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
| 351. |
For preparing an effective budget it needs accounting information which is |
| A. | Structured around the past data need of the management |
| B. | Structured around the line communication needs of the management |
| C. | Structured around financial needs of the management |
| D. | Structured around the planning and control needs of the management |
| Answer» D. Structured around the planning and control needs of the management | |
| 352. |
Long period budgets are prepared under |
| A. | Receipts and payment method |
| B. | Balance sheet method |
| C. | Adjusted profit and loss method |
| D. | Receipts and payments, balance sheet method |
| Answer» D. Receipts and payments, balance sheet method | |
| 353. |
A budget specifies the operations to be performed during the next year is called __________ |
| A. | Operation budget |
| B. | Responsibility budget |
| C. | Activity budget |
| D. | Flexible budget |
| Answer» C. Activity budget | |
| 354. |
The branch of accounting which primarily deals with processing and presenting accounting data fro internal use is ________________ |
| A. | Cost accounting |
| B. | Financial accounting |
| C. | Management accounting |
| D. | Inflation accounting |
| Answer» C. Management accounting | |
| 355. |
The term management accounting was used in |
| A. | 1950 |
| B. | 1939 |
| C. | 1910 |
| D. | 1947 |
| Answer» A. 1950 | |
| 356. |
Management accounting is also known as _______________ |
| A. | Price level accounting |
| B. | Historical accounting |
| C. | Decision accounting |
| D. | None of these |
| Answer» C. Decision accounting | |
| 357. |
Which of the following is not a technique of management accounting |
| A. | Budgetary control |
| B. | Standard costing |
| C. | Marginal costing |
| D. | Process costing |
| Answer» D. Process costing | |
| 358. |
Management accounting is helpful in increasing _______________ |
| A. | Performance |
| B. | Profitability |
| C. | Efficiency |
| D. | Production |
| Answer» C. Efficiency | |
| 359. |
Management accounting has a ___________ scope than cost accounting |
| A. | Wider |
| B. | Narrower |
| C. | Smaller |
| D. | None of these |
| Answer» A. Wider | |
| 360. |
Management accounting helps in ___________ data |
| A. | Analysis |
| B. | Interpretation |
| C. | Analysis and interpretation |
| D. | None of these |
| Answer» C. Analysis and interpretation | |
| 361. |
Management accounting provides alternative choices for managerial ___________ |
| A. | Decisions |
| B. | Policies |
| C. | Uses |
| D. | None of these |
| Answer» A. Decisions | |
| 362. |
Publication of management accounting statements are ______________ |
| A. | Compulsory |
| B. | Not optional |
| C. | Optional |
| D. | None of these |
| Answer» B. Not optional | |
| 363. |
Management accounting deals only with that information which is useful to the ___________ |
| A. | Accountant |
| B. | Owners |
| C. | Management |
| D. | All of the above |
| Answer» C. Management | |
| 364. |
The prime function of management accounting is to ------------------------------- |
| A. | Interpret financial data |
| B. | Assist the management in performing its functions |
| C. | Record business transaction |
| D. | None of these |
| Answer» B. Assist the management in performing its functions | |
| 365. |
Management accounting relates to ________ |
| A. | Recording of accounting data |
| B. | Recording of costing data |
| C. | Presentation of accounting data |
| D. | None of these |
| Answer» C. Presentation of accounting data | |
| 366. |
Management accounting analyses accounting data with the help of ------------------------- |
| A. | Auditors |
| B. | Statutory forms |
| C. | Tools and techniques |
| D. | None of these |
| Answer» C. Tools and techniques | |
| 367. |
Management accounting and cost accounting functions are -------------------------- |
| A. | Neutral in effect |
| B. | Complementary in nature |
| C. | Contradictory in nature |
| D. | None of these |
| Answer» B. Complementary in nature | |
| 368. |
Management accounting provides valuable services to management in performing ____ |
| A. | Coordinating functions |
| B. | Controlling functions |
| C. | Planning functions |
| D. | All managerial functions |
| Answer» D. All managerial functions | |
| 369. |
Management accounting 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. | |
| 370. |
Management accounting is the branch of accounting concerned with reporting to |
| A. | internal managers. |
| B. | shareholders. |
| C. | the government |
| D. | bankers. |
| Answer» B. shareholders. | |
| 371. |
The use of management accounting is |
| A. | Optional |
| B. | Compulsory |
| C. | Legally obligatory |
| D. | Compulsory to some and optional to others |
| Answer» A. Optional | |
| 372. |
The management accounting can be stated an extension of A) Cost Accounting B) Financial Accounting C) Responsibility Accounting |
| A. | Both A and B |
| B. | Both A and C c) |
| C. | Both B and C |
| D. | A, |
| Answer» D. A, | |
| 373. |
Which of the following is true about management accounting?
