McqMate
Chapters
201. |
Quick assets do not include
|
A. | Only I,II and IV |
B. | Only III |
C. | All I,II,III,IV |
D. | Only II and III |
Answer» A. Only I,II and IV |
202. |
If debt equity ratio exceeds ,it indicates risky position. |
A. | 1:1 |
B. | 2:1 |
C. | 1:2 |
D. | 3:1 |
Answer» B. 2:1 |
203. |
Which of these is false? |
A. | Working Capital=Current Assets-Current Liabilities |
B. | CL=CA-Working capital |
C. | Current Liabilities=Workin g capital -CA |
D. | Current Assets=Working capital+CL |
Answer» C. Current Liabilities=Workin g capital -CA |
204. |
If average T/R are 1,00,000 ,Closing T/R are 3 times that of opening T/R .What is Closing T/R? |
A. | 200000 |
B. | 75000 |
C. | 150000 |
D. | 50000 |
Answer» C. 150000 |
205. |
A firm that issues stocks and bonds to raise funds results in in cashflow. |
A. | Decreased Cash |
B. | Increased Cash |
C. | Increased Equity |
D. | Increased Liabilities |
Answer» C. Increased Equity |
206. |
Which are not Investing activity?
|
A. | Only II and III |
B. | Only III and IV |
C. | Only III |
D. | All are not investing activities |
Answer» C. Only III |
207. |
Which of the following is not the objective of budgetary control?
|
A. | Only II |
B. | Only II and IV |
C. | Only II,III and IV |
D. | All I,II,III and IV |
Answer» B. Only II and IV |
208. |
Which statement is true.I)Fixed budget assumes Changing business conditions. II)Flexible budget is prepared for only one level of activity. |
A. | None is true |
B. | Both are true |
C. | Only I |
D. | Only II |
Answer» A. None is true |
209. |
The wages due from Mar 20 ,Apr 20 and May 20 are Rs8000,Rs9000 and Rs 10,000 respectively.There is delay in payment of wages of 2 months.What will be the wages paid in May 20 in the Cash Budget. |
A. | Rs 9000 |
B. | Rs 8000 |
C. | Rs 10000 |
D. | Rs 27000 |
Answer» B. Rs 8000 |
210. |
Which of the following is/are the responsibilty centres.
|
A. | All |
B. | Only I,II and III |
C. | Only I and IV |
D. | Only II,III and IV |
Answer» A. All |
211. |
Total Actual material is 1250 Kg.The Standard qty of Material A=800Kg and B=400Kg.What is the revised Std qty of A and B respectively. |
A. | 825kg,425Kg |
B. | 950Kg,300Kg |
C. | 833Kg,417Kg |
D. | 750Kg,500Kg |
Answer» C. 833Kg,417Kg |
212. |
SH=800 Hours,AR=Rs 7 ,SR=6,AH=750 Hours.Calculate labour rate variance(LRV). |
A. | 750 A |
B. | 300 F |
C. | 300 A |
D. | 750 F |
Answer» A. 750 A |
213. |
Yr 2019 :sales 1,20,000 and Profit8,000 ;Yr 2020:Sales 1,40,000 an profit 13,000.Calculate P/v ratio. |
A. | 25% |
B. | 40% |
C. | 30% |
D. | 35% |
Answer» A. 25% |
214. |
Calculate Break Even Point in units if Fixed cost is 15,000 ,SP=15 and VC=12 |
A. | 1000 units |
B. | 1250 units |
C. | 1500 units |
D. | 5000 units |
Answer» D. 5000 units |
215. |
Actual Sales=40,000 and Break Even Point =25,000.Calculate Margin of safety(MOS). |
A. | 65000 |
B. | 15000 |
C. | 40000 |
D. | 25000 |
Answer» B. 15000 |
216. |
What are the sales required to earn a profit of 12,000 if Fixed cost are 22,000 and P/V ratio is 25%. |
A. | 136000 |
B. | 40000 |
C. | 8500 |
D. | 2500 |
Answer» A. 136000 |
217. |
Actual Sales=80,000,P/V ratio=20% and Fixed cost=10,000.Calculate Profit. |
A. | 16000 |
B. | 3000 |
C. | 5000 |
D. | 6000 |
Answer» D. 6000 |
218. |
The cost that tends to remain constant irrespective of the level of activity is called _______. |
A. | Variable cost |
B. | Fixed cost |
C. | Total cost |
D. | All of the above |
Answer» B. Fixed cost |
219. |
Cost Accounting restrict itself with _______ transactions. |
A. | Financial |
B. | Spot |
C. | Historical |
D. | Administrative |
Answer» C. Historical |
220. |
Following is (are) the method(s) of measuring labour turnover. |
A. | Replacement Method |
B. | Separation Method |
C. | Flux Method |
D. | All of the above |
Answer» D. All of the above |
221. |
Following is (are) the example(s) of semi-variable overheads. |
A. | Maintenance cost |
B. | Electricity |
C. | Health and Accident Insurance |
D. | All of the above |
Answer» D. All of the above |
222. |
_________ indicates the financial status of the business at given period. |
A. | Balance sheet |
B. | Accounting ledger |
C. | General ledger |
D. | All of the above |
Answer» A. Balance sheet |
223. |
In Cash budget, Non operating cash inflow include(s) |
A. | Receipt of loan/borrowings |
B. | Issue of shares |
C. | Sale of fixed assets |
D. | All of the above |
Answer» D. All of the above |
224. |
Sales Budget is a forecast expressed in - |
A. | Quantity |
B. | Money |
