MCQOPTIONS
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MCQOPTIONS
This section includes 233 Mcqs, each offering curated multiple-choice questions to sharpen your Bachelor of Business Administration (BBA) knowledge and support exam preparation. Choose a topic below to get started.
| 51. |
The term financial statement refers to… |
| A. | income statement |
| B. | cash flow and fund flow |
| C. | balance sheet |
| D. | all |
| Answer» E. | |
| 52. |
Which of the following statement is considered as the accountant’s snapshot of firm’s accounting valueas of a particular date? |
| A. | income statement |
| B. | balance sheet |
| C. | cash flow statement |
| D. | retained earning statement |
| Answer» C. cash flow statement | |
| 53. |
Bills Receivables appear in a Company’s Balance Sheet under the Sub-head …………………….. |
| A. | current investments |
| B. | cash equivalents |
| C. | trade receivables |
| D. | short term loans and advances |
| Answer» D. short term loans and advances | |
| 54. |
Calls in advance appear in a Company’s Balance Sheet under ……………….. |
| A. | share capital |
| B. | current liability |
| C. | long-term borrowings |
| D. | reserve & surplus |
| Answer» C. long-term borrowings | |
| 55. |
Calls in Arrears appear in a Company’s Balance Sheet under ……………….. |
| A. | reserve & surplus |
| B. | shareholder’s funds |
| C. | contingent liabilities |
| D. | short-term borrowings |
| Answer» C. contingent liabilities | |
| 56. |
According to prescribed order of assets in a Company’s Balance Sheet ……………………… assets shouldbe shown first of all. |
| A. | non-current assets |
| B. | current assets |
| C. | current investments |
| D. | loans and advances |
| Answer» B. current assets | |
| 57. |
As per Companies Act, the Balance Sheet of a company is required to be presented in ……………………… |
| A. | horizontal form |
| B. | vertical form |
| C. | either horizontal or vertical form |
| D. | neither of the above |
| Answer» C. either horizontal or vertical form | |
| 58. |
Balance sheet of a company is required to be prepared in the format given in ……………………… |
| A. | schedule iii part ii |
| B. | schedule iii part i |
| C. | schedule iii part iii |
| D. | table a |
| Answer» C. schedule iii part iii | |
| 59. |
Which of the following is true about financial statements?A) Financial statement gives a summary of accounts. B) Financial statements can be stated asrecorded facts. |
| A. | only a |
| B. | only b |
| C. | both a and b |
| D. | none of the above |
| Answer» D. none of the above | |
| 60. |
The term ‘Financial Statement’ covers |
| A. | profit & loss statement |
| B. | balance sheet and profit & loss statement appropriation account |
| C. | profit & loss statement and balance sheet |
| D. | all of above are false |
| Answer» D. all of above are false | |
| 61. |
Match List I with List II List I List II(a) Transfer of ownership(i) Negotiable Instrument(b) Sale of goodwill after dissolution(ii) Contract of sale of goods(c) Buy - Back of securities(iii) Dissolution of partnership firmd) Promissory Note(iv) Share capital of company Choose the correct option from those given below |
| A. | (a) - (ii), (b) - (iii), (c) - (iv), (d) - (i) |
| B. | (a) - (iii), (b) - (iv), (c) - (ii), (d) - (i) |
| C. | (a) - (iv), (b) - (ii), (c) - (i), (d) - (iii) |
| D. | (a) - (i), (b) - (ii), (c) - (iii), (d) - (iv) |
| Answer» B. (a) - (iii), (b) - (iv), (c) - (ii), (d) - (i) | |
| 62. |
Choose the correct code for the following statement being correct or incorrect.Statement I: Punctuality and team spirit among employees of an organisation has great contribution in enhancing profits of the business but they do not appear as an asset in the balance sheetStatement II: Financial statements do of reflect the correct financial position of a business. |
| A. | Both the statements I and II are corrrect |
| B. | Both the statements I and II are incorrect |
| C. | Statement I is correct, but II is incorrect |
| D. | Statement I is incorrect, but II is correct |
| Answer» B. Both the statements I and II are incorrect | |
| 63. |
Given below are two statements. One is labelled as Assertion (A) and the other is labelled as Reason (R). Assertion (A): Indian Accounting Standards contain some 'carve outs' and for convergence with IFRS with some changes applied in India Reason (R): Financial statements prepared in India with Indian Accounting Standards will not be IFRS compliant In the light of the above two statements, choose the correct option 1. Both A) and R) are true and R) is the correct explanation of A)2. Both A) and R) are true but R) is NOT the correct explanation of A)3. A) is true but R) is false4. A) is false but R) is true |
| A. | 1 |
| B. | 2 |
| C. | 3 |
| D. | 4 |
| Answer» C. 3 | |
| 64. |
