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.
| 101. |
Management accounting and financial accounting differ in that management accountinginformation 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. | |
| 102. |
Sales budget shows the sales details as - |
| A. | Month wise |
| B. | Product wise |
| C. | Area wise |
| D. | All of the above |
| Answer» E. | |
| 103. |
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 | |
| 104. |
A budget centre is - |
| A. | Department or part of the department |
| B. | Meeting place for budget committee |
| C. | Office of the budget officer |
| D. | None of the above |
| Answer» B. Meeting place for budget committee | |
| 105. |
The contribution of accounting department in an organization - |
| A. | Cannot be measured in monetary terms |
| B. | Can be measured in monetary terms |
| C. | May or may not be measured in monetary terms |
| D. | None of the above |
| Answer» B. Can be measured in monetary terms | |
| 106. |
Ratio of net profit before interest and tax to sales is------------------------------ |
| A. | Solvency ratio |
| B. | Capital gearing |
| C. | Operating profit ratio |
| D. | None of these |
| Answer» D. None of these | |
| 107. |
Management accounting provides valuable services to management in performing ____ |
| A. | Coordinating functions |
| B. | Controlling functions |
| C. | Planning functions |
| D. | All managerial functions |
| Answer» E. | |
| 108. |
The wages due from Mar 20 ,Apr 20 and May 20 are Rs8000,Rs9000 and Rs 10,000 respectively.There is delay in payment of wages of 2 months.What will be the wages paid in May 20 in the Cash Budget. |
| A. | Rs 9000 |
| B. | Rs 8000 |
| C. | Rs 10000 |
| D. | Rs 27000 |
| Answer» C. Rs 10000 | |
| 109. |
In a product mix decision, which is the most important factor to consider to try to maximise profit? |
| A. | Product unit selling price |
| B. | Contribution per unit of a scarce resource used to make the product |
| C. | Contribution per unit of the product |
| D. | Variable cost per unit of the product |
| Answer» C. Contribution per unit of the product | |
| 110. |
Which of the following are tools of management accounting? A) Decision accounting B) Standard costing C) Budgetary control D) Human Resources Accounting |
| A. | A, B and D |
| B. | A, C and D |
| C. | A, B and C |
| D. | A, B , C, D |
| Answer» D. A, B , C, D | |
| 111. |
Which statement is true.I)Financial accounts are prepared according to Accounting Standards. II)Management Accounting reports are also prepared according to accounting standard. |
| A. | Only II |
| B. | Both I and II |
| C. | Only I |
| D. | None is true |
| Answer» D. None is true | |
| 112. |
Which of the following statements are true?(a) Marginal costing is not an independent system of costing.(b) In marginal costing all elements of cost are divided into fixed and variable components.(c) In marginal costing fixed costs are treated as product cost.(d) Marginal costing is not a technique of cost analysis. |
| A. | A and B |
| B. | B and C |
| C. | A and D |
| D. | B and D |
| Answer» B. B and C | |
| 113. |
In Cash budget, Non operating cash inflow include(s) |
| A. | Receipt of loan/borrowings |
| B. | Issue of shares |
| C. | Sale of fixed assets |
| D. | All of the above |
| Answer» E. | |
| 114. |
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 | |
| 115. |
The operating profit and net sale of a firm are rs.2,00,000 and rs.10,00,000 respectively then operating ratio will be |
| A. | 20% |
| B. | 5% |
| C. | 50% |
| D. | 20% |
| Answer» B. 5% | |
| 116. |
Net decrease in working capital results in --------------------of funds |
| A. | Source |
| B. | Application |
| C. | No change |
| D. | None of these |
| Answer» C. No change | |
| 117. |
Element/s of Cost of a product are - |
| A. | Material only |
| B. | Labour only |
| C. | Expenses only |
