McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
| 51. |
Which among the following do not result in the flow of fund / |
| A. | depreciation of fixed assets |
| B. | goodwill written off |
| C. | transfer to general reserve |
| D. | all of these |
| Answer» D. all of these | |
| 52. |
Fund flow refers to changes in ------------- capital |
| A. | fixed |
| B. | working |
| C. | both of these |
| D. | none of these |
| Answer» B. working | |
| 53. |
Net profit earned plus non working capital expenses is equal to ………….. |
| A. | fund provided by operations |
| B. | use of funds |
| C. | sinking fund |
| D. | none of these |
| Answer» A. fund provided by operations | |
| 54. |
……………….refers to firms investment in current assets. |
| A. | working capital |
| B. | gross working capital |
| C. | net working capital |
| D. | all of these |
| Answer» B. gross working capital | |
| 55. |
……………..means excess of current assets over current liabilities. |
| A. | working capital |
| B. | gross working capital |
| C. | net working capital |
| D. | all of these |
| Answer» C. net working capital | |
| 56. |
……………….means cash and other assets which are expected to be sold or consumed during the normal operating cycle of business. |
| A. | liquid assets |
| B. | quick assets |
| C. | cash equivalents |
| D. | current assets |
| Answer» D. current assets | |
| 57. |
Which among the following asset is excluded from current assets ? |
| A. | loose tools |
| B. | accounts receivable |
| C. | short term investments with bank |
| D. | finished goods |
| Answer» A. loose tools | |
| 58. |
Which transaction results in flow of funds ? |
| A. | transaction involve only fixed assets |
| B. | transaction involve only current assets |
| C. | all of these |
| D. | none of these |
| Answer» D. none of these | |
| 59. |
There will be flow of funds, if a transaction involves……………….. |
| A. | current assets and fixed assets |
| B. | current assets and capital |
| C. | current assets and fixed liabilities |
| D. | all of these |
| Answer» D. all of these | |
| 60. |
The flow of funds occurs when a transaction changes on the one hand a non current account and on the other hand a ………….. |
| A. | current asset |
| B. | current liability |
| C. | a or b |
| D. | none of these |
| Answer» C. a or b | |
| 61. |
…………….assets are those which in the ordinary course of business can be converted into cash within a short period of time. |
| A. | current |
| B. | non current |
| C. | both of these |
| D. | none of these |
| Answer» A. current | |
| 62. |
………..liabilities are those which are intended to be paid in the ordinary course of business within a short period. |
| A. | current |
| B. | non current |
| C. | both of these |
| D. | none of these |
| Answer» A. current | |
| 63. |
Goods purchased for cash. This transaction involves………….. |
| A. | flow of fund |
| B. | no flow of fund |
| C. | both of these |
| D. | none of these |
| Answer» B. no flow of fund | |
| 64. |
Which among the following transaction involves no flow of fund ? |
| A. | redemption of debentures |
| B. | purchase of fixed assets |
| C. | issue of debentures for cash |
| D. | conversion of debentures into shares. |
| Answer» D. conversion of debentures into shares. | |
| 65. |
Which among the following transaction involves flow of fund ? |
| A. | cash paid to creditors |
| B. | payment of bills payable |
| C. | raising of short term loans |
| D. | raising of long term loans |
| Answer» D. raising of long term loans | |
| 66. |
While preparing ……………statement, both capital and revenue items are considered. |
| A. | fund flow statement |
| B. | income statement |
| C. | both of these |
| D. | none of these |
| Answer» A. fund flow statement | |
| 67. |
……………..is a tool of management for financial analysis and helps in making decisions. |
| A. | fund flow statement |
| B. | balance sheet |
| C. | income statement |
| D. | none of these |
| Answer» A. fund flow statement | |
| 68. |
…………statement shows changes in financial position and hence dynamic in nature |
| A. | fund flow statement |
| B. | balance sheet |
| C. | income statement |
| D. | none of these |
| Answer» A. fund flow statement | |
| 69. |
Increase in Accounts payable when compared to previous year results in …………….of working capital |
| A. | increase |
| B. | decrease |
| C. | no change |
| D. | none of these |
| Answer» B. decrease | |
| 70. |
Decrease in Working capital constitutes ………………… |
| A. | source of fund |
| B. | application of funds |
| C. | neither source nor application |
| D. | none of these |
| Answer» A. source of fund | |
| 71. |
…………….is the dividend paid to the members of a company during a financial year before the finalization of annual accounts. |
| A. | bonus |
| B. | final dividend |
| C. | interim dividend |
| D. | none of these |
| Answer» C. interim dividend | |
| 72. |
Fund lost in operations represent……………….. |
| A. | inflow of funds |
| B. | outflow of funds |
| C. | neither inflow nor outflow |
| D. | none of these |
| Answer» B. outflow of funds | |
| 73. |
Which of the following results in Increase of working capital ? |
| A. | increase in current assets |
| B. | decrease in current assets |
| C. | increase in current liabilities |
| D. | all of these |
| Answer» A. increase in current assets | |
| 74. |
Which among the following results in decrease of working capital ? |
| A. | increase in current liabilities |
| B. | increase in current assets |
| C. | decrease in current liabilities |
| D. | none of these |
| Answer» A. increase in current liabilities | |
| 75. |
According to SEBI requirements Cash flow statement is prepared by categorizing cash flows into operating, investing and …………..activities |
| A. | financing |
| B. | routine |
| C. | long term |
| D. | none of these |
| Answer» A. financing | |
| 76. |
Cash flow statement is a statement which describes inflows and outflows of…… |
| A. | cash |
| B. | cash and cash equivalents |
| C. | working capital |
