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Semester I Study Material Semester II Study Material

101 Accounting for Business Decisions

ABD I MBA MCQs I SPPU
Accounting for Business Decisions ABD MCQs

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Accounting for Business Decisions ABD MCQs
5. ______ is the language of business

A. ----2....J Marketing

B. ----2....J Profit Earning Capacity

C. ----2....J Accounting
D. ----2....J Selling

6. The object/s of accounting ______

A. ----2....J To calculate net profit or net loss of the business.

B. ----2....J To know the financial condition of the firm.

C. ----2....J To provide information to the management for important managerial decisions.

D. ----2....J All of the above

7. Out of the following, which is not the branch of Accounting

A. ----2....J Financial Accounting

B. ----2....J Management Accounting

C. ----2....J Human Resource Accounting

D. ----2....J Cost Accounting

8. Accounting ______ are the Rules of Action or the Methods and Procedures of
Accounting commonly adopted while recording Business transactions.

A. ----2....J Principles

B. ----2....J Concepts

C. ----2....J Conventions

D. ----2....J Systems

9. According to ______ concept, assets purchased are generally recorded in accounting

books at the cost at which they are purchase

A. ----2....J Business Entity Concept

B. ----2....J Going Concern Concept

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Accounting for Business Decisions ABD MCQs
C. � Money Measurement Concept

D. � Cost Concept

10. According to _______ concept, revenue is recognized only when the sale is performed.

A. � Business Entity Concept

B. � Going Concern Concept

C. � Money Measurement Concept

D. � Realization Concept

11. Managerial accounting information is generally prepared for .....................

A. � Shareholders

B. � Creditors

C. � Managers

D. � Regulatory agencies

12. Which of the following is not an internal user of management information?

A. � Creditor

B. � Department manager

C. � Controller

D. � Treasurer

13. Management accounting is applicable to-

A. � Service entities

B. � Manufacturing entities

C. � Non profit entities

D. � All of these

14. Creating Provision against fluctuation in the price of investment is an example of which
accounting convention

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Accounting for Business Decisions ABD MCQs
A. ......z..J Convention of conservatism

B. ......z..J Convention of full disclosure

C. ......z..J Convention of materiality

D. ......z..J Convention of consistency

15. The work of factory employees that can be physically associated with converting raw material into
finished goods is classified as-

A. ......z..J Manufacturing overhead

B. ......2.J Indirect materials

C. ......2.J Indirect labour

D. ......2.J Direct labour

16. Double entry system is used in which type of accounting

A. ......2.J Cost
B. ......z..J Financial

C. ......z..J Management

o . ......z..J All

17. Management accounting concentrates on______

A. ......z..J Opening books of account

B. ......z..J Preparation of financial statements

C. ......z..J Control of business activities

D. ......z..J 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?

A. ......2.J Fixed asset

B. ......z..J Current asset

C. ......z..J Fictitious asset

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 Accounting for Business Decisions ABD MCQs
D.� Wasting asset

19. An accounting that deals with the accounting and reporting of information to management
regarding the detail information is

A. � Financial accounting

B. � Management accounting

C.� Cost accounting

D.� Real Accounting

20. The primary objective of management accounting is

A. � Prepare final a/c

B. � Provide management complete and true information

C.� Both

D.� None of these

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