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
| 1. |
………………………Accounting is concerned with measurement of the cost and value of people for the organization. |
| A. | financial accounting |
| B. | management accounting |
| C. | corporate accounting |
| D. | human resource accounting |
| Answer» D. human resource accounting | |
| 2. |
The important objective of …………………..accounting is to organize the accumulated financial data into meaningful information. |
| A. | financial accounting |
| B. | management accounting |
| C. | corporate accounting |
| D. | human resource accounting |
| Answer» A. financial accounting | |
| 3. |
……………………..accounting is the adoption and analysis of accounting
|
| A. | financial accounting |
| B. | management accounting |
| C. | corporate accounting |
| D. | human resource accounting |
| Answer» B. management accounting | |
| 4. |
Planning is that function of ……………………..which requires an efficient system of decision – making. |
| A. | finance |
| B. | management |
| C. | h.r |
| D. | administration. |
| Answer» B. management | |
| 5. |
…………………..costs are pre-determined targets adainst which actual results are evaluated. |
| A. | marginal |
| B. | standard |
| C. | actual |
| D. | budgeted |
| Answer» B. standard | |
| 6. |
Financial Accounting data is primarily meant for ………………… |
| A. | external users |
| B. | internal users |
| C. | employees |
| D. | bank |
| Answer» A. external users | |
| 7. |
Cost Accountant should report to the ……………management. |
| A. | top |
| B. | middle. |
| C. | administration |
| D. | lower |
| Answer» A. top | |
| 8. |
The transaction which increase working capital are ………….. of funds |
| A. | sources |
| B. | application |
| C. | utilization |
| D. | diversion |
| Answer» A. sources | |
| 9. |
Management accounting begins where………………. accounting ends. |
| A. | financial accounting |
| B. | management accounting |
| C. | cost accounting |
| D. | human resource accounting |
| Answer» C. cost accounting | |
| 10. |
Stock is considered as a liquid asset as anytime it can be converted into cash immediately. |
| A. | yes |
| B. | no |
| C. | only yes |
| D. | none of the above |
| Answer» B. no | |
| 11. |
. Return on properties funds is also known as. |
| A. | return on net worth |
| B. | return on shareholders fun |
| C. | return on the shareholders investment |
| D. | all the above |
| Answer» D. all the above | |
| 12. |
What will be the Gross Profit if , total sales is Rs 2,60,000,cost of net goods sold is Rs 2,00,000 & sales return is Rs10,000 ? |
| A. | 13 % |
| B. | 28% |
| C. | 26% |
| D. | 20% |
| Answer» D. 20% | |
| 13. |
Which of the following is not included in current assets. |
| A. | debtors |
| B. | stock |
| C. | cash at bank |
| D. | cash in hand |
| Answer» B. stock | |
| 14. |
Liquidity ratios are expressed in |
| A. | pure ratio form |
| B. | percentage |
| C. | rate or time |
| D. | none of the above |
| Answer» A. pure ratio form | |
| 15. |
Working capital turnover ratio can be determined by : |
| A. | ( gross profit / working capital ) |
| B. | ( cost of goods sold / net sales ) |
| C. | ( cost of goods sold / working capital) |
| D. | none of the above |
| Answer» A. ( gross profit / working capital ) | |
| 16. |
Determine Working capital turnover ratio if, Current asset is Rs 1,50,000, current liability is Rs 1,00,000 & cost of goods sold is Rs 3,00,000. |
| A. | 5 times |
| B. | 6 times |
| C. | 3 times |
| D. | 1.5 times |
| Answer» B. 6 times | |
| 17. |
The ratio analysis is helpful to management in taking several decisions, but as a mechanical substitute for judgement and thinking, it is worse than useless. |
| A. | true |
| B. | false |
| C. | may be false |
| D. | both a and b |
| Answer» A. true | |
