Explore topic-wise MCQs in Finance & Accounting.

This section includes 54 Mcqs, each offering curated multiple-choice questions to sharpen your Finance & Accounting knowledge and support exam preparation. Choose a topic below to get started.

1.

The State Bank of India allocated how much amount towards the fight against Covid 19?

A. Rs.70 cr
B. Rs.92 cr
C. Rs.71 cr
D. Rs.60 cr
Answer» D. Rs.60 cr
Discussion
2.

The Finance Minister Nirmala Sitharaman has launched which app?

A. Pay Commission Mobile App
B. National Budget App
C. Union Budget Mobile App
D. Budget App
Answer» D. Budget App
Discussion
3.

Government aims to gradually increase the public health expenditure to what percent of Gross Domestic Product by 2025?

A. 1.5%
B. 3.5%
C. 4.5%
D. 2.5%
Answer» E.
Discussion
4.

Which of the following organisation has introduced the flagship initiative Liberalised MSME AEO Package scheme?

A. CBIC
B. ONGC
C. Niti Aayog
D. Ministry of Planning
Answer» B. ONGC
Discussion
5.

Who has been appointed as the 1st chairman of the International Financial Services Centre Authority for a 3 years term?

A. Injeti Srinivas
B. Sumanta Chaudhury
C. Anant Narayan Nanda
D. Arun Goel
Answer» B. Sumanta Chaudhury
Discussion
6.

According to India's International Investment Position data as at end-March 2020, released by RBI, FDI in the country has raised by how much?

A. $13 billion
B. $15 billion
C. $19 billion
D. $11 billion
Answer» D. $11 billion
Discussion
7.

The Cabinet has also approved a scheme for interest subvention of how much percent for a period of 12 months to all Shishu loan accounts under Pradhan Mantri Mudra Yojana to eligible borrowers?

A. 4%
B. 3%
C. 2%
D. 1%
Answer» D. 1%
Discussion
8.

Which Insurance Policy is basically launched to cover the hospitalisation expenses of the COVID-19 patients?

A. LIC Jeevan Saral
B. Jeevan Saral
C. JeevanAnand
D. Arogya Sanjeevani Insurance Policy
Answer» E.
Discussion
9.

Hyundai Motor India Limited partnered with which bank to offer industry 1st online auto retail financing on its end-to-end online automotive retail platform, 'Click to Buy' to the customers?

A. HDFC Bank
B. Axis Bank
C. DCB Bank
D. Federal Bank
Answer» B. Axis Bank
Discussion
10.

Cabinet approves hike in authorized capital of India Infrastructure Finance Company Limited (IIFCL) from Rs 6,000 crore to?

A. Rs 45,000 crore
B. Rs 35,000 crore
C. Rs 25,000 crore
D. Rs 55,000 crore
Answer» D. Rs 55,000 crore
Discussion
11.

How much allowances have been approved by the government for JK, Ladakh employees?

A. Rs.4,800 crores
B. Rs.3,800 crores
C. Rs.2,800 crores
D. Rs.1,800 crores
Answer» B. Rs.3,800 crores
Discussion
12.

Monetary Policy Committee (MPC) has decided to reduce the policy repo rate, what is the rate now?

A. 5.15%
B. 5.40%
C. 5.55%
D. 5.40%
Answer» B. 5.40%
Discussion
13.

Which of the following banks has signed a MoU with Indian Army for customized services?

A. Indian bank
B. Bank of Baroda
C. Canara Bank
D. State Bank of India
Answer» C. Canara Bank
Discussion
14.

What is the minimum subscription amount per investor for a private placements to align it with the regulations for corporate bonds ?

A. Rs 10 lakh
B. Rs 20 lakh
C. Rs 30 lakh
D. Rs 40 lakh
Answer» B. Rs 20 lakh
Discussion
15.

Which of the following best describes the balance sheet?

A. It includes a listing of assets at their market values.
B. It includes a listing of assets, liabilities, and stockholders' equity at their market values.
C. It provides information pertaining to a company's assets and the claims against sources of financing for those assets.
D. It provides information pertaining to a company's liabilities for a period of time.
Answer» C. It provides information pertaining to a company's assets and the claims against sources of financing for those assets.
Discussion
16.

