MCQOPTIONS
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MCQOPTIONS
This section includes 45 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Commerce (B Com) knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Horizontal Analysis shows the comparison of data for several years against a chosen ---------------- year. |
| A. | Base year |
| B. | Previous year |
| C. | Financial year |
| D. | Calender year |
| Answer» B. Previous year | |
| 2. |
Vertical analysis is made to review and analyse the financial statements of -----------------accounting period. |
| A. | One |
| B. | Two |
| C. | Three |
| D. | Four |
| Answer» B. Two | |
| 3. |
The term financial ananlysis include both --------- and interpretation |
| A. | Comparison |
| B. | Analysis |
| C. | Conclusion |
| D. | Constructions |
| Answer» C. Conclusion | |
| 4. |
When financial statements for a number of years are reviewed and analysed, the analysis is known as --------------------- |
| A. | Vertical nalysis |
| B. | Internal analysis |
| C. | Horizontal analysis |
| D. | External analysis |
| Answer» D. External analysis | |
| 5. |
An appropriation of profit is --------------------- |
| A. | Current asset |
| B. | Non current asset |
| C. | Provision for taxation |
| D. | Non current liability |
| Answer» D. Non current liability | |
| 6. |
A segment of activity for which cost is accumulated |
| A. | Service centre |
| B. | Cost centre |
| C. | Profit centre |
| D. | Investment centre |
| Answer» C. Profit centre | |
| 7. |
A system of control where persons are made responsible for control of cost |
| A. | Cost control |
| B. | Production control |
| C. | Responsibility accounting |
| D. | Budgeting |
| Answer» D. Budgeting | |
| 8. |
A system where accounting is established with responsibility |
| A. | Responsibility accounting |
| B. | Financial accounting |
| C. | Cost accounting |
| D. | Budgeting |
| Answer» B. Financial accounting | |
| 9. |
A segment of activity for which both revenue and cost are accumulated |
| A. | Investment centre |
| B. | Project centre |
| C. | Cost centre |
| D. | Responsibility centre |
| Answer» C. Cost centre | |
| 10. |
A segment of activity for which revenues are accumulated |
| A. | investment centre |
| B. | profit centre |
| C. | revenue centre |
| D. | Responsibility |
| Answer» D. Responsibility | |
| 11. |
A centre at which proper utilization of asset used in the centre |
| A. | Investment centre |
| B. | Profit centre |
| C. | Cost centre |
| D. | Responsibility centre |
| Answer» B. Profit centre | |
| 12. |
A segment of activity or area of operation for which cost is collected is known as ----------------- |
| A. | Cost centre |
| B. | Profit centre |
| C. | Investment centre |
| D. | Responsibility centre |
| Answer» B. Profit centre | |
| 13. |
A segment of activity or area of operation for which revenues are accumulated is known as ------ |
| A. | Cost centre |
| B. | Profit centre |
| C. | Revenue centre |
| D. | Investment centre |
| Answer» D. Investment centre | |
| 14. |
A control system where accountability is established with responsibility is known as -------------- |
| A. | Cost accounting |
| B. | Responsibility accounting |
| C. | Financial accounting |
| D. | None of the above |
| Answer» C. Financial accounting | |
| 15. |
A firm s investment in current asset is known as ---------------- |
| A. | Net working capital |
| B. | Gross working capital |
| C. | Average working capital |
| D. | None of these |
| Answer» C. Average working capital | |
| 16. |
A transaction that doesn t make any change in working capital position is --------- |
| A. | Inflow of fund |
| B. | Out flow of fund |
| C. | Non fund transaction |
| D. | Fund transaction |
| Answer» D. Fund transaction | |
| 17. |
Salaries Rs.20000,depreciation for the period is Rs.30000 other operating expenses are Rs.9000, net loss for the period is Rs.5000 fund generated from operation is------------------ |
| A. | Rs.25000 |
| B. | Rs.15000 |
| C. | Rs.35000 |
| D. | Rs.14000 |
| Answer» B. Rs.15000 | |
| 18. |
Purchase of building by issue of debenture is a---------item and it is ignored in cash flow statement |
| A. | cash |
| B. | non-cash |
| C. | non-operating |
| D. | current |
| Answer» C. non-operating | |
| 19. |
A statement prepared in the form of report |
| A. | Fund flow |
| B. | Cash flow |
| C. | Ratio |
| D. | Balance sheet |
| Answer» C. Ratio | |
| 20. |
Goodwill written off is-----------to the net profit made during the year for calculating the cash from operation |
| A. | Added back |
| B. | Deducted |
| C. | Decreased |
| D. | None of these |
| Answer» B. Deducted | |
| 21. |
Cash flow statements (based on AS-3) should be prepared and presented under------------------ method. |
| A. | Direct |
| B. | Indirect |
| C. | Permanence |
| D. | None of these |
| Answer» C. Permanence | |
| 22. |
Any gain on sale of non-current asset should be ----- from the net profit for determining funds from operation |
| A. | Deducted |
| B. | Added |
| C. | Increased |
| D. | None of these |
| Answer» B. Added | |
| 23. |
Current assets are Rs.6,00,000 current liabilities are Rs.3,00,000 the debtors realized Rs.40,000, the impact on net working capital would be------------------------- |
