MCQs on Financial and Management Accounting
We have curated very important Financial and Management Accounting MCQ with Answers for you to prepare for MBA, BBA, Mcom, Bcom academic examinations. It will cover commonly asked MCQs which will help you improve your knowledge, speed and accuracy.
1. Book keeping ___ the transactions and events, ___the identified transactions and events in a common
measuring unit, records them in proper books of accounts and finally classifies them in the ledger.
Ans. Identifies, measures
2. Accounting in addition to book keeping involves ___ the classified transactions and ___ the summarized
Ans. Summarizing, analyzing
3. ___ interprets the analyzed results and communicates the interpreted information to the interested parties.
4. Accounting is a tool for ___ and ___
Ans. Effective planning, controlling
5. Expand SEBI.
Ans. Securities Exchange Board of India
6. Mention any five stakeholders.
Ans. Shareholders, Creditors, Bankers, Government, Employees
7. ___ as chief provider of risk capital is keen to understand both the return from their investments and the
8. ___ use financial reports for negotiating wage package, declaration of bonus and other benefits.
Ans. Trade Union
9. ___ has a legitimate interest in financial reports of publicly held enterprise to ensure efficient operation of
Ans. Stock Exchange
10. The regulatory agencies use ___ to take action against the firm when appropriate returns are not filed in time
or when the returns fails to provide true and fair position of the business or to take appropriate action against the
firm when complaints / misappropriation are being lodged.
Ans. Financial Reports
11. Accounting grossly lacks ___elements
12. The exact picture of the financial situation can be ascertained only on the ___of an enterprise.
13. The danger of ___ arises when the management decides to incorporate wrong figures to artificially inflate
revenue or deflate losses or when there is a threat of hostile takeover.
Ans. Window dressing
14. Accounting ignores the price level changes when financial statements are prepared on___.
Ans. Historical Cost
15. Accounting principles are ___, associated with theory and practice of accountings.