McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Business Administration (BBA) , Bachelor of Banking and Insurance (BBI) , Bachelor of Commerce (B Com) .
Chapters
| 51. |
Given inventory of 24,000, other current assets of 12,000 and current liabilities of 20,000, the acid test (quick ratio) will be: |
| A. | 1.8 :1 |
| B. | 0.6 :1 |
| C. | 1.2:1 |
| D. | 1.6 :1 |
| Answer» B. 0.6 :1 | |
| 52. |
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 | |
| 53. |
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 | |
| 54. |
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 | |
| 55. |
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 | |
| 56. |
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 | |
| 57. |
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 | |
| 58. |
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 | |
| 59. |
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 | |
| 60. |
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 | |
| 61. |
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 | |
| 62. |
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 | |
| 63. |
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 | |
| 64. |
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% | |
| 65. |
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 | |
| 66. |
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 | |
| 67. |
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 | |
| 68. |
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 | |
| 69. |
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 | |
| 70. |
Cost Accounting restrict itself with _______ transactions. |
| A. | Financial |
| B. | Spot |
| C. | Historical |
| D. | Administrative |
| Answer» C. Historical | |
| 71. |
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 | |
| 72. |
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 | |
| 73. |
_________ 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 | |
| 74. |
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 | |
| 75. |
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) | |
| 76. |
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 | |
| 77. |
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 | |
| 78. |
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) | |
| 79. |
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 | |
| 80. |
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 | |
| 81. |
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 | |
| 82. |
__________ 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) | |
| 83. |
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 | |
| 84. |
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 | |
| 85. |
The budget committee consists of - |
| A. | Managers |
| B. | Budget officers |
| C. | Creditors |
| D. | None of the above |
| Answer» B. Budget officers | |
| 86. |
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 | |
| 87. |
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 | |
| 88. |
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 | |
| 89. |
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 | |
| 90. |
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 | |
| 91. |
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 | |
| 92. |
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 | |
| 93. |
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 | |
| 94. |
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 | |
| 95. |
The responsibility accounting emphasizes the performance of - |
| A. | System |
| B. | Men |
| C. | Both (a) and (b) |
| D. | None of these |
| Answer» B. Men | |
| 96. |
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) | |
| 97. |
The responsibility accounting is the part of - |
| A. | Financial accounting |
| B. | Management accounting |
| C. | Mechanized accounting |
| D. | None of these |
| Answer» B. Management accounting | |
| 98. |
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 | |
| 99. |
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 | |
| 100. |
The responsibility centres come under the responsibility of - |
| A. | Cost accountants |
| B. | Management accountant |
| C. | Responsibility managers |
| D. | Auditor |
| Answer» C. Responsibility managers | |
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