Managerial Accounting Quiz

What is the primary function of accounting?

• To prepare tax returns

• To provide qualitative information

• To provide quantitative information

• To summarize financial data

Which of the following is NOT a branch of accounting?

• Marketing

• Auditing

• Bookkeeping

• Management

What does an external auditor do?

• Prepares tax returns

• Examines internal controls

• Records daily transactions

• Ensures fairness of financial reports

What is the main focus of financial accounting?

• Cost control

• Tax preparation

• Recording business transactions

• Internal auditing

Which accounting branch is responsible for preparing tax returns?

• Financial Accounting

• Cost Accounting

• Taxation

• Management Accounting

What distinguishes an internal auditor from an external auditor?

• Internal auditors are appointed from outside

• Internal auditors report to management

• Internal auditors focus on external users

• Internal auditors are independent

What is the primary role of management accounting?

• To provide information for managerial decisions

• To prepare tax returns

• To audit financial statements

• To record financial transactions

Which of the following is a characteristic of a sole proprietorship?

• Single owner

• Limited liability

• Separate legal entity

• Multiple owners

What is the main responsibility of financial managers?

• Preparing financial statements

• Setting financial objectives

• Conducting audits

• Managing tax compliance

What is the difference between tax evasion and tax avoidance?

• Both are legal

• Both are illegal

• Tax evasion is illegal, tax avoidance is legal

• Tax evasion is legal, tax avoidance is illegal