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.
| 351. |
External report use for _______________ . |
| A. | Top level management |
| B. | Middle level management |
| C. | Lower level management |
| D. | Shareholders |
| Answer» E. | |
| 352. |
Leverage ratios are also known as -------------- ratios |
| A. | Short term solvency ratios |
| B. | Long term solvency ratios |
| C. | Solvency ratio |
| D. | Liquidity ratio |
| Answer» C. Solvency ratio | |
| 353. |
Management accounting is (i) Subjective (ii) Objective |
| A. | Only (i) |
| B. | Only (ii) |
| C. | Both (i) and (ii) |
| D. | None of the above |
| Answer» B. Only (ii) | |
| 354. |
A budget is tool which helps the management in planning and control of - |
| A. | All business activities |
| B. | Production activities |
| C. | Purchase activities |
| D. | Sales activities |
| Answer» B. Production activities | |
| 355. |
Responsibility Centre can be categorised into ___________. |
| A. | Cost Centres only |
| B. | Profit Centres only |
| C. | Investment Centres only |
| D. | All of the above |
| Answer» E. | |
| 356. |
A firm that issues stocks and bonds to raise funds results in in cashflow. |
| A. | Decreased Cash |
| B. | Increased Cash |
| C. | Increased Equity |
| D. | Increased Liabilities |
| Answer» D. Increased Liabilities | |
| 357. |
The objectives, procedures, organizational structure and authority and responsibility in writing about a budget is shown in |
| A. | Budget manual |
| B. | Budget plans |
| C. | Budget titles |
| D. | None of the above |
| Answer» B. Budget plans | |
| 358. |
__________ is a detailed budget of cash receipts and cash expenditure incorporatingboth revenue and capital items. |
| A. | Cash Budget |
| B. | Capital Expenditure Budget |
| C. | Sales Budget |
| D. | Overhead Budget |
| Answer» B. Capital Expenditure Budget | |
| 359. |
Which of the following activities is NOT significant to the advancement of informationtechnology? |
| A. | enterprise resource planning software |
| B. | emergence of electronic commerce |
| C. | theory of constraints |
| D. | decision support systems |
| Answer» D. decision support systems | |
| 360. |
Debt service ratio is also known as -------------- |
| A. | Interest coverage ratio |
| B. | Dividend payout ratio |
| C. | Solvency ratio |
| D. | Debtors turn over ratio |
| Answer» B. Dividend payout ratio | |
| 361. |
Which technique used for figures of two or more periods are placed side byside to facilitate easy and meaningful comparisons? |
| A. | comparative statement |
| B. | common‐size statement |
| C. | trend analysis |
| D. | none |
| Answer» B. common‐size statement | |
| 362. |
The term financial analysis include both --------- and interpretation |
| A. | Comparison |
| B. | Analysis |
| C. | Conclusion |
| D. | Constructions |
| Answer» C. Conclusion | |
| 363. |
Comparative statements are a form of --------------------------- |
| A. | Horizontal analysis |
| B. | Vertical analysis |
| C. | Parallel analysis |
| D. | None of the above |
| Answer» B. Vertical analysis | |
| 364. |
___________in accounting, is when the costs to acquire an asset are expensed over the life ofthat asset rather than in the period it was incurred? |
| A. | purchasing. |
| B. | capitalization. |
| C. | selling. |
| D. | financing |
| Answer» C. selling. | |
| 365. |
Comprehensive Machine Hour Rate includes : |
| A. | Machine Operators Wages |
| B. | Managing Directors Salary |
| C. | Income Tax |
| D. | Office rent |
| Answer» B. Managing Directors Salary | |
| 366. |
Management Accounting is the branch of accounting concerned with reporting to – |
| A. | Internal Managers |
| B. | Shareholders |
| C. | The Government |
| D. | Bankers |
| Answer» B. Shareholders | |
| 367. |
The responsibility accounting emphasizes the performance of - |
| A. | System |
| B. | Men |
| C. | Both (a) and (b) |
| D. | None of these |
| Answer» C. Both (a) and (b) | |
| 368. |
