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.
| 401. |
Ratios of different items for various periods are calculated and compared |
| A. | Common size |
| B. | Comparative |
| C. | Trend analysis |
| D. | Ratio analysis |
| Answer» E. | |
| 402. |
_______ is prepared for single level of activity and single set of business conditions. |
| A. | Fixed budget |
| B. | Flexible budget |
| C. | Both a and b |
| D. | None of the above |
| Answer» B. Flexible budget | |
| 403. |
In responsibility centre, the output is called as - |
| A. | Revenue |
| B. | Cost |
| C. | Both (a) and (b) |
| D. | None |
| Answer» B. Cost | |
| 404. |
Actual Sales=80,000,P/V ratio=20% and Fixed cost=10,000.Calculate Profit. |
| A. | 16000 |
| B. | 3000 |
| C. | 5000 |
| D. | 6000 |
| Answer» E. | |
| 405. |
Gross working capital represents __________. |
| A. | total current liabilities |
| B. | the excess of current assets over current liabilities |
| C. | total current assets |
| D. | total liquid assets |
| Answer» D. total liquid assets | |
| 406. |
When the concept of ratio is defined in respected to the items shown in the financial statements, it is termed as |
| A. | Accounting ratio |
| B. | Financial ratio |
| C. | Costing ratio |
| D. | None of the above |
| Answer» B. Financial ratio | |
| 407. |
The breakdown of cost of a component of a company is Material Rs.275, Labour Rs. 175 ,other Variable costs Rs.50 and Depreciation Rs.125. At what price the product should be available in the market so that company should buy from the market. |
| A. | Rs. 575 |
| B. | Rs. 600 |
| C. | Rs.500 |
| D. | None |
| Answer» E. | |
| 408. |
Cash from operations is equal to------------------ |
| A. | net profit after tax |
| B. | net profit plus increase in current asset |
| C. | net profit plus decrease in current liabilities |
| D. | net profit plus non-cash expenses plus decrease in current assets. |
| Answer» E. | |
| 409. |
Planning is that function of ……………………..which requires an efficient systemof decision – making. |
| A. | finance |
| B. | management |
| C. | h.r |
| D. | administration. |
| Answer» C. h.r | |
| 410. |
The budgets are classified on the basis of - |
| A. | Time |
| B. | Function |
| C. | Flexibility |
| D. | All of the above |
| Answer» E. | |
| 411. |
Which of the following is an application of fund |
| A. | Sale of plant |
| B. | Issue of shares |
| C. | Purchase of funds |
| D. | Payment of creditors |
| Answer» D. Payment of creditors | |
| 412. |
Improvement in time performance is most likely NOT enhanced by |
| A. | redesign of products. |
| B. | adding processes in production. |
| C. | eliminating waste. |
| D. | eliminating nonvalue-added activities. |
| Answer» C. eliminating waste. | |
| 413. |
Current liabilities are equals to------------------------------- |
| A. | Working capital +current assets |
| B. | Working capital-current assets |
| C. | Current assets-working capital |
| D. | Current asset + working capital |
| Answer» D. Current asset + working capital | |
| 414. |
Type of accounting which specialises in providing information about detailed cost of products? |
| A. | Cost Accounting |
| B. | Management Accounting |
| C. | Financial Management |
| D. | Financial Accounting |
| Answer» B. Management Accounting | |
| 415. |
Uncontrollable costs are the costs which be influenced by the action of a specified member of an undertaking. - |
| A. | can not |
| B. | can |
| C. | may or may not |
| D. | must |
| Answer» B. can | |
| 416. |
In profit center revenue represents a monetary measure of output emanating from a profitcenter in a given period irrespective whether |
| A. | The revenue is realized or not |
| B. | The output is sold or not |
| C. | Both a and b |
| D. | None of the above |
| Answer» D. None of the above | |
| 417. |
What are the aspects of working capital management? |
| A. | inventory management |
| B. | receivable management |
| C. | cash management |
| D. | all of the above |
| Answer» E. | |
| 418. |
Comparison and interpretation of ratio is known as --------------------- |