| A. | No change in working capital |
| B. | Decrease of working capital by Rs.80,000 |
| C. | Increase of working capital by Rs.40,000 |
| D. | None of these |
| Answer» B. Decrease of working capital by Rs.80,000 | |
| 24. |
Cash flow statement shows the causes for changes in__________ |
| A. | Cash balance |
| B. | Fund |
| C. | Working capital |
| D. | None of these |
| Answer» B. Fund | |
| 25. |
Cash flow is a part of |
| A. | Fund flow |
| B. | Balance sheet |
| C. | Income statement |
| D. | Comparative statement |
| Answer» B. Balance sheet | |
| 26. |
Gross profit are Rs.50,000 and expenses not result in the application of funds are Rs.10000 funds from operation will be |
| A. | Rs.60000 |
| B. | Rs.50000 |
| C. | Rs. 40000 |
| D. | Rs. 30000 |
| Answer» B. Rs.50000 | |
| 27. |
A statement depicting the reasons for the change in cash position from one period to another |
| A. | Fund flow statement |
| B. | Statement of uses and application of funds |
| C. | Cash flow statement |
| D. | Ratio analysis |
| Answer» D. Ratio analysis | |
| 28. |
If the current assets and working capital of a company are rs.80,000 and rs.50000 then current liability will be------------- |
| A. | Rs.1,00,000 |
| B. | Rs.1,30,000 |
| C. | Rs.70000 |
| D. | Rs.30000 |
| Answer» E. | |
| 29. |
The ratio which is a good indicator to maintain the correct selling price and efficiency of trading activity is------ |
| A. | Net profit ratio |
| B. | Gross profit ratio |
| C. | Current ratio |
| D. | Liquid ratios |
| Answer» C. Current ratio | |
| 30. |
The operating profit and net sale of a firm are rs.2,00,000 and rs.10,00,000 respectively then operating ratio will be |
| A. | 20% |
| B. | 5% |
| C. | 50% |
| D. | 20% |
| Answer» B. 5% | |
| 31. |
Cash receipts from royalties is an example of cash flow from__________ |
| A. | Investing activities |
| B. | Financing activities |
| C. | Operating activities |
| D. | None of these |
| Answer» D. None of these | |
| 32. |
The mirror which reflects the true financial position of the business as on a particular date |
| A. | Fund flow statement |
| B. | Cash flow statement |
| C. | Balance sheet |
| D. | Income statement |
| Answer» D. Income statement | |
| 33. |
Flow of fund means change in ------------------- |
| A. | Working capital |
| B. | Gross capital |
| C. | Net capital |
| D. | Average capital |
| Answer» B. Gross capital | |
| 34. |
The two concept of working capital are gross working capital and -------------------------- |
| A. | Net working capital |
| B. | Average working capital |
| C. | Opening working capital |
| D. | Closing working capital |
| Answer» B. Average working capital | |
| 35. |
The asset, the amount of which can be realized within a period of one year are known as ---------------- |
| A. | Current liability |
| B. | Current asset |
| C. | Liquid liability |
| D. | Fixed asset |
| Answer» C. Liquid liability | |
| 36. |
An essential tool of short term financial analysis |
| A. | Fund flow statement |
| B. | Statement of uses and application of funds |
| C. | Cash flow statement |
| D. | Ratio analysis |
| Answer» D. Ratio analysis | |
| 37. |
Ratios indicate trends in important items and this helps in ----------- |
| A. | Forecasting |
| B. | Reporting |
| C. | Analyzing |
| D. | Interpreting |
| Answer» B. Reporting | |
| 38. |
The ratios that shows tha capacity of the business unit to meet its short term obligation out of its short term resources is known as -------------- |
| A. | Solvency ratio |
| B. | Leverage ratio |
| C. | Liquidity ratio |
| D. | Trend Ratio |
| Answer» D. Trend Ratio | |
| 39. |
Excess of current asset over current liability is known as ------------- |
| A. | Gross working capital |
| B. | Net working capital |
| C. | Average working capital |
| D. | None of these |
| Answer» C. Average working capital | |
| 40. |
Cash flow from financing activities include payment of interest on borrowing and___ to share holders |
| A. | Dividend |
| B. | Interest |
| C. | Bonus |
| D. | Bonus shares |
| Answer» B. Interest | |
| 41. |
The ratio of current asset to currnt liability is known as -------------- |
| A. | Liquid ratio |
| B. | Current ratio |
| C. | Absolute liquid ratio |
| D. | Turn over ratio |
| Answer» C. Absolute liquid ratio | |
| 42. |
Fund flow statement are very useful in planning intermediate and ----------- financing. |
| A. | Short term |
| B. | Long term |
| C. | Medium term |
| D. | None of these |
| Answer» C. Medium term | |
| 43. |
The ratio which depicts the relationship between two items,one of which is drawn from the Balance Sheet and the other from the revenue account |
| A. | Current ratio |
| B. | Equity Ratio |
| C. | Net Profit ratio |
| D. | Debtors Turn over Ratio |
| Answer» E. | |
| 44. |
When the opening balance of cash and cash equivalent is added to the net increase , the total will be the____________ |
| A. | Closing balance of cash |
| B. | Closing balance of bank |
| C. | Opening balance of bank |
| D. | Closing balance of cash and cash equivalent |
| Answer» C. Opening balance of bank | |
| 45. |
Cash payment on redemption of debenture is an example of cash flow from _________ activities |
| A. | Operating |
| B. | Investing |
| C. | Financing |
| D. | Others |
| Answer» D. Others | |