C. | Both (a) and (b) |
D. | None of the above |
Answer» C. Both (a) and (b) |
225. |
Following is used as tool for Cost Control |
A. | Marginal cost |
B. | Historical cost |
C. | Standard cost |
D. | All of the above |
Answer» C. Standard cost |
226. |
Management accounting assists the management |
A. | Only in control |
B. | Only in direction |
C. | Only in planning |
D. | In planning, direction and control |
Answer» D. In planning, direction and control |
227. |
Management accounting is deals with - |
A. | Quantitative Information |
B. | Qualitative Information |
C. | Both (a) and (b) |
D. | None of the above |
Answer» C. Both (a) and (b) |
228. |
Which of the following is an advantage of standard costing? |
A. | Measuring efficiency |
B. | Facilitates cost control |
C. | Determination of variance |
D. | All of the above |
Answer» D. All of the above |
229. |
Which of the following is not a functional budget? |
A. | Labour budget |
B. | Cash budget |
C. | Materials budget |
D. | Expenses budget |
Answer» A. Labour budget |
230. |
Which is the mostly likely purpose of budgeting? |
A. | Planning and control of an organization's income and expenditure |
B. | Preparation of a five-year business plan |
C. | Company valuation |
D. | Assess the non-financial performance of an organization |
Answer» A. Planning and control of an organization's income and expenditure |
231. |
__________ Accounting becomes a source of information for Management Accounting. |
A. | Financial |
B. | Cost |
C. | Both (a) and (b) |
D. | None of the above |
Answer» C. Both (a) and (b) |
232. |
Calculate the production budget from the following data: sales 89,350 units; opening inventory 23,864 units; closing inventory 33,156 units. |
A. | 80,058 units |
B. | 1,46,370 units |
C. | 32,320 units |
D. | 98,642 units |
Answer» D. 98,642 units |
233. |
Fixed budget is useless for comparison when the level of activity - |
A. | Increases |
B. | Fluctuates both ways |
C. | Decreases |
D. | Constant |
Answer» B. Fluctuates both ways |
234. |
The budget committee consists of - |
A. | Managers |
B. | Budget officers |
C. | Creditors |
D. | None of the above |
Answer» B. Budget officers |
235. |
A budget centre is - |
A. | Department or part of the department |
B. | Meeting place for budget committee |
C. | Office of the budget officer |
D. | None of the above |
Answer» A. Department or part of the department |
236. |
The main objective of budgetary control is - |
A. | To define the goal of the firm |
B. | To coordinate different departments |
C. | To plan to achieve its goals |
D. | All of the above |
Answer» C. To plan to achieve its goals |
237. |
Production budget is - |
A. | Dependent on purchase budget |
B. | Dependent on sales budget |
C. | Dependent on cash budget |
D. | None of the above |
Answer» B. Dependent on sales budget |
238. |
Sales budget shows the sales details as - |
A. | Month wise |
B. | Product wise |
C. | Area wise |
D. | All of the above |
Answer» D. All of the above |
239. |
An example of long period budget is - |
A. | R & D budget |
B. | Master budget |
C. | Sales budget |
D. | Personnel budget |
Answer» A. R & D budget |
240. |
The budgets are classified on the basis of - |
A. | Time |
B. | Function |
C. | Flexibility |
D. | All of the above |
Answer» D. All of the above |
241. |
Budget relating to the key factor is prepared - |
A. | After other budgets |
B. | With other budgets |
C. | Before other budgets |
D. | None of the above |
Answer» C. Before other budgets |
242. |
Key factor is also known as - |
A. | Limiting factor |
B. | Governing factor |
C. | Principal factor |
D. | All of the above |
Answer» D. All of the above |
243. |
In responsibility accounting system - |
A. | Budgets are prepared |
B. | Actual performance is recorded |
C. | The performance is reported |
D. | All of the above |
Answer» D. All of the above |
244. |
The responsibility accounting emphasizes the performance of - |
A. | System |
B. | Men |
C. | Both (a) and (b) |
D. | None of these |
Answer» B. Men |
245. |
The responsibility accounting is also called - |
A. | Profitability accounting |
B. | Activity accounting |
C. | Both (a) and (b) |
D. | None of these |
Answer» C. Both (a) and (b) |
246. |
The responsibility accounting is the part of - |
A. | Financial accounting |
B. | Management accounting |
C. | Mechanized accounting |
D. | None of these |
Answer» B. Management accounting |
247. |
The responsibility accounting is a controlling tool for - |
A. | Top‐level management |
