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.
| 801. |
………..liabilities are those which are intended to be paid in the ordinarycourse of business within a short period. |
| A. | current |
| B. | non current |
| C. | both of these |
| D. | none of these |
| Answer» B. non current | |
| 802. |
Which among the following transaction involves flow of fund ? |
| A. | cash paid to creditors |
| B. | payment of bills payable |
| C. | raising of short term loans |
| D. | raising of long term loans |
| Answer» E. | |
| 803. |
Which among the following transaction involves no flow of fund ? |
| A. | redemption of debentures |
| B. | purchase of fixed assets |
| C. | issue of debentures for cash |
| D. | conversion of debentures into shares. |
| Answer» E. | |
| 804. |
While preparing ……………statement, both capital and revenue items areconsidered. |
| A. | fund flow statement |
| B. | income statement |
| C. | both of these |
| D. | none of these |
| Answer» B. income statement | |
| 805. |
……………..is a tool of management for financial analysis and helps inmaking decisions. |
| A. | fund flow statement |
| B. | balance sheet |
| C. | income statement |
| D. | none of these |
| Answer» B. balance sheet | |
| 806. |
…………statement shows changes in financial position and hence dynamicin nature |
| A. | fund flow statement |
| B. | balance sheet |
| C. | income statement |
| D. | none of these |
| Answer» B. balance sheet | |
| 807. |
Increase in Accounts payable when compared to previous year results in…………….of working capital |
| A. | increase |
| B. | decrease |
| C. | no change |
| D. | none of these |
| Answer» C. no change | |
| 808. |
Decrease in Working capital constitutes ………………… |
| A. | source of fund |
| B. | application of funds |
| C. | neither source nor application |
| D. | none of these |
| Answer» B. application of funds | |
| 809. |
…………….is the dividend paid to the members of a company during afinancial year before the finalization of annual accounts. |
| A. | bonus |
| B. | final dividend |
| C. | interim dividend |
| D. | none of these |
| Answer» D. none of these | |
| 810. |
Fund lost in operations represent……………….. |
| A. | inflow of funds |
| B. | outflow of funds |
| C. | neither inflow nor outflow |
| D. | none of these |
| Answer» C. neither inflow nor outflow | |
| 811. |
Which of the following results in Increase of working capital ? |
| A. | increase in current assets |
| B. | decrease in current assets |
| C. | increase in current liabilities |
| D. | all of these |
| Answer» B. decrease in current assets | |
| 812. |
Which among the following results in decrease of working capital ? |
| A. | increase in current liabilities |
| B. | increase in current assets |
| C. | decrease in current liabilities |
| D. | none of these |
| Answer» B. increase in current assets | |
| 813. |
According to SEBI requirements Cash flow statement is prepared bycategorizing cash flows into operating, investing and …………..activities |
| A. | financing |
| B. | routine |
| C. | long term |
| D. | none of these |
| Answer» B. routine | |
| 814. |
Cash flow statement is a statement which describes inflows and outflows of…… |
| A. | cash |
| B. | cash and cash equivalents |
| C. | working capital |
| D. | all of these |
| Answer» C. working capital | |
| 815. |
………are short term , highly liquid investments that are readily convertibleinto known amounts of cash and which are subject to an insignificant risk of changes in value. |
| A. | cash equivalents |
| B. | short term investments |
| C. | marketable securities |
| D. | all of these |
| Answer» B. short term investments | |
| 816. |
Cash, according to cash flow statement comprises of …………… |
| A. | liquid cash only |
| B. | cash in hand |
| C. | cash in hand and demand deposits with banks |
| D. | none of these |
| Answer» D. none of these | |
| 817. |
Flow of cash is said to have taken place when any transactions makeschanges in the amount of ………….before happening of the transactions. |
| A. | cash |
| B. | cash equivalents |
| C. | both of these |
| D. | none of these |
| Answer» D. none of these | |
| 818. |
Which among the following are examples of cash flow from operatingactivities ? |
| A. | cash receipts from sale of goods |
| B. | cash receipts from royalties |
| C. | cash payments to suppliers |
| D. | all of these |
| Answer» E. | |
| 819. |
Which among the following is not an example of cash flow from operatingactivities ? |
| A. | cash payments of insurance premiums |
| B. | cash payments of income taxes |
| C. | cash payments to employees |
| D. | cash receipts from disposal of fixed assets |
| Answer» E. | |
| 820. |
………….cost represents the amount of any given volume of output by whichaggregate costs are changed if the volume of output is increased by one unit. |
| A. | variable cost |
| B. | marginal cost |
| C. | fixed cost |
| D. | none of these |
| Answer» C. fixed cost | |
| 821. |
The essence of marginal costing is that ……………… cost is considered onthe whole as separate. |
| A. | fixed |
| B. | variable |
| C. | both of these |
| D. | none of these |
| Answer» B. variable | |
| 822. |
………. Is the increase or decrease in total cost which results from producing or selling additional or fewer units of a product or from a change in the method of production or distribution such as the use of improvedmachinery, addition or exclusion of a product or territory or selection of an additional sales channel. |
| A. | variable cost |
| B. | marginal cost |
| C. | fixed cost |
| D. | none of these |
| Answer» C. fixed cost | |
| 823. |
Marginal costing is a …………… of costing |
| A. | system |
| B. | method |
| C. | technique |
| D. | all of these |
| Answer» D. all of these | |
| 824. |
…………cost is defined as the aggregate of variable costs or prime costs plusvariable overheads. |
| A. | variable cost |
| B. | marginal cost |
| C. | fixed cost |
| D. | none of these |
| Answer» C. fixed cost | |
| 825. |
Under marginal costing, …………… costs are treated as period costs andcharged to profit and loss account for the period for which they are incurred |
| A. | variable costs |
| B. | fixed costs |
| C. | both of these |
| D. | none of these |
| Answer» C. both of these | |
| 826. |
Under marginal costing, ……… Costs are regarded as costs of the products. |
| A. | variable costs |
| B. | fixed costs |
| C. | both of these |
| D. | none of these |
| Answer» B. fixed costs | |
| 827. |
Under marginal costing, stocks of finished goods and work-in-process arevalued at …………….. costs only |
| A. | variable costs |
| B. | fixed costs |
| C. | marginal cost |
| D. | none of these |
| Answer» D. none of these | |
| 828. |
…………..costs are the increase or decrease in total cost that result fromproducing additional or fewer units or from the adoption of an alternative course of action. |
| A. | variable costs |
| B. | fixed costs |
| C. | marginal cost |
| D. | differential cost |
| Answer» E. | |
| 829. |
………………..is the excess of sales over marginal cost of sales |
| A. | profit |
| B. | margin |
| C. | loss |
| D. | contribution |
| Answer» E. | |
| 830. |
………………..cost remains constant per unit of output irrespective of thelevel of output and thus fluctuates directly in proportion to changes in the volume of output |
| A. | variable costs |
| B. | fixed costs |
| C. | marginal cost |
| D. | none of these |
| Answer» B. fixed costs | |
| 831. |
Marginal cost and differential cost are the same when ……..costs do notchange with change in output |
| A. | variable costs |
| B. | fixed costs |
| C. | semi variable cost |
| D. | none of these |
| Answer» C. semi variable cost | |
| 832. |
………………is the practice of charging all costs, both variable and fixed, tooperations, processes, or products |
| A. | marginal costing |
| B. | absorption costing |
| C. | differential costing |
| D. | none of these |
| Answer» C. differential costing | |
| 833. |
In absorption costing, managerial decision making is based upon ………….. |
| A. | profit |
| B. | contribution |
| C. | costs |
| D. | none of these |
| Answer» B. contribution | |
| 834. |
Given sales = 150000, Fixed costs = 30000, Profit = 40000.The variablecost is…………. |
| A. | 110000 |
| B. | 80000 |
| C. | 120000 |
| D. | 10000 |
| Answer» C. 120000 | |
| 835. |
The Profit/Volume ratio or marginal ratio expresses the relation of …………to sales. |
| A. | profit |
| B. | marginal cost |
| C. | contribution |
| D. | none of these |
| Answer» D. none of these | |
| 836. |
Which of the following measures helps to increase the P/V Ratio ? |
| A. | increasing the selling price per unit |
| B. | reducing the variable or marginal cost |
| C. | changing the sales mixture |
| D. | all of these |
| Answer» E. | |
| 837. |
Given sales = 100000, Profit = 10000 , variable cost = 70%.The salesrequired to earn a profit of Rs.40000 is ……………………… |
| A. | 1500000 |
| B. | 100000 |
| C. | 200000 |
| D. | none of these |
| Answer» D. none of these | |
| 838. |
Marginal cost is the ……….cost of producing an additional unit of output |
| A. | variable |
| B. | fixed |
| C. | semi variable |
| D. | none of these |
| Answer» B. fixed | |
| 839. |
Profit Volume ratio is the ratio of ……………. To sales |
| A. | contribution |
| B. | profit |
| C. | sales |
| D. | none of these |
| Answer» B. profit | |
| 840. |
…………..is the angle caused by intersection of total cost line and totalsales line |
| A. | angle of contribution |
| B. | angle of incidence |
| C. | all of these |
| D. | none of these |
| Answer» C. all of these | |
| 841. |
At Break even point contribution will be equal to ……………. |
| A. | variable cost |
| B. | fixed cost |
| C. | profit |
| D. | none of these |
| Answer» C. profit | |
| 842. |
The ratio of contribution to ……………. Is called P/V ratio |
| A. | volume |
| B. | sales |
| C. | profit |
| D. | none of these |
| Answer» C. profit | |
| 843. |
Marginal cost is the aggregate of prime cost and ………………. |
| A. | fixed overheads |
| B. | variable overheads |
| C. | contribution |
| D. | none of these |
| Answer» C. contribution | |
| 844. |
When fixed cost is deducted from contribution, the balance will be ………. |
| A. | variable cost |
| B. | profit |
| C. | total cost |
| D. | sales |
| Answer» C. total cost | |
| 845. |
When sales are Rs.30000 and P/V ratio is 20% then contribution will be…. |
| A. | 2000 |
| B. | 4000 |
| C. | 6000 |
| D. | 8000 |
| Answer» D. 8000 | |
| 846. |
When fixed costs are Rs.4000 and P/v ratio is 25%, then break even pointwill be ………….. |
| A. | 40000 |
| B. | 20000 |
| C. | 16000 |
| D. | 10000 |
| Answer» D. 10000 | |
| 847. |
When profit is Rs.5000 and P/v ratio is 20% , Margin of safety is………… |
| A. | 10000 |
| B. | 25000 |
| C. | 30000 |
| D. | 50000 |
| Answer» C. 30000 | |
| 848. |
Fixed costs Rs.6000, Profit required Rs.4000 and P/v ratio is 50% , thensales required will be…………. |
| A. | 6000 |
| B. | 4000 |
| C. | 10000 |
| D. | 20000 |
| Answer» E. | |
| 849. |
Variable cost ratio is 60% Sales Rs.20000 and fixed cst Rs.5000, thenprofit will be …….. |
| A. | 15000 |
| B. | 12000 |
| C. | 3000 |
| D. | 10000 |
| Answer» D. 10000 | |
| 850. |
Responsibility Accounting is also called ……………. Accounting |
| A. | profitability |
| B. | management |
| C. | all of these |
| D. | none of these |
| Answer» B. management | |