MCQOPTIONS
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MCQOPTIONS
This section includes 1713 Mcqs, each offering curated multiple-choice questions to sharpen your General Management knowledge and support exam preparation. Choose a topic below to get started.
| 501. |
In responsibility cost accounting the costs in focus are |
| A. | Controllable costs |
| B. | Uncontrollable costs |
| C. | Both a and b |
| D. | None of the above |
| Answer» B. Uncontrollable costs | |
| 502. |
A budget specifies the operations to be performed during the next year is called __________ |
| A. | Operation budget |
| B. | Responsibility budget |
| C. | Activity budget |
| D. | Flexible budget |
| Answer» D. Flexible budget | |
| 503. |
Material price, mix, usage and revised quantity variances are measured on _______ basis, whereas material yield variance is measured on _______ basis. |
| A. | Output, Input |
| B. | Output, Output |
| C. | Input, Output |
| D. | None of the above |
| Answer» D. None of the above | |
| 504. |
Management accounting is primarily concerned with: |
| A. | providing investors with useful information for valuing securities. |
| B. | providing creditors information on the status of their loans. |
| C. | providing managers with relevant information to help achieve organizational goals. |
| D. | providing the relevant taxation authorities with information to determine the amount of taxes owed. |
| Answer» D. providing the relevant taxation authorities with information to determine the amount of taxes owed. | |
| 505. |
Management accounting analyses accounting data with the help of ------------------------- |
| A. | Auditors |
| B. | Statutory forms |
| C. | Tools and techniques |
| D. | None of these |
| Answer» D. None of these | |
| 506. |
Company has a material standard of 1.1 kg. per unit of output. Each kg. has a standard price of Rs.25 per. Company paid Rs.1,18,800? for 5,100 kg. which they used to produce 4,900 units. What is the direct materials quantity variance? |
| A. | Rs.7,250 favourable |
| B. | Rs.5,000 favourable |
| C. | Rs.7,250 unfavourable |
| D. | Rs.5,000 unfavourable |
| Answer» B. Rs.5,000 favourable | |
| 507. |
Management accounting is related withA) The problem of choice makingB) Recording of transactionsC) Cause and effect relationships |
| A. | A and B |
| B. | B and C |
| C. | A and C |
| D. | All are false |
| Answer» D. All are false | |
| 508. |
Which of the following activities is NOT associated with the financial accounting information system? |
| A. | reporting on the cost of quality |
| B. | reporting to the shareholders |
| C. | preparing reports for the tax authorities |
| D. | preparing a statement of cash flows |
| Answer» B. reporting to the shareholders | |
| 509. |
----------account is prepared to know funds from operation |
| A. | Profit & Loss appropriation account |
| B. | Profit and loss account |
| C. | Trading account |
| D. | Profit & Loss adjustment account |
| Answer» E. | |
| 510. |
Sales Budget is a forecast expressed in - |
| A. | Quantity |
| B. | Money |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» D. None of the above | |
| 511. |
The status of management accountant is at what level as compared to cost accountant? |
| A. | Lower |
| B. | Equal |
| C. | Higher |
| D. | No status at all |
| Answer» D. No status at all | |
| 512. |
---------------- establishes the relationship of different individual items which same common items |
| A. | Common size statements |
| B. | Comparative statements |
| C. | Trend analysis |
| D. | Comparative Income Statement |
| Answer» B. Comparative statements | |
| 513. |
The tools of treasury management does not include: |
| A. | foreign exchange management |
| B. | cash management |
| C. | receivable management |
| D. | risk management |
| Answer» E. | |
| 514. |
Net Profit during the year ₹ 1,00,000Debtors in the beginning the year of ₹ 30,000Debtors at the end of the year ₹ 36,000What is the amount of Cash From Operating Activities? |
| A. | ₹ 30,000 |
| B. | ₹ 94,000 |
| C. | ₹ 1,06,000 |
| D. | ₹ 1,66,000 |
| Answer» C. ₹ 1,06,000 | |
| 515. |
Management accounting is primarily concerned with - |
| A. | Providing investors with useful information for valuing securities. |
| B. | Providing creditors information on the status of their loans. |
