McqMate
1. |
…………….is concerned with recording transactions and preparing financial reports for the external and internal users of accounting. |
A. | management accounting |
B. | financial accounting |
C. | cost accounting |
D. | all of these |
Answer» B. financial accounting |
2. |
The Branch of accounting concerned with collection, determining and controlling cost of products and services is called……………… |
A. | management accounting |
B. | financial accounting |
C. | cost accounting |
D. | all of these |
Answer» C. cost accounting |
3. |
……………is concerned with providing information to management for taking managerial decisions. |
A. | management accounting |
B. | financial accounting |
C. | cost accounting |
D. | all of these |
Answer» A. management accounting |
4. |
The father of Double Entry system is……………… |
A. | luca pacioli |
B. | lopus patricia |
C. | lukas christian |
D. | none of these |
Answer» A. luca pacioli |
5. |
……………….is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events, which are in part, at least of financial character and interpreting the results there of. |
A. | management accounting |
B. | accounting |
C. | cost accounting |
D. | all of these |
Answer» B. accounting |
6. |
Which among the following do not belong to the category of Accounting ? |
A. | management accounting |
B. | financial accounting |
C. | cost accounting |
D. | none of these |
Answer» D. none of these |
7. |
The objective of financial accounting is to find out………………….. |
A. | profitability and financial position |
B. | liquidity |
C. | solvency |
D. | none |
Answer» A. profitability and financial position |
8. |
……………….journal is used to record credit sale of goods |
A. | sales journal |
B. | cash book |
C. | purchase journal |
D. | none of these |
Answer» A. sales journal |
9. |
The ………….Management is mainly concerned with the policy decisions. |
A. | top |
B. | middle |
C. | bottom |
D. | all of these |
Answer» A. top |
10. |
The Prime function of accounting is to ……………………….. |
A. | record economic data |
B. | provide the informational basis for action |
C. | classify and record business transactions |
D. | attain non economic goals |
Answer» C. classify and record business transactions |
11. |
The basic function of Management Accounting is to ………………………. |
A. | record all business transactions |
B. | interpret the financial data |
C. | assist the management in performing its functions effectively |
D. | none of these |
Answer» C. assist the management in performing its functions effectively |
12. |
Management accounting provides invaluable services to Management in performing………….. |
A. | all management functions |
B. | co-ordination functions |
C. | controlling functions |
D. | none of these |
Answer» A. all management functions |
13. |
Accounting designed to serve parties external to the operating responsibility of the firm is termed as……………. |
A. | management accounting |
B. | financial accounting |
C. | cost accounting |
D. | none of these |
Answer» B. financial accounting |
14. |
Cost Accounting and Management Accounting are ……………….. in nature. |
A. | complementary |
B. | contradictory |
C. | different |
D. | similar |
Answer» A. complementary |
15. |
Management accounting has a ……….. scope than cost accounting. |
A. | wider |
B. | narrow |
C. | no |
D. | none of these |
Answer» A. wider |
16. |
…………….is the amount of expenditure [actual or notional] incurred on or attributable to a given thing. |
A. | expenses |
B. | costing |
C. | cost |
D. | none of these |
Answer» C. cost |
17. |
………………..is the technique and process of ascertaining costs |
A. | cost |
B. | costing |
C. | cost accounting |
D. | none of these |
Answer» C. cost accounting |
18. |
………..is the process of accounting for cost which includes the application of cost control methods and ascertainment of profitability of activities |
A. | cost |
B. | costing |
C. | cost accounting |
D. | none of these |
Answer» C. cost accounting |
19. |
Which among the following is not a management accounting technique? |
A. | standard costing |
B. | marginal costing |
C. | project appraisal |
D. | none |
Answer» D. none |
20. |
………..Accounting is concerned with historical data |
A. | cost accounting |
B. | management accounting |
C. | financial accounting |
D. | none |
Answer» C. financial accounting |
21. |
……………..is the process of identifying the financial strengths and weakness of the firm by properly establishing relationship between the items of balance sheet and Profit and Loss Account |
A. | financial statements |
B. | financial analysis |
C. | trend analysis |
D. | all of these |
Answer» B. financial analysis |
22. |
……………explains what has happened to a business unit as a result of operations between two balance sheet dates. |
A. | income statement |
B. | profit and loss account |
C. | both of these |
D. | none |
Answer» C. both of these |
23. |
The analysis done by investors , credit agencies , government agencies and other creditors who have no access to the internal records of a company is known as …………….. |
A. | internal analysis |
B. | horizontal analysis |
C. | external analysis |
D. | none of these |
Answer» C. external analysis |
24. |
The analysis done by persons who have access to the books of account and other information related to the business is termed as…………… |
A. | internal analysis |
B. | horizontal analysis |
C. | external analysis |
D. | none of these |
Answer» A. internal analysis |
25. |
In ………………..type of analysis , financial statements for a number of years are reviewed and analyzed. |
A. | internal analysis |
B. | horizontal analysis |
C. | external analysis |
D. | none of these |
Answer» B. horizontal analysis |
26. |
