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.
| 301. |
Labour Efficiency Variance is the sum total of I)Labour Mix variance II)Labour Cost Variance III)Idle time Variance IV)Labour yield variance |
| A. | Only I and IV |
| B. | All |
| C. | Only II and III |
| D. | Only I,III and IV |
| Answer» E. | |
| 302. |
Which matters are taken into consideration while preparing production budget ? |
| A. | The estimate of the number of units to be produced during the budget period. |
| B. | Estimate of number of units to be sold. |
| C. | Policy regarding the wage fixation for labourers. |
| D. | Policy regarding the selection of suppliers from whom materials would be purchased. |
| Answer» B. Estimate of number of units to be sold. | |
| 303. |
Quick assets do not include I)Prepaid Expense II)Advance Tax III)Marketable securities IV)Inventory |
| A. | Only I,II and IV |
| B. | Only III |
| C. | All I,II,III,IV |
| D. | Only II and III |
| Answer» B. Only III | |
| 304. |
The Moore Corporation is considering the acquisition of a new machine. The machine can be purchased for $90000; it will cost $6000 to transport to Moore’s plant and $9,000 to install. It is estimated that the machine will last 10 years, and it is expected to have an estimated salvage value of $5,000. Over its 10-year life, the machine is expected to produce 2,000 units per year, each with a selling price of $500 and combined material and labour costs of $450 per unit. Federal tax regulations permit machines of this type to be depreciated using the straight-line method over 5 years with no estimated salvage value. Moore has a marginal tax rate of 40%. What is the net cash flow for the tenth year of the project that Moore Corporation should use in a capital budgeting analysis? |
| A. | $100000 |
| B. | $91000 |
| C. | $68400 |
| D. | $63000 |
| Answer» E. | |
| 305. |
P/V ratio can be calculated on the basis of variable cost ratio as |
| A. | 1 - Variable Cost Ratio |
| B. | 1 + Variable Cost Ratio |
| C. | 1/Variable Cost Ratio |
| D. | None of the above |
| Answer» B. 1 + Variable Cost Ratio | |
| 306. |
The profit volume ratio (P/V Ratio) |
| A. | 15% |
| B. | 20% |
| C. | 25% |
| D. | 30% |
| Answer» C. 25% | |
| 307. |
Cash flows include |
| A. | Cash payments only |
| B. | Cash receipts only |
| C. | Cash receipts and payments |
| D. | Cash and noncash incomes and expenses. |
| Answer» D. Cash and noncash incomes and expenses. | |
| 308. |
Working capital over and above the fixed working capital would be termed as _______. |
| A. | temporary working capital |
| B. | permanent working capital |
| C. | net working capital |
| D. | gross working capital |
| Answer» B. permanent working capital | |
| 309. |
------------- gives a diagnosis of the profitability and financial position |
| A. | Analysis of financial statements |
| B. | Preparation of financial statements |
| C. | Construction of statements |
| D. | None of the above |
| Answer» B. Preparation of financial statements | |
| 310. |
If the activity level increases 10%, total variable costs will |
| A. | remain the same |
| B. | increase by more than 10% |
| C. | decrease by less than 10% |
| D. | increase by10% |
| Answer» B. increase by more than 10% | |
| 311. |
To financial analysts, "working capital" means the same thing as __________. |
| A. | total assets |
| B. | fixed assets |
| C. | current assets |
| D. | current assets minus current liabilities. |
| Answer» D. current assets minus current liabilities. | |
| 312. |
(A Company has a standard of 1 direct labor hour per unit at Rs.12 per hour. 3,850 labor hours costing Rs.46,970 were used to produce 4,000 units.)Company’s labor quantity variance is |
| A. | Rs.1,830 unfavourable |
| B. | Rs.1,830 favourable |
| C. | Rs.1,800 favourable |
| D. | Rs.1,800 unfavourable |
| Answer» D. Rs.1,800 unfavourable | |
| 313. |
Money market financial services not include: |
| A. | bill discounting |
| B. | merchant banking |
| C. | leasing |
| D. | securitization |
| Answer» C. leasing | |
| 314. |
For year 2018 Equity Share Capital is Rs 3,00,000 Preference Share Capital is Rs.1,00,000,10% debentures is Rs.2,00,000 and Share premium is Rs.30,000. For year 2019 Equity Share Capital is Rs 4,00,000 Preference Share Capital is Rs.60,000 10% debentures is Rs.1,00,000 and Share premium is 40,000. Also given, Dividend paid on shares Rs 15,000 and Interest paid on debentures Rs. 20,000. Determine net cash flow from financing activities. |
