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.
| 51. |
AS-3 is related to |
| A. | Cash flow statement |
| B. | Funds flow statement |
| C. | Balance sheet |
| D. | Income statements |
| Answer» B. Funds flow statement | |
| 52. |
The ________ ratios help determines the degree of financial risk and earningsvolatility present in a firm. |
| A. | profitability |
| B. | asset utilization |
| C. | liquidity |
| D. | none of the above. |
| Answer» D. none of the above. | |
| 53. |
Under ------------------------ each item of expenses taken as a percentage on net sales |
| A. | Comparative income statement |
| B. | Comparative balance sheet |
| C. | Common size Balance sheet |
| D. | Common size Income Statement |
| Answer» E. | |
| 54. |
Current assets are Rs.6,00,000 current liabilities are Rs.3,00,000 the debtors realized Rs.40,000, the impact on net working capital would be------------------------- |
| A. | No change in working capital |
| B. | Decrease of working capital by Rs.80,000 |
| C. | Increase of working capital by Rs.40,000 |
| D. | None of these |
| Answer» B. Decrease of working capital by Rs.80,000 | |
| 55. |
Labour Efficiency Variance is the sum total of I)Labour Mix variance II)Labour Cost Variance III)Idle time Variance IV)Labouryield variance |
| A. | Only I and IV |
| B. | All |
| C. | Only II and III |
| D. | Only I,III and IV |
| Answer» E. | |
| 56. |
SH=800 Hours,AR=Rs 7 ,SR=6,AH=750 Hours.Calculate labour rate variance(LRV). |
| A. | 750 A |
| B. | 300 F |
| C. | 300 A |
| D. | 750 F |
| Answer» B. 300 F | |
| 57. |
Which of the following financial statements is also known as a statement offinancial position? |
| A. | balance sheet |
| B. | statement of cash flows |
| C. | income statement |
| D. | none of the above |
| Answer» B. statement of cash flows | |
| 58. |
In the case of financial enterprises, the cash flow resulting from interest and dividend received and interest paid should be classified as cash flow from |
| A. | Operating activities |
| B. | Financing activities |
| C. | Investing activities |
| D. | None of the above |
| Answer» B. Financing activities | |
| 59. |
When the sales increase from Rs. 40,000 to Rs. 60,000 and profit increases by Rs. 5,000,the P/V ratio is - |
| A. | 20% |
| B. | 30% |
| C. | 25% |
| D. | 40% |
| Answer» D. 40% | |
| 60. |
Given selling price is Rs 10 per unit, variable cost is Rs 6 per unit and fixed cost is Rs 5,000. What is break-even point? |
| A. | 500 units |
| B. | 1,000 units |
| C. | 1,250 units |
| D. | None of the above |
| Answer» D. None of the above | |
| 61. |
If total cost of 100 units is Rs 5000 and those of 101 units is Rs. 5030 then increase of Rs. 30 in total cost is |
| A. | Marginal cost |
| B. | Prime cost |
| C. | All Fixed overheads |
| D. | None of the above |
| Answer» B. Prime cost | |
| 62. |
Salary outstanding is----- of funds |
| A. | Source |
| B. | Inflow |
| C. | Application |
| D. | No change |
| Answer» D. No change | |
| 63. |
The Break-Even Point sales are |
| A. | Rs.2000000 |
| B. | Rs.2500000 |
| C. | Rs.3000000 |
| D. | Rs. 4000000 |
| Answer» D. Rs. 4000000 | |
| 64. |
Current ratio is an example of -------------------- |
| A. | Leverage ratio |
| B. | Liquidity ratio |
| C. | Activity ratio |
| D. | Turnover ratio |
| Answer» C. Activity ratio | |
| 65. |
Net increase in working capital results in----------------of funds |
| A. | source |
| B. | Inflow |
| C. | no change |
| D. | application |
| Answer» E. | |
| 66. |
Which of the following statements are true about responsibility accounting? |
| A. | Responsibility accounting results in inter-departmental conflicts |
| B. | In responsibility center more focus is paid on products, processes or jobs |
| C. | No focus is paid on controlling costs |
| D. | None of the above |
| Answer» B. In responsibility center more focus is paid on products, processes or jobs | |
| 67. |
_________ indicates the financial status of the business at given period. |
| A. | Balance sheet |
| B. | Accounting ledger |
| C. | General ledger |
| D. | All of the above |
| Answer» B. Accounting ledger | |
