Accounting for Managers MCQs

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What is the prime function of accounting?

Attain non economic goals

Record economic data

Provide the informational basis for action (correct)

Classify and record the business transactions

Who are considered as customers in the context of accounting?

External users

Both internal and external users (correct)

Internal users

Neither internal nor external users

Where does value addition take place according to accounting principles?

Trading organization

Manufacturing organization

Service organization

Trading and service organizations (correct)

What is the primary objective of management accounting?

Management Accounting Signup and view all the answers

Who is interested in the accounting data to check the repaying capacity?

Lenders Signup and view all the answers

What type of asset is cash considered in accounting?

Current asset Signup and view all the answers

Which of the following is an example of preliminary expenses?

Capital expenditure Signup and view all the answers

What is the nature of the cost of goods purchased for resale?

Revenue expenditure Signup and view all the answers

In accounting, which concept emphasizes that accountants prepare books of accounts for businesses and not for owners?

Separate entity concept Signup and view all the answers

Which concept in accounting emphasizes the give and take in every financial transaction?

Dual aspect concept Signup and view all the answers

When the convention of conservatism is applied to the balance sheet, what does it result in?

Understatement of assets Signup and view all the answers

According to the money measurement concept, what will be recorded in the books of accounts?

Goods purchased Signup and view all the answers

Which statement is false regarding IFRS and US GAAP?

IFRS and US GAAP are not working towards convergence of their standards. Signup and view all the answers

Accounting for Managers MCQs

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Questions and Answers

What is the prime function of accounting?

Who are considered as customers in the context of accounting?

Where does value addition take place according to accounting principles?

What is the primary objective of management accounting?

Who is interested in the accounting data to check the repaying capacity?

What type of asset is cash considered in accounting?

Which of the following is an example of preliminary expenses?

What is the nature of the cost of goods purchased for resale?

In accounting, which concept emphasizes that accountants prepare books of accounts for businesses and not for owners?

Which concept in accounting emphasizes the give and take in every financial transaction?

When the convention of conservatism is applied to the balance sheet, what does it result in?

According to the money measurement concept, what will be recorded in the books of accounts?

Which statement is false regarding IFRS and US GAAP?

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