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.
| 601. |
Net Profit during the year ₹ 30,000 Creditors in the beginning ₹ 24,000 Creditors at the end ₹ 16,000 What is the amount of cash from operating activities? |
| A. | ₹ 30,000 |
| B. | ₹ 34,000 |
| C. | ₹ 22,000 |
| D. | ₹ 40,000 |
| Answer» D. ₹ 40,000 | |
| 602. |
At Break even point,Contribution is equal to . |
| A. | Profit |
| B. | Variable Cost |
| C. | Fixed Cost |
| D. | Selling Price |
| Answer» D. Selling Price | |
| 603. |
As per AS-3, Cash Flow Statement is mandatory for(a) All enterprises(b) Companies listed on a stock exchange(c) Companies with a turnover of more than Rs 50 crores |
| A. | Both A and B |
| B. | Both A and C |
| C. | Both C and B |
| D. | None of the above |
| Answer» D. None of the above | |
| 604. |
Contribution margin center is also known as |
| A. | Expense center |
| B. | Profit center |
| C. | Investment center |
| D. | (All of the above |
| Answer» C. Investment center | |
| 605. |
An example of Balance Sheet ratio is --------------- |
| A. | Net profit ratio |
| B. | Inventory turn over ratio |
| C. | Current ratio |
| D. | Fixed asset turn over ratio |
| Answer» D. Fixed asset turn over ratio | |
| 606. |
The factors that affect dividend policy are: |
| A. | tax consideration |
| B. | privatization |
| C. | foreign investment |
| D. | working cash flow |
| Answer» B. privatization | |
| 607. |
The accounting department in an organization is - |
| A. | Investment centre |
| B. | Expense centre |
| C. | Profit centre |
| D. | All of the above |
| Answer» B. Expense centre | |
| 608. |
Which of the following is incorrect about the statement of cash flows? |
| A. | It provides information about the cash receipt and cash payments of an enterprise. |
| B. | It reconciles ending cash balance with the balance as per bank statement. |
| C. | It provides information about the operating, investing and financing activities. |
| D. | It explains the deviation of cash from Earnings. |
| Answer» C. It provides information about the operating, investing and financing activities. | |
| 609. |
Management accounting is the branch of accounting concerned with reporting to |
| A. | internal managers. |
| B. | shareholders. |
| C. | the government. |
| D. | bankers. |
| Answer» B. shareholders. | |
| 610. |
Budget relating to the key factor is prepared - |
| A. | After other budgets |
| B. | With other budgets |
| C. | Before other budgets |
| D. | None of the above |
| Answer» D. None of the above | |
| 611. |
The ratio that shows the relationship between fixed asset to share holders fund |
| A. | Fixed asset to net worth |
| B. | Fixed asset ratio |
| C. | Fixed assets turn over ratio |
| D. | Net worth ratio |
| Answer» B. Fixed asset ratio | |
| 612. |
The ideal current ratio is ------------- |
| A. | 2:1 |
| B. | 1:1 |
| C. | 1:2 |
| D. | 1:3 |
| Answer» B. 1:1 | |
| 613. |
Afford full diagnosis of the profitability and financial position |
| A. | Preparation of Profit and Loss Account |
| B. | Balance Sheet |
| C. | Final Accounts |
| D. | Analysis of financial statements |
| Answer» E. | |
| 614. |
Marginal cost is computed as |
| A. | Prime cost + All Variable overheads |
| B. | Direct material + Direct labour + Direct Expenses + All variable overheads |
| C. | Total costs – All fixed overheads |
| D. | All of the above |
| Answer» B. Direct material + Direct labour + Direct Expenses + All variable overheads | |
| 615. |
The management accounting can be stated an extension of A) Cost Accounting B) Financial Accounting C) Responsibility Accounting |
| A. | Both A and B |
| B. | Both A and C c) |
| C. | Both B and C |
| D. | A, |
| Answer» E. | |
| 616. |
_______also known as subsidiary budgets. |
| A. | Master budget |
| B. | Functional budget |
| C. | Cost budget |
| D. | None of the above |
| Answer» C. Cost budget | |
| 617. |
Which of the following is not a functional budget? |