B. | Lower level management |
C. | Middle level management |
D. | None of these |
Answer» A. Top‐level management |
248. |
Which of the following system emphasizes on cost control ? |
A. | Cost accounting |
B. | Responsibility accounting |
C. | Financial accounting |
D. | None of these |
Answer» B. Responsibility accounting |
249. |
The responsibility centres come under the responsibility of - |
A. | Cost accountants |
B. | Management accountant |
C. | Responsibility managers |
D. | Auditor |
Answer» C. Responsibility managers |
250. |
The subdivision of responsibility centre is - |
A. | Expense centre |
B. | Profit centre |
C. | Investment centre |
D. | All of the above |
Answer» D. All of the above |
251. |
The accounting department in an organization is - |
A. | Investment centre |
B. | Expense centre |
C. | Profit centre |
D. | All of the above |
Answer» A. Investment centre |
252. |
What is the main advantage of responsibility accounting ? |
A. | Improves performance |
B. | It fixes responsibility |
C. | Helpful in decision making |
D. | All of the above |
Answer» D. All of the above |
253. |
The responsibility accounting is a system by which the responsibility is assigned to the concerned persons - |
A. | To increase sales |
B. | To control cash |
C. | To increase production |
D. | All of the above |
Answer» B. To control cash |
254. |
The contribution of accounting department in an organization - |
A. | Cannot be measured in monetary terms |
B. | Can be measured in monetary terms |
C. | May or may not be measured in monetary terms |
D. | None of the above |
Answer» A. Cannot be measured in monetary terms |
255. |
According to responsibility accounting, the entire organization is divided into various - |
A. | Business centre |
B. | Profit centre |
C. | Responsibility centre |
D. | None of the above |
Answer» C. Responsibility centre |
256. |
It may not be ______ to measure exactly the output of service departments in an organization. |
A. | Feasible |
B. | Necessary |
C. | Either (a) or (b) |
D. | None of these |
Answer» C. Either (a) or (b) |
257. |
Internal transfer of process at profit _________ of the company. |
A. | Will not increase the asset |
B. | Will increase the asset |
C. | Can’t say |
D. | Inadequate information |
Answer» A. Will not increase the asset |
258. |
The success of budgetary control system depends upon the willing cooperation of ….… |
A. | Shareholders |
B. | Management |
C. | Creditors |
D. | All the functional areas of management |
Answer» D. All the functional areas of management |
259. |
A key factor is one which restricts …… |
A. | The volume of production |
B. | The volume of sales |
C. | The volume of purchase |
D. | All of the above |
Answer» A. The volume of production |
260. |
The classification of fixed and variable cost is useful for the preparation of …… |
A. | Master budget |
B. | Flexible budget |
C. | Cash budget |
D. | Capital budget |
Answer» B. Flexible budget |
261. |
In ‘make or buy’ decision, it is profitable to buy from outside only when the supplier’s price is below the firm’s own ___________. |
A. | Fixed Cost |
B. | Variable Cost |
C. | Total Cost |
D. | Prime Cost |
Answer» B. Variable Cost |
262. |
__________ is a detailed budget of cash receipts and cash expenditure incorporating both revenue and capital items. |
A. | Cash Budget |
B. | Capital Expenditure Budget |
C. | Sales Budget |
D. | Overhead Budget |
Answer» A. Cash Budget |
263. |
Sunk costs are __________. |
A. | Relevant for decision making |
B. | Not relevant for decision making |
C. | Cost to be incurred in future |
D. | Future costs |
Answer» B. Not relevant for decision making |
264. |
Abnormal cost is the cost ___________. |
A. | Cost normally incurred at a given level of output |
B. | Cost not normally incurred at a given level of output |
C. | Cost which is charged to customer |
D. | Cost which is included in the cost of the product |
Answer» B. Cost not normally incurred at a given level of output |
265. |
Responsibility Centre can be categorised into ___________. |
A. | Cost Centres only |
B. | Profit Centres only |
C. | Investment Centres only |
D. | All of the above |
Answer» D. All of the above |
266. |
A profit centre is a centre ___________. |
A. | Where the manager has the responsibility of generating and maximising profits |
B. | Which is concerned with earning an adequate Return on Investment |
C. | Both (a) and (b) |
D. | Which manages cost |
Answer» A. Where the manager has the responsibility of generating and maximising profits |
