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.
| 201. |
Liquid assets is determined by |
| A. | Current assets-stock-Prepaid expenses |
| B. | Current assets +stock+ prepaid expenses |
| C. | Current assets +Prepaid expenses |
| D. | None of the above |
| Answer» B. Current assets +stock+ prepaid expenses | |
| 202. |
Purchase of building by issue of debenture is a---------item and it is ignored in cash flow statement |
| A. | cash |
| B. | non-cash |
| C. | non-operating |
| D. | current |
| Answer» C. non-operating | |
| 203. |
In Management accounting,emphasis and focus should be |
| A. | future oriented |
| B. | past oriented |
| C. | communication oriented |
| D. | bank oriented |
| Answer» B. past oriented | |
| 204. |
Calculate Profit if Mos=40%,P/v ratio=50% and Actual Sales=10,00,000. |
| A. | 900000 |
| B. | 500000 |
| C. | 200000 |
| D. | 400000 |
| Answer» D. 400000 | |
| 205. |
The management accounting can be stated an extension of I)Cost Accounting II)Financial Accounting |
| A. | Only I |
| B. | Only II |
| C. | Both I and II |
| D. | None of the Above |
| Answer» D. None of the Above | |
| 206. |
Equity includes -------------- |
| A. | Equity share capital |
| B. | Equity share capital + Preference share capital+-fictitious asset |
| C. | Equity capital + Preference share capital + reserves And surplus-fictious asset |
| D. | Equity capital + Preference share capital |
| Answer» D. Equity capital + Preference share capital | |
| 207. |
Which of the following is non-current asset |
| A. | Goodwill |
| B. | Debtors |
| C. | Stock |
| D. | Prepaid rent |
| Answer» B. Debtors | |
| 208. |
Cost Accountant should report to the ……………management. |
| A. | top |
| B. | middle. |
| C. | administration |
| D. | lower |
| Answer» B. middle. | |
| 209. |
To arrive at funds from operation ,non-cash expenses must be added to---------- |
| A. | Net profit |
| B. | Gross profit |
| C. | Operating profit |
| D. | None of these |
| Answer» B. Gross profit | |
| 210. |
While calculating material mix variance, if revised standard quantity is greater than actual quantity, the variance is |
| A. | Unfavorable |
| B. | Favorable |
| C. | Neither favorable nor unfavorable |
| D. | None of the above |
| Answer» C. Neither favorable nor unfavorable | |
| 211. |
Sales margin variance due to sales quantities is measured as |
| A. | Standard profit - Revised standard profit |
| B. | Revised standard profit - Budgeted profit |
| C. | Standard profit + Revised standard profit |
| D. | Revised standard profit + Budgeted profit |
| Answer» C. Standard profit + Revised standard profit | |
| 212. |
Proposed dividend is a-------- |
| A. | Current liability |
| B. | Current asset |
| C. | Noncurrent liability |
| D. | Expense |
| Answer» B. Current asset | |
| 213. |
What are the characteristics of management accounting? |
| A. | Decision Making |
| B. | Internal Use |
| C. | Optional |
| D. | All of the above |
| Answer» E. | |
| 214. |
The process of budgeting helps in the control of |
| A. | Cost of production |
| B. | Liquidity |
| C. | Capital Expenditure |
| D. | All of the above |
| Answer» E. | |
| 215. |
Actual Sales=40,000 and Break Even Point =25,000.Calculate Margin of safety(MOS). |
| A. | 65000 |
| B. | 15000 |
| C. | 40000 |
| D. | 25000 |
| Answer» C. 40000 | |
| 216. |
External analysis is based on ------------- financial statements |
| A. | Annual |
| B. | Published |
| C. | Prepared |
| D. | Previous |
| Answer» C. Prepared | |
| 217. |
Depreciation is applied to non-current assets in the statement of financial position in order to |
| A. | show a profitability valuation of the non-current assets |
| B. | show a true and fair value of the non-current assets |
| C. | show how the non-current assets are affected by inflation |
| D. | show what the non-current assets could make if leased out |
| Answer» C. show how the non-current assets are affected by inflation | |
| 218. |
Factoring involves: |
| A. | providing short term loan |
| B. | providing long term loan |
