ACCA MA1 Study Guide Exam With Advanced Answers.

Which of the following is not a purpose of management information in a company? A To provide records of current & actual performance B To compare actual performance with planned performance C To help management with decision making D To inform customers about the company's products - correct answer D To inform customers about the company's products Which of the following statement is incorrect? A Management accounting reports are required by law B Management accounting reports should contain the detail that management required C Financial accounting reports are prepared for external users, such as share and the tax authorities D Management accounting reports are not disclosed to shareholders and investor - correct answer A Management accounting reports are required by law Which of the following items would be included in the financial accounting system but not in the management accounting system? A Sales commission payables to sale representative B costs of repairs to the office air conditioning system C Profit paid out in dividend to the business owner D Direct labour cost - correct answer C Profit paid out in dividend to the business owner Why is management information valuable for decision making? A It enables management to make the correct decision B It helps management to reach a more informed decision C It can be used to allocate blame if a poor decision is made D It enables managers to make decision more quickly - correct answer B It helps management to reach a more informed decision Which one of the following best describe double entry bookkeeping? A A manual system of recording accounting transactions B A system of recording business transaction in ledgers C A system of recording accounting transaction twice in the main ledger D A system of management accounting - correct answer C A system of recording accounting transaction twice in the main ledger Which one of the following would be classified as a data? A Number of purchase requisitions B Analysis of wages into direct and indirect cost C Table showing variances from budget D Graph showing the number of labour hours worked - correct answer A Number of purchase requisitions Meaning of Dividends - correct answer A sum of money paid regularly (typically annually) by a company to its shareholders out of its profit (or reserves) Meaning of requisition - correct answer An official order laying claim to use the property or materials Meaning of ledger - correct answer A book or other collection of financial accounts Meaning of variance - correct answer The fact or quality being different, divergent or inconsistent Which of the following are primary data? i Info. on timesheet used for making up wages ii Info. from a government publication concerning forecast inflation rates used for budgeting iii Info. from a trade publication used to choose a supplier of raw materials A i and ii B ii and iii C i only D iii only - correct answer C i