| D. | Material, Labour and expenses |
| Answer» E. | |
| 118. |
The form of balance sheet is |
| A. | Vertical |
| B. | Horizontal |
| C. | Horizontal and vertical |
| D. | Horizontal or vertical |
| Answer» E. | |
| 119. |
Proposed dividend is classified as----------- |
| A. | Investing activity |
| B. | Financing activity |
| C. | Operating activity |
| D. | Cash equivalent |
| Answer» D. Cash equivalent | |
| 120. |
The responsibility accounting is the part of - |
| A. | Financial accounting |
| B. | Management accounting |
| C. | Mechanized accounting |
| D. | None of these |
| Answer» C. Mechanized accounting | |
| 121. |
Recording of actual performance is…. |
| A. | an advantage of budgetary control |
| B. | a step in budgetary control |
| C. | a limitation of budgetary control |
| D. | none |
| Answer» C. a limitation of budgetary control | |
| 122. |
If the current assets and working capital of a company are rs.80,000 and rs.50000 then current liability will be------------- |
| A. | Rs.1,00,000 |
| B. | Rs.1,30,000 |
| C. | Rs.70000 |
| D. | Rs.30000 |
| Answer» E. | |
| 123. |
Marginal Cost is the aggregate of all |
| A. | Fixed overheads |
| B. | Variable Costs |
| C. | Contribution Costs |
| D. | Work Cost |
| Answer» C. Contribution Costs | |
| 124. |
Market price per share divided by earnings per share is------- |
| A. | Price earning ratio |
| B. | Return on equity |
| C. | Market test ratio |
| D. | Book value per share |
| Answer» B. Return on equity | |
| 125. |
Fixed cost per unit increases when: |
| A. | Production volume decreases |
| B. | Production volume increases |
| C. | Variable cost per unit decreases |
| D. | None of the above |
| Answer» E. | |
| 126. |
Buy back of shares is shown under----------------------- |
| A. | operating activities |
| B. | investing activities |
| C. | financing activities |
| D. | none of these |
| Answer» D. none of these | |
| 127. |
Which of the following is not an inflow of cash |
| A. | Sale of fixed asset |
| B. | Issue of debentures for cash |
| C. | Funds from operation |
| D. | Acquisition of assets |
| Answer» E. | |
| 128. |
XYZ factory working for 50 hours per week employs hundred workers on a job work. The standard output is 200 units per gang hour and standard rate is Rs 1 per hour. During a week in June, five employees were paid @ Rs 1.20 per hour and ten employees were paid @ 80 paise per hour. Rest of the employees were paid @ standard hour rate. The actual number of units produced was 10,200. Determine labour cost variance |
| A. | Rs 100 favourable |
| B. | Rs 150 unfavourable |
| C. | Rs 150 favourable |
| D. | Rs 100 unfavourable |
| Answer» D. Rs 100 unfavourable | |
| 129. |
Balance sheet indicates the financial status of the business ____. |
| A. | For a day |
| B. | For a month |
| C. | For a year |
| D. | At given period |
| Answer» E. | |
| 130. |
What is included in scope of management accounting? I)Internal Control II)Budgeting III)Reporting to management IV)Office Services |
| A. | Only II,III,IV |
| B. | ALL I,II,III,IV |
| C. | Only II and IV |
| D. | Only I,II,IV |
| Answer» C. Only II and IV | |
| 131. |
The budget committee consists of - |
| A. | Managers |
| B. | Budget officers |
| C. | Creditors |
| D. | None of the above |
| Answer» C. Creditors | |
| 132. |
Which is the mostly likely purpose of budgeting? |
| A. | Planning and control of an organization's income and expenditure |
| B. | Preparation of a five-year business plan |
| C. | Company valuation |
| D. | Assess the non-financial performance of an organization |
| Answer» B. Preparation of a five-year business plan | |
| 133. |
Budgetary control system facilitates centralized control with… |
| A. | decentralized activity |
| B. | centralized activity |
| C. | both |
| D. | none |
| Answer» D. none | |
| 134. |
Permanent working capital ___ |
| A. | will vary at all times |
| B. | will vary with volumes |
