MCQOPTIONS
Saved Bookmarks
MCQOPTIONS
This section includes 657 Mcqs, each offering curated multiple-choice questions to sharpen your Testing Subject knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
Accounting designed to serve parties external to the operatingresponsibility of the firm is termed as……………. |
| A. | management accounting |
| B. | financial accounting |
| C. | cost accounting |
| D. | none of these |
| Answer» C. cost accounting | |
| 2. |
Cost Accounting and Management Accounting are ……………….. in nature. |
| A. | complementary |
| B. | contradictory |
| C. | different |
| D. | similar |
| Answer» B. contradictory | |
| 3. |
Management accounting has a ……….. scope than cost accounting. |
| A. | wider |
| B. | narrow |
| C. | no |
| D. | none of these |
| Answer» B. narrow | |
| 4. |
…………….is the amount of expenditure [actual or notional] incurred on orattributable to a given thing. |
| A. | expenses |
| B. | costing |
| C. | cost |
| D. | none of these |
| Answer» D. none of these | |
| 5. |
………………..is the technique and process of ascertaining costs |
| A. | cost |
| B. | costing |
| C. | cost accounting |
| D. | none of these |
| Answer» D. none of these | |
| 6. |
………..is the process of accounting for cost which includes the applicationof cost control methods and ascertainment of profitability of activities |
| A. | cost |
| B. | costing |
| C. | cost accounting |
| D. | none of these |
| Answer» D. none of these | |
| 7. |
Which among the following is not a management accounting technique? |
| A. | standard costing |
| B. | marginal costing |
| C. | project appraisal |
| D. | none |
| Answer» E. | |
| 8. |
………..Accounting is concerned with historical data |
| A. | cost accounting |
| B. | management accounting |
| C. | financial accounting |
| D. | none |
| Answer» D. none | |
| 9. |
……………..is the process of identifying the financial strengths andweakness of the firm by properly establishing relationship between the items of balance sheet and Profit and Loss Account |
| A. | financial statements |
| B. | financial analysis |
| C. | trend analysis |
| D. | all of these |
| Answer» C. trend analysis | |
| 10. |
The analysis done by investors , credit agencies , government agencies andother creditors who have no access to the internal records of a company is known as …………….. |
| A. | internal analysis |
| B. | horizontal analysis |
| C. | external analysis |
| D. | none of these |
| Answer» D. none of these | |
| 11. |
……………explains what has happened to a business unit as a result ofoperations between two balance sheet dates. |
| A. | income statement |
| B. | profit and loss account |
| C. | both of these |
| D. | none |
| Answer» D. none | |
| 12. |
The analysis done by persons who have access to the books of account andother information related to the business is termed as…………… |
| A. | internal analysis |
| B. | horizontal analysis |
| C. | external analysis |
| D. | none of these |
| Answer» B. horizontal analysis | |
| 13. |
In ………………..type of analysis , financial statements for a number ofyears are reviewed and analyzed. |
| A. | internal analysis |
| B. | horizontal analysis |
| C. | external analysis |
| D. | none of these |
| Answer» C. external analysis | |
| 14. |
……………..type of analysis is based on the data from year to year ratherthan on one date, and also termed as dynamic analysis. |
| A. | internal analysis |
| B. | horizontal analysis |
| C. | external analysis |
| D. | none of these |
| Answer» C. external analysis | |
| 15. |
……………….are the statements, in which figures reported are converted intopercentages to some common base. |
| A. | comparative statements |
| B. | common size statements |
| C. | both of these |
| D. | none |
| Answer» C. both of these | |
| 16. |
………….analysis is useful in comparing performance of several companiesin the same group, or division or department of the same company. |
| A. | vertical analysis |
| B. | horizontal analysis |
| C. | external analysis |
| D. | none of these |
| Answer» B. horizontal analysis | |
| 17. |
………………. are prepared so as to provide time perspective to theconsideration of various elements of financial position embodied in such statements. |
| A. | comparative statements |
| B. | common size statements |
| C. | both of these |
| D. | none |
| Answer» B. common size statements | |
| 18. |
The term fixed assets includes |
| A. | stock in trade |
| B. | furniture |
| C. | payments in advance |
| D. | all of these |
| Answer» C. payments in advance | |
| 19. |
The following is a recorded fact |
| A. | market value of investment |
| B. | debtors |
| C. | replacement cost |
| D. | none |
| Answer» C. replacement cost | |
| 20. |
The term current assets does not include |
| A. | payment in advance |
| B. | bills receivable |
| C. | long term deferred charges |
| D. | none of these |
| Answer» D. none of these | |
| 21. |
In case of a limited company, the term financial statements includes……… |
| A. | profit and loss account |
| B. | profit and loss account, profit and loss appropriation account and balance sheet |
| C. | balance sheet |
| D. | none |
| Answer» C. balance sheet | |
| 22. |
Assets and liabilities in a Balance sheet may be arranged in the order of ….. |
| A. | liquidity |
| B. | permanence |
| C. | both of these |
| D. | none of these |
| Answer» D. none of these | |
| 23. |
Income statement matches the …………… incurred in the accounting year |
| A. | revenue and costs |
| B. | incomes and expenses |
| C. | both of these |
| D. | none of these |
| Answer» D. none of these | |
| 24. |
…………..are statements of financial position at different periods |
| A. | comparative statements |
| B. | common size statements |
| C. | both of these |
| D. | none |
| Answer» B. common size statements | |
| 25. |
An increase in current asset accompanied by the increase in currentliabilities of the same amount will………………… |
