An investment centre is a responsibility centre where the manager has control of

cost profits and product quality

Which among the following is not an example of cash flow from operating activities ?

cash payments of insurance premiums

cash receipts from disposal of fixed assets

Which among the following are examples of cash flow from operating activities ?

cash receipts from sale of goods

59 + Mcqs in Accounting for Management in Bachelor of Commerce (B Com) Page 1 McqOptions

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» C. cost accounting

Discussion

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» D. all of these

Discussion

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» B. financial accounting

Discussion

4.	.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» C. cost accounting

Discussion

5.	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» B. co-ordination functions

Discussion

6.	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» C. cost accounting

Discussion

7.	.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» D. none of these

Discussion

8.	..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» D. none of these

Discussion

9.	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» D. none

Discussion

10.	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» C. external analysis

Discussion

11.	..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» C. trend analysis

Discussion

12.	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» B. horizontal analysis

Discussion

13.	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» D. none of these

Discussion

14.	The weighted average method of stock valuation would be most appropriate for .
A.	chemical manufacturer
B.	a food retailer
C.	a building contractor
D.	a motor components retailer
Answer» B. a food retailer

Discussion

15.	A cost which changes in proportion to changes in volume of activity is called
A.	fixed cost
B.	controllable cost
C.	variable cost
D.	opportunity cost
Answer» D. opportunity cost

Discussion

16.	..is the angle caused by intersection of total cost line and total sales line
A.	angle of contribution
B.	angle of incidence
C.	all of these
D.	none of these
Answer» C. all of these

Discussion

17.	When fixed costs are Rs.4000 and P/v ratio is 25%, then break even point will be ..
A.	40000
B.	20000
C.	16000
D.	10000
Answer» D. 10000

Discussion

18.	Fixed costs Rs.6000, Profit required Rs.4000 and P/v ratio is 50% , then sales required will be .
A.	6000
B.	4000
C.	10000
D.	20000
Answer» E.

Discussion

19.	An investment centre is a responsibility centre where the manager has control of
A.	costs and profits
B.	cost profits and product quality
C.	costs profits and assets
D.	costs
Answer» D. costs

Discussion

20.	In responsibility accounting the organization is divided into different centers
A.	responsibility
B.	cost
C.	profit
D.	none of these
Answer» B. cost

Discussion

21.	A cost centre is a segment of the organization where the manager is responsible for ..
A.	costs
B.	inputs
C.	a or b
D.	none of these
Answer» D. none of these

Discussion

22.	Variable cost ratio is 60% Sales Rs.20000 and fixed cst Rs.5000, then profit will be ..
A.	15000
B.	12000
C.	3000
D.	10000
Answer» D. 10000

Discussion

23.	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» E.

Discussion

24.	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» B. short term investments

Discussion

25.	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» E.

Discussion

26.	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» D. none of these

Discussion

27.	.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» C. fixed cost

Discussion

28.	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» B. variable

Discussion

29.	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» C. input output ratio

Discussion

30.	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» C. fixed cost

Discussion

31.	. 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» C. fixed cost

Discussion

32.	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» C. both of these

Discussion

33.	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» D. none of these

Discussion

34.	..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» B. fixed costs

Discussion

35.	..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» E.

Discussion

36.	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» C. semi variable cost

Discussion

37.	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» D. none of these

Discussion

38.	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» C. differential costing

Discussion

39.	Given sales = 150000, Fixed costs = 30000, Profit = 40000.The variable cost is .
A.	110000
B.	80000
C.	120000
D.	10000
Answer» C. 120000

Discussion

40.	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» D. none of these

Discussion

41.	.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» C. both of these

Discussion

42.	.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» B. cash flow statement

Discussion

43.	.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» E.

Discussion

44.	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» D. none of these

Discussion

45.	.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» B. non current

Discussion

46.	..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» B. non current

Discussion

47.	.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» B. horizontal analysis

Discussion

48.	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» B. 35000

Discussion

49.	..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» C. external analysis

Discussion

50.	. 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» B. common size statements

Discussion

Explore topic-wise MCQs in Bachelor of Commerce (B Com).

.is concerned with recording transactions and preparing financial reports for the external and internal users of accounting.

The Branch of accounting concerned with collection, determining and controlling cost of products and services is called

is concerned with providing information to management for taking managerial decisions.

.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.

Management accounting provides invaluable services to Management in performing ..

Accounting designed to serve parties external to the operating responsibility of the firm is termed as .

.is the amount of expenditure [actual or notional] incurred on or attributable to a given thing.

..is the process of accounting for cost which includes the application of cost control methods and ascertainment of profitability of activities

explains what has happened to a business unit as a result of operations between two balance sheet dates.

In ..type of analysis , financial statements for a number of years are reviewed and analyzed.

..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

The analysis done by persons who have access to the books of account and other information related to the business is termed as

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 ..

The weighted average method of stock valuation would be most appropriate for .

A cost which changes in proportion to changes in volume of activity is called

..is the angle caused by intersection of total cost line and total sales line

When fixed costs are Rs.4000 and P/v ratio is 25%, then break even point will be ..

Fixed costs Rs.6000, Profit required Rs.4000 and P/v ratio is 50% , then sales required will be .

An investment centre is a responsibility centre where the manager has control of

In responsibility accounting the organization is divided into different centers

A cost centre is a segment of the organization where the manager is responsible for ..

Variable cost ratio is 60% Sales Rs.20000 and fixed cst Rs.5000, then profit will be ..

Which among the following is not an example of cash flow from operating activities ?

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.

Which among the following are examples of cash flow from operating activities ?

Flow of cash is said to have taken place when any transactions makes changes in the amount of .before happening of the transactions.

.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.

The essence of marginal costing is that cost is considered on the whole as separate.

The statistical yardstick that provides a measure of relationship between two accounting figures is

cost is defined as the aggregate of variable costs or prime costs plus variable overheads.

Under marginal costing, costs are treated as period costs and charged to profit and loss account for the period for which they are incurred

Under marginal costing, stocks of finished goods and work-in-process are valued at .. costs only

..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

..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.

Marginal cost and differential cost are the same when ..costs do not change with change in output

The Profit/Volume ratio or marginal ratio expresses the relation of to sales.

is the practice of charging all costs, both variable and fixed, to operations, processes, or products

Given sales = 150000, Fixed costs = 30000, Profit = 40000.The variable cost is .

Given sales = 100000, Profit = 10000 , variable cost = 70%.The sales required to earn a profit of Rs.40000 is

.are the statements, in which figures reported are converted into percentages to some common base.

.is a statement which lists all the sources of funds and applications of funds taken place in a business during a particular period

.means cash and other assets which are expected to be sold or consumed during the normal operating cycle of business.

The flow of funds occurs when a transaction changes on the one hand a non current account and on the other hand a ..

.assets are those which in the ordinary course of business can be converted into cash within a short period of time.

..liabilities are those which are intended to be paid in the ordinary course of business within a short period.

.analysis is useful in comparing performance of several companies in the same group, or division or department of the same company.

Given opening stock is Rs.20000, Direct expenses 10000, Closing stock 5000.Cost of goods sold is

..type of analysis is based on the data from year to year rather than on one date, and also termed as dynamic analysis.

. are prepared so as to provide time perspective to the consideration of various elements of financial position embodied in such statements.