Match List-I with List-II:List-IList-IIa) Net income approachi) Inventory managementb)Gordan modelii)Capital budgetingc)Internal rate of returniii)Capital structure theoryd)Reorder leveliv)Dividend theory Choose the correct option from those given below: |
| A. | a-ii, b-iii, c-iv, d-i |
| B. | a-iii, b-iv, c-ii, d-i |
| C. | a-iii, b-iv, c-i, d-ii |
| D. | a-ii, b-i, c-iv, d-iii |
| Answer» C. a-iii, b-iv, c-i, d-ii | |
| 65. |
Match List I with List II List I List II(a) Qualified Report(i) Auditor Duty(b) Examine Valuation and Disclosure(ii) Auditor Liabilities(c) Access to records of Company and its subsidiaries(iii) Auditor Reportd) Mis-statement in prospectus in company issue of capital(iv) Auditor RightChoose the correct option from those given below |
| A. | (a) - (ii), (b) - (i), (c) - (iv), (d) - (iii) |
| B. | (a) - (iii), (b) - (i), (c) - (iv), (d) - (ii) |
| C. | (a) - (iii), (b) - (i), (c) - (ii), (d) - (iv) |
| D. | (a) - (iv), (b) - (ii), (c) - (iii), (d) - (i) |
| Answer» C. (a) - (iii), (b) - (i), (c) - (ii), (d) - (iv) | |
| 66. |
Objective of energy management and audit invariably includes which of the following in a business enterprises?A. Minimising cost of energy consumptionB. Minimising waste in energy consumptionC. Scaling harmful impacts of pollution on health of the nativesD. Minimising environmental degradationChoose the most appropriate answer from the options given below: |
| A. | A, B and C only |
| B. | B, C and D only |
| C. | A, B and D only |
| D. | A, B, C and D only |
| Answer» D. A, B, C and D only | |
| 67. |
Match List-I with List-II:List-IList-IIa)Ind AS-16i)Income taxb)Ind AS-38ii)Leasingc)Ind AS-17iii)Intangible assetsd)Ind AS-12iv)Property, plant and equipments Choose the correct option from those given below: |
| A. | a-iv, b-iii, c-i, d-ii |
| B. | a-iv, b-iii, c-ii, d-i |
| C. | a-iii, b-ii, c-iv, d-i |
| D. | a-iv, b-ii, c-i, d-iii |
| Answer» C. a-iii, b-ii, c-iv, d-i | |
| 68. |
Match the items of List I with the items of List II and choose the correct answer from the code given below. List I List II(a) AS - 1 (i) Accounting for fixed assets(b) AS - 3(ii) Disclosure of accounting policies(c) AS - 10 (iii) Leases and its accounting(d) AS - 19 (iv) Cash flow statements |
| A. | (a) - (ii), (b) - (iv), (c) - (i), (d) - (iii). |
| B. | (a) - (i), (b) - (ii), (c) - (iii), (d) - (iv) |
| C. | (a) - (iii), (b) - (ii), (c) - (i), (d) - (iv) |
| D. | (a) - (iii), (b) - (i), (c) - (iv), (d) - (ii) |
| Answer» B. (a) - (i), (b) - (ii), (c) - (iii), (d) - (iv) | |
| 69. |
Cost audit for Materials covers : (A) Goods inward procedure.(B) Methods of calculating standard cost variance.(C) Classification of overhead.(D) Accounting for scrap, wastage, materials transfers(E) Accounting treatment of under or over absorption Choose the most appropriate answer from the options given below: |
| A. | (A), (D) only |
| B. | (A), (E) only |
| C. | (A), (B) only |
| D. | (E), (C) only |
| Answer» B. (A), (E) only | |
| 70. |
The price per share $30 and the earning per share $3.5 then price to earning ratio is |
| A. | 8.57 times |
| B. | 0.0857 |
| C. | 0.11 times |
| D. | 0.11 |
| Answer» B. 0.0857 | |
| 71. |
The equity multiplier is multiplied to return on assets to calculate |
| A. | return on assets |
| B. | return on multiplier |
| C. | return on turnover |
| D. | return on stock |
| Answer» B. return on multiplier | |
| 72. |
The price per share $25 and the cash flow per share $6 then the price to cash flow ratio is |
| A. | 0.24 times |
| B. | 4.16 times |
| C. | 0.0416 |
| D. | 0.24 |
| Answer» C. 0.0416 | |
| 73. |
The formula such as net income available to common stockholders divided by common equity is used to calculate |
| A. | return on earning power |
| B. | return on investment |
| C. | return on common equity |
| D. | return on interest |
| Answer» D. return on interest | |
| 74. |
The equation in which total assets are multiplied to profit margin is classified as |
| A. | du DuPont equation |
| B. | turnover equation |
| C. | preference equation |
| D. | common equation |
| Answer» B. turnover equation | |
| 75. |
The net income available to stockholders $125 and total assets $1,096 then return on common equity is |
| A. | 0.0011 |
| B. | 0.114 |
| C. | 0.12 times |
| D. | 0.12 |
| Answer» C. 0.12 times | |
| 76. |
The company low earning power and high interest cost causes financial change which is |
| A. | high return on equity |
| B. | high return on assets |
| C. | low return on assets |
| D. | low return on equity |
| Answer» C. low return on assets | |
| 77. |
The techniques used to identify financial statements trends includes |
| A. | common size analysis |
| B. | percent change analysis |
| C. | returning ratios analysis |
| D. | Both A and B |
| Answer» E. | |
| 78. |