| A. | Fund flow analysis |
| B. | Cash flow analysis |
| C. | Ratio analysis |
| D. | Trend analysis |
| Answer» D. Trend analysis | |
| 419. |
_________ Accounting becomes a source of information for Management Accounting. |
| A. | Financial |
| B. | Cost |
| C. | Both (A) and (B) |
| D. | None of the above |
| Answer» B. Cost | |
| 420. |
Provision for tax is shown as a part of-----------activity |
| A. | financing |
| B. | investing |
| C. | operating |
| D. | others |
| Answer» D. others | |
| 421. |
If net profit is ₹ 50,000 after writing off goodwill ₹ 10,000 then the Cash Flow from operating activities will be: |
| A. | ₹ 60,000 |
| B. | ₹ 40,000 |
| C. | ₹ 50,000 |
| D. | ₹ 30,000 |
| Answer» B. ₹ 40,000 | |
| 422. |
The responsibility centers, for control purposes, may be classified into _____ types. |
| A. | Five |
| B. | Three |
| C. | Four |
| D. | None of the above |
| Answer» C. Four | |
| 423. |
The primary objective of management accounting is |
| A. | to provide shareholders and potential investors with useful information for decision making. |
| B. | to provide banks and other creditors with information useful in making credit decisions. |
| C. | to provide management with information useful for planning and control of operations. |
| D. | to provide the relevant taxation authorities with information about taxable income. |
| Answer» D. to provide the relevant taxation authorities with information about taxable income. | |
| 424. |
Margin of safety can be increased by |
| A. | Decrease in setting price |
| B. | Decline in volume of production |
| C. | Reduction in fixed or the variable costs or both |
| D. | None of the above |
| Answer» D. None of the above | |
| 425. |
The wages due from Mar 20 ,Apr 20 and May 20 areRs8000,Rs9000 and Rs 10,000 respectively.There is delay in payment of wages of 2 months.What will be the wages paid in May |
| A. | Rs 9000 |
| B. | Rs 8000 |
| C. | Rs 10000 |
| D. | Rs 27000 |
| Answer» C. Rs 10000 | |
| 426. |
If sales is Rs 5, 00,000 and net profit is Rs 1, 20,000 Net Profit ratio is |
| A. | 24% |
| B. | 41% |
| C. | 60% |
| D. | none of the above |
| Answer» B. 41% | |
| 427. |
In a sound business, acid test ratio ------------------- is considered satisfactory |
| A. | 1:2 |
| B. | 2:1 |
| C. | 1:1 |
| D. | 0.5:1 |
| Answer» D. 0.5:1 | |
| 428. |
What is not a form of dividend? |
| A. | cash dividends |
| B. | bonus shares(stock dividend) |
| C. | share split |
| D. | split reverse |
| Answer» E. | |
| 429. |
The Carl Care Company established the following direct labour cost standards for one unit of product Z:•Standard hours: 1.5 hours•Standard rate: $20 per hour•Standard cost: $30 (1.5 hours @ $20 per hour)During the month of July, 20,000 direct labour hours were worked, and 12,500 units ofproduct Z were manufactured. The total wages related to direct labour in July were$405,000. The direct labour rate variance for July was: |
| A. | $5,000 unfavourable |
| B. | $5,000 favourable |
| C. | $30,000 favourable |
| D. | $30,000 unfavourable |
| Answer» B. $5,000 favourable | |
| 430. |
Gross Profit Ratio is calculated by |
| A. | (Gross Profit/Gross sales)*100 |
| B. | (Gross Profit/Net sales)*100 |
| C. | (Net Profit/Gross sales)*100 |
| D. | None of the above |
| Answer» C. (Net Profit/Gross sales)*100 | |
| 431. |
Solvency ratio indicates----------------- |
| A. | Credit worthiness |
| B. | Activity |
| C. | Profitability |
| D. | None of these |
| Answer» B. Activity | |
| 432. |
When financial statements for a number of years are reviewed and analyzed, the analysis is known as --------------------- |
| A. | Vertical Analysis |
| B. | Internal analysis |
| C. | Horizontal analysis |
| D. | External analysis |
| Answer» D. External analysis | |
| 433. |
The working capital required to meet the seasonal need of the business is called _______. |
| A. | fixed working capital |
| B. | variable working capital |
| C. | special working capital |
| D. | seasonal working capital |
| Answer» E. | |
| 434. |
Goodwill written off is-----------to the net profit made during the year for calculating the cash from operation |