| D. | all of these |
| Answer» B. cash and cash equivalents | |
| 77. |
Cash, according to cash flow statement comprises of …………… |
| A. | liquid cash only |
| B. | cash in hand |
| C. | cash in hand and demand deposits with banks |
| D. | none of these |
| Answer» C. cash in hand and demand deposits with banks | |
| 78. |
………are short term , highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value. |
| A. | cash equivalents |
| B. | short term investments |
| C. | marketable securities |
| D. | all of these |
| Answer» A. cash equivalents | |
| 79. |
Flow of cash is said to have taken place when any transactions makes changes in the amount of ………….before happening of the transactions. |
| A. | cash |
| B. | cash equivalents |
| C. | both of these |
| D. | none of these |
| Answer» C. both of these | |
| 80. |
Which among the following are examples of cash flow from operating activities ? |
| A. | cash receipts from sale of goods |
| B. | cash receipts from royalties |
| C. | cash payments to suppliers |
| D. | all of these |
| Answer» D. all of these | |
| 81. |
Which among the following is not an example of cash flow from operating activities ? |
| A. | cash payments of insurance premiums |
| B. | cash payments of income taxes |
| C. | cash payments to employees |
| D. | cash receipts from disposal of fixed assets |
| Answer» D. cash receipts from disposal of fixed assets | |
| 82. |
The essence of marginal costing is that ……………… cost is considered on the whole as separate. |
| A. | fixed |
| B. | variable |
| C. | both of these |
| D. | none of these |
| Answer» A. fixed | |
| 83. |
………….cost represents the amount of any given volume of output by which aggregate costs are changed if the volume of output is increased by one unit. |
| A. | variable cost |
| B. | marginal cost |
| C. | fixed cost |
| D. | none of these |
| Answer» B. marginal cost | |
| 84. |
………. Is the increase or decrease in total cost which results from producing or selling additional or fewer units of a product or from a change in the method of production or distribution such as the use of improved machinery, addition or exclusion of a product or territory or selection of an additional sales channel. |
| A. | variable cost |
| B. | marginal cost |
| C. | fixed cost |
| D. | none of these |
| Answer» B. marginal cost | |
| 85. |
…………cost is defined as the aggregate of variable costs or prime costs plus variable overheads. |
| A. | variable cost |
| B. | marginal cost |
| C. | fixed cost |
| D. | none of these |
| Answer» B. marginal cost | |
| 86. |
Marginal costing is a …………… of costing |
| A. | system |
| B. | method |
| C. | technique |
| D. | all of these |
| Answer» C. technique | |
| 87. |
Under marginal costing, ……… Costs are regarded as costs of the products. |
| A. | variable costs |
| B. | fixed costs |
| C. | both of these |
| D. | none of these |
| Answer» A. variable costs | |
| 88. |
Under marginal costing, …………… costs are treated as period costs and charged to profit and loss account for the period for which they are incurred |
| A. | variable costs |
| B. | fixed costs |
| C. | both of these |
| D. | none of these |
| Answer» B. fixed costs | |
| 89. |
Under marginal costing, stocks of finished goods and work-in-process are valued at …………….. costs only |
| A. | variable costs |
| B. | fixed costs |
| C. | marginal cost |
| D. | none of these |
| Answer» C. marginal cost | |
| 90. |
………………..is the excess of sales over marginal cost of sales |
| A. | profit |
| B. | margin |
| C. | loss |
| D. | contribution |
| Answer» D. contribution | |
| 91. |
………………..cost remains constant per unit of output irrespective of the level of output and thus fluctuates directly in proportion to changes in the volume of output |
| A. | variable costs |
| B. | fixed costs |
| C. | marginal cost |
| D. | none of these |
| Answer» A. variable costs | |
| 92. |
…………..costs are the increase or decrease in total cost that result from producing additional or fewer units or from the adoption of an alternative course of action. |
| A. | variable costs |
| B. | fixed costs |
| C. | marginal cost |
| D. | differential cost |
| Answer» D. differential cost | |
| 93. |
Marginal cost and differential cost are the same when ……..costs do not change with change in output |
| A. | variable costs |
| B. | fixed costs |
| C. | semi variable cost |
| D. | none of these |
| Answer» B. fixed costs | |
| 94. |
………………is the practice of charging all costs, both variable and fixed, to operations, processes, or products |
| A. | marginal costing |
| B. | absorption costing |
| C. | differential costing |
| D. | none of these |
| Answer» B. absorption costing | |
| 95. |
In absorption costing, managerial decision making is based upon ………….. |
| A. | profit |
| B. | contribution |
| C. | costs |
| D. | none of these |
| Answer» A. profit | |
| 96. |
Given sales = 150000, Fixed costs = 30000, Profit = 40000.The variable cost is…………. |
| A. | 110000 |
| B. | 80000 |
| C. | 120000 |
| D. | 10000 |
| Answer» B. 80000 | |
| 97. |
The Profit/Volume ratio or marginal ratio expresses the relation of ………… to sales. |
| A. | profit |
| B. | marginal cost |
| C. | contribution |
| D. | none of these |
| Answer» C. contribution | |
| 98. |
Which of the following measures helps to increase the P/V Ratio ? |
| A. | increasing the selling price per unit |
| B. | reducing the variable or marginal cost |
| C. | changing the sales mixture |
| D. | all of these |
| Answer» D. all of these | |
| 99. |
Given sales = 100000, Profit = 10000 , variable cost = 70%.The sales required to earn a profit of Rs.40000 is ……………………… |
| A. | 1500000 |
| B. | 100000 |
| C. | 200000 |
| D. | none of these |
| Answer» C. 200000 | |
| 100. |
Marginal cost is the ……….cost of producing an additional unit of output |
| A. | variable |
| B. | fixed |
| C. | semi variable |
| D. | none of these |
| Answer» A. variable | |
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