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.
| 551. |
Budgetary control system acts as a friend, philosopher and guide to the - |
| A. | Management |
| B. | Share holders |
| C. | Creditors |
| D. | Employees |
| Answer» B. Share holders | |
| 552. |
When margin of safety is 20% and P/V ratio is 60%, the profit will be : |
| A. | 30% |
| B. | 33 1/3 % |
| C. | 12% |
| D. | None of these |
| Answer» D. None of these | |
| 553. |
The break even chart helps the management in… |
| A. | Forecasting costs and profits |
| B. | Cost control |
| C. | Long term planning and growth |
| D. | All of the above |
| Answer» E. | |
| 554. |
During the month of December actual direct labour cost amounted to $39,550, the standard direct labour rate was $10 per hour and the direct labour rate variance amounted to $450 favourable. The actual direct labour hours worked were: |
| A. | 3,955 hours |
| B. | 4,000 hours |
| C. | 3,910 hours |
| D. | 4,500 hours |
| Answer» C. 3,910 hours | |
| 555. |
Ratios help the management in evolving market strategies through ----------- |
| A. | Inter firm comparison |
| B. | Intra firm comparison |
| C. | Ratios |
| D. | None of the above |
| Answer» B. Intra firm comparison | |
| 556. |
If break-even number of units are 120 units and the fixed cost is $62000, then the contribution margin per unit will be |
| A. | $74,400 |
| B. | $7,440,000 |
| C. | $516.67 |
| D. | $51,667 |
| Answer» D. $51,667 | |
| 557. |
Financial accounting is primarily concerned with providing financial reports to all ofthe following EXCEPT |
| A. | creditors such as banks and other financial institutions. |
| B. | creditors such as suppliers. |
| C. | shareholders of the company. |
| D. | management of the firm. |
| Answer» E. | |
| 558. |
Which of the following is the limitation of Zero based budgeting.I)Resist new ideas II)Control on expenditure III)Requires proper training IV)Conflicts |
| A. | All |
| B. | Only I and IV |
| C. | Only III and IV |
| D. | Only I,III and IV |
| Answer» E. | |
| 559. |
Depreciation is sometimes treated as -------of funds |
| A. | Outflow |
| B. | Use |
| C. | Source |
| D. | No change |
| Answer» D. No change | |
| 560. |
Investment costing Rs.50,000 at the loss of Rs.3,000 cash outflow in investing activity is -------- |
| A. | Rs.53,000 |
| B. | Rs.50,000 |
| C. | Rs.47,000 |
| D. | Rs.48,000 |
| Answer» D. Rs.48,000 | |
| 561. |
The relationship between two amount or variables is measured with the help of ------------ |
| A. | Ratio |
| B. | Trend |
| C. | Comparative |
| D. | Common size |
| Answer» B. Trend | |
| 562. |
The ratio that highlight the end result of business activities are known as ---------------- ratios |
| A. | Liquidity |
| B. | Leverage |
| C. | Activity |
| D. | Profitability |
| Answer» E. | |
| 563. |
The statement of changes in financial position prepared to determine only the sources anduses of working capital between two dates of balance sheet is known as __________. |
| A. | cash flow statement |
| B. | memorandum balance sheet |
| C. | fund flow statement |
| D. | profit and loss account |
| Answer» D. profit and loss account | |
| 564. |
Which budget is prepared after the preparation of all functional budgets |
| A. | Flexible budget |
| B. | Cash budget |
| C. | Master budget |
| D. | Production budget |
| Answer» D. Production budget | |
| 565. |
What does the statement of comprehensive income show? |
| A. | the liquidity position of a business at a point in time |
| B. | the value of assets bought by a business over a period point in time |
| C. | the profit or loss made by a business over a period of time |
| D. | the value of a business at a point in time |
| Answer» D. the value of a business at a point in time | |
| 566. |
The formula used for calculation of labour rate variance 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» C. (Standard time - Actual time) * Standard rate per hour | |
| 567. |
While preparing sales budget, which of the following factors are considered? |
| A. | Non-operational factors |
| B. | Environmental factors |
| C. | Both a and b |
| D. | None of the above |
