MCQOPTIONS
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MCQOPTIONS
This section includes 1713 Mcqs, each offering curated multiple-choice questions to sharpen your General Management knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
K Ltd has decided to produce and sell 5,000 units during the year 2020-21. S.P. is Rs 200 per unit. 70% of sales will be on credit and credit period wil be 6 weeks. One year consists of 50 weeks. The debtors will be : |
| A. | rs 70,000 |
| B. | rs 80,000 |
| C. | rs 84,000 |
| D. | rs 95,000 |
| Answer» D. rs 95,000 | |
| 2. |
S Ltd has a plan to produce 52,000 units for the year 2020-21 selling price is Rs 1,000 per unit. Credit allowed to customers is 8 weeks. One year consists of 52 weeks. The debtors value is |
| A. | rs 40,00,000 |
| B. | rs 80,00,000 |
| C. | rs 70,00,000 |
| D. | rs 60,00,000 |
| Answer» C. rs 70,00,000 | |
| 3. |
WIP is Rs 14,000, COGS is Rs 1,50,000, 360 days in a year WIP Turnover period is : |
| A. | 30 days |
| B. | 40 days |
| C. | 34 days |
| D. | 45 days |
| Answer» D. 45 days | |
| 4. |
Current Assets are Rs 5,00,000 and Current liabilities are Rs 2,00,000. The Current ratio is |
| A. | 1.5 |
| B. | 1.75 |
| C. | 2.5 |
| D. | 3.20, |
| Answer» D. 3.20, | |
| 5. |
ABC Ltd has total assets turnover ratio and total assets to Net worth are 1.75 and 2 respectively. If NP ratio is 10% the ROE will be : |
| A. | 0.2 |
| B. | 0.35 |
| C. | 0.4 |
| D. | 0.6 |
| Answer» C. 0.4 | |
| 6. |
Gauri Ltd has a debt equity of 3:2 and total assets turnover is 2. If NP ratio is 10%. The ROE is |
| A. | 0.4 |
| B. | 0.5 |
| C. | 0.35 |
| D. | 0.2 |
| Answer» C. 0.35 | |
| 7. |
Cost of goods sold for a company is Rs 30,00,000, Rs 24,00,000 and Rs 18,00,000 for 2015, 2014 and 2013 respectively. If 2013 is the base year the percentage increase in cost of goods sold from 2013 to 2015 is |
| A. | 0.6667 |
| B. | 0.7 |
| C. | 0.5 |
| D. | 0.45 |
| Answer» B. 0.7 | |
| 8. |
Total current assets are Rs 30,000, Rs 54,000 and Rs 66,000 in 2013, 2014 and 2015 respectively. If 2013 is the base year what is the % increase from 2013 to 2015? |
| A. | 1.2 |
| B. | 1.25 |
| C. | 0.6 |
| D. | 0.5 |
| Answer» B. 1.25 | |
| 9. |
Kumar Ltd. reported net sales Rs 9,00,000, Rs 9,90,000 and Rs 10,80,000 in the year 2013, 2014 and 2015. If 2013 is the base year what is the trend % for 2015? |
| A. | 1.2 |
| B. | 0.75 |
| C. | 0.8 |
| D. | 0.9 |
| Answer» B. 0.75 | |
| 10. |
Fixed assets include premises Rs 10,00,000, Machinery Rs 5,00,000 Furniture Rs 2,00,000 Vehicles Rs 3,00,000 Live stock Rs 1,00,000 Goodwill Rs 2,00,000, Patents & Copy rights Rs 1,50,000, Underwriting commission Rs 50,000 Fixed tangible immovable asset will be : |
| A. | rs 10,00,000 |
| B. | rs 20,00,000 |
| C. | rs 3,00,000 |
| D. | rs1,50,000 |
| Answer» B. rs 20,00,000 | |
| 11. |
Current liabilities include creditors Rs 2,00,000, Bills payable Rs 1,00,00 Expenses payable Rs 50,000 Bank Overdraft Rs 2,00,000. Quick liabilites will be : |
| A. | rs 3,50,000 |
| B. | rs 3,00,000 |
| C. | rs 2,50,000 |
| D. | rs 2,00,000 |
| Answer» B. rs 3,00,000 | |
| 12. |
Fixed assets are Rs 5,00,000 , Current assets are Rs 3,00,000, Current liabilities are Rs 1,00,000. There is no investment. Capital employed will be : |
| A. | rs 8,00,000 |
| B. | rs 7,00,000 |
| C. | rs 9,00,000 |
| D. | rs 6,00,000 |
| Answer» C. rs 9,00,000 | |
| 13. |
For calculating trend percentages any year is selected as: |
| A. | Current year |
| B. | Previous year |
| C. | Base year |
| D. | None of these |
| Answer» D. None of these | |
| 14. |
According to responsibility accounting, the entire organization is divided into various - |
| A. | Business centre |
| B. | Profit centre |
| C. | Responsibility centre |
| D. | None of the above |
| Answer» D. None of the above | |
| 15. |
Which of the following statements are false about management accounting?(i) Management accounting is concerned with historical events.(ii) Management accounting is related only with such instances which can be expressed in monetary terms.(iii) Management accounting is a part of Financial Management(iv) Management accounting information can be disclosed to outsiders. |
| 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) | |
| 16. |
The classification of fixed and variable cost is useful for the preparation of …… |