Debtors Turnover ratio is also known as(a) Receivables turnover ratio(b) Debtors velocity(c) Stock velocity(d) Payable turnover ratio |
| A. | A and B |
| B. | A and C |
| C. | B and C |
| D. | C and D |
| Answer» B. A and C | |
| 369. |
Idle time variance arises when |
| A. | Only one grade of labour is used |
| B. | Time is lost due to abnormal reasons |
| C. | Both a and b |
| D. | None of the above |
| Answer» D. None of the above | |
| 370. |
When a fixed asset is bought as hire purchase, interest element is classified under ______ and loan element is classified under________. |
| A. | Operating activities, financing activities |
| B. | Financing activities, investing activities |
| C. | Investing activities, operating activities |
| D. | None of the above |
| Answer» C. Investing activities, operating activities | |
| 371. |
If the contribution margin per unit is $700 per unit and the break-even per unit is $40, then the fixed cost would be |
| A. | $35,000 |
| B. | $28,000 |
| C. | $17,500 |
| D. | $82,000 |
| Answer» C. $17,500 | |
| 372. |
A positive (net) working capital will arise when current assets exceed _________. |
| A. | fixed liabilities |
| B. | contingent liabilities |
| C. | long term liabilities |
| D. | current liabilities |
| Answer» E. | |
| 373. |
When profit-volume ratio is 40 % and sales value Rs.10,000, the variable costs will be : |
| A. | Rs. 4,000 |
| B. | Rs. 6,000 |
| C. | Rs. 10,000 |
| D. | None of these |
| Answer» C. Rs. 10,000 | |
| 374. |
Dividend paid under AS- 3 is---------- |
| A. | Cash flow from financing activity |
| B. | Cash flow from operating activity |
| C. | Cash flow from investing activity |
| D. | None of these |
| Answer» D. None of these | |
| 375. |
If projected sales in the year 2020 to be Rs.6500000 find out the corresponding profit |
| A. | Rs. 700000 |
| B. | Rs. 800000 |
| C. | Rs. 900000 |
| D. | Rs.1000000 |
| Answer» E. | |
| 376. |
__________ analysis is the process of studying a series of ratios for a companyand/or industry over time. |
| A. | dupont |
| B. | trend |
| C. | common size |
| D. | all of the above |
| Answer» D. all of the above | |
| 377. |
The scare factors is also known as |
| A. | key factor |
| B. | abnormal factor |
| C. | linking factor |
| D. | none of the above |
| Answer» B. abnormal factor | |
| 378. |
Variable cost ratio =80% and Mos=40%.Calculate P/V ratio and BEP(in Percentage) respectively. |
| A. | 60%,60% |
| B. | 20%,60% |
| C. | 60%,20% |
| D. | 20%,20% |
| Answer» C. 60%,20% | |
| 379. |
Ratio to assess the short term debt paying capacity of a firm is---------- |
| A. | Debt equity ratio |
| B. | Propriety ratio |
| C. | Liquid ratio |
| D. | Solvency ratios |
| Answer» D. Solvency ratios | |
| 380. |
Budgetary control system defines the objectives and policies of the… |
| A. | production department |
| B. | finance department |
| C. | marketing department |
| D. | all |
| Answer» E. | |
| 381. |
Powerful tool for analyzing financial statement is ---------- |
| A. | Trend analysis |
| B. | Ratio analysis |
| C. | Analysis |
| D. | Interpretation |
| Answer» C. Analysis | |
| 382. |
Cash flow statements (based on AS-3) should be prepared and presented under------------------method. |
| A. | Direct |
| B. | Indirect |
| C. | Permanence |
| D. | None of these |
| Answer» C. Permanence | |
| 383. |
The transaction which increase working capital are ………….. of funds |
| A. | sources |
| B. | application |
| C. | utilization |
| D. | diversion |
| Answer» B. application | |
| 384. |
For dividend yield ratio -------------- price of the equity shares is taken into consideration |
| A. | Market |
| B. | Cash |
| C. | Cost |
| D. | None of the above |
| Answer» B. Cash | |
| 385. |
Following is (are) called the element(s) of Cost |
| A. | Material |
| B. | Labour |
| C. | Expenses |
| D. | All of the above |
| Answer» E. | |
| 386. |
Management accounting is deals with - |