|
| A. | Only A |
| B. | Only B |
| C. | Both A and B |
| D. | None of the above |
| Answer» A. Only A | |
| 374. |
Which of the following are tools of management accounting?
|
| A. | A, B and D |
| B. | A, C and D |
| C. | A, B and C |
| D. | A, B , C, D |
| Answer» C. A, B and C | |
| 375. |
Management accounting is related with
|
| A. | A and B |
| B. | B and C |
| C. | A and C |
| D. | All are false |
| Answer» C. A and C | |
| 376. |
Management accountancy is a structure for |
| A. | Costing |
| B. | Accounting |
| C. | Decision making |
| D. | Management |
| Answer» C. Decision making | |
| 377. |
The prime function of financial accounting is to |
| A. | Classify and Record the economic data |
| B. | To achieve non-economic goals |
| C. | Provide information for control |
| D. | None of the above. |
| Answer» A. Classify and Record the economic data | |
| 378. |
If net profit is ₹ 50,000 after writing off goodwill ₹ 10,000 then the Cash Flow from operating activities will be: |
| A. | ₹ 60,000 |
| B. | ₹ 40,000 |
| C. | ₹ 50,000 |
| D. | ₹ 30,000 |
| Answer» A. ₹ 60,000 | |
| 379. |
Net Profit during the year ₹ 1,00,000
|
| A. | ₹ 30,000 |
| B. | ₹ 94,000 |
| C. | ₹ 1,06,000 |
| D. | ₹ 1,66,000 |
| Answer» B. ₹ 94,000 | |
| 380. |
Net Profit during the year ₹ 30,000
|
| A. | ₹ 30,000 |
| B. | ₹ 34,000 |
| C. | ₹ 22,000 |
| D. | ₹ 40,000 |
| Answer» C. ₹ 22,000 | |
| 381. |
Financing Activities bring changes in |
| A. | Size and composition of owner equities |
| B. | Borrowing of the enterprise |
| C. | Both a and b |
| D. | None of the above |
| Answer» C. Both a and b | |
| 382. |
For year 2018 Equity Share Capital is Rs 3,00,000 Preference Share Capital is Rs.1,00,000,10% debentures is Rs.2,00,000 and Share premium is Rs.30,000. For year 2019 Equity Share Capital is Rs 4,00,000 Preference Share Capital is Rs.60,000 10% debentures is Rs.1,00,000 and Share premium is 40,000. Also given, Dividend paid on shares Rs 15,000 and Interest paid on debentures Rs. 20,000. Determine net cash flow from financing activities. |
| A. | Inflow of Rs 65,000 |
| B. | Outflow of Rs 65,000 |
| C. | Inflow of Rs 56,000 |
| D. | Outflow of Rs 56000 |
| Answer» B. Outflow of Rs 65,000 | |
| 383. |
Which of the following falls under Profitability Ratios?
|
| A. | A and B |
| B. | A and C |
| C. | B and C |
| D. | None of the above |
| Answer» A. A and B | |
| 384. |
While calculating Gross Profit Ratio, |
| A. | Closing stock is deducted from cost of goods sold |
| B. | Closing stock is added to cost of goods sold |
| C. | Closing stock is ignored |
| D. | None of the above |
| Answer» A. Closing stock is deducted from cost of goods sold | |
| 385. |
Gross Profit Ratio is calculated by |
| A. | (Gross Profit/Gross sales)*100 |
| B. | (Gross Profit/Net sales)*100 |
| C. | (Net Profit/Gross sales)*100 |
| D. | None of the above |
| Answer» B. (Gross Profit/Net sales)*100 | |
| 386. |
Given Sales is Rs.2,40,000 and Gross Profit is 60,000, the Gross Profit Ratio is |
| A. | 24% |
| B. | 25% |
| C. | 40% |
| D. | 44%% |
| Answer» B. 25% | |
| 387. |
If selling price is fixed 25% above the cost, the Gross Profit Ratio is |
| A. | 13% |
| B. | 28% |
| C. | 26% |
| D. | 20% |
| Answer» D. 20% | |
| 388. |
Determine Stock Turnover Ratio if, Opening stock is Rs 31,000, Closing stock is Rs 29,000, Sales is Rs 3,20,000 and Gross profit ratio is 25% on sales. |
| A. | 12 times |
| B. | 11 times |
| C. | 8 times |
| D. | 10 times |
| Answer» C. 8 times | |
| 389. |
Which of the following is not included in quick assets? |
| A. | Debtors |
| B. | Stock |
| C. | Cash at bank |
| D. | Cash in hand |
| Answer» B. Stock | |
| 390. |
