Accounting For Managers

151. User of financial statement is:

1. Management
2. Creditors
3. Bankers
4. All of the above

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152. Inventory accounts should be classified in which section of a balance sheet?

1. Current assets
2. Investments
3. Property, plant, and equipment
4. Intangible assets

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153. The Cash account on the balance sheet should not include which of the following items?

1. Travel advances to employees
2. Currency
3. Money orders
4. Deposits in transit

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154. In accounting all business transaction are recorded as having

1. Single aspect
2. Dual aspect
3. Triple aspect
4. None of these

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155. Which of the following equations properly represents a derivation of the fundamental accounting equation?
Assets + liabilities = Owner Equity
Asset = OwnerEquity
Cash = Assets
Assets – Liabilities = Owner Equity

1. Only (a)
2. Both (a) (b)
3. All (a)(b)(c)(d)
4. None of these

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156. Which of the following would not be included on a balance sheet?

1. Accounts payable
2. Accounts receivable
3. Sales
4. Cash

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157. Contingent liabilities should be recorded in the accounts when:

1. It is probable that the future event will occur.
2. The amount of the liability can be reasonably estimated.
3. Both (a) and (b).
4. Either (a) or (b).

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158. The cost concept records the figures at

1. Market values
2. Actual amount paid
3. Actual amount or market values whichever is less.
4. MRP maximum retail price

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159. Financial statements are:

1. Estimates of facets
2. Anticipated facts
3. Recorded facts

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160. The term Management Accounting was first used in

1. 1910
2. 1939
3. 1950
4. 1960

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