| Answer» C. Both a and b | |
| 568. |
Management Accounting is and financial accounting differ in that managementaccounting information is prepared – |
| A. | Following prescribed rules |
| B. | Using whatever methods the company finds beneficial |
| C. | For shareholders |
| D. | To summarize the whole company with little detail |
| Answer» C. For shareholders | |
| 569. |
Which statement is true.I)Fixed budget assumes Changing business conditions. II)Flexible budget is prepared for only one level of activity. |
| A. | None is true |
| B. | Both are true |
| C. | Only I |
| D. | Only II |
| Answer» B. Both are true | |
| 570. |
The statement prepared to disclose accounting information are known as----- |
| A. | Comparative statements |
| B. | Common size statements |
| C. | Financial statements |
| D. | None of the above |
| Answer» D. None of the above | |
| 571. |
Which of the following is an advantage of standard costing? |
| A. | Measuring efficiency |
| B. | Facilitates cost control |
| C. | Determination of variance |
| D. | All of the above |
| Answer» E. | |
| 572. |
Turnover ratios are also known as |
| A. | Activity ratios |
| B. | Performance ratios |
| C. | Both a and b |
| D. | None of the above |
| Answer» D. None of the above | |
| 573. |
Which are not Investing activity? I)Receipts from sale of fixed asset II)Interest received III)Dividend paid IV)Cash Payment to acquire share of other Companies |
| A. | Only II and III |
| B. | Only III and IV |
| C. | Only III |
| D. | All are not investing activities |
| Answer» D. All are not investing activities | |
| 574. |
Lower stock turnover ratio indicates------------------------------- |
| A. | Solvency position |
| B. | Monopoly situation |
| C. | Over investment in inventory |
| D. | None of these |
| Answer» D. None of these | |
| 575. |
Which of the following is not a technique of management accounting |
| A. | Budgetary control |
| B. | Standard costing |
| C. | Marginal costing |
| D. | Process costing |
| Answer» E. | |
| 576. |
Which of the following matter is to be taken into account which preparing MaterialPurchase Budget ? |
| A. | The supplier from whom materials are to be purchased. |
| B. | The procedure of storing and preserving materials after they are received. |
| C. | The prices at which receipts and issues of materials are to be recorded in stores ledger. |
| D. | The maximum and minimum quantities of materials to be purchased. |
| Answer» E. | |
| 577. |
Net working capital is the excess of current assets over ________. |
| A. | current liabilities |
| B. | long term liabilities |
| C. | contingent liabilities |
| D. | fixed liabilities |
| Answer» B. long term liabilities | |
| 578. |
If Inventory turnover ratio=5 times,what is avg age if inventory? |
| A. | 73 days |
| B. | 80 days |
| C. | 70 days |
| D. | 69 days |
| Answer» B. 80 days | |
| 579. |
Which of the following is a non-current liability |
| A. | Mortgage loan |
| B. | Bank balance |
| C. | Outstanding salary |
| D. | None of these |
| Answer» B. Bank balance | |
| 580. |
A budget is tool which helps the management in planning and control of… |
| A. | all business activities |
| B. | production activities |
| C. | purchase activities |
| D. | sales activities |
| Answer» B. production activities | |
| 581. |
Service and Financial concerns may have _____. |
| A. | longest operating cycle |
| B. | shortest operating cycle |
| C. | manufacturing phase |
| D. | none of these |
| Answer» C. manufacturing phase | |
| 582. |
The __________ is required to ensure circulation of operating cycle. |
| A. | regular working capital |
| B. | fixed working capital |
| C. | reserve working capital |
| D. | variable working capital |
| Answer» B. fixed working capital | |
| 583. |
_____ is that minimum amount which should always be present in the business to carry outthe activities without a break. |
| A. | net working capital |
| B. | gross working capital |
| C. | permanent working capital |
| D. | temporary working capital |
| Answer» D. temporary working capital | |
| 584. |
Debtors turnover ratio is used to calculate------ |
| A. | efficiency |
