Management Accounting Solved MCQs

Chapters

Chapter: Introduction

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

discuss

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

discuss

3.	……………………..accounting is the adoption and analysis of accounting information and its diagnosis and explanation in such a way so as to assist the decision -makers.
A.	financial accounting
B.	management accounting
C.	corporate accounting
D.	human resource accounting
Answer» B. management accounting

discuss

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

discuss

5.	…………………..costs are pre-determined targets adainst which actual results are evaluated.
A.	marginal
B.	standard
C.	actual
D.	budgeted
Answer» B. standard

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6.	Financial Accounting data is primarily meant for …………………
A.	external users
B.	internal users
C.	employees
D.	bank
Answer» A. external users

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7.	Cost Accountant should report to the ……………management.
A.	top
B.	middle.
C.	administration
D.	lower
Answer» A. top

discuss

8.	The transaction which increase working capital are ………….. of funds
A.	sources
B.	application
C.	utilization
D.	diversion
Answer» A. sources

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9.	Management accounting begins where………………. accounting ends.
A.	financial accounting
B.	management accounting
C.	cost accounting
D.	human resource accounting
Answer» C. cost accounting

discuss

Chapter: Analysis & interpretation of financial statement

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

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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

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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%

discuss

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

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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

discuss

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 )

discuss

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

discuss

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

discuss

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

discuss

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%

discuss

20.	General profitability ratios are based on
A.	investment
B.	sales
C.	a & b
D.	none of the above
Answer» B. sales

discuss

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.

discuss

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.

discuss

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.

discuss

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.

discuss

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.

discuss

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Management Accounting Solved MCQs

………………………Accounting is concerned with measurement of the cost and value of people for the organization.

The important objective of …………………..accounting is to organize the accumulated financial data into meaningful information.

……………………..accounting is the adoption and analysis of accounting information and its diagnosis and explanation in such a way so as to assist the decision -makers.

Planning is that function of ……………………..which requires an efficient system of decision – making.

…………………..costs are pre-determined targets adainst which actual results are evaluated.

Financial Accounting data is primarily meant for …………………

Cost Accountant should report to the ……………management.

The transaction which increase working capital are ………….. of funds

Management accounting begins where………………. accounting ends.

Stock is considered as a liquid asset as anytime it can be converted into cash immediately.

. Return on properties funds is also known as.

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 ?

Which of the following is not included in current assets.

Liquidity ratios are expressed in

Working capital turnover ratio can be determined by :

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.

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.

Profit for the objective of calculating a ratio may be taken as

If sales is Rs 5,00,000 & net profit is Rs 1,20,000 Net profit ratio is

General profitability ratios are based on

The ratios which reveal the final result of the managerial policies and performance is .

Return on investment is a .

Net profit ratio is a .

Stock turnover ratio is a .

Current ratio is a

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……………………..accounting is the adoption and analysis of accounting
information and its diagnosis and explanation in such a way so as to assist the
decision -makers.