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
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
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
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
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
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.
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