| C. | Providing managers with relevant information to help achieve organizational goals. |
| D. | Providing the relevant taxation authorities with information to determine the amount |
| Answer» D. Providing the relevant taxation authorities with information to determine the amount | |
| 516. |
Setting the company's profit targets for the upcoming year is an example of the management function of |
| A. | planning. |
| B. | control. |
| C. | variance analysis. |
| D. | internal auditing. |
| Answer» B. control. | |
| 517. |
Budgetary control system helps the management to eliminate… |
| A. | undercapitalization |
| B. | overcapitalization |
| C. | both |
| D. | subjective matter |
| Answer» D. subjective matter | |
| 518. |
The ratio of current asset to current liability is known as -------------- |
| A. | Liquid ratio |
| B. | Current ratio |
| C. | Absolute liquid ratio |
| D. | Turn over ratio |
| Answer» C. Absolute liquid ratio | |
| 519. |
Study of the trend of the same items of two or more balance sheets |
| A. | Common size Profit and Loss A/C |
| B. | Common size balance sheet |
| C. | Comparative Income statement |
| D. | Comparative Balance Sheet |
| Answer» E. | |
| 520. |
Stock turnover ratio is used to determine -----------------------of an enterprise |
| A. | Profitability |
| B. | Liquidity& solvency |
| C. | Efficiency |
| D. | Growth |
| Answer» D. Growth | |
| 521. |
The ratio which shows the relationship b/w share holder’s fund and total assets |
| A. | Debit equity ratio |
| B. | Proprietary ratio |
| C. | Solvency ratio |
| D. | Fixed asset |
| Answer» C. Solvency ratio | |
| 522. |
A key factor is one which restricts …… |
| A. | The volume of production |
| B. | The volume of sales |
| C. | The volume of purchase |
| D. | All of the above |
| Answer» B. The volume of sales | |
| 523. |
In case of other enterprises cash flow arising from interest paid should be classified as cash flow from ________ while dividends and interest received should be stated as cash flow from ____. |
| A. | Operating activities, financing activities |
| B. | Financing activities, investing activities |
| C. | Investing activities, operating activities |
| D. | None of the above |
| Answer» C. Investing activities, operating activities | |
| 524. |
The success of budgetary control system depends upon the willing cooperation of… |
| A. | shareholders |
| B. | management |
| C. | creditors |
| D. | all the functional areas of management |
| Answer» E. | |
| 525. |
Increase in prepaid expenses--------------------cash |
| A. | Increases |
| B. | Added |
| C. | Decreases |
| D. | None of these |
| Answer» D. None of these | |
| 526. |
Plant utilization budget and Manufacturing overhead budgets are types of |
| A. | Production budget |
| B. | Sales budget |
| C. | Cost budget |
| D. | None of the above |
| Answer» D. None of the above | |
| 527. |
The responsibility centres come under the responsibility of - |
| A. | Cost accountants |
| B. | Management accountant |
| C. | Responsibility managers |
| D. | Auditor |
| Answer» D. Auditor | |
| 528. |
AQ=2500Kg ,SP=Rs 2.5,SQ=2400Kg,AP=Rs 3 .Calculate Material Cost variance. |
| A. | 1500 F |
| B. | 1500 A |
| C. | 950 F |
| D. | 950 A |
| Answer» C. 950 F | |
| 529. |
_________ being the life blood of a business requires to be maintained in reasonablyadequate quantity to run business successfully. |
| A. | working capital |
| B. | proper documents |
| C. | assets |
| D. | petty cash |
| Answer» B. proper documents | |
| 530. |
Which of the following does NOT describe management accounting? |
| A. | Evaluation of segments or products within the firm |
| B. | Emphasis on the future |
| C. | Externally focused |
| D. | Detailed information |
| Answer» D. Detailed information | |
| 531. |
Material cost variances is measured as |
| A. | Total standard cost - Total actual cost |
| B. | Standard cost of revised standard mix - Standard cost of actual mix |
| C. | (Standard unit price - Actual unit price) * Actual quantity used |
| D. | (Standard quantity - Actual quantity) * Unit standard price |
| Answer» B. Standard cost of revised standard mix - Standard cost of actual mix | |
| 532. |
The corrective actions after the analysis of variances has to be taken by |
| A. | Cost accountant |