……………..type of analysis is based on the data from year to year rather than on one date, and also termed as dynamic analysis. |
A. | internal analysis |
B. | horizontal analysis |
C. | external analysis |
D. | none of these |
Answer» B. horizontal analysis |
27. |
………….analysis is useful in comparing performance of several companies in the same group, or division or department of the same company. |
A. | vertical analysis |
B. | horizontal analysis |
C. | external analysis |
D. | none of these |
Answer» A. vertical analysis |
28. |
………………. are prepared so as to provide time perspective to the consideration of various elements of financial position embodied in such statements. |
A. | comparative statements |
B. | common size statements |
C. | both of these |
D. | none |
Answer» A. comparative statements |
29. |
……………….are the statements, in which figures reported are converted into percentages to some common base. |
A. | comparative statements |
B. | common size statements |
C. | both of these |
D. | none |
Answer» B. common size statements |
30. |
The term fixed assets includes |
A. | stock in trade |
B. | furniture |
C. | payments in advance |
D. | all of these |
Answer» B. furniture |
31. |
The following is a recorded fact |
A. | market value of investment |
B. | debtors |
C. | replacement cost |
D. | none |
Answer» B. debtors |
32. |
The term current assets does not include |
A. | payment in advance |
B. | bills receivable |
C. | long term deferred charges |
D. | none of these |
Answer» C. long term deferred charges |
33. |
In case of a limited company, the term financial statements includes……… |
A. | profit and loss account |
B. | profit and loss account, profit and loss appropriation account and balance sheet |
C. | balance sheet |
D. | none |
Answer» B. profit and loss account, profit and loss appropriation account and balance sheet |
34. |
Assets and liabilities in a Balance sheet may be arranged in the order of ….. |
A. | liquidity |
B. | permanence |
C. | both of these |
D. | none of these |
Answer» C. both of these |
35. |
Income statement matches the …………… incurred in the accounting year |
A. | revenue and costs |
B. | incomes and expenses |
C. | both of these |
D. | none of these |
Answer» C. both of these |
36. |
…………..are statements of financial position at different periods |
A. | comparative statements |
B. | common size statements |
C. | both of these |
D. | none |
Answer» A. comparative statements |
37. |
An increase in current asset accompanied by the increase in current liabilities of the same amount will………………… |
A. | improve short term financial position |
B. | not improve short term financial position |
C. | improve long term financial position |
D. | none of these |
Answer» B. not improve short term financial position |
38. |
Which among the following is an example for horizontal analysis ? |
A. | comparative balance sheet |
B. | comparative income statement |
C. | common size statements |
D. | a & b |
Answer» D. a & b |
39. |
If the Gross sales of a concern is Rs.200000 and sales return is 20000, Gross profit is 150000.cost of goods sold is…………………….. |
A. | 150000 |
B. | 30000 |
C. | 50000 |
D. | none of these |
Answer» B. 30000 |
40. |
Given opening stock is Rs.20000, Direct expenses 10000, Closing stock 5000.Cost of goods sold is …………………… |
A. | 25000 |
B. | 35000 |
C. | 15000 |
D. | 20000 |
Answer» A. 25000 |
41. |
Ratio of Net sales to Net working capital is a ……………………….. |
A. | working capital turnover ratio |
B. | profitability ratio |
C. | liquidity ratio |
D. | none of these |
Answer» A. working capital turnover ratio |
42. |
Observing changes in financial analysis across the years is …………… |
A. | vertical analysis |
B. | horizontal analysis |
C. | inter firm comparison |
D. | none of these |
Answer» B. horizontal analysis |
43. |
Ratio of net profit before interest and tax to sales is ………………. |
A. | operating profit ratio |
B. | operating ratio |
C. | capital gearing |
D. | solvency ratio |
Answer» A. operating profit ratio |
44. |
The statistical yardstick that provides a measure of relationship between two accounting figures is …………………… |
A. | current ratio |
B. | the accounting ratio |
C. | input output ratio |
D. | none of these |
Answer» B. the accounting ratio |
45. |
……………….is a statement which lists all the sources of funds and applications of funds taken place in a business during a particular period |
A. | fund flow statement |
B. | cash flow statement |
C. | any of these |
D. | none of these |
Answer» A. fund flow statement |
46. |
The overall net increase or decrease in working capital is found out by preparing………………… |
A. | fund flow statement |
B. | cash flow statement |
C. | statement showing changes in working capital |
D. | none of these |
Answer» C. statement showing changes in working capital |
47. |
Which one of the following is a source of fund ? |
A. | issue of shares in consideration of machinery purchased |
B. | issue of bonus shares |
C. | issue of right shares |
D. | issue of shares for cash |
Answer» D. issue of shares for cash |
48. |
Which among the following is a sources of fund ? |
A. | sale proceeds of fixed assets |
B. | sale proceeds of long term investments |
C. | non operating incomes |
D. | all of these |
Answer» D. all of these |
49. |
Which among the following is an application of fund ? |
A. | purchase of long term investments |
B. | redemption of preference shares |
C. | redemption of debentures |
D. | all of these |
Answer» D. all of these |
50. |
……………is only internal source of funds |
A. | fund from operations |
B. | net profit |
C. | both of these |
D. | none of these |
Answer» A. fund from operations |
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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