Chapters
| 1. |
………………………Accounting is concerned with measurement of the cost and value of people for the organization. |
| A. | financial accounting |
| B. | management accounting |
| C. | corporate accounting |
| D. | human resource accounting |
| Answer» D. human resource accounting | |
| 2. |
The important objective of …………………..accounting is to organize the accumulated financial data into meaningful information. |
| A. | financial accounting |
| B. | management accounting |
| C. | corporate accounting |
| D. | human resource accounting |
| Answer» A. financial accounting | |
| 3. |
……………………..accounting is the adoption and analysis of accounting
|
| A. | financial accounting |
| B. | management accounting |
| C. | corporate accounting |
| D. | human resource accounting |
| Answer» B. management accounting | |
| 4. |
Planning is that function of ……………………..which requires an efficient system of decision – making. |
| A. | finance |
| B. | management |
| C. | h.r |
| D. | administration. |
| Answer» B. management | |
| 5. |
…………………..costs are pre-determined targets adainst which actual results are evaluated. |
| A. | marginal |
| B. | standard |
| C. | actual |
| D. | budgeted |
| Answer» B. standard | |
| 6. |
Financial Accounting data is primarily meant for ………………… |
| A. | external users |
| B. | internal users |
| C. | employees |
| D. | bank |
| Answer» A. external users | |
| 7. |
Cost Accountant should report to the ……………management. |
| A. | top |
| B. | middle. |
| C. | administration |
| D. | lower |
| Answer» A. top | |
| 8. |
The transaction which increase working capital are ………….. of funds |
| A. | sources |
| B. | application |
| C. | utilization |
| D. | diversion |
| Answer» A. sources | |
| 9. |
Management accounting begins where………………. accounting ends. |
| A. | financial accounting |
| B. | management accounting |
| C. | cost accounting |
| D. | human resource accounting |
| Answer» C. cost accounting | |
| 10. |
Stock is considered as a liquid asset as anytime it can be converted into cash immediately. |
| A. | yes |
| B. | no |
| C. | only yes |
| D. | none of the above |
| Answer» B. no | |
| 11. |
. Return on properties funds is also known as. |
| A. | return on net worth |
| B. | return on shareholders fun |
| C. | return on the shareholders investment |
| D. | all the above |
| Answer» D. all the above | |
| 12. |
What will be the Gross Profit if , total sales is Rs 2,60,000,cost of net goods sold is Rs 2,00,000 & sales return is Rs10,000 ? |
| A. | 13 % |
| B. | 28% |
| C. | 26% |
| D. | 20% |
| Answer» D. 20% | |
| 13. |
Which of the following is not included in current assets. |
| A. | debtors |
| B. | stock |
| C. | cash at bank |
| D. | cash in hand |
| Answer» B. stock | |
| 14. |
Liquidity ratios are expressed in |
| A. | pure ratio form |
| B. | percentage |
| C. | rate or time |
| D. | none of the above |
| Answer» A. pure ratio form | |
| 15. |
Working capital turnover ratio can be determined by : |
| A. | ( gross profit / working capital ) |
| B. | ( cost of goods sold / net sales ) |
| C. | ( cost of goods sold / working capital) |
| D. | none of the above |
| Answer» A. ( gross profit / working capital ) | |
| 16. |
Determine Working capital turnover ratio if, Current asset is Rs 1,50,000, current liability is Rs 1,00,000 & cost of goods sold is Rs 3,00,000. |
| A. | 5 times |
| B. | 6 times |
| C. | 3 times |
| D. | 1.5 times |
| Answer» B. 6 times | |
| 17. |
The ratio analysis is helpful to management in taking several decisions, but as a mechanical substitute for judgement and thinking, it is worse than useless. |
| A. | true |
| B. | false |
| C. | may be false |
| D. | both a and b |
| Answer» A. true | |
| 18. |
Profit for the objective of calculating a ratio may be taken as |
| A. | profit before tax but after interest |
| B. | profit before interest &tax |
| C. | profit after interest & tax |
| D. | all the above |
| Answer» D. all the above | |
| 19. |
If sales is Rs 5,00,000 & net profit is Rs 1,20,000 Net profit ratio is |
| A. | 24% |
| B. | 416% |
| C. | 60% |
| D. | none of the above |
| Answer» A. 24% | |
| 20. |
General profitability ratios are based on |
| A. | investment |
| B. | sales |
| C. | a & b |
| D. | none of the above |
| Answer» B. sales | |
| 21. |
The ratios which reveal the final result of the managerial policies and performance is . |
| A. | turnover ratios. |
| B. | profitability ratios. |
| C. | short term solvency ratio. |
| D. | long term solvency ratio. |
| Answer» B. profitability ratios. | |
| 22. |
Return on investment is a . |
| A. | turnover ratios. |
| B. | short term solvency ratio. |
| C. | profitability ratios. |
| D. | long term solvency ratio. |
| Answer» C. profitability ratios. | |
| 23. |
Net profit ratio is a . |
| A. | turnover ratio. |
| B. | long term solvency ratio. |
| C. | short term solvency ratio |
| D. | profitability ratio. |
| Answer» D. profitability ratio. | |
| 24. |
Stock turnover ratio is a . |
| A. | turnover ratio. |
| B. | profitability ratio. |
| C. | short term solvency ratio. |
| D. | long term solvency ratio. |
| Answer» A. turnover ratio. | |
| 25. |
Current ratio is a |
| A. | short-term solvency ratio. |
| B. | long-term solvency ratio. |
| C. | profitability ratio. |
| D. | turnover ratio. |
| Answer» A. short-term solvency ratio. | |
