McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
| 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 | |
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