| A. | improve short term financial position |
| B. | not improve short term financial position |
| C. | improve long term financial position |
| D. | none of these |
| Answer» C. improve long term financial position | |
| 26. |
Which among the following is an example for horizontal analysis ? |
| A. | comparative balance sheet |
| B. | comparative income statement |
| C. | common size statements |
| D. | a & b |
| Answer» E. | |
| 27. |
If the Gross sales of a concern is Rs.200000 and sales return is 20000,Gross profit is 150000.cost of goods sold is…………………….. |
| A. | 150000 |
| B. | 30000 |
| C. | 50000 |
| D. | none of these |
| Answer» C. 50000 | |
| 28. |
Given opening stock is Rs.20000, Direct expenses 10000, Closing stock5000.Cost of goods sold is …………………… |
| A. | 25000 |
| B. | 35000 |
| C. | 15000 |
| D. | 20000 |
| Answer» B. 35000 | |
| 29. |
Ratio of Net sales to Net working capital is a ……………………….. |
| A. | working capital turnover ratio |
| B. | profitability ratio |
| C. | liquidity ratio |
| D. | none of these |
| Answer» B. profitability ratio | |
| 30. |
Observing changes in financial analysis across the years is …………… |
| A. | vertical analysis |
| B. | horizontal analysis |
| C. | inter firm comparison |
| D. | none of these |
| Answer» C. inter firm comparison | |
| 31. |
Ratio of net profit before interest and tax to sales is ………………. |
| A. | operating profit ratio |
| B. | operating ratio |
| C. | capital gearing |
| D. | solvency ratio |
| Answer» B. operating ratio | |
| 32. |
The statistical yardstick that provides a measure of relationship betweentwo accounting figures is …………………… |
| A. | current ratio |
| B. | the accounting ratio |
| C. | input output ratio |
| D. | none of these |
| Answer» C. input output ratio | |
| 33. |
……………….is a statement which lists all the sources of funds andapplications of funds taken place in a business during a particular period |
| A. | fund flow statement |
| B. | cash flow statement |
| C. | any of these |
| D. | none of these |
| Answer» B. cash flow statement | |
| 34. |
Which one of the following is a source of fund ? |
| A. | issue of shares in consideration of machinery purchased |
| B. | issue of bonus shares |
| C. | issue of right shares |
| D. | issue of shares for cash |
| Answer» E. | |
| 35. |
The overall net increase or decrease in working capital is found out bypreparing………………… |
| A. | fund flow statement |
| B. | cash flow statement |
| C. | statement showing changes in working capital |
| D. | none of these |
| Answer» D. none of these | |
| 36. |
Which among the following is a sources of fund ? |
| A. | sale proceeds of fixed assets |
| B. | sale proceeds of long term investments |
| C. | non operating incomes |
| D. | all of these |
| Answer» E. | |
| 37. |
Which among the following is an application of fund ? |
| A. | purchase of long term investments |
| B. | redemption of preference shares |
| C. | redemption of debentures |
| D. | all of these |
| Answer» E. | |
| 38. |
……………is only internal source of funds |
| A. | fund from operations |
| B. | net profit |
| C. | both of these |
| D. | none of these |
| Answer» B. net profit | |
| 39. |
Which among the following do not result in the flow of fund / |
| A. | depreciation of fixed assets |
| B. | goodwill written off |
| C. | transfer to general reserve |
| D. | all of these |
| Answer» E. | |
| 40. |
Fund flow refers to changes in ------------- capital |
| A. | fixed |
| B. | working |
| C. | both of these |
| D. | none of these |
| Answer» C. both of these | |
| 41. |
Net profit earned plus non working capital expenses is equal to ………….. |
| A. | fund provided by operations |
| B. | use of funds |
| C. | sinking fund |
| D. | none of these |
| Answer» B. use of funds | |
| 42. |
……………..means excess of current assets over current liabilities. |
| A. | working capital |
| B. | gross working capital |
| C. | net working capital |
| D. | all of these |
| Answer» D. all of these | |
| 43. |
……………….refers to firms investment in current assets. |
| A. | working capital |
| B. | gross working capital |
| C. | net working capital |
| D. | all of these |
| Answer» C. net working capital | |
| 44. |
……………….means cash and other assets which are expected to be sold orconsumed during the normal operating cycle of business. |
| A. | liquid assets |
| B. | quick assets |
| C. | cash equivalents |
| D. | current assets |
| Answer» E. | |
| 45. |
Which among the following asset is excluded from current assets ? |
| A. | loose tools |
| B. | accounts receivable |
| C. | short term investments with bank |
| D. | finished goods |
| Answer» B. accounts receivable | |
| 46. |
Which transaction results in flow of funds ? |
| A. | transaction involve only fixed assets |
| B. | transaction involve only current assets |
| C. | all of these |
| D. | none of these |
| Answer» E. | |
| 47. |
There will be flow of funds, if a transaction involves……………….. |
| A. | current assets and fixed assets |
| B. | current assets and capital |
| C. | current assets and fixed liabilities |
| D. | all of these |
| Answer» E. | |
| 48. |
The flow of funds occurs when a transaction changes on the one hand anon current account and on the other hand a ………….. |
| A. | current asset |
| B. | current liability |
| C. | a or b |
| D. | none of these |
| Answer» D. none of these | |
| 49. |
…………….assets are those which in the ordinary course of business can beconverted into cash within a short period of time. |
| A. | current |
| B. | non current |
| C. | both of these |
| D. | none of these |
| Answer» B. non current | |
| 50. |
Goods purchased for cash. This transaction involves………….. |
| A. | flow of fund |
| B. | no flow of fund |
| C. | both of these |
| D. | none of these |
| Answer» C. both of these | |