Top 550+ Solved Management Accounting MCQ Questions Answer
Q. In what order should current assets be present on a statement of financial position?
a. cash, bank, trade receivables, inventories
b. trade receivables, bank, cash, inventories
c. inventories, cash, bank, trade receivables
d. inventories, trade receivables, bank, cash
Q. If value of opening inventories increases, what happens to the value of gross profit?
a. decreases
b. increases
c. stays the same
d. gets closer to net profit
Q. What does the statement of comprehensive income show?
a. the liquidity position of a business at a point in time
b. the value of assets bought by a business over a period point in time
c. the profit or loss made by a business over a period of time
d. the value of a business at a point in time
Q. Depreciation is applied to non-current assets in the statement of financial position in order to
a. show a profitability valuation of the non-current assets
b. show a true and fair value of the non-current assets
c. show how the non-current assets are affected by inflation
d. show what the non-current assets could make if leased out
Q. What would be the most likely impact on trade receivables days if invoice discounting wasoffered to and accepted by a large customer of a business?
a. trade receivables days would no longer exist
b. trade receivables days would reduce
c. trade receivables days would increase
d. trade receivable days would not be affected
Q. ___________in accounting, is when the costs to acquire an asset are expensed over the life ofthat asset rather than in the period it was incurred?
a. purchasing.
b. capitalization.
c. selling.
d. financing
Q. Capitalization is the sum of a corporation’s stock, long term debts &________?
a. liquid liability
b. retained earnings
c. fixed asset.
d. short term debts.
Q. __________ is a situation in which actual profits of a company are not sufficient enough topay interest on debentures, on loans and pay dividends on shares over a period of time?
a. under capitalization
b. over capitalization
c. market capitalization
d. none of the above
Q. Asset structure = _________+__________.
a. current asset+fixed asset
b. tangible asset+fixed asset
c. fixed asset+current asset
d. intangible asset+current asset
Q. In finance, "working capital" means the same thing as __________.
a. total assets.
b. fixed assets.
c. current assets.
d. current assets minus current liabilities.
Q. In deciding the appropriate level of current assets for the firm, management is confrontedwith_____________.
a. a trade-off between profitability and risk.
b. a trade-off between liquidity and marketability.
c. a trade-off between equity and debt.
d. a trade-off between current assets and profitability.
Q. Permanent working capital ___________.
a. varies with seasonal needs.
b. includes fixed assets.
c. is the amount of current assets required to meet a firm\s long-term minimum needs.
d. includes accounts payable.
Q. Net working capital refers to ___________.
a. total assets minus fixed assets.
b. current assets minus current liabilities.
c. current assets minus inventories.
d. current assets.
Q. To financial analysts, "gross working capital" means the same thing as ________.
a. fixed assets.
b. current assets.
c. working capital.
d. cost of capital.
Q. An example of fixed asset is________.
a. live stock.
b. value stock.
c. income stock.
d. all of the above.