Explore topic-wise MCQs in Bachelor of Business Administration (BBA).

This section includes 237 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.

1.

Accounting is concerned