| A. | Inflow of Rs 65,000 |
| B. | Outflow of Rs 65,000 |
| C. | Inflow of Rs 56,000 |
| D. | Outflow of Rs 56000 |
| Answer» C. Inflow of Rs 56,000 | |
| 315. |
(A Company has a standard of 1 direct labor hour per unit at Rs.12 per hour. 3,850 labor hours costing Rs.46,970 were used to produce 4,000 units.)Company’s labor price variance is |
| A. | Rs.770 favourable |
| B. | Rs.770 unfavourable |
| C. | Rs.1,030 favourable |
| D. | Rs.1,030 unfavourable |
| Answer» C. Rs.1,030 favourable | |
| 316. |
Given Sales is Rs.2,40,000 and Gross Profit is 60,000, the Gross Profit Ratio is |
| A. | 24% |
| B. | 25% |
| C. | 40% |
| D. | 44%% |
| Answer» C. 40% | |
| 317. |
Funds from operations are --------------of funds |
| A. | Application |
| B. | Uses |
| C. | Sources |
| D. | No change |
| Answer» D. No change | |
| 318. |
The asset, the amount of which can be realized within a period of one year are known as ---------------- |
| A. | Current liability |
| B. | Current asset |
| C. | Liquid liability |
| D. | Fixed asset |
| Answer» C. Liquid liability | |
| 319. |
Asset sold on credit is---- of funds |
| A. | Application |
| B. | Uses |
| C. | Source |
| D. | Decrease |
| Answer» D. Decrease | |
| 320. |
The net working capital, being the difference between current assets and current liabilities isa _______. |
| A. | misleading concept |
| B. | quantitative concept |
| C. | qualitative concept |
| D. | none of the above |
| Answer» D. none of the above | |
| 321. |
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» B. 50%, | |
| 322. |
Satisfactory level of debt equity ratio is -------------------- |
| A. | 1:1 |
| B. | 3:1 |
| C. | 2:1 |
| D. | 1:2 |
| Answer» D. 1:2 | |
| 323. |
Financial Statements provide a summary of -------------------------- |
| A. | Accounts |
| B. | Assets |
| C. | Liabilities |
| D. | Expenses |
| Answer» B. Assets | |
| 324. |
Which of the following is responsibility center? |
| A. | Expense center |
| B. | Profit center |
| C. | Investment center |
| D. | All of the above |
| Answer» E. | |
| 325. |
Automation of the manufacturing environment is associated with increases in |
| A. | inventory. |
| B. | capacity. |
| C. | processing time. |
| D. | none of these. |
| Answer» C. processing time. | |
| 326. |
Furniture sold for cash -----funds flow |
| A. | Increases |
| B. | Decreases |
| C. | Deducted |
| D. | None of these |
| Answer» B. Decreases | |
| 327. |
Management accounting deals only with that information which is useful to the ___________ |
| A. | Accountant |
| B. | Owners |
| C. | Management |
| D. | All of the above |
| Answer» D. All of the above | |
| 328. |
Which of the following are the assumptions of marginal costing?1) All the elements of cost can be divided into fixed and variable components.2) Total fixed cost remains constant at all levels of output.3) Total variable costs vary in proportion to the volume of output.4) Per unit selling price remain unchanged at all levels of operating activity. |
| A. | A and B |
| B. | B and C |
| C. | A and D |
| D. | A, B, C and D |
| Answer» E. | |
| 329. |
When the actual cost is less than the standard cost, the difference is termed as |
| A. | Favourable variance |
| B. | Adverse variance |
| C. | Both a and b |
| D. | None of the above |
| Answer» B. Adverse variance | |
| 330. |
When contribution is positive but equal to fixed cost, |
| A. | There is loss equal to fixed costs |
| B. | There is loss more than fixed costs |
| C. | There will be loss less than fixed costs |
| D. | There will be neither profit not loss |
| Answer» E. | |
| 331. |
While calculating Gross Profit Ratio, |
| A. | Closing stock is deducted from cost of goods sold |
| B. | Closing stock is added to cost of goods sold |
| C. | Closing stock is ignored |
| D. | None of the above |
| Answer» B. Closing stock is added to cost of goods sold | |
| 332. |
The ratio which is used to ascertain the soundness of the long term financial position is------------ |
| A. | Debt equity ratio |
| B. | Liquidity ratio |