267. |
Management Accounting is and financial accounting differ in that management accounting information is prepared – |
A. | Following prescribed rules |
B. | Using whatever methods the company finds beneficial |
C. | For shareholders |
D. | To summarize the whole company with little detail |
Answer» B. Using whatever methods the company finds beneficial |
268. |
Purpose of Management Accounting is to – |
A. | Past orientation |
B. | Help banks make decisions |
C. | Help managers make decisions |
D. | Help investors make decisions |
Answer» C. Help managers make decisions |
269. |
Management Accounting is the branch of accounting concerned with reporting to – |
A. | Internal Managers |
B. | Shareholders |
C. | The Government |
D. | Bankers |
Answer» A. Internal Managers |
270. |
Which of the following does NOT describe management accounting? |
A. | Evaluation of segments or products within the firm |
B. | Emphasis on the future |
C. | Externally focused |
D. | Detailed information |
Answer» C. Externally focused |
271. |
Management accounting reports are prepared |
A. | To meet the needs of decision makers within the firm |
B. | Whenever shareholders request them |
C. | According to guidelines prepared by the shares and Financial Services Authority |
D. | According to financial accounting standards |
Answer» A. To meet the needs of decision makers within the firm |
272. |
Management accounting is primarily concerned with - |
A. | Providing investors with useful information for valuing securities. |
B. | Providing creditors information on the status of their loans. |
C. | Providing managers with relevant information to help achieve organizational goals. |
D. | Providing the relevant taxation authorities with information to determine the amount |
Answer» C. Providing managers with relevant information to help achieve organizational goals. |
273. |
Which matters are taken into consideration while preparing production budget ? |
A. | The estimate of the number of units to be produced during the budget period. |
B. | Estimate of number of units to be sold. |
C. | Policy regarding the wage fixation for labourers. |
D. | Policy regarding the selection of suppliers from whom materials would be purchased. |
Answer» A. The estimate of the number of units to be produced during the budget period. |
274. |
Which of the following matter is to be taken into account which preparing Material Purchase Budget ? |
A. | The supplier from whom materials are to be purchased. |
B. | The procedure of storing and preserving materials after they are received. |
C. | The prices at which receipts and issues of materials are to be recorded in stores ledger. |
D. | The maximum and minimum quantities of materials to be purchased. |
Answer» D. The maximum and minimum quantities of materials to be purchased. |
275. |
Which of the following matter is relevant with cash receipts and disbursement method of preparing Cash Budget ? |
A. | While determining the cash payments, it is necessary to estimate the credit sales. |
B. | While estimating cash receipts, it is not necessary to estimate the figure of credit sales. |
C. | Debtors Ratio is used to estimate the timings when cash collections would be obtained from credit sales. |
D. | While estimating the total amount of cash payment for purchases, it is necessary to decide from which suppliers materials are to be purchased. |
Answer» C. Debtors Ratio is used to estimate the timings when cash collections would be obtained from credit sales. |
276. |
Budget period depends upon - |
A. | The type of budget |
B. | The nature of business |
C. | The length of trade cycles |
D. | All of the above |
Answer» D. All of the above |
277. |
Usually the production budget is stated in terms of - |
A. | Money |
B. | Quantity |
C. | Both (a) and (b) |
D. | None |
Answer» C. Both (a) and (b) |
278. |
Recording of actual performance is - |
A. | An advantage of budgetary control |
B. | A step in budgetary control |
C. | A limitation of budgetary control |
D. | None of the above |
Answer» B. A step in budgetary control |
279. |
Budgetary control system helps the management to eliminate - |
A. | Undercapitalization |
B. | Overcapitalization |
C. | Both (a) and (b) |
D. | None |
Answer» C. Both (a) and (b) |
280. |
Budgetary control facilitates easy introduction of the - |
A. | Marginal costing |
B. | Ratio analysis |
C. | Standard costing |
D. | Subjective matter |
Answer» C. Standard costing |
