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.
| 151. |
Long Term Solvency is indicated by: |
| A. | Current Ratio |
| B. | Debt / Equity Ratio |
| C. | Net Profit Ratio |
| D. | Gross Profit Ratio |
| Answer» C. Net Profit Ratio | |
| 152. |
Management accounting provides invaluable services to management in performing: |
| A. | All management functions |
| B. | Coordination functions |
| C. | Controlling functions |
| D. | Directing function |
| Answer» B. Coordination functions | |
| 153. |
The ratio which shows the relationship between borrowed funds and owners capital is --------------- |
| A. | Proprietary ratio |
| B. | Debt equity ratio |
| C. | Capital gearing ratio |
| D. | Fixed asset ratio |
| Answer» C. Capital gearing ratio | |
| 154. |
Horizontal analysis is also known as ----------------------- |
| A. | Static analysis |
| B. | Structural analysis |
| C. | Dynamic analysis |
| D. | None of these |
| Answer» D. None of these | |
| 155. |
Sale of patent is classified under--------- |
| A. | Investing activity |
| B. | Financing activity |
| C. | Operating activity |
| D. | None of these |
| Answer» B. Financing activity | |
| 156. |
_______ is designed after assessment of the volume of output to be produced during budgetperiod. |
| A. | Cost budget |
| B. | Sales budget |
| C. | Production budget |
| D. | None of the above |
| Answer» B. Sales budget | |
| 157. |
What is the main advantage of responsibility accounting ? |
| A. | Improves performance |
| B. | It fixes responsibility |
| C. | Helpful in decision making |
| D. | All of the above |
| Answer» E. | |
| 158. |
Financial Accounting data is primarily meant for ………………… |
| A. | external users |
| B. | internal users |
| C. | employees |
| D. | bank |
| Answer» B. internal users | |
| 159. |
Increase in current assets-------------working capital |
| A. | Increases |
| B. | Decreases |
| C. | Deducts |
| D. | Reduces |
| Answer» B. Decreases | |
| 160. |
Which of the following statements is NOT true about world-class firms? |
| A. | World-class firms are firms that are poor in customer support. |
| B. | World-class firms know their market and their products. |
| C. | World-class firms strive continually to improve product design, manufacture, and delivery. |
| D. | World-class firms can compete with the best of the best in a global environment. |
| Answer» B. World-class firms know their market and their products. | |
| 161. |
Salaries Rs.20000,depreciation for the period is Rs.30000 other operating expenses are Rs.9000, net loss for the period is Rs.5000 fund generated from operation is------------------ |
| A. | Rs.25000 |
| B. | Rs.15000 |
| C. | Rs.35000 |
| D. | Rs.14000 |
| Answer» B. Rs.15000 | |
| 162. |
To produce Product A 2 kg of material X at Rs 10 per kg is required . During February 800 units of Product, A were produced. Actual price paid for material X is Rs 9 per kg and total cost Rs 15,300. Determine material cost variance. |
| A. | Rs 700 favorable |
| B. | Rs 700 unfavorable |
| C. | Inadequate data |
| D. | None of the above |
| Answer» B. Rs 700 unfavorable | |
| 163. |
Budgetary control system defines the objectives and policies of the - |
| A. | Production department |
| B. | Finance department |
| C. | Marketing department |
| D. | Subjective matter |
| Answer» E. | |
| 164. |
The prime function of accounting is to: |
| A. | record economic data |
| B. | provide the informational basis for action |
| C. | classify and record business transactions |
| D. | attain non-economic goals. |
| Answer» C. classify and record business transactions | |
| 165. |
Cash flow statement is prepared by taking the ------------- balance of cash |
| A. | Opening balance |
| B. | Closing balance |
| C. | Monthly balance |
| D. | Others |
| Answer» B. Closing balance | |
| 166. |
Budgetary control helps the management in… |
| A. | obtaining bank credit |
| B. | issue of shares |
