MCQOPTIONS
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MCQOPTIONS
This section includes 20 Mcqs, each offering curated multiple-choice questions to sharpen your Management Accounting knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
In deciding the appropriate level of current assets for the firm, management is confronted |
| A. | a trade-off between profitability and risk. |
| B. | a trade-off between liquidity and marketability. |
| C. | a trade-off between equity and debt. |
| D. | a trade-off between current assets and profitability. |
| Answer» B. a trade-off between liquidity and marketability. | |
| 2. |
The objectives of Cash Flow Statement are (i) Analysis of cash position |
| A. | Both A and B |
| B. | Both A and C |
| C. | Both B and D |
| D. | A, B, C, D |
| Answer» E. | |
| 3. |
To establish an effective system of standard costing it is essential that |
| A. | A, B and C |
| B. | A, C and D |
| C. | B, C and D |
| D. | D, C and A |
| Answer» C. B, C and D | |
| 4. |
Net Profit during the year ₹ 1,00,000 |
| A. | ₹ 30,000 |
| B. | ₹ 94,000 |
| C. | ₹ 1,06,000 |
| D. | ₹ 1,66,000 |
| Answer» C. ₹ 1,06,000 | |
| 5. |
Net Profit during the year ₹ 30,000 |
| A. | ₹ 30,000 |
| B. | ₹ 34,000 |
| C. | ₹ 22,000 |
| D. | ₹ 40,000 |
| Answer» D. ₹ 40,000 | |
| 6. |
Which of the following falls under Profitability ratios? |
| A. | A and B |
| B. | A and C |
| C. | B and C |
| D. | None of the above |
| Answer» B. A and C | |
| 7. |
As per AS-3, Cash Flow Statement is mandatory for |
| A. | Both A and B |
| B. | Both A and C |
| C. | Both C and B |
| D. | None of the above |
| Answer» D. None of the above | |
| 8. |
Management accounting is related with |
| A. | (i) and (ii) |
| B. | (ii) and (iii) |
| C. | (i) and (iii) |
| D. | All are false |
| Answer» D. All are false | |
| 9. |
Management accounting is |
| A. | Only (i) |
| B. | Only (ii) |
| C. | Both (i) and (ii) |
| D. | None of the above |
| Answer» B. Only (ii) | |
| 10. |
Which of the following is expenses ratio? |
| A. | A, B and D |
| B. | A, C and D |
| C. | A, B and C |
| D. | A, B , C, D |
| Answer» E. | |
| 11. |
Which of the following are the assumptions of marginal costing? |
| A. | A and B |
| B. | B and C |
| C. | A and D |
| D. | A, B, C and D |
| Answer» E. | |
| 12. |
The Carl Care Company established the following direct labour cost standards for one unit of product Z: |
| A. | $5,000 unfavourable |
| B. | $5,000 favourable |
| C. | $30,000 favourable |
| D. | $30,000 unfavourable |
| Answer» B. $5,000 favourable | |
| 13. |
Which of the following are tools of management accounting? |
| A. | A, B and D |
| B. | A, C and D |
| C. | A, B and C |
| D. | A, B , C, D |
| Answer» D. A, B , C, D | |
| 14. |
Match the columns |
| A. | A-ii, B-iii, C-i |
| B. | A-i, B-ii, C-iii |
| C. | A-iii, B-i, C-ii |
| D. | None of the above |
| Answer» D. None of the above | |
| 15. |
Which of the following is not the objective of budgetary control? |
| A. | Only II |
| B. | Only II and IV |
| C. | Only II,III and IV |
| D. | All I,II,III and IV |
| Answer» C. Only II,III and IV | |
| 16. |
Debtors Turnover ratio is also known as |
| A. | A and B |
| B. | A and C |
| C. | B and C |
| D. | C and D |
| Answer» B. A and C | |
| 17. |
The management accounting can be stated an extension of |
| A. | Both (i) and (ii) |
| B. | Both (i) and (iii) |
| C. | Both (ii) and (iii) |
| D. | (i), (ii), (iii) |
| Answer» E. | |
| 18. |
Which of the following statements are false about management accounting? |
| A. | (i), (ii) and (iii) |
| B. | (i), (iii) and (iv) |
| C. | (i),(ii) and (iii) |
| D. | (i), (ii), (iii), (iv) |
| Answer» D. (i), (ii), (iii), (iv) | |
| 19. |
Which of the following is true about management accounting? |
| A. | Only (i) |
| B. | Only (ii) |
| C. | Both (i) and (ii) |
| D. | None of the above |
| Answer» B. Only (ii) | |
| 20. |
……………………..accounting is the adoption and analysis of accounting |
| A. | financial accounting |
| B. | management accounting |
| C. | corporate accounting |
| D. | human resource accounting |
| Answer» C. corporate accounting | |