281. |
Budgetary control system acts as a friend, philosopher and guide to the - |
A. | Management |
B. | Share holders |
C. | Creditors |
D. | Employees |
Answer» A. Management |
282. |
Budgetary control system defines the objectives and policies of the - |
A. | Production department |
B. | Finance department |
C. | Marketing department |
D. | Subjective matter |
Answer» D. Subjective matter |
283. |
A budget is tool which helps the management in planning and control of - |
A. | All business activities |
B. | Production activities |
C. | Purchase activities |
D. | Sales activities |
Answer» A. All business activities |
284. |
In responsibility centre, the output is called as - |
A. | Revenue |
B. | Cost |
C. | Both (a) and (b) |
D. | None |
Answer» A. Revenue |
285. |
If the responsibility centre gets more revenue from output, then it is called - |
A. | Investment centre |
B. | Cost centre |
C. | Profit centre |
D. | Expense centre |
Answer» C. Profit centre |
286. |
Cost Unit is defined as - |
A. | Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed |
B. | A location, person or an item of equipment or a group of these for which costs are ascertained and used for cost control. |
C. | Centres having the responsibility of generating and maximising profits |
D. | Centres concerned with earning an adequate return on investment |
Answer» A. Unit of quantity of product, service or time in relation to which costs may be ascertained or expressed |
287. |
Fixed cost is a cost - |
A. | Which changes in total in proportion to changes in output |
B. | Which is partly fixed and partly variable in relation to output |
C. | Which do not change in total during a given period despise changes in output |
D. | Which remains same for each unit of output |
Answer» C. Which do not change in total during a given period despise changes in output |
288. |
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» A. can not |
289. |
Element/s of Cost of a product are - |
A. | Material only |
B. | Labour only |
C. | Expenses only |
D. | Material, Labour and expenses |
Answer» D. Material, Labour and expenses |
290. |
Overhead refers to - |
A. | Direct or Prime Cost |
B. | All Indirect costs |
C. | Only Factory indirect costs |
D. | Only indirect expenses |
Answer» B. All Indirect costs |
291. |
Which of the following is not a method of cost absorption? |
A. | Percentage of direct material cost |
B. | Machine hour rate |
C. | Labour hour rate |
D. | Repeated distribution method |
Answer» D. Repeated distribution method |
292. |
A Local Authority is preparing cash Budget for its refuse disposal department. Which of the following items would not be included in the cash budget? |
A. | Capital cost of a new collection vehicle |
B. | Depreciation of the machinery |
C. | Operatives wages |
D. | Fuel for the collection Vehicles |
Answer» B. Depreciation of the machinery |
293. |
Which of the following characteristics does NOT pertain to management accounting? |
A. | Provides information and estimates about future activity |
B. | Generates specific-purpose financial statements and reports |
C. | Provides financial and operating data multidisciplinary in scope |
D. | Has externally imposed standards |
Answer» D. Has externally imposed standards |
294. |
A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is known as - |
A. | Master budget |
B. | Zero base budget |
C. | Functional budget |
D. | Flexible budget |
Answer» D. Flexible budget |
295. |
___________ is a summary of all functional budgets in a capsule form. |
A. | Functional Budget |
B. | Master Budget |
C. | Long Period Budget |
D. | Flexible Budget |
Answer» B. Master Budget |
296. |
When the sales increase from Rs. 40,000 to Rs. 60,000 and profit increases by Rs. 5,000, the P/V ratio is - |
A. | 20% |
B. | 30% |
C. | 25% |
D. | 40% |
Answer» C. 25% |
297. |
From following which is not a principle of good reporting ? |
A. | Simplicity |
B. | Accountability |
C. | Promptness |
D. | Accuracy |
Answer» B. Accountability |
298. |
From day to day operation which report is prepare ? |
A. | Routine |
B. | Special |
C. | Investigative |
D. | External |
Answer» A. Routine |
299. |
Any special event happen into the business then which report is prepared ? |
A. | Routine |
B. | Special |
C. | External |
D. | Control |
Answer» B. Special |
300. |
Internal report use for _______________ . |
A. | Share holders |
B. | Government |
C. | Managerial personnel |
D. | Creditors |
Answer» C. Managerial personnel |
Done Reading?