| 18. |
Profit for the objective of calculating a ratio may be taken as |
| A. | profit before tax but after interest |
| B. | profit before interest &tax |
| C. | profit after interest & tax |
| D. | all the above |
| Answer» D. all the above | |
| 19. |
If sales is Rs 5,00,000 & net profit is Rs 1,20,000 Net profit ratio is |
| A. | 24% |
| B. | 416% |
| C. | 60% |
| D. | none of the above |
| Answer» A. 24% | |
| 20. |
General profitability ratios are based on |
| A. | investment |
| B. | sales |
| C. | a & b |
| D. | none of the above |
| Answer» B. sales | |
| 21. |
The ratios which reveal the final result of the managerial policies and performance is . |
| A. | turnover ratios. |
| B. | profitability ratios. |
| C. | short term solvency ratio. |
| D. | long term solvency ratio. |
| Answer» B. profitability ratios. | |
| 22. |
Return on investment is a . |
| A. | turnover ratios. |
| B. | short term solvency ratio. |
| C. | profitability ratios. |
| D. | long term solvency ratio. |
| Answer» C. profitability ratios. | |
| 23. |
Net profit ratio is a . |
| A. | turnover ratio. |
| B. | long term solvency ratio. |
| C. | short term solvency ratio |
| D. | profitability ratio. |
| Answer» D. profitability ratio. | |
| 24. |
Stock turnover ratio is a . |
| A. | turnover ratio. |
| B. | profitability ratio. |
| C. | short term solvency ratio. |
| D. | long term solvency ratio. |
| Answer» A. turnover ratio. | |
| 25. |
Current ratio is a |
| A. | short-term solvency ratio. |
| B. | long-term solvency ratio. |
| C. | profitability ratio. |
| D. | turnover ratio. |
| Answer» A. short-term solvency ratio. | |
| 26. |
Proprietary ratio is a . |
| A. | short-term solvency ratio. |
| B. | long-term solvency ratio. |
| C. | profitability ratio. |
| D. | turnover ratio. |
| Answer» B. long-term solvency ratio. | |
| 27. |
Fixed assets ratio is a |
| A. | short-term solvency ratio. |
| B. | long-term solvency ratio. |
| C. | profitability ratio. |
| D. | turnover ratio. |
| Answer» B. long-term solvency ratio. | |
| 28. |
Fixed assets turnover ratio is a |
| A. | short-term solvency ratio. |
| B. | long-term solvency ratio. |
| C. | profitability ratio. |
| D. | turnover ratio. |
| Answer» D. turnover ratio. | |
| 29. |
The ratio which measures the profit in relation to capital employed is known as |
| A. | return on investment. |
| B. | gross profit ratio. |
| C. | operating ratio. |
| D. | operating profit ratio. |
| Answer» A. return on investment. | |
| 30. |
The ratio which determines the profitability from the shareholder’s point of view is . |
| A. | return on investment. |
| B. | gross profit ratio. |
| C. | return on shareholders funds. |
| D. | operating profit ratio. |
| Answer» C. return on shareholders funds. | |
| 31. |
Return on equity is also called |
| A. | return on investment. |
| B. | gross profit ratio. |
| C. | return on shareholders funds. |
| D. | return on net worth. |
| Answer» D. return on net worth. | |
| 32. |
Preliminary expenses is an example of |
| A. | fixed assets. |
| B. | current assets. |
| C. | fictitious assets. |
| D. | current liabilities. |
| Answer» C. fictitious assets. | |
| 33. |
Prepaid expenses is an example of . |
| A. | fixed assets. |
| B. | current assets. |
| C. | fictitious assets. |
| D. | current liabilities. |
| Answer» B. current assets. | |
| 34. |
The ratio which is calculated to measure the productivity of total assets is |
| A. | return on equity. |
| B. | return on share holders funds. |
| C. | return on total assets. |
| D. | return on equity share holders’ funds. |
| Answer» C. return on total assets. | |
| 35. |
The ratio which shows the proportion of profits retained in the business out of the current year’s profits is |
| A. | retained earnings ratio. |