Quick ratio is 1.8:1, current ratio is 2.7:1 and current liabilities are Rs 60,000. Determine value of stock. |
| A. | Rs 54,000 |
| B. | Rs 60,000 |
| C. | Rs 1, 62,000 |
| D. | None of the above |
| Answer» A. Rs 54,000 | |
| 391. |
A Current Ratio of Less than One means |
| A. | Current Liabilities < Current Assets, |
| B. | Fixed Assets > Current Assets, |
| C. | Current Assets < Current Liabilities, |
| D. | Share Capital > Current Assets. |
| Answer» C. Current Assets < Current Liabilities, | |
| 392. |
A firm has Capital of Rs. 10,00,000; Sales of Rs. 5,00,000; Gross Profit of Rs. 2,00,000 and Expenses of Rs. 1,00,000. What is the Net Profit Ratio? |
| A. | 20% |
| B. | 50% |
| C. | 10% |
| D. | 40% |
| Answer» C. 10% | |
| 393. |
A Company has a material standard of 1 kg. per unit of output. Each kg. has a standard price of Rs.25 per kg. Company paid Rs.1,27,500 for 5000 kg., which they used to produce 4,700 units. What is the direct material price variance? |
| A. | Rs.2,500 unfavourable |
| B. | Rs.2,600 favourable |
| C. | Rs.12,600 unfavourable |
| D. | Rs.10,000 unfavourable |
| Answer» A. Rs.2,500 unfavourable | |
| 394. |
Company has a material standard of 1.1 kg. per unit of output. Each kg. has a standard price of Rs.25 per. Company paid Rs.1,18,800? for 5,100 kg. which they used to produce 4,900 units. What is the direct materials quantity variance? |
| A. | Rs.7,250 favourable |
| B. | Rs.5,000 favourable |
| C. | Rs.7,250 unfavourable |
| D. | Rs.5,000 unfavourable |
| Answer» A. Rs.7,250 favourable | |
| 395. |
(A Company has a standard of 1 direct labor hour per unit at Rs.12 per hour. 3,850 labor hours costing Rs.46,970 were used to produce 4,000 units.) Company’s labor price variance is |
| A. | Rs.770 favourable |
| B. | Rs.770 unfavourable |
| C. | Rs.1,030 favourable |
| D. | Rs.1,030 unfavourable |
| Answer» B. Rs.770 unfavourable | |
| 396. |
(A Company has a standard of 1 direct labor hour per unit at Rs.12 per hour. 3,850 labor hours costing Rs.46,970 were used to produce 4,000 units.) Company’s labor quantity variance is |
| A. | Rs.1,830 unfavourable |
| B. | Rs.1,830 favourable |
| C. | Rs.1,800 favourable |
| D. | Rs.1,800 unfavourable |
| Answer» C. Rs.1,800 favourable | |
| 397. |
(A Company has a standard of 1 direct labor hour per unit at Rs.12 per hour. 3,850 labor hours costing Rs.46,970 were used to produce 4,000 units.) Company’s total labor variance is |
| A. | Rs.770 unfavourable |
| B. | Rs.800 unfavourable |
| C. | Rs.1,030 favourable |
| D. | Rs.1,930 favourable |
| Answer» D. Rs.1,930 favourable | |
| 398. |
Material cost variances is measured as |
| A. | Total standard cost - Total actual cost |
| B. | Standard cost of revised standard mix - Standard cost of actual mix |
| C. | (Standard unit price - Actual unit price) * Actual quantity used |
| D. | (Standard quantity - Actual quantity) * Unit standard price |
| Answer» A. Total standard cost - Total actual cost | |
| 399. |
When the actual cost is less than the standard cost, the difference is termed as |
| A. | Favourable variance |
| B. | Adverse variance |
| C. | Both a and b |
| D. | None of the above |
| Answer» A. Favourable variance | |
| 400. |
The formula to estimate Labour Mix variance is |
| A. | Total standard labour cost of actual output - Total actual cost of actual output |
| B. | (Standard rate per hour - Actual rate per hour) * Actual Hours |
| C. | (Revised standard time - Actual time) * Standard rate |
| D. | Abnormal idle hours * Standard hourly rate |
| Answer» B. (Standard rate per hour - Actual rate per hour) * Actual Hours | |
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