Accounting For Managers

81. Sunk costs are:

1. relevant for decision making
2. Not relevant for decision making
3. cost to be incurred in future
4. future costs

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82. Information about an item is ______________ if its omission or misstatement might influence the financial decision of the users taken on the basis of that information

1. Concrete
2. Complete
3. Immaterial
4. Material

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83. Proposed dividends" is shown in the Balance Sheet of a company under the head:

1. Provisions
2. Reserves and Surplus
3. Current Liabilities
4. Other Liabilities

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84. Authorized capital, also known as

1. ominal capital
2. Paid up capital
3. Issues capital
4. None of these

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85. Trade Payables are recorded in ______________

1. Asset side of B/S
2. Liability side of B/S
3. P & L a/c
4. None of the above

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86. Cost accounting emerged mainly on account of:

1. Statutory requirements
2. Competition in the market
3. Labour unrest
4. Limitations of financial accounting

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87. Rent paid to landlord should be credited to

1. Landlords account
2. Rent account
3. Cash account
4. Expense account

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88. The primary objective of management accounting is

1. Prepare final a/c
2. Provide management complete and true information
3. Both (a) & (b)
4. None of these

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89. Cost of goods sold= opening stock+ net purchases+ expenses on Purchases – sales Which part of formula is wrong?

1. opening stock
2. net purchases
3. expenses on Purchases
4. sales

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90. Interest on drawings is:

1. Expenditure for the business
2. Cost for the business
3. Gain for the business
4. None of the above

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