| C. | Activity ratio |
| D. | Gross profit ratio |
| Answer» B. Liquidity ratio | |
| 333. |
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 | |
| 334. |
The following is (are) the indirect labour cost(s) |
| A. | Wages paid to storekeeper |
| B. | Salary of works manager |
| C. | Wages paid to gatekeeper |
| D. | All of the above |
| Answer» E. | |
| 335. |
Goodwill is a ---------------------transaction |
| A. | Current |
| B. | Noncurrent |
| C. | Fixed |
| D. | None of these |
| Answer» C. Fixed | |
| 336. |
The formula used for calculation of labor rate variance is |
| A. | Total standard labour cost of actual output - Total actual cost of actual output |
| B. | (Standard rate per hour - Actual rate per hour) * Actual Hours |
| C. | (Standard time - Actual time) * Standard rate per hour |
| D. | Abnormal idle hours * Standard hourly rate |
| Answer» C. (Standard time - Actual time) * Standard rate per hour | |
| 337. |
Collection of book debts----- |
| A. | Has no effect on current ratio |
| B. | Has decreased in current ratio |
| C. | Has increased in current ratio |
| D. | None of these |
| Answer» B. Has decreased in current ratio | |
| 338. |
Which of the following does not affect the fund flow statement |
| A. | Issue of shares |
| B. | Borrowing |
| C. | Repayment of loan |
| D. | Payment to creditors |
| Answer» E. | |
| 339. |
Gross profit are Rs.50,000 and expenses not result in the application of funds are Rs.10000 funds from operation will be |
| A. | Rs.60000 |
| B. | Rs.50000 |
| C. | Rs. 40000 |
| D. | Rs. 30000 |
| Answer» B. Rs.50000 | |
| 340. |
Under which type of bank borrowing can a borrower obtain credit from a bankagainst its bills? |
| A. | letter of credit |
| B. | cash |
| C. | purchase or discounting of bills |
| D. | working capital loan |
| Answer» D. working capital loan | |
| 341. |
Management accounting begins where………………. accounting ends. |
| A. | financial accounting |
| B. | management accounting |
| C. | cost accounting |
| D. | human resource accounting |
| Answer» D. human resource accounting | |
| 342. |
Return on capital employed shows the ________ of a firm. |
| A. | Profitability |
| B. | Overall efficiency |
| C. | Both |
| D. | Subjective matter |
| Answer» D. Subjective matter | |
| 343. |
Calculate Break Even Point in units if Fixed cost is 15,000 ,SP=15 and VC=12 |
| A. | 1000 units |
| B. | 1250 units |
| C. | 1500 units |
| D. | 5000 units |
| Answer» E. | |
| 344. |
What is main component of operating expenses? |
| A. | Selling expenses |
| B. | Distribution expenses |
| C. | Production expenses |
| D. | None |
| Answer» E. | |
| 345. |
The branch of accounting which primarily deals with processing and presenting accounting data fro internal use is ________________ |
| A. | Cost accounting |
| B. | Financial accounting |
| C. | Management accounting |
| D. | Inflation accounting |
| Answer» D. Inflation accounting | |
| 346. |
Which of the following is a budget designed to furnish budgeted costs for any level of activity attained |
| A. | Fixed budget |
| B. | Flexible budget |
| C. | Master budget |
| D. | Production budget |
| Answer» C. Master budget | |
| 347. |
The Funds required by way of permanent working capital should be provided by__________. |
| A. | indigenous banks |
| B. | commercial banks |
| C. | rbi |
| D. | proprietors |
| Answer» E. | |
| 348. |
A Local Authority is preparing cash Budget for its refuse disposal department. Which ofthe following items would not be included in the cash budget? |
| A. | Capital cost of a new collection vehicle |
| B. | Depreciation of the machinery |
| C. | Operatives wages |
| D. | Fuel for the collection Vehicles |
| Answer» C. Operatives wages | |
| 349. |
The subdivision of responsibility centre is - |
| A. | Expense centre |
| B. | Profit centre |
| C. | Investment centre |
| D. | All of the above |
| Answer» E. | |
| 350. |
Factors that have led to a global market for manufacturing and service firms are |
| A. | improved transportation and communications systems. |
| B. | improved telemarketing and communications. |
| C. | improved distribution and transportation systems. |
| D. | None of these factors have contributed. |
| Answer» B. improved telemarketing and communications. | |