When was the Securities and Exchange Board of India (SEBI) founded?

A. 12 April 1988
B. 30 Jan 1992
C. 26 Jan 1992
D. 30 Mar 1992
Answer» B. 30 Jan 1992
Discussion
17.

Funds Flow Statement holds significance for 
 
A. Shareholders
B. Financiers
C. Government
D. All of the above
Answer» E.
Discussion
18.

Funds flow statements are prepared so as to
A. To identify the changes in working capital
B. To identify reasons behind change in working capital
C. To know the item-wise outflow of funds during given period
D. All of the above
Answer» E.
Discussion
19.

Bond, debentures and term loans falls under:
A. Current assets
B. Non-current assets
C. Non-current liabilities
D. Current liabilities
Answer» D. Current liabilities
Discussion
20.

Which of the following are Non-current assets?
A. Land, Building and plant
B. Leasehold property
C. Computer software
D. All of the above
Answer» E.
Discussion
21.

Which of the following are current assets? 

A) Fixed investments 
B) Trade Payables
C) Short-term loans and advances
D) Furniture
A. Only A
B. Only B
C. Only C
D. A, B, C and D
Answer» D. A, B, C and D
Discussion
22.

During the year, a business was bought by issue of Rs 25,000 debentures and Rs 25,000 shares. The business bought had machine worth Rs 20,000, Debtors Rs 15,000, Stock Rs 5,000 and Creditors Rs 5,000. Determine the effect of this transaction on flow of funds. 
A. Net outflow of Rs 15,000
B. Net inflow of Rs 15,000
C. Neither inflow nor outflow
D. None of the above
Answer» C. Neither inflow nor outflow
Discussion
23.

Which of the following transactions will result in inflow of funds?

A) Issue of debentures 
B) Conversion of debentures into equity shares
C) Redemption of long term loan
D) Creation of General Reserve
A. Only A
B. Only D
C. A and D
D. A, B, C and D
Answer» B. Only D
Discussion
24.

Which of the following statement/s are true about movement of funds?

A) Funds flow in a transaction between current assets and fixed assets. 
B) Funds flow in a transaction between current asset and capital
C) Funds flow in a transaction between fixed assets and current liabilities
D) Funds flow in a transaction between current liabilities and capital
A. A and B
B. A and C
C. A and D
D. A, B, C and D
Answer» E.
Discussion
25.

Which of the following is/are examples of Funds Flow Statement?

A) Collection of debtors 
B) Shares issued for cash
C) Shares issued against the purchase of machinery
D) Shares issued for property
A. A and B
B. A and C
C. A and D
D. A, B, C and D
Answer» B. A and C
Discussion
26.

In the context of Funds Flow Analysis, the word “funds” is used to define
A. Net Working capital
B. Total current assets-Total current liabilities
C. Both a and b
D. None of the above.
Answer» D. None of the above.
Discussion
27.

Which of the following statement is true about Funds Flow Statement?

A) It highlights change in funds of a firm at different point 
B) It highlights change in funds of different firms at a single point
C) It highlights change in funds of different firms at different point
D) It doesn’t highlights change in funds
A. Only A
B. Only B
C. Only D
D. A, B , C, D
Answer» E.
Discussion
28.

 What will be sales in units if fixed cost is Rs 50,000 Contribution per unit is Rs 60 and desired profit per unit is Rs 10.
A. 6,000 units
B. Rs 1,000
C. 1,000 units
D. Rs 6,000
Answer» D. Rs 6,000
Discussion
29.

Determine sales in units for desired profit if Fixed cost is Rs 15,000, desired profit is Rs 5,000 Selling price per unit is Rs 20 and Variable cost per unit is Rs 16.
A. 5,000 units
B. Rs 5,000
C. Rs 10,000
D. 10,000 units
Answer» B. Rs 5,000
Discussion
30.

Calculate sales in rupees for desired profit if fixed cost is Rs 10,000, selling price is Rs 20 per unit, Variable cost is Rs 15 per unit and desired profit is Rs 1 per unit.
A. Rs 20,000
B. Rs 50,000
C. Rs 70,000
D. Rs 10,000
Answer» C. Rs 70,000
Discussion
31.