| A. | Labour budget |
| B. | Cash budget |
| C. | Materials budget |
| D. | Expenses budget |
| Answer» B. Cash budget | |
| 618. |
Match the columns(i) Activity Ratio -------------------- i) (Actual hours worked / Budgeted hours) * 100(ii) Capacity Ratio ------------------ ii) (Standard hours of actual production / Actual hours worked) * 100(iii) Efficiency Ratio ----------------- iii) (Standard hours for actual output / Budgeted hours) * 100 |
| A. | A-ii, B-iii, C-i |
| B. | A-i, B-ii, C-iii |
| C. | A-iii, B-i, C-ii |
| D. | None of the above |
| Answer» D. None of the above | |
| 619. |
Which of the following is not the objective of budgetary control? I)Control II)Danger of rigidity III)Motivation IV)Based on estimates |
| A. | Only II |
| B. | Only II and IV |
| C. | Only II,III and IV |
| D. | All I,II,III and IV |
| Answer» C. Only II,III and IV | |
| 620. |
The sub-variance of material usage variance, known as Material mix variance 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» C. Standard unit price - Actual unit price) * Actual quantity used | |
| 621. |
Stock and prepaid expanses are not included in ---------------- |
| A. | Current asset |
| B. | Fixed asset |
| C. | Current liability |
| D. | Quick asset |
| Answer» E. | |
| 622. |
The responsibility accounting is also called - |
| A. | Profitability accounting |
| B. | Activity accounting |
| C. | Both (a) and (b) |
| D. | None of these |
| Answer» D. None of these | |
| 623. |
To financial analysts, "gross working capital" means the same thing as ________. |
| A. | fixed assets. |
| B. | current assets. |
| C. | working capital. |
| D. | cost of capital. |
| Answer» C. working capital. | |
| 624. |
Usually the production budget is stated in terms of… |
| A. | money |
| B. | quantity |
| C. | both |
| D. | none |
| Answer» D. none | |
| 625. |
Which of the following is a technique that helps the exporter to sell the receivables toany bank or financial institution without recourse? |
| A. | forfeiting |
| B. | leading & lagging |
| C. | derivatives |
| D. | netting |
| Answer» B. leading & lagging | |
| 626. |
. Return on properties funds is also known as. |
| A. | return on net worth |
| B. | return on shareholders fun |
| C. | return on the shareholders investment |
| D. | all the above |
| Answer» E. | |
| 627. |
Debt equity ratio is an example of ---------------- ratios |
| A. | Balance sheet ratio |
| B. | Profit & loss account ratio |
| C. | Mixed ratio |
| D. | Liquidity ratio |
| Answer» B. Profit & loss account ratio | |
| 628. |
The process of budgeting includes |
| A. | Preparation of budget |
| B. | Budget Control |
| C. | Budget co-ordination |
| D. | All of the above |
| Answer» E. | |
| 629. |
Cost of good sold+operating expanses=------------------------- |
| A. | Total cost |
| B. | Cost of product |
| C. | Cost of sales |
| D. | Operating cost |
| Answer» E. | |
| 630. |
Production budget is - |
| A. | Dependent on purchase budget |
| B. | Dependent on sales budget |
| C. | Dependent on cash budget |
| D. | None of the above |
| Answer» C. Dependent on cash budget | |
| 631. |
Increase in the amount of bills receivable results in-------------- |
| A. | decrease in cash |
| B. | increase in cash |
| C. | no change in cash |
| D. | none of these |
| Answer» B. increase in cash | |
| 632. |
A profit centre is a centre ___________. |
| A. | Where the manager has the responsibility of generating and maximising profits |
| B. | Which is concerned with earning an adequate Return on Investment |
| C. | Both (a) and (b) |
| D. | Which manages cost |
| Answer» B. Which is concerned with earning an adequate Return on Investment | |
| 633. |
By computing current ratio ---------------- solvency of a concern is assessed |
| A. | Short term |
| B. | Long term |
| C. | Liquidity |
| D. | Profitability |
| Answer» B. Long term | |
| 634. |
