WorksheetsIntroduction to Management Accounting & FSA
Total questions: 25
Worksheet time: 17mins
Common size analysis is also known as ———————— analysis
Vertical Analysis
Horizontal Analysis
The financial statements of a business enterprise include:
_________________
Balance sheet
Statement of Profit and loss
Cash flow statement
All the above
Financial analysis is used only by the creditors.
True
False
State whether each of the following is True or False
In a Common size statement each item is expressed as a percentage of some common base.
True
False
State whether each of the following is True or False :
Statement of profit and loss account shows the operating performance of an enterprise for a period of time.
False
True
Revenue from operation is not taken as100 in preparing common -size statement of profit and loss.
True
False
Example of Fixed Asset
Land
Cash in Hand
Credit Card
Creditor
The term ‘Financial Statement’ covers
Profit & Loss Statement
Balance sheet and Cash account
Profit & Loss Statement and Balance sheet
All of above are false
Which one of the following tangible fixed assets would not normally be depreciated?
Buildings
Machinery
Land
Equipment
A Profit is earned if?
Assets exceed Expenditure
Income exceeds Expenditure
Cash Inflow exceeds Cash Outflow
Income exceeds Liabilities
Debentures redeemable after 10 years from the date of issue are shown as
Long-term borrowings
Other long-term liabilities
Short-term borrowings
Other short-term liabilities
Name the item out of the following which is shown as short-term provision
Provision for tax
Interest accrued but not due
Employees' provident fund
Interest accrued and due
Money received against share warrants is shown as
Shareholders' funds
Other long-term liabilities
Long-term provisions
Other current liabilities
Bills payable is shown as
Long-term borrowings
Short-term borrowings
Other current liabilities
Trade payables
Surplus, i.e., Balance in Statement of profit and loss is shown as
Share capital
Reserves and surplus
Other long-term liabilities
Current liabilities
From the given items which is not shown under current liabilities
Trade payables
Short-term provisions
Short-term borrowings
Inventories
Which of the following is not shown as non-current liabilities
Trade payables
Long-term borrowings
Deferred tax liabilities
Long-term provisions
Which of the following is not a non-current asset
Fixed assets
Share capital
Long-term loans and advances
Non-current investments
Cash and cash equivalents does not include
Cheques
Balance with banks
Bank deposits with more than 12 months maturity
Inventories
Which of the following does not represents the characteristics of Management Accounting?
Helps in finding out cost of products and control costs
Measures the operating efficiency of the enterprise
Helps in identifying the financial position of the business
Process of determining and accumulating the cost of products or activity
Which of the following is true about the behavior of fixed and variable costs?
Total FC changes with output.
Per unit FC reduces when output increases.
Total VC does not change with output.
Per unit VC reduces when output increases.
What is the reporting frequency for management accounting?
Once at the end of accounting period
As frequently as information needed for decision making purposes
Functions of management accounting include
Planning
Controlling
Decision-making
Communicating
Managerial accounting is an important aid to assist the management in
Decision making
Control
Both dcision making and control
None
The percentage analysis of increases and decreases in individual items in comparative financial statements is called:
vertical analysis
solvency analysis
profitability analysis
horizontal analysis
