Accounting For Managers MCQS With Answers 71 to 80

 

Accounting For Managers

71. Which of the following is a liability?

1. Loan from Mr.Y
2. loan to Mr.y
3. Both (a) (b)
4. None of these

Correct answer: (A)
Water

72. Purchases of goods on credit from A is recorded as:

1. Debit purchases a/c; credit cash a/c
2. Debit A a/c; credit purchases a/c
3. Debit purchases a/c; credit A a/c
4. Debit A a/c; credit stock a/c

Correct answer: (C)
Debit purchases a/c; credit A a/c

73. Payment received from debtor:

1. Decreases the total assets
2. Increases the total assets
3. Results in no change in total assets
4. Increase the total liabilities

Correct answer: (C)
Results in no change in total assets

74. The transferring of debit and credit items from journal to the respective accounts in the ledger is called as

1. Ledger
2. Posting
3. Forward journal
4. None of these

Correct answer: (B)
Posting

75. The following comments all relate to the recording process. Which of these statements is correct?

1. The general ledger is a chronological record of transactions.
2. The general ledger is posted from transactions recorded in the general journal.
3. The trial balance provides the primary source document for recording transactions into the general journal.
4. Transposition is the transfer of information from the general journal to the general ledger.

Correct answer: (B)
The general ledger is posted from transactions recorded in the general journal.

76. Cost accounting information can be used for:

1. Budget control and evaluation.
2. Determining standard costs and variances.
3. Pricing and inventory valuation decisions.
4. All of these

Correct answer: (D)
All of these

77. Current liability does not include

1. Sundry creditors
2. Acceptances
3. Unclaimed dividend
4. Short term investment

Correct answer: (D)
Short term investment

78. The term Management Accounting was first used in

1. 1910
2. 1939
3. 1950
4. 1960

Correct answer: (C)
1950

79. ______________ system records only actual cash receipts and payments

1. Cash basis
2. Accrual basis
3. Mercantile basis
4. Single entry basis

Correct answer: (A)
Cash basis

80. Aggregate of direct costs is known as:

1. Direct material costs
2. Direct Wages
3. Direct Expenses
4. Prime Cost

Correct answer: (D)
Prime Cost