| B. | Management |
| C. | Both a and b |
| D. | None of the above |
| Answer» C. Both a and b | |
| 533. |
Cash flow statement is based on past records, so it is---------in nature |
| A. | historical |
| B. | future item |
| C. | past |
| D. | none of these |
| Answer» B. future item | |
| 534. |
Rent received by a company (whose main business is real estate) is classified as |
| A. | Investing activity |
| B. | Financing activity |
| C. | Operating activity |
| D. | Cash equivalent |
| Answer» D. Cash equivalent | |
| 535. |
If debt equity ratio exceeds ,it indicates risky position. |
| A. | 1:1 |
| B. | 2:1 |
| C. | 1:2 |
| D. | 3:1 |
| Answer» C. 1:2 | |
| 536. |
Yard stick which measures relationship between two variables |
| A. | Financial statements |
| B. | Ratio |
| C. | Fund Flow analysis |
| D. | Cash flow analysis |
| Answer» C. Fund Flow analysis | |
| 537. |
Increases in current liabilities --------------working capital |
| A. | Increase |
| B. | Decreases |
| C. | Added |
| D. | None of these |
| Answer» C. Added | |
| 538. |
Management accounting is concerned with which kind of decision? |
| A. | product costing and pricing |
| B. | continuous operational improvement |
| C. | financial control |
| D. | all of the above |
| Answer» E. | |
| 539. |
Working capital is expressed as------ |
| A. | Current asset-fixed asset |
| B. | Fixed assets-current liabilities |
| C. | Current assets-current liabilities |
| D. | None of these |
| Answer» D. None of these | |
| 540. |
Determine Stock Turnover Ratio if, Opening stock is Rs 31,000, Closing stock is Rs 29,000, Sales is Rs 3,20,000 and Gross profit ratio is 25% on sales. |
| A. | 12 times |
| B. | 11 times |
| C. | 8 times |
| D. | 10 times |
| Answer» D. 10 times | |
| 541. |
An example of long period budget is - |
| A. | R & D budget |
| B. | Master budget |
| C. | Sales budget |
| D. | Personnel budget |
| Answer» B. Master budget | |
| 542. |
Which items are added in Current year profit to get Net profit before tax.I)Interim dividend II)Provision for tax III)Refund of tax IV)Transfer to reserves |
| A. | All |
| B. | Only III |
| C. | Only II and IV |
| D. | Only I,II and IV |
| Answer» E. | |
| 543. |
Comparison of financial statements highlights the trend of the _________ of the business. |
| A. | Financial position |
| B. | Performance |
| C. | Profitability |
| D. | All of the above |
| Answer» E. | |
| 544. |
Management accounting reports are prepared |
| A. | To meet the needs of decision makers within the firm |
| B. | Whenever shareholders request them |
| C. | According to guidelines prepared by the shares and Financial Services Authority |
| D. | According to financial accounting standards |
| Answer» B. Whenever shareholders request them | |
| 545. |
Decrease in current liabilities --------------------working capital |
| A. | Increases |
| B. | Decrease |
| C. | Deducts |
| D. | Reduces |
| Answer» B. Decrease | |
| 546. |
To get to labour efficiency variance, the formula to be applied is |
| A. | Total standard labour cost of actual output - Total actual cost of actual output |
| B. | (Standard rate per hour - Actual rate per hour) * Actual Hours |
| C. | (Standard time - Actual time) * Standard rate per hour |
| D. | Abnormal idle hours * Standard hourly rate |
| Answer» D. Abnormal idle hours * Standard hourly rate | |
| 547. |
……………………..accounting is the adoption and analysis of accountinginformation and its diagnosis and explanation in such a way so as to assist thedecision -makers. |
| A. | financial accounting |
| B. | management accounting |
| C. | corporate accounting |
| D. | human resource accounting |
| Answer» C. corporate accounting | |
| 548. |
If the responsibility centre gets more revenue from output, then it is called - |
| A. | Investment centre |
| B. | Cost centre |
| C. | Profit centre |
| D. | Expense centre |
| Answer» D. Expense centre | |
| 549. |
The other name of Marginal Costing is… |
| A. | Direct Costing |
| B. | Variable Costing |
| C. | Incremental Costing |
| D. | All of the above |
| Answer» E. | |
| 550. |
Long period budgets are prepared under |
| A. | Receipts and payment method |
| B. | Balance sheet method |
| C. | Adjusted profit and loss method |
| D. | Receipts and payments, balance sheet method |
| Answer» E. | |