| A. | Added back |
| B. | Deducted |
| C. | Decreased |
| D. | None of these |
| Answer» B. Deducted | |
| 435. |
Stock turn over ratio is an example of ------------------- |
| A. | Liquidity ratio |
| B. | Leverage ratio |
| C. | Profitability ratios |
| D. | Activity ratios |
| Answer» E. | |
| 436. |
In the fund flow statement, depreciation is---------------- |
| A. | Deducted from net profit |
| B. | Added to net profit |
| C. | Sources of working capital |
| D. | Ignored |
| Answer» C. Sources of working capital | |
| 437. |
The data related to Production of T are for material X standard data and actual data are 40 kgs @ Rs 10 and 55 kgs @ Rs 9, respectively. The standard data and actual data for material Y are 50 kgs @ Rs 5 and 35 kgs @ Rs 7. Determine material usage variance. |
| A. | Rs 75 favorable |
| B. | Rs 75 unfavorable |
| C. | Rs 90 unfavorable |
| D. | Rs 90 favorable |
| Answer» C. Rs 90 unfavorable | |
| 438. |
The responsibility accounting is a system by which the responsibility is assigned to theconcerned persons - |
| A. | To increase sales |
| B. | To control cash |
| C. | To increase production |
| D. | All of the above |
| Answer» C. To increase production | |
| 439. |
Dividend yield is an example for------ratio |
| A. | Solvency |
| B. | Liquidity |
| C. | Market strength |
| D. | Net worth |
| Answer» D. Net worth | |
| 440. |
The formula to estimate Labour Mix 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. | (Revised standard time - Actual time) * Standard rate |
| D. | Abnormal idle hours * Standard hourly rate |
| Answer» C. (Revised standard time - Actual time) * Standard rate | |
| 441. |
Factory Overheads are also called : |
| A. | Sundry Overhead |
| B. | Works Overhead |
| C. | Extra Overhead |
| D. | Total Overhead |
| Answer» C. Extra Overhead | |
| 442. |
Which of the following statements are not true about budget, budgeting & budgetary control? |
| A. | Budgetary control works on the basis of best option |
| B. | Budget is one of the important mediums of communication |
| C. | Budgeting develops the quality of objectivity in planning |
| D. | None of the above |
| Answer» E. | |
| 443. |
Which of the below is an Accounting Concept |
| A. | Materiality |
| B. | Separate Legal Entity |
| C. | Consistency |
| D. | Conservatism |
| Answer» C. Consistency | |
| 444. |
Management accounting is helpful in increasing _______________ |
| A. | Performance |
| B. | Profitability |
| C. | Efficiency |
| D. | Production |
| Answer» D. Production | |
| 445. |
Trend analysis is significant for |
| A. | Forecasting and budgeting |
| B. | Profit planning |
| C. | Capital rationing |
| D. | None of the above |
| Answer» B. Profit planning | |
| 446. |
It may not be ______ to measure exactly the output of service departments in anorganization. |
| A. | Feasible |
| B. | Necessary |
| C. | Either (a) or (b) |
| D. | None of these |
| Answer» D. None of these | |
| 447. |
Fund flow refers to change in----- |
| A. | Working capital |
| B. | Fixed capital |
| C. | Current capital |
| D. | Increase in working capital |
| Answer» B. Fixed capital | |
| 448. |
Which of the following falls under Profitability Ratios?A) General Profitability ratiosB) Overall Profitability ratiosC) Comprehensive Profitability ratios |
| A. | A and B |
| B. | A and C |
| C. | B and C |
| D. | None of the above |
| Answer» B. A and C | |
| 449. |
R&D budget and Capital expenditure budget are examples of |
| A. | short-term budget |
| B. | current budget |
| C. | long-term budget |
| D. | none of the above |
| Answer» D. none of the above | |
| 450. |
Which of the following statements correctly distinguishes between financial andmanagement accounting? |
| A. | Management accounting reports on the whole organization. |
| B. | Financial accounting is oriented toward the future. |
| C. | Financial accounting is primarily concerned with providing information for internal users. |
| D. | Management accounting is oriented more toward the planning and control |
| Answer» E. | |