| C. | getting grants from government |
| D. | all of these |
| Answer» B. issue of shares | |
| 167. |
Flexible budgets are useful for |
| A. | Planning purpose only |
| B. | Planning, performance evaluation and feedback control |
| C. | Control of performance only |
| D. | Nothing at all |
| Answer» C. Control of performance only | |
| 168. |
Key factor is also known as - |
| A. | Limiting factor |
| B. | Governing factor |
| C. | Principal factor |
| D. | All of the above |
| Answer» E. | |
| 169. |
Firms which are capital intensive rely on _________. |
| A. | equity |
| B. | short term debt |
| C. | debt |
| D. | retained earnings |
| Answer» D. retained earnings | |
| 170. |
The ratio which depicts the relationship between two items, one of which is drawn from the Balance Sheet and the other from the revenue account |
| A. | Current ratio |
| B. | Equity Ratio |
| C. | Net Profit ratio |
| D. | Debtors Turn over Ratio |
| Answer» E. | |
| 171. |
Working capital=45,000 ,Total Debt=1,00,000 , LT debt=70,000, what is value of Current assets? |
| A. | 30000 |
| B. | 15000 |
| C. | 25000 |
| D. | 75000 |
| Answer» E. | |
| 172. |
Preliminary expenses written off is-------- |
| A. | Cash transaction |
| B. | Non-cash transaction |
| C. | Credit transaction |
| D. | None of the above |
| Answer» C. Credit transaction | |
| 173. |
Direct material cost + direct labor cost + other variable costs is equal to… |
| A. | Contribution |
| B. | Total cost |
| C. | Marginal cost |
| D. | Sales |
| Answer» B. Total cost | |
| 174. |
Following is (are) the method(s) of measuring labour turnover. |
| A. | Replacement Method |
| B. | Separation Method |
| C. | Flux Method |
| D. | All of the above |
| Answer» E. | |
| 175. |
If selling price is fixed 25% above the cost, the Gross Profit Ratio is |
| A. | 13% |
| B. | 28% |
| C. | 26% |
| D. | 20% |
| Answer» E. | |
| 176. |
Publication of management accounting statements are ______________ |
| A. | Compulsory |
| B. | Not optional |
| C. | Optional |
| D. | None of these |
| Answer» C. Optional | |
| 177. |
Revision of budgets is… |
| A. | unnecessary |
| B. | can’t determine |
| C. | necessary |
| D. | inadequate data |
| Answer» D. inadequate data | |
| 178. |
A firm has Capital of Rs. 10,00,000; Sales of Rs. 5,00,000; Gross Profit of Rs. 2,00,000 and Expenses of Rs. 1,00,000. What is the Net Profit Ratio? |
| A. | 20% |
| B. | 50% |
| C. | 10% |
| D. | 40% |
| Answer» D. 40% | |
| 179. |
What are the objectives of Cost accounting?I)Cost Ascertainment II)Cost Control |
| A. | Only I |
| B. | Both I & II |
| C. | Only II |
| D. | None of the Above |
| Answer» C. Only II | |
| 180. |
A budgeting process which demands each manager to justify his entire budget indetail from beginning is |
| A. | functional budget |
| B. | master budget |
| C. | zero base budgeting |
| D. | none of the above |
| Answer» D. none of the above | |
| 181. |
For preparing an effective budget it needs accounting information which is |
| A. | Structured around the past data need of the management |
| B. | Structured around the line communication needs of the management |
| C. | Structured around financial needs of the management |
| D. | Structured around the planning and control needs of the management |
| Answer» E. | |
| 182. |
Opportunity cost helps in: |
| A. | Ascertainment of cost |
| B. | Controlling cost |
| C. | Making managerial decisions |
| D. | Fixing selling price |
| Answer» D. Fixing selling price | |
| 183. |
In responsibility accounting system - |
| A. | Budgets are prepared |
| B. | Actual performance is recorded |
| C. | The performance is reported |
| D. | All of the above |
| Answer» E. | |
| 184. |
The labour engaged in the making of a product is known as _______ |
| A. | Direct labour |
| B. | Indirect labour |
| C. | Temporary labour |
| D. | None of the above |
| Answer» B. Indirect labour | |
| 185. |
Cash flow statement is based on---------- |