| B. | solvency |
| C. | liquidity |
| D. | profitability |
| Answer» B. solvency | |
| 585. |
BE point=40,000 ,Fixed Cost=15,000.Calculate P/V ratio. |
| A. | 3.75% |
| B. | 0.38% |
| C. | 26.66% |
| D. | 37.50% |
| Answer» E. | |
| 586. |
If the actual output is more than the budgeted output, volume variance is |
| A. | Favourable |
| B. | Non-favourable |
| C. | No impact |
| D. | None of the above |
| Answer» B. Non-favourable | |
| 587. |
The overall responsibility for the functions of the budget committee lies on the _____________ |
| A. | Chief accountant |
| B. | Financial executive or controller |
| C. | Budget director or budget officer |
| D. | Top management |
| Answer» D. Top management | |
| 588. |
Ratio analysis is a study of relationship among various --------------- factors in a business |
| A. | Operational |
| B. | Official |
| C. | Financial |
| D. | Others |
| Answer» D. Others | |
| 589. |
__________ denotes a situation of too much or excessive working capital. |
| A. | gross working capital |
| B. | redundant working capital |
| C. | permanent working capital |
| D. | temporary working capital |
| Answer» C. permanent working capital | |
| 590. |
Cost behaviour analysis is a study of how a firm's costs |
| A. | relate to competitors' costs |
| B. | relate to general price level changes |
| C. | respond to changes in activity levels within the company |
| D. | respond to changes in the gross national product |
| Answer» D. respond to changes in the gross national product | |
| 591. |
Fund flow statement is accompanied by a schedule of----------------------------- |
| A. | Changes in working capital |
| B. | Flow of funds |
| C. | Increase in fund |
| D. | Decrease in fund |
| Answer» B. Flow of funds | |
| 592. |
_______________ ratios measure the ability of a firm to earn an adequatereturn on sales, total assets and invested capital. |
| A. | asset utilization |
| B. | liquidity |
| C. | profitability |
| D. | debt utilization |
| Answer» D. debt utilization | |
| 593. |
20,000 equity shares of Rs.10 each issued at 10% premium , cash is Rs------------------- |
| A. | Rs.2,00,000 |
| B. | Rs.2,10,000 |
| C. | Rs.2,15,000 |
| D. | Rs.2,20,000 |
| Answer» E. | |
| 594. |
Dividend paid are classified under-------------------activities |
| A. | Financing |
| B. | Investing |
| C. | Operating |
| D. | Others |
| Answer» B. Investing | |
| 595. |
The management accounting can be stated an extension of(i) Cost Accounting(ii) Financial Accounting(iii) Responsibility Accounting |
| A. | Both (i) and (ii) |
| B. | Both (i) and (iii) |
| C. | Both (ii) and (iii) |
| D. | (i), (ii), (iii) |
| Answer» E. | |
| 596. |
A report comparing actual results with the budget figure is called a ___________ |
| A. | Budget report |
| B. | Budget performance report |
| C. | Flexible budget report |
| D. | None of the above |
| Answer» B. Budget performance report | |
| 597. |
Net worth refers to owner’s-------------------------- |
| A. | Equity |
| B. | Solvency |
| C. | Liability |
| D. | None of these |
| Answer» B. Solvency | |
| 598. |
To establish an effective system of standard costing it is essential that1) The technical process of operation should be prone to planning2) The cost of the products should be given3) The process or operating costs of products should be provided4) The standard costing should be consistent with the technical procedure of the production of the specific entity |
| A. | A, B and C |
| B. | A, C and D |
| C. | B, C and D |
| D. | D, C and A |
| Answer» C. B, C and D | |
| 599. |
Calculate the production budget from the following data: sales 89,350 units; opening inventory 23,864 units; closing inventory 33,156 units. |
| A. | 80,058 units |
| B. | 1,46,370 units |
| C. | 32,320 units |
| D. | 98,642 units |
| Answer» E. | |
| 600. |
Which of the following are tools of management accounting?(i) Decision accounting(ii) Standard costing(iii) Budgetary control(iv) Human Resources Accounting |
| A. | (i), (ii) and (iii) |
| B. | (i), (iii) and (iv) |
| C. | (i),(ii) and (iii) |
| D. | (i), (ii), (iii), (iv) |
| Answer» D. (i), (ii), (iii), (iv) | |