to prove the ledger.
   1.   Journal
   2.   Ledger
   3.   Cash Book
   4.   Trial Balance
8. The difference of two sides of an account is called as ______________.
   1.   Debit
   2.   Credit
   3.   Balance
   4.   Cash
9. ______________ deals with expenses related to or identified with products, which may only be a part of the organization.
   1.   Financial Accounting
   2.   Management Accounting
   3.   Human Resource Accounting
   4.   Cost Accounting
10. In ______________ stocks are valued at lower of cost or market value.
    1.   Financial Accounting
    2.   Management Accounting
    3.   Human Resource Accounting
    4.   Cost Accounting
11. The primary objective of ______________ is to provide necessary information to the management in the process of its planning, controlling, and performance evaluation, and decision-making.
    1.   Financial Accounting
    2.   Management Accounting
    3.   Human Resource Accounting
    4.   Cost Accounting
12. The Success of ______________ does not depend upon Management Accounting system.
    1.   Financial Accounting
    2.   Management Accounting
    3.   Human Resource Accounting
    4.   Cost Accounting
13. In______________ no statutory requirement of audit for reports.
    1.   Financial Accounting
    2.   Management Accounting
    3.   Human Resource Accounting
    4.   Cost Accounting
14. Which is the most popular and acceptable software?
    1.   Tally
    2.   Marg
    3.   Saral
    4.   SAP
15. The Advantage/s of Accounting Software ______________.
    1.   Accounting softwares save Time and Money.
    2.   No scope for mistakes and errors.
    3.   Provides accurate and updated information as and when require
    4.   All of the above
16. ………………cost will still be incurred although a plant is shut down temporarily
    1.   Cost of raw material
    2.   Advertising
    3.   Depreciation
    4.   Carriage
17. Accounting principles are generally based upon:
    1.   Practicability
    2.   Subjectivity
    3.   Convenience in recording
    4.   None of the above
18. The system of recording based on dual aspect concept is called:
    1.   Double account system
    2.   Double entry system
    3.   Single entry system
    4.   All the above
19. The practice of appending notes regarding contingent liabilities in accounting statements is in pursuance to:
    1.   Convention of consistency
    2.   Money measurement concept
    3.   Convention of conservatism
    4.   Convention of disclosure
20. Sales are equal to:
    1.   Cost of goods sold + gross profit
    2.   Cost of goods sold - gross profit
    3.   Gross profit- Cost of goods sold
    4.   None of the above