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    MA 1 (Part A)

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    nabayeel
    This document provides a 36 minute, 30 question multiple choice test on management information. The test covers topics such as accounting systems, cost accounting, management accounting, financial accounting, and organizational structures. Students must demonstrate their understanding of concepts like integrated versus interlocking accounts, advantages and disadvantages of different accounting methods, purposes of reports, and defining primary data versus information.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    MA 1 (Part A)

    Uploaded by

    nabayeel
    46 views4 pages
    This document provides a 36 minute, 30 question multiple choice test on management information. The test covers topics such as accounting systems, cost accounting, management accounting, financial accounting, and organizational structures. Students must demonstrate their understanding of concepts like integrated versus interlocking accounts, advantages and disadvantages of different accounting methods, purposes of reports, and defining primary data versus information.

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    Management accounting

    Original Title

    MA 1(part A)

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    This document provides a 36 minute, 30 question multiple choice test on management information. The test covers topics such as accounting systems, cost accounting, management accounting, financial accounting, and organizational structures. Students must demonstrate their understanding of concepts like integrated versus interlocking accounts, advantages and disadvantages of different accounting methods, purposes of reports, and defining primary data versus information.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    46 views4 pages

    MA 1 (Part A)

    Uploaded by

    nabayeel
    This document provides a 36 minute, 30 question multiple choice test on management information. The test covers topics such as accounting systems, cost accounting, management accounting, financial accounting, and organizational structures. Students must demonstrate their understanding of concepts like integrated versus interlocking accounts, advantages and disadvantages of different accounting methods, purposes of reports, and defining primary data versus information.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    Professional School of Business

    Where Learners Are Achiever

    Management Information

    Time: 36 Minutes MA 1
    Marks: 30

    1. A companys accounting system operates so that the cost accounts are


    independent of the financial accounts. The two sets of accounts are
    reconciled on a regular basis to keep them continuously in agreement.
    What is this type of accounting system known as?
    A. Independent accounts
    B. interlocking accounts
    C. reconciled accounts
    D. integrated accounts

    2. Which of the following is a disadvantage of batch processing?


    A. Information will not always be up to date.
    B. It is not suitable for internal regular tasks
    C. A missing record cannot be located
    D. Batches sent off for processing cannot be tracked

    3. Which of the following statements, relating cost ledger accounting, are TRUE?
    1. An integrated system is one where separate ledgers are kept for cost
    accounting and management accounting.
    2. An interlocking system is one where there is just one system of ledger
    accounts for cost accounting and for management accounting.
    A. Both statements are correct
    B. Neither statements is correct
    C. Statement 1 is correct but statements 2 is incorrect
    D. Statement 2 is correct but statement 1 is incorrect

    4. Which of the following statements relate to the policy manual of an


    organization?
    1. Policies should be in place to deal with the authorization of the purchase
    of fixed assets.
    2. Employees will need to know where to find the policy manual to refer to
    but need not have read it.
    3. Strict adherence to the manual can lead to inflexibility
    A. All three
    B. 1 and 2 only
    C. 1 and 3 only
    D. 2 and 3 only

    5. Which of the following are primary data?


    i) Information on timesheets used for making up wages
    ii) Information from a government publication concerning forecast
    inflation rates used for budgeting
    iii) Information from a trade publications used to choose a supplier of
    raw materials

    A. i and ii B. i and iii C. i only


    D. i, ii and iii

    6. Which of the following is not management accounting information?


    A. Sales budget B. Variance report C. Payroll report
    D. Profitability report

    7. Which of the following statements is incorrect?


    A. Management accounting reports are more accurate than financial
    accounting statements
    B. Management accounting reports are more detailed than financial
    accounting statements
    C. Management accounting reports are more detailed than financial
    accounting statements
    D. Management accounting reports are not disclosed to shareholders and
    investors

    8. Which one of the following would be included in the financial accounts, but
    may be excluded from the cost accounts?
    A. Bank interest and charges
    B. Depreciation of storeroom handling equipment
    C. Direct material costs
    D. Factory managers salary

    9. What is the main purpose of prime entry records?


    A. To calculate the cash received and spent by a business
    B. To prevent a large volume of unnecessary detail in the ledger
    C. To provide a monthly check on the double entry bookkeeping
    D. To separate the transactions subject to sales tax from those that are
    exempt

    10.Which of the following statements about on organization chart is untrue?


    A. An organization chart provides a summary of the structure of a business
    B. An organization chart can improve internal communications within a
    business
    C. An organization chart can improve employees understanding of their role
    within a business
    D. An organization chart cannot indicate authority within a business

    11.Which of the following combinations describe the purposes of management


    information?
    A. Planning, negotiating and decision making
    B. Control, decision making and publication
    C. Decision making, negotiating and implementing
    D. Planning, control and decision making
    12.Which of the statement about management accounting are TRUE?
    1. Management accounts are a legal requirement for a company
    2. Management accounts consider future data only
    3. Management accounts include financial and non-financial information

    A. 1 and 3 only B. 2 and 3 only C. 2 only D.


    3 only

    13.Which of the following is a feature of financial accounting information?


    A. It is used to calculate the cost of product or service
    B. Limited companies are required by law to prepare this information
    C. It is concerned with future results as well as historical information
    D. The benefit must exceed the cost and it must be relevant for purpose

    14.Which of the following statements is correct?


    A. Cost accounting is only relevant to manufacturing organizations
    B. Management accounts must be presented in a regulated format
    C. Financial and management accounts are prepared from completely
    separate sets of data
    D. Management accounts are normally prepared for internal use within a
    company

    15.How would facts and figures which have been processed and communicated
    to another party be best described?
    A. Data B. Statistics C. Information D.
    Coding
    1. B
    2. A
    3. B
    4. C
    5.C
    6.C
    7.A
    8.A
    9.B
    10.D
    11.D
    12.D
    13.B
    14.D
    15.C

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