| A. | Quantitative Information |
| B. | Qualitative Information |
| C. | Both (a) and (b) |
| D. | None of the above |
| Answer» D. None of the above | |
| 387. |
The scarce factor of production is known as |
| A. | Key factor |
| B. | Linking factor |
| C. | Critical factor |
| D. | All of the above |
| Answer» B. Linking factor | |
| 388. |
Management accounting: |
| A. | provides a framework to evaluate information in light of an organization's goals. |
| B. | provides relevant information to managers. |
| C. | provides relevant information to meet specific needs of persons inside the organization. |
| D. | all of the above |
| Answer» E. | |
| 389. |
What is formula of Capital employed? I)Shareholder's Funds+Non Current Liabilities II)Total Assets-Current Liabilities III)Non Current Assets-Working capital IV)Total Assets-Total Liabilities |
| A. | Only III and IV |
| B. | Only I,II and III |
| C. | All I,II,III,IV |
| D. | Only I and II |
| Answer» E. | |
| 390. |
The percentage of earnings paid as dividends is called __________. |
| A. | dividend policy |
| B. | payout ration |
| C. | cash dividends |
| D. | reverse split |
| Answer» C. cash dividends | |
| 391. |
Regal Industries is replacing a grinder purchased 5 years ago for $15,000 with a new one costing $25,000 cash. The original grinder is being depreciated on a straight-line basis over 15 years to a zero-salvage value. Regal will sell this old equipment to a third party for $6,000 cash. The new equipment will be depreciated on a straight-line basis over 10 years to a zero-salvage value. Assuming a 40% marginal tax rate, Regal’s net cash investment at the time of purchase if the old grinder is sold and the new one purchased is |
| A. | $19000 |
| B. | $15000 |
| C. | $17400 |
| D. | $25000 |
| Answer» D. $25000 | |
| 392. |
The ratios that shows the capacity of the business unit to meet its short term obligation out of its short term resources is known as -------------- |
| A. | Solvency ratio |
| B. | Leverage ratio |
| C. | Liquidity ratio |
| D. | Trend Ratio |
| Answer» D. Trend Ratio | |
| 393. |
The prime function of management accounting is to ------------------------------- |
| A. | Interpret financial data |
| B. | Assist the management in performing its functions |
| C. | Record business transaction |
| D. | None of these |
| Answer» C. Record business transaction | |
| 394. |
The main objective of budgetary control is - |
| A. | To define the goal of the firm |
| B. | To coordinate different departments |
| C. | To plan to achieve its goals |
| D. | All of the above |
| Answer» D. All of the above | |
| 395. |
Profit and Loss Account debit side includes |
| A. | Salary |
| B. | Discount allowed |
| C. | Postage & telegram |
| D. | All of the above |
| Answer» E. | |
| 396. |
Quick ratio is 1.8:1, current ratio is 2.7:1 and current liabilities are Rs 60,000.Determine value of stock. |
| A. | rs 54,000 |
| B. | rs 60,000 |
| C. | rs 1, 62,000 |
| D. | none of the above |
| Answer» D. none of the above | |
| 397. |
Net Profit ratio is calculated by |
| A. | (gross profit/gross sales) *100 |
| B. | (gross profit/net sales) *100 |
| C. | (net profit/net sales) *100 |
| D. | none of the above |
| Answer» D. none of the above | |
| 398. |
Monitoring the number of defects produced is an example of the management function of |
| A. | planning. |
| B. | control. |
| C. | decision making. |
| D. | both a and c. |
| Answer» C. decision making. | |
| 399. |
Rol measures----- |
| A. | Profitability in relation to investment |
| B. | Profitability in relation to sales |
| C. | Operating efficiency |
| D. | Long term solvency |
| Answer» B. Profitability in relation to sales | |
| 400. |
While preparing Cash Flow Statement, non-cash items and non-operating items are not required to be adjusted under________ |
| A. | Indirect method |
| B. | Direct method |
| C. | Both a and b |
| D. | None of the above |
| Answer» C. Both a and b | |