| A. | Master budget |
| B. | Flexible budget |
| C. | Cash budget |
| D. | Capital budget |
| Answer» C. Cash budget | |
| 17. |
Inflow of fund does not take place due to---------------- |
| A. | Funds from operation |
| B. | Increase in capital |
| C. | Increase in working capital |
| D. | Sale of fixed asset |
| Answer» C. Increase in working capital | |
| 18. |
Total revenue from operations ₹27,00,000; Credit revenue from operations ₹18,00,000; Opening Debtors ₹3,20,000; Closing Debtors ₹4,00,000; Provision for Doubtful Debts ₹60,000. Trade Receivables Turnover Ratio will be : |
| A. | 7.5 times |
| B. | 9 times |
| C. | 6 times |
| D. | 5 times |
| Answer» E. | |
| 19. |
Conversion cost is the sum total of: |
| A. | Direct material cost and direct wages cost |
| B. | Direct wages, direct expenses and factory overheads |
| C. | Indirect wages and factory overheads |
| D. | Indirect wages , direct wages & factory overheads |
| Answer» D. Indirect wages , direct wages & factory overheads | |
| 20. |
Which technique used for figures of two or more periods are placed side by side to facilitate easy and meaningful comparisons? |
| A. | Comparative Statements |
| B. | Common size Statements |
| C. | Trend |
| D. | None |
| Answer» B. Common size Statements | |
| 21. |
Sales for desired profit is measured as |
| A. | (Fixed cost + profit)/ (P/V Ratio) |
| B. | (Fixed cost + profit) * (P/V Ratio) |
| C. | (Fixed cost - profit)/ (P/V Ratio) |
| D. | None of the above |
| Answer» B. (Fixed cost + profit) * (P/V Ratio) | |
| 22. |
The ratios which reveal the final result of the managerial policies andperformance is . |
| A. | turnover ratios. |
| B. | profitability ratios. |
| C. | short term solvency ratio. |
| D. | long term solvency ratio. |
| Answer» C. short term solvency ratio. | |
| 23. |
----------- helps to disclose financial position |
| A. | Trial Balance |
| B. | Profit and Loss Account |
| C. | Balance sheet |
| D. | Income Statement |
| Answer» D. Income Statement | |
| 24. |
Budgetary control system helps the management to eliminate - |
| A. | Undercapitalization |
| B. | Overcapitalization |
| C. | Both (a) and (b) |
| D. | None |
| Answer» D. None | |
| 25. |
An indirect setup labor costs, costs of setup and equipment maintenance and costs of indirect material can be categorized as |
| A. | Variable batch costs |
| B. | Fixed batch costs |
| C. | Variable setup costs |
| D. | Fixed setup costs |
| Answer» D. Fixed setup costs | |
| 26. |
Following is (are) the example(s) of semi-variable overheads. |
| A. | Maintenance cost |
| B. | Electricity |
| C. | Health and Accident Insurance |
| D. | All of the above |
| Answer» E. | |
| 27. |
Return on investment is a---------------- |
| A. | Profit and loss account ratio |
| B. | Balance sheet ratio |
| C. | Combined ratio |
| D. | Position statement ratio |
| Answer» D. Position statement ratio | |
| 28. |
Which one of the following is not a method to find working capital requirement? |
| A. | percent of sales method |
| B. | working capital components method |
| C. | operating cycle method |
| D. | physical method |
| Answer» E. | |
| 29. |
The Capital used for meeting routine and repetitive expenses of day to day businessoperations is called____. |
| A. | reserve capital |
| B. | working capital |
| C. | fixed capital |
| D. | regular capital |
| Answer» C. fixed capital | |
| 30. |
Competitive advantage is established by |
| A. | providing more customer products than competitors. |
| B. | providing better quality than competitors. |
| C. | providing greater customer value for less cost than competitors. |
| D. | providing greater efficiencies than competitors. |
| Answer» D. providing greater efficiencies than competitors. | |
| 31. |
From day to day operation which report is prepare ? |
| A. | Routine |
| B. | Special |
| C. | Investigative |
| D. | External |
| Answer» B. Special | |
| 32. |
_______ provides an estimate of the capital amount that may be required for buying fixed assets needed for meeting production requirements. |
| A. | Production budget |
| B. | Cash budget |
| C. | Capital expenditure budget |
| D. | None of the above |
| Answer» C. Capital expenditure budget | |
| 33. |
Net working capital refers to ___________. |
| A. | total assets minus fixed assets. |
| B. | current assets minus current liabilities. |