| C. | financing of export receivables |
| D. | management of receivables of borrower |
| Answer» E. | |
| 219. |
What are the sales required to earn a profit of 12,000 if Fixed cost are 22,000 and P/V ratio is 25%. |
| A. | 136000 |
| B. | 40000 |
| C. | 8500 |
| D. | 2500 |
| Answer» B. 40000 | |
| 220. |
Management accounting has a ___________ scope than cost accounting |
| A. | Wider |
| B. | Narrower |
| C. | Smaller |
| D. | None of these |
| Answer» B. Narrower | |
| 221. |
Angle of incidence is the angle at which |
| A. | Total revenue line intersects the total cost line |
| B. | Total cost line intersects the variable cost line |
| C. | Variable cost line intersects fixed cost line |
| D. | Fixed cost line intersects total revenue line |
| Answer» B. Total cost line intersects the variable cost line | |
| 222. |
Which of the following is true about management accounting? A) Management accounting is associated with presentation of accounting data. B) Management accounting is extremely sensitive to investors needs. |
| A. | Only A |
| B. | Only B |
| C. | Both A and B |
| D. | None of the above |
| Answer» B. Only B | |
| 223. |
Which of the following is the basis of difference between Financial and Management Accounting? |
| A. | Publication and Audit |
| B. | Periodic v/s Continuos reporting |
| C. | Statutory Requirements |
| D. | All of the above |
| Answer» E. | |
| 224. |
If the actual price input is $700, the budgeted price of input is $400 and the actual quantity of input are 50 units, then the price variance will be |
| A. | $15,000 |
| B. | $13,000 |
| C. | $11,000 |
| D. | $9,000 |
| Answer» B. $13,000 | |
| 225. |
Budget is prepared for a… |
| A. | indefinite period |
| B. | definite period |
| C. | period of one year |
| D. | six months |
| Answer» C. period of one year | |
| 226. |
The ratio which is a good indicator to maintain the correct selling price and efficiency of trading activity is------ |
| A. | Net profit ratio |
| B. | Gross profit ratio |
| C. | Current ratio |
| D. | Liquid ratios |
| Answer» C. Current ratio | |
| 227. |
A department makes a product whose contribution per unit is £1,000, and which takes 20 hours machine time. A component used in this product with a marginal cost of £300 (taking 5 hours of machine time) could be purchased from an external supplier. The department is working at full capacity. What is the maximum price that the company may pay to buy the component from an external supplier? |
| A. | £550 |
| B. | £500 |
| C. | £575 |
| D. | £600 |
| Answer» B. £500 | |
| 228. |
The fixed administration expenses are Rs 50,000 at 10,000 units of production.What will be the per unit fixed cost at 8000 units? |
| A. | Rs 5 per unit |
| B. | Rs 8.33 |
| C. | Rs 6.25 per unit |
| D. | Rs 10 |
| Answer» D. Rs 10 | |
| 229. |
Coverage of fixed assets by shareholder’s equity is a good tests of---------------- |
| A. | solvency |
| B. | liquidity |
| C. | Activity |
| D. | profitability |
| Answer» B. liquidity | |
| 230. |
Proprietary ratio measures the relationship between share holder fund and ------------------ |
| A. | Total asset |
| B. | Fixed asset |
| C. | Current asset |
| D. | Fictious asset |
| Answer» B. Fixed asset | |
| 231. |
Liquidity ratios measure the --------- solvency of a firm |
| A. | Long term |
| B. | Short term |
| C. | Average |
| D. | Others |
| Answer» C. Average | |
| 232. |
While computation of profit in marginal costing |
| A. | Total marginal cost is deducted from total sales revenues |
| B. | Total marginal cost is added to total sales revenues |
| C. | Fixed cost is added to contribution |
| D. | None of the above |
| Answer» B. Total marginal cost is added to total sales revenues | |
| 233. |
Management accountancy is a structure for |
| A. | Costing |
| B. | Accounting |
| C. | Decision making |
| D. | Management |
| Answer» D. Management | |
| 234. |
The important objective of …………………..accounting is to organize theaccumulated financial data into meaningful information. |
| A. | financial accounting |
