Unit-1 (Previous Year Questions)

Introduction to Management Accounting

Meaning Definition Objectives Nature and Scope of Management Accounting
Relationship between Financial Accounting, Management Accounting, and Cost Accounting
Theory Questions:
1. Name the principal tools of Financial Analysis.
2. Distinguish between Financial Accounting and Managerial Accounting.
3. Give any four tools of Management Accounting.
4. Give the meaning of comparative statement.
5. State any four objectives of management reporting.
6. State any four functions of management accounting.
7. Explain the role of Management accountant.
8. Enumerate the steps involved in drafting a report.
9. Define Management Accounting.
10. Explain the nature and scope of Management Accounting.
11. In what respect cost accounting is different from management accounting?
12. What is Comparative income statement?
13. What is internal and external analysis?
14. The Sales of ABC Co. Ltd are declining year after year. As a Management
Accountant of the company, draft a brief report to the Management explaining the
reasons for the declining sales.
15. What is Common Size Statement?
16. What do you mean by Analysis of Financial Statement?
17. Explain the principles of a Good Management Report.
18. In spite of increasing profits Latha & Co. Ltd. for the last three years is having
shortage of cash due to which dividends cannot be paid. Draft a report to management
diagnosing and suggesting the appropriate action to remedy the situation.
19. What do you mean by Trend Analysis?
20. Briefly explain various types of analysis.
21. The profit of a company is declining year after year. You as a management accountant
draft a report to the management exploring the reasons for the declining profits and
suggesting corrective measures.
22. Accounting Reports are a matter of necessity for the management and not a matter of
convenience Explain critically the above statement.

V Sem BBA Management Accounting Page 1

 Unit-1 (Previous Year Questions)

23. Analysis without Interpretation is meaningless and Interpretation without Analysis is

impossible. Discuss.
24. ABC Company Ltd. is facing problem of shortage of working capital. As a
management accountant, you are required to draft a report to the management
explaining the reasons for shortage of working capital.
25. State the meaning of Management Accounting.
26. Differentiate between Management Accounting and Cost Accounting.
27. Define Management Accounting.
28. What is common size statement analysis?
29. Explain the importance of Management Accounting.
30. List out the important of Management Accounting.
31. Explain the nature and scope of Management Accounting briefly.
32. State any two objectives of Management Accounting.
33. What is comparative statement?
34. State the differences between Financial Accounting and Management Accounting.

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