| B. | pay out ratio |
| C. | earnings per share. |
| D. | price earnings ratio. |
| Answer» A. retained earnings ratio. | |
| 36. |
The ratio which indicates earnings per share reflected by the market price is . |
| A. | retained earnings ratio. |
| B. | pay out ratio. |
| C. | earnings per share. |
| D. | price earnings ratio. |
| Answer» D. price earnings ratio. | |
| 37. |
The ratio establishes the relationship between profit before interest and tax and fixed interest charges is . |
| A. | interest cover ratio. |
| B. | fixed dividend cover ratio. |
| C. | debt service coverage ratio. |
| D. | dividend yield ratio. |
| Answer» A. interest cover ratio. | |
| 38. |
The ratio shows the preference dividend as a proportion of profit available for shareholders is |
| A. | interest cover ratio. |
| B. | fixed dividend cover ratio. |
| C. | debt service coverage ratio. |
| D. | dividend yield ratio. |
| Answer» B. fixed dividend cover ratio. | |
| 39. |
The dividend is related to the market value of shares in . |
| A. | interest cover ratio. |
| B. | fixed dividend cover ratio. |
| C. | debt service coverage ratio. |
| D. | dividend yield ratio. |
| Answer» D. dividend yield ratio. | |
| 40. |
Turnover ratio is also known as . |
| A. | activity ratios. |
| B. | solvency ratios. |
| C. | liquidity ratios. |
| D. | profitability ratios. |
| Answer» A. activity ratios. | |
| 41. |
Inventory or stock turnover ratio is also called . |
| A. | stock velocity ratio. |
| B. | debtors velocity ratio. |
| C. | creditors velocity ratio. |
| D. | working capital turnover ratio. |
| Answer» A. stock velocity ratio. | |
| 42. |
Which ratio is calculated to ascertain the efficiency of inventory management in terms of capital investment? |
| A. | stock velocity ratio. |
| B. | debtors velocity ratio. |
| C. | creditors velocity ratio. |
| D. | working capital turnover ratio. |
| Answer» A. stock velocity ratio. | |
| 43. |
The ratio which measures the relationship between the cost of goods sold and the amount of average inventory is |
| A. | stock turnover ratio. |
| B. | debtors velocity ratio. |
| C. | creditors velocity ratio. |
| D. | working capital turnover ratio. |
| Answer» A. stock turnover ratio. | |
| 44. |
Sales – Gross Profit = . |
| A. | net profit. |
| B. | administrative expenses. |
| C. | cost of production. |
| D. | cost of goods sold. |
| Answer» D. cost of goods sold. | |
| 45. |
Opening stock + purchases + direct expenses – closing stock = |
| A. | net profit. |
| B. | cost of production |
| C. | administrative expenses. |
| D. | cost of goods sold |
| Answer» D. cost of goods sold | |
| 46. |
Debtors turnover ratio is also called . |
| A. | stock turnover ratio. |
| B. | debtors velocity ratio. |
| C. | creditors velocity ratio. |
| D. | working capital turnover ratio |
| Answer» B. debtors velocity ratio. | |
| 47. |
Creditors turnover ratio is also called . |
| A. | stock turnover ratio. |
| B. | debtors velocity ratio. |
| C. | accounts payables ratio. |
| D. | working capital turnover ratio. |
| Answer» C. accounts payables ratio. | |
| 48. |
Which of the following shows details and results of the company's profitrelated activities for a period of time? |
| A. | balance sheet |
| B. | income statement |
| C. | statement of cash flows |
| D. | statement of financial position |
| Answer» B. income statement | |
| 49. |
Which of the following financial statements is also known as a statement of financial position? |
| A. | balance sheet |
| B. | statement of cash flows |
| C. | income statement |
| D. | none of the above |
| Answer» A. balance sheet | |
| 50. |
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» A. 20%, | |
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