| B. | management accounting |
| C. | corporate accounting |
| D. | human resource accounting |
| Answer» B. management accounting | |
| 235. |
The funds required for running an organisation are generally called as ____________. |
| A. | overdraft |
| B. | cash credit |
| C. | working capital |
| D. | operating profit |
| Answer» D. operating profit | |
| 236. |
__do not give the returns during the same period during which they are paid for |
| A. | Intangible assets |
| B. | Fixed assets |
| C. | Both (A) and (B) |
| D. | None of the above |
| Answer» C. Both (A) and (B) | |
| 237. |
The Variable Cost in 2018 are |
| A. | Rs.2800000 |
| B. | Rs.3000000 |
| C. | Rs.3200000 |
| D. | Rs.3400000 |
| Answer» D. Rs.3400000 | |
| 238. |
The success of budgetary control system depends upon the willing cooperation of ….… |
| A. | Shareholders |
| B. | Management |
| C. | Creditors |
| D. | All the functional areas of management |
| Answer» E. | |
| 239. |
Software that has integrated system capability using real time data is |
| A. | enterprise resource planning software. |
| B. | on-line analytic programs. |
| C. | computer-assisted engineering software. |
| D. | none of the above. |
| Answer» B. on-line analytic programs. | |
| 240. |
Management accounting is also known as _______________ |
| A. | Price level accounting |
| B. | Historical accounting |
| C. | Decision accounting |
| D. | None of these |
| Answer» D. None of these | |
| 241. |
_________ function includes a firm’s attempts to balance cash inflows and outflows. |
| A. | finance |
| B. | liquidity |
| C. | investment |
| D. | dividend |
| Answer» C. investment | |
| 242. |
Return on equity capital is calculated on basis of: |
| A. | Funds of equity shareholders |
| B. | Equity capital only |
| C. | Either a or b |
| D. | None of the above |
| Answer» D. None of the above | |
| 243. |
Income tax paid should be shown separately as the cash flows from----------- activities. |
| A. | Financing |
| B. | Investing |
| C. | Operating |
| D. | Others |
| Answer» D. Others | |
| 244. |
The information to prepare a flexible budget includes: |
| A. | Total fixed cost, total variable cost |
| B. | Total fixed cost, total variable cost and capacity base |
| C. | Unit fixed cost and unit variable cost |
| D. | Total fixed cost, variable cost per unit, several levels of activity |
| Answer» E. | |
| 245. |
Stock at the end results in----------------------- |
| A. | Application of fund |
| B. | Source of fund |
| C. | Inflow of fund |
| D. | None of these |
| Answer» C. Inflow of fund | |
| 246. |
Given standard time per unit is 80 hours, standard time per hour @ Rs 1 per hour, actual time per unit is 90 hours and actual rate per hour @ Rs 1.10 per hour. Determine labour cost variance, labour rate variance and labour efficiency variance. |
| A. | Rs 11, Rs 22 and Rs 10 all unfavorable |
| B. | Rs 19, Rs 9 and Rs 10 all favorable |
| C. | Rs 19, Rs 9 and Rs 10 all unfavorable |
| D. | Rs 11, Rs 22 and Rs 10 all favorable |
| Answer» D. Rs 11, Rs 22 and Rs 10 all favorable | |
| 247. |
Example of leverage ratio |
| A. | Debtors velocity |
| B. | Stock turnover ratio |
| C. | Current ratio |
| D. | Solvency ratio |
| Answer» E. | |
| 248. |
Management accounting deals with |
| A. | Quantitative information |
| B. | Qualitative information |
| C. | Both a and b |
| D. | None of the above |
| Answer» D. None of the above | |
| 249. |
Margin of safety is equal to |
| A. | Actual sales – Sales at Breakeven point |
| B. | Actual sales + Sales at Breakeven point |
| C. | Actual sales x Sales at Breakeven point |
| D. | Actual sales / Sales at Breakeven point |
| Answer» B. Actual sales + Sales at Breakeven point | |
| 250. |
Determine B.E.P in units and amount if Units produced if Rs 10,000, Fixed cost is Rs 40,000, Selling price is Rs 50 per unit and Variable cost us Rs 30 per unit. |
| A. | Rs 40 per unit, Rs 2,00,000 |
| B. | Rs 50 per unit, Rs 10,00,000 |
| C. | Rs 20 per unit, Rs 1,00,000 |
| D. | None of the above |
| Answer» D. None of the above | |