What are the various methods of estimating cash? |
| A. | receipts and payment method |
| B. | adjusted profit & loss method |
| C. | balance sheet method |
| D. | all of the above |
| Answer» E. | |
| 635. |
Management accounting is related with(i) The problem of choice making(ii) Recording of transactions(iii) Cause and effect relationships |
| A. | (i) and (ii) |
| B. | (ii) and (iii) |
| C. | (i) and (iii) |
| D. | All are false |
| Answer» D. All are false | |
| 636. |
Management accounting provides alternative choices for managerial ___________ |
| A. | Decisions |
| B. | Policies |
| C. | Uses |
| D. | None of these |
| Answer» B. Policies | |
| 637. |
Debtors turnover ratio measures---------- |
| A. | Short term solvency |
| B. | Operating efficiency |
| C. | Long term solvency |
| D. | Credit policy |
| Answer» E. | |
| 638. |
The amount of current assets that varies with seasonal requirements is referred toas __________ working capital. |
| A. | permanent |
| B. | net |
| C. | temporary |
| D. | gross |
| Answer» D. gross | |
| 639. |
Under High and Low Point method, the output at two different levels is compared with the amount of __________ incurred at these two points. |
| A. | Total fixed costs |
| B. | Total costs |
| C. | Total fixed costs |
| D. | None of the above |
| Answer» C. Total fixed costs | |
| 640. |
Which of the following emerging themes in cost accounting deals with managers striving to create an environment that will enable workers to manufacture perfect (zero-defect) products? |
| A. | advances in information technology |
| B. | time as a competitive element |
| C. | global competition |
| D. | total quality management |
| Answer» E. | |
| 641. |
Asset structure = _________+__________. |
| A. | current asset+fixed asset |
| B. | tangible asset+fixed asset |
| C. | fixed asset+current asset |
| D. | intangible asset+current asset |
| Answer» D. intangible asset+current asset | |
| 642. |
The prime function of financial accounting is to |
| A. | Classify and Record the economic data |
| B. | To achieve non-economic goals |
| C. | Provide information for control |
| D. | None of the above. |
| Answer» B. To achieve non-economic goals | |
| 643. |
Managers utilizes marginal costing for |
| A. | Make or buy decision |
| B. | Utilisation of additional capacity |
| C. | Determination of dumping price |
| D. | All of the above |
| Answer» E. | |
| 644. |
If profit-volume ratio is 25 per cent and sales is Rs. 100,000, the variable cost will be |
| A. | Rs. 25,000 |
| B. | Rs. 50,000 |
| C. | Rs. 75,000 |
| D. | None of the above |
| Answer» D. None of the above | |
| 645. |
The accounting department in an organization is… |
| A. | Investment centre |
| B. | Expense centre |
| C. | Profit centre |
| D. | All of the above |
| Answer» B. Expense centre | |
| 646. |
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 | |
| 647. |
Which of these is the main purpose of employee assessment? |
| A. | Making correct decisions |
| B. | To effect promotions based on competence and performance |
| C. | Establish job expectations |
| D. | None of the above |
| Answer» C. Establish job expectations | |
| 648. |
________ is the first step of budgetary system and all other budgets depends on it. |
| A. | Cost budget |
| B. | Sales budget |
| C. | Production budget |
| D. | None of the above |
| Answer» C. Production budget | |
| 649. |
The responsibility accounting is a controlling tool for… |
| A. | Top‐level management |
| B. | Lower level management |
| C. | Middle level management |
| D. | none of these |
| Answer» B. Lower level management | |
| 650. |
The use of Internet-based technology, either to support existing business processes or tocreate entirely new business opportunities, has become known as what? |
| A. | E-globalization |
| B. | E-business |
| C. | E-value creation |
| D. | E-process management |
| Answer» C. E-value creation | |