| 68. |
The definition ‘Management Accounting is the presentation of accounting information in such a way as to assist management in the creation of policy and the day-to-day operation of an undertaking.’ |
| A. | Anglo-American Council on Productivity |
| B. | AICPA |
| C. | Robert N. Anthony |
| D. | All of the above |
| Answer» B. AICPA | |
| 69. |
Overhead refers to - |
| A. | Direct or Prime Cost |
| B. | All Indirect costs |
| C. | Only Factory indirect costs |
| D. | Only indirect expenses |
| Answer» C. Only Factory indirect costs | |
| 70. |
Data in management accounting is derived from |
| A. | Cost Accounting |
| B. | Financial Accounting |
| C. | Other Sources |
| D. | All of the above |
| Answer» E. | |
| 71. |
The area of focus on responsibility center is |
| A. | Quantum of sales |
| B. | Quantum of production |
| C. | Optimum utilization of resources |
| D. | All of the above |
| Answer» D. All of the above | |
| 72. |
Ratios may be used as a measure of ------------- |
| A. | Efficiency |
| B. | Solvency |
| C. | Profitability |
| D. | None of the above |
| Answer» B. Solvency | |
| 73. |
Management accounting involves |
| A. | Preparation of financial statements |
| B. | Analysis and interpretation of data |
| C. | Recording of transactions |
| D. | None of the above |
| Answer» C. Recording of transactions | |
| 74. |
Which of the following matter is relevant with cash receipts and disbursement method ofpreparing Cash Budget ? |
| A. | While determining the cash payments, it is necessary to estimate the credit sales. |
| B. | While estimating cash receipts, it is not necessary to estimate the figure of credit sales. |
| C. | Debtors Ratio is used to estimate the timings when cash collections would be obtained from credit sales. |
| D. | While estimating the total amount of cash payment for purchases, it is necessary to decide from which suppliers materials are to be purchased. |
| Answer» D. While estimating the total amount of cash payment for purchases, it is necessary to decide from which suppliers materials are to be purchased. | |
| 75. |
Which of the following costing activities is associated with the financial accountingsystem? |
| A. | determining the cost of a department |
| B. | determining the cost of goods sold for financial statements |
| C. | preparing budgets |
| D. | determining the cost of a customer |
| Answer» C. preparing budgets | |
| 76. |
According to ________ working capital refers to the company’s total investment in currentassets. |
| A. | net concept |
| B. | gross concept |
| C. | equal concept |
| D. | accounting concept |
| Answer» C. equal concept | |
| 77. |
_________ is stated as a budget which is made to change as per the levels of activity attained. |
| A. | Fixed budget |
| B. | Flexible budget |
| C. | Both a and b |
| D. | None of the above |
| Answer» C. Both a and b | |
| 78. |
The main aim of the ratio analysis is to help the ----------of the firm |
| A. | Owners |
| B. | Officials |
| C. | Departments |
| D. | Management |
| Answer» E. | |
| 79. |
In deciding the appropriate level of current assets for the firm, management is confrontedwith_____________. |
| A. | a trade-off between profitability and risk. |
| B. | a trade-off between liquidity and marketability. |
| C. | a trade-off between equity and debt. |
| D. | a trade-off between current assets and profitability. |
| Answer» B. a trade-off between liquidity and marketability. | |
| 80. |
A budget is a plan of action expressed in… |
| A. | financial terms |
| B. | non‐financial terms |
| C. | both |
| D. | subjective matter |
| Answer» D. subjective matter | |
| 81. |
The ideal level of current ratio is |
| A. | 4:2 |
| B. | 2:1 |
| C. | both a and b |
| D. | none of the above |
| Answer» C. both a and b | |
| 82. |
Which of the following is/are the responsibilty centres.I)Cost centre II)Investment Centre III)Profit center IV)Revenue Centre |
| A. | All |
| B. | Only I,II and III |
| C. | Only I and IV |
| D. | Only II,III and IV |
| Answer» B. Only I,II and III | |
| 83. |
Which of the following system emphasizes on cost control ? |