| A. | Cash basis of accounting |
| B. | Accounting equation |
| C. | Accrual basis of accounting |
| D. | None of these |
| Answer» B. Accounting equation | |
| 186. |
Cost Unit is defined as - |
| A. | Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed |
| B. | A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control. |
| C. | Centres having the responsibility of generating and maximising profits |
| D. | Centres concerned with earning an adequate return on investment |
| Answer» B. A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control. | |
| 187. |
The term management accounting was used in |
| A. | 1950 |
| B. | 1939 |
| C. | 1910 |
| D. | 1947 |
| Answer» B. 1939 | |
| 188. |
Cost accounting |
| A. | is concerned with assigning costs to various cost objects. |
| B. | attempts to satisfy the costing objectives of both financial accounting and management accounting. |
| C. | provides cost information that supports planning, controlling, and decision making. |
| D. | All of the above descriptions are true. |
| Answer» E. | |
| 189. |
Under absorption costing, managerial decisions are based on |
| A. | Profit |
| B. | Contribution |
| C. | Profit volume ratio |
| D. | None of the above |
| Answer» B. Contribution | |
| 190. |
Cost Accounting restrict itself with _______ transactions. |
| A. | Financial |
| B. | Spot |
| C. | Historical |
| D. | Administrative |
| Answer» D. Administrative | |
| 191. |
Overhead Cost is the total of |
| A. | All Direct Cost |
| B. | All Indirect Cost |
| C. | All Specific Cost |
| D. | All Indirect and Direct Cost |
| Answer» C. All Specific Cost | |
| 192. |
Increase in working capital is----------------------- |
| A. | Source of fund |
| B. | Application of fund |
| C. | Funds from operation |
| D. | Loss from operation |
| Answer» C. Funds from operation | |
| 193. |
Performance reports are accounting reports that compare |
| A. | planned data with actual data. |
| B. | audited data with actual data. |
| C. | managers' bonuses with performance ratings by supervisors. |
| D. | actual data with industry standards. |
| Answer» B. audited data with actual data. | |
| 194. |
Which of the following are techniques, tools or methods of analysis andinterpretation of financial statements? |
| A. | ratio analysis |
| B. | average analysis |
| C. | trend analysis |
| D. | all of the above |
| Answer» E. | |
| 195. |
According to ________ working capital refers to the difference between current assets andcurrent liabilities. |
| A. | equal concept |
| B. | accounting concept |
| C. | net concept |
| D. | gross concept |
| Answer» D. gross concept | |
| 196. |
Capitalization is the sum of a corporation’s stock, long term debts &________? |
| A. | liquid liability |
| B. | retained earnings |
| C. | fixed asset. |
| D. | short term debts. |
| Answer» C. fixed asset. | |
| 197. |
Cash outflow on purchases is calculated by |
| A. | Purchases + Opening Creditors + Opening B/P – Closing Creditors - Closing B/P |
| B. | Purchases + Opening Creditors - Closing Creditors + Closing B/P |
| C. | Purchases - Opening Creditors - Opening B/P + Closing Creditors + Closing B/P |
| D. | None of the above |
| Answer» B. Purchases + Opening Creditors - Closing Creditors + Closing B/P | |
| 198. |
Debtors turnover ratio also known as---------- |
| A. | Payable turnover |
| B. | Receivable turnover ratio |
| C. | Creators turnover ratio |
| D. | Debtors velocity |
| Answer» C. Creators turnover ratio | |
| 199. |
Permanent working capital ___________. |
| A. | varies with seasonal needs. |
| B. | includes fixed assets. |
| C. | is the amount of current assets required to meet a firm\s long-term minimum needs. |
| D. | includes accounts payable. |
| Answer» D. includes accounts payable. | |
| 200. |
Absorption costing is also known as |
| A. | Historical costing |
| B. | Total costing |
| C. | Both a and b |
| D. | None of the above |
| Answer» D. None of the above | |