The net income available to stockholders $150 and total assets $2,100 then return on total assets is |
| A. | 0.0007 |
| B. | 0.0714 |
| C. | 0.05 times |
| D. | 7.15 times |
| Answer» C. 0.05 times | |
| 79. |
The high price to earning ratio shows company's |
| A. | low dividends paid |
| B. | high risk prospect |
| C. | high growth prospect |
| D. | high marginal rate |
| Answer» D. high marginal rate | |
| 80. |
The price per ratio divided by cash flow per share is ratio used to calculate |
| A. | dividend to stock ratio |
| B. | sales to growth ratio |
| C. | cash flow to price ratio |
| D. | price to cash flow ratio |
| Answer» E. | |
| 81. |
In comparative analysis of financial statement, the technique used is |
| A. | graphical analysis |
| B. | preference analysis |
| C. | common size analysis |
| D. | returning analysis |
| Answer» D. returning analysis | |
| 82. |
The total assets divided common equity is formula used to calculate |
| A. | equity multiplier |
| B. | graphical multiplier |
| C. | turnover multiplier |
| D. | stock multiplier |
| Answer» B. graphical multiplier | |
| 83. |
The price earning ratio and price by cashflow ratio are classified as |
| A. | marginal ratios |
| B. | equity ratios |
| C. | return ratios |
| D. | market value ratios |
| Answer» E. | |
| 84. |
The ratios which relates firm's stock to its book value per share, cash flow and earnings are classified as |
| A. | return ratios |
| B. | market value ratios |
| C. | marginal ratios |
| D. | equity ratios |
| Answer» C. marginal ratios | |
| 85. |
The profit margin multiply assets turnover multiply equity multiplier is used to calculate |
| A. | return on turnover |
| B. | return on stock |
| C. | return on assets |
| D. | return on equity |
| Answer» E. | |
| 86. |
If the profit margin = 4.5% and the total assets turnover = 1.8% then the return on assets DuPont equation is |
| A. | 0.025 |
| B. | 0.081 |
| C. | 0.004 |
| D. | 4 times |
| Answer» C. 0.004 | |
| 87. |
The low price to earning ratio is the result of |
| A. | low riskier firms |
| B. | high riskier firms |
| C. | low dividends paid |
| D. | high marginal rate |
| Answer» B. high riskier firms | |
| 88. |
The profit margin = 4.5%, assets turnover = 2.2 times, equity multiplier = 2.7 times then return on assets is |
| A. | 0.2673 |
| B. | 26.73 times |
| C. | 0.094 |
| D. | 0.4 times |
| Answer» B. 26.73 times | |
| 89. |
The return on assets = 6.7% and equity multiplier = 2.5% then the return on equity is |
| A. | 0.1675 |
| B. | 0.0268 |
| C. | 0.0037 |
| D. | 0.092 |
| Answer» B. 0.0268 | |
| 90. |
The return on assets = 5.5%, Total assets $3,000 and common equity $1,050 then the return on equity is |
| A. | $22,275 |
| B. | 0.1571 |
| C. | 0.0193 |
| D. | 1.925 times |
| Answer» C. 0.0193 | |
| 91. |
The companies that helps to set benchmarks are classified as |
| A. | competitive companies |
| B. | benchmark companies |
| C. | analytical companies |
| D. | return companies |
| Answer» C. analytical companies | |
| 92. |
The process of comparing company results with the other leading firms is considered as |
| A. | comparison |
| B. | analysis |
| C. | benchmarking |
| D. | return analysis |
| Answer» D. return analysis | |
| 93. |
The formula such as net income available to common stockholders divided by total assets is used to calculate |
| A. | return on total assets |
| B. | return on total equity |
| C. | return on debt |
| D. | return on sales |
| Answer» B. return on total equity | |
| 94. |
The price per share divided by earnings per share is the formula to calculate |
| A. | price earning ratio |
| B. | earning price ratio |
| C. | pricing ratio |
| D. | earning ratio |
| Answer» B. earning price ratio | |
| 95. |
Which of the following is the source of funds? |
| A. | issue of shares |
| B. | raising long term loans |
| C. | sale of fixed assets |
| D. | all of these |
| Answer» E. | |
| 96. |
Working capital requirements depends on the credit policy of … |
| A. | the company |
| B. | the suppliers |
| C. | both |
| D. | none |
| Answer» D. none | |
| 97. |
Funds flow statement is complementary to… |
| A. | balance sheet |
| B. | income statement |
| C. | both |
| D. | none |
| Answer» D. none | |
| 98. |
Which of the following is an application of funds? |
| A. | funds lost in operation |
| B. | income from investment |
| C. | funds from operations |
| D. | all of these |
| Answer» B. income from investment | |
| 99. |
What is meant by funds from operation? |
| A. | operating profit |
| B. | net profit |
| C. | gross profit |
| D. | all of the above |
| Answer» B. net profit | |
| 100. |
Which of the following statement is dynamic in nature? |
| A. | balance sheet |
| B. | funds flow |
| C. | both |
| D. | income statement |
| Answer» C. both | |