What will be sales in rupees for desired profit if fixed cost is Rs 30,000, desired profit is Rs 15,000 and P/V ratio is 30%?
A. Rs 1,50,000
B. Rs 1,00,000
C. Rs 2,00,000
D. None of the above
Answer» B. Rs 1,00,000
Discussion
32.

Determine sales in rupees for desired profit if fixed cost is Rs 10,000, Variable cost is Rs 30,000, Sales is Rs 50,000 and desired profit is RS 5,000.
A. Rs 73,500
B. Rs 75,000
C. Rs 5,000
D. Rs 37,500
Answer» E.
Discussion
33.

Calculate margin of safety if sales is Rs 3,00,000 and B.E.P is Rs 4,50,000.
A. Rs1,00,000
B. Rs 1,50,000
C. Amount of sales < B.E.P, therefore no margin of safety
D. None of the above
Answer» B. Rs 1,50,000
Discussion
34.

What is Margin of Safety if Sales is 20,000 units and B.E.P is 15,000 units.
A. 35,000 units
B. 5,000 units
C. Rs 5,000
D. Rs 35,000
Answer» C. Rs 5,000
Discussion
35.

Determine Margin of safety if Profit is Rs 15,000 and P/V ratio is 40%.
A. Rs 37,500
B. Rs 33,000
C. Rs 38,000
D. None of the above
Answer» B. Rs 33,000
Discussion
36.

Certain assumptions are essential to prepare financial statements.
A. True
B. False
Answer» B. False
Discussion
37.

Which of the following statements are true?

A) Financial statements are only interim report. 
B) Financial statements are also known as annual records.
C) Financial statements are historic. 
A. Both A and B
B. Both A and C
C. Both B and C
D. A, B, C
Answer» D. A, B, C
Discussion
38.

Schedules attached with the balance sheet forms a part of the financial statements.
A. True
B. False
Answer» B. False
Discussion
39.

The statement of financial position and the balance sheet are synonyms.
A. True
B. False
Answer» B. False
Discussion
40.

Which of the following is true about financial statements?

A) Financial statement gives a summary of accounts.
B) Financial statements can be stated as recorded facts. 
A. Only A
B. Only B
C. Both A and B
D. None of the above
Answer» D. None of the above
Discussion
41.

P&L statement is also known as
A. Statement of operations
B. Statement of income
C. Statement of earnings
D. All of the above
Answer» C. Statement of earnings
Discussion
42.

The term current asset doesn’t cover 
A. Car
B. Debtors
C. Stock
D. Prepaid expenses
Answer» B. Debtors
Discussion
43.

The form of balance sheet is
A. Vertical
B. Horizontal
C. Horizontal and vertical
D. Horizontal or vertical
Answer» E.
Discussion
44.

 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
Discussion
45.

While calculating Earnings per share, if both equity and preference share capitals are there, then
A. Preference share is deducted from the net profit
B. Equity share capital is deducted from the net profit
C. Both a and b
D. None of the above
Answer» B. Equity share capital is deducted from the net profit
Discussion
46.

Return on equity capital is calculated on basis of:
A. Funds of equity shareholders
B. Equity capital only
C. Either a or b
D. None of the above
Answer» D. None of the above
Discussion
47.

Return on Proprietors’ funds is also known as:
A. Return on net worth
B. Return on Shareholders’ fund
C. Return on Shareholders’ Investment
D. All of the above
Answer» E.
Discussion
48.

Overall Profitability ratios are based on
A. Investments
B. Sales
C. a & B
D. None of the above
Answer» B. Sales
Discussion
49.

Financial management mainly focuses on 
A. Efficient management of every business
B. Brand dimension
C. Arrangement of funds
D. All elements of acquiring and using means of financial resources for financial activities
Answer» E.
Discussion
50.

The objective of wealth maximization takes into account
A. Amount of returns expected
B. Timing of anticipated returns
C. Risk associated with uncertainty of returns
D. All of the above
Answer» E.
Discussion