| C. | current assets minus inventories. |
| D. | current assets. |
| Answer» C. current assets minus inventories. | |
| 34. |
Any special event happen into the business then which report is prepared ? |
| A. | Routine |
| B. | Special |
| C. | External |
| D. | Control |
| Answer» C. External | |
| 35. |
Which one of the following is not the determinant of the working capital? |
| A. | size of the firm |
| B. | operating cycle |
| C. | terms of credit |
| D. | competitors |
| Answer» E. | |
| 36. |
(A Company has a standard of 1 direct labor hour per unit at Rs.12 per hour. 3,850 labor hours costing Rs.46,970 were used to produce 4,000 units.)Company’s total labor variance is |
| A. | Rs.770 unfavourable |
| B. | Rs.800 unfavourable |
| C. | Rs.1,030 favourable |
| D. | Rs.1,930 favourable |
| Answer» E. | |
| 37. |
The relationship between total outside liabilities and total assets can be indicated through ------------ |
| A. | Fixed asset ratio |
| B. | Solvency ratio |
| C. | Fixed asset turn over ratio |
| D. | Proprietary ratio |
| Answer» C. Fixed asset turn over ratio | |
| 38. |
Budget period depends upon - |
| A. | The type of budget |
| B. | The nature of business |
| C. | The length of trade cycles |
| D. | All of the above |
| Answer» E. | |
| 39. |
Budget period depends upon… |
| A. | the type of budget |
| B. | the nature of business |
| C. | the length of trade cycles |
| D. | all of these |
| Answer» E. | |
| 40. |
Which of the following would be consistent with an aggressive approach to financingworking capital? |
| A. | financing short-term needs with short-term funds. |
| B. | financing permanent inventory buildup with long-term debt. |
| C. | financing seasonal needs with short-term funds. |
| D. | financing some long-term needs with short-term funds. |
| Answer» E. | |
| 41. |
The ratio which indicates how quickly debtors are converted into cash is--------- |
| A. | Receivable turnover ratio |
| B. | Inventory turnover ratio |
| C. | Working capital turnover ratio |
| D. | Creditors turnover ratio |
| Answer» B. Inventory turnover ratio | |
| 42. |
Fixed cost is a cost - |
| A. | Which changes in total in proportion to changes in output |
| B. | Which is partly fixed and partly variable in relation to output |
| C. | Which do not change in total during a given period despise changes in output |
| D. | Which remains same for each unit of output |
| Answer» D. Which remains same for each unit of output | |
| 43. |
Management accounting relates to ________ |
| A. | Recording of accounting data |
| B. | Recording of costing data |
| C. | Presentation of accounting data |
| D. | None of these |
| Answer» D. None of these | |
| 44. |
___________ is required to meet special exigencies such as launching of extensive marketingcampaigns for conducting research. |
| A. | seasonal working capital |
| B. | special working capital |
| C. | reserve working capital |
| D. | regular working capital |
| Answer» C. reserve working capital | |
| 45. |
Which of the following costs is not relevant when considering the closure of a department within a factory? |
| A. | Variable overheads |
| B. | Direct materials |
| C. | Fixed overheads |
| D. | Direct labour |
| Answer» D. Direct labour | |
| 46. |
Which of the following are techniques, tools or methods of analysis and interpretation of financial statements? |
| A. | Ratio Analysis |
| B. | Average Analysis |
| C. | Trend Analysis |
| D. | All of the above |
| Answer» E. | |
| 47. |
When contribution is negative but less than fixed cost, |
| A. | There is loss equal to fixed costs |
| B. | There is loss more than fixed costs |
| C. | There will be loss less than fixed costs |
| D. | All of above are false |
| Answer» D. All of above are false | |
| 48. |
Given inventory of 24,000, other current assets of 12,000 and current liabilities of 20,000, the acid test (quick ratio) will be: |
| A. | 1.8 :1 |
| B. | 0.6 :1 |
| C. | 1.2:1 |
| D. | 1.6 :1 |
| Answer» C. 1.2:1 | |
| 49. |
Marginal costing is also known as Direct costing |
| A. | Variable costing |
| B. | Both a and b |
| C. | None of the above |
| D. | none |
| Answer» D. none | |
| 50. |
Management accounting helps in ___________ data |
| A. | Analysis |
| B. | Interpretation |
| C. | Analysis and interpretation |
| D. | None of these |
| Answer» D. None of these | |