This document contains 20 multiple choice questions about accounting concepts and terminology. The questions cover topics like the objectives of accounting, the branches of accounting (including financial accounting, management accounting, cost accounting, and human resource accounting), accounting concepts (like business entity, going concern, money measurement, realization, and cost), accounting conventions (like conservatism and consistency), classifications of assets and costs (like direct labor, indirect labor, manufacturing overhead), and the primary objectives of management accounting and financial accounting. The document provides the questions, multiple choice answers, and a link to a blog for more accounting MCQs.

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101 Accounting for Business Decisions
ABD I MBA MCQs I SPPU

2. Accounting for Business Decisions ABD MCQs
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3. 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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4. 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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5. 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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6. 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
Accounting for Business Decisions ABD MCQs
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