| C. | fixed at all times |
| D. | fluctuates according to the season |
| Answer» D. fluctuates according to the season | |
| 135. |
Yr 2019 :sales 1,20,000 and Profit8,000 ;Yr 2020:Sales 1,40,000 an profit 13,000.Calculate P/v ratio. |
| A. | 25% |
| B. | 40% |
| C. | 30% |
| D. | 35% |
| Answer» B. 40% | |
| 136. |
Which of the following is not the limitation of Management Accounting?I)Developing Stage II)Resistance from Staff III)Lack of wide knowledge IV)Decision Making |
| A. | Only I,II,III |
| B. | Both I & IV |
| C. | Only IV |
| D. | Only I |
| Answer» D. Only I | |
| 137. |
Stock in the beginning results in----------- |
| A. | Application of funds |
| B. | Source of fund |
| C. | Inflow of fund |
| D. | None of these |
| Answer» B. Source of fund | |
| 138. |
Profit volume ratio can be improved by |
| A. | Reducing variable cost |
| B. | Reducing the selling price |
| C. | Increasing the fixed cost |
| D. | Increasing the key factor |
| Answer» B. Reducing the selling price | |
| 139. |
If average T/R are 1,00,000 ,Closing T/R are 3 times that of opening T/R .What is Closing T/R? |
| A. | 200000 |
| B. | 75000 |
| C. | 150000 |
| D. | 50000 |
| Answer» D. 50000 | |
| 140. |
What are people who buy or sell in the market to make profits called? |
| A. | hedgers |
| B. | speculators |
| C. | arbitrageurs |
| D. | none of the above |
| Answer» C. arbitrageurs | |
| 141. |
Cash from Operations is equal to: |
| A. | Net Profit plus increase in outstanding Expenses |
| B. | Net Profit plus increase in Debtors |
| C. | Net Profit plus increase in Stock |
| D. | Net Profit |
| Answer» B. Net Profit plus increase in Debtors | |
| 142. |
What indicate the relationship of different items of a financial statement with some common item by expressing each item as a percentage of the common item. |
| A. | Comparative Statements |
| B. | Ratio |
| C. | Common size Statements |
| D. | None of the Above |
| Answer» D. None of the Above | |
| 143. |
In what order should current assets be present on a statement of financial position? |
| A. | cash, bank, trade receivables, inventories |
| B. | trade receivables, bank, cash, inventories |
| C. | inventories, cash, bank, trade receivables |
| D. | inventories, trade receivables, bank, cash |
| Answer» E. | |
| 144. |
Which of the following is not an advantages of trade credit? |
| A. | easy availability |
| B. | flexibility |
| C. | informality |
| D. | buyout financing |
| Answer» E. | |
| 145. |
Variable cost per unit: |
| A. | Remains fixed |
| B. | Fluctuates with the volume of production |
| C. | Varies in sympathy with ‘the volume of sales. |
| D. | None of the above |
| Answer» C. Varies in sympathy with ‘the volume of sales. | |
| 146. |
Internal transfer of process at profit _________ of the company. |
| A. | Will not increase the asset |
| B. | Will increase the asset |
| C. | Can’t say |
| D. | Inadequate information |
| Answer» B. Will increase the asset | |
| 147. |
Material yield variance arises when |
| A. | Actual output > Standard output |
| B. | Actual output < Standard output |
| C. | Both a and b |
| D. | None of the above |
| Answer» D. None of the above | |
| 148. |
The objectives of Cash Flow Statement are (i) Analysis of cash position(ii) Short-term cash planning(iii) Evaluation of liquidity(iv) Comparison of operating Performance |
| A. | Both A and B |
| B. | Both A and C |
| C. | Both B and D |
| D. | A, B, C, D |
| Answer» E. | |
| 149. |
Which statement is true.I)Fixed budget assumes Changing business conditions. II)Flexible budget is prepared for only onelevel of activity. |
| A. | None is true |
| B. | Both are true |
| C. | Only I |
| D. | Only II |
| Answer» B. Both are true | |
| 150. |
An example of fixed asset is________. |
| A. | live stock. |
| B. | value stock. |
| C. | income stock. |
| D. | all of the above. |
| Answer» B. value stock. | |