The primary objective of management accounting is to: MCQ with Answer and Explanation

The primary objective of management accounting is to:
A. Provide information to external stakeholders
B. Calculate tax liability
C. Assist management in planning and decision-making
D. Ensure compliance with accounting standards
Answer: Option C
Solution (By JKSSB Mock Tests)
Management accounting focuses on providing internal management with the financial and non-financial information needed for planning, controlling, and decision-making.

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Accountancy and Book Keeping Questions

Question #1
S1: Ind AS 115 uses a five-step model for revenue recognition. S2: The five steps include identifying the contract, performance obligations, transaction price, allocating price, and recognizing revenue. Which statement(s) is/are correct?
A. Neither S1 nor S2
B. S1 only
C. S2 only
D. Both S1 and S2

Correct Answer: Option D


Explanation:
Ind AS 115 prescribes a five-step model for revenue recognition. The steps are exactly as listed: identify contract, identify performance obligations, determine transaction price, allocate price, and recognize revenue when obligations are satisfied. Both are correct.

Question #2
An account is said to have a debit balance when:
A. Credit side total exceeds debit side total
B. Debit side total exceeds credit side total
C. No entries exist
D. Both sides are equal

Correct Answer: Option B


Explanation:
Debit balance means total of debit side is greater than credit side.

Question #3
S1: Direct taxes are levied on income and wealth. S2: Direct taxes can be shifted to others. Which statement(s) is/are correct?
A. S1 only
B. S2 only
C. Neither S1 nor S2
D. Both S1 and S2

Correct Answer: Option A


Explanation:
Direct taxes, like Income Tax and Wealth Tax, are levied directly on the income and wealth of individuals or entities. The burden of direct taxes cannot be shifted to someone else. S1 is correct, S2 is incorrect.