| A. | Cost accounting |
| B. | Responsibility accounting |
| C. | Financial accounting |
| D. | None of these |
| Answer» C. Financial accounting | |
| 84. |
Shut down cost is: |
| A. | Avoidable Fixed Cost |
| B. | Unavoidable Fixed Cost |
| C. | Avoidable Variable Cost |
| D. | Unavoidable Variable Cost |
| Answer» C. Avoidable Variable Cost | |
| 85. |
Budgetary control provides a basis for… |
| A. | bonus shares |
| B. | rights shares |
| C. | remuneration plans |
| D. | none |
| Answer» D. none | |
| 86. |
…………………..costs are pre-determined targets adainst which actual resultsare evaluated. |
| A. | marginal |
| B. | standard |
| C. | actual |
| D. | budgeted |
| Answer» C. actual | |
| 87. |
Which of the following does not affect working capital--------- |
| A. | Bank overdraft |
| B. | Debenture |
| C. | Cash |
| D. | Bank |
| Answer» C. Cash | |
| 88. |
Management accounting and cost accounting functions are -------------------------- |
| A. | Neutral in effect |
| B. | Complementary in nature |
| C. | Contradictory in nature |
| D. | None of these |
| Answer» C. Contradictory in nature | |
| 89. |
Profit on sale of machinery comes under------------ |
| A. | Investing activity |
| B. | Financing activity |
| C. | Operating activity |
| D. | None of these |
| Answer» D. None of these | |
| 90. |
The financial decision making that relates to current assets or short term asset is known as__________________. |
| A. | working capital |
| B. | non-working capital |
| C. | venture capital |
| D. | all of the above |
| Answer» B. non-working capital | |
| 91. |
………………………Accounting is concerned with measurement of thecost and value of people for the organization. |
| A. | financial accounting |
| B. | management accounting |
| C. | corporate accounting |
| D. | human resource accounting |
| Answer» E. | |
| 92. |
Decrease in a creditor is a---------------- of cash |
| A. | Inflow |
| B. | No flow of cash |
| C. | Outflow |
| D. | None of these |
| Answer» D. None of these | |
| 93. |
Frequent revision of budgets will… |
| A. | affects its reliability |
| B. | increase the accuracy |
| C. | both |
| D. | subjective matter |
| Answer» B. increase the accuracy | |
| 94. |
In context of net operating profit, which of the following statements are true? |
| A. | If all costs are variable, the amount of profit obtained in marginal costing and absorption costing will be same. |
| B. | If the volume of sales and output is equal in a period, profit will be same in absorption costing and marginal costing. |
| C. | Both a and b |
| D. | None of the above |
| Answer» D. None of the above | |
| 95. |
Which of the following falls under Profitability ratios?(a) General Profitability ratios(b) Overall Profitability ratios(c) Comprehensive Profitability ratios |
| A. | A and B |
| B. | A and C |
| C. | B and C |
| D. | None of the above |
| Answer» B. A and C | |
| 96. |
Which of the following will affect the flow of fund |
| A. | a transaction affecting current and non-current accounts |
| B. | a transaction affecting both non-current accounts |
| C. | a transaction affecting both current accounts |
| D. | both a) and b) |
| Answer» B. a transaction affecting both non-current accounts | |
| 97. |
When ratios are calculated from the financial statements of one year, it is known as --------------------- |
| A. | Horizontal analysis |
| B. | Vertical analysis |
| C. | Internal Analysis |
| D. | External analysis |
| Answer» C. Internal Analysis | |
| 98. |
In trend percentage the base year is ---------------------------- |
| A. | The first year |
| B. | Last year |
| C. | Any year |
| D. | Second year |
| Answer» B. Last year | |
| 99. |
When selling price is Rs.200 Per unit, Variable Cost Rs.150 per unit and Fixed Cost is Rs.50000 at which capacity level the cost per unit would be minimum. |
| A. | 50% |
| B. | 60% |
| C. | 75% |
| D. | 85% |
| Answer» E. | |
| 100. |
From following which is not a routine report ? |
| A. | Production report |
| B. | Sales report |
| C. | Investigation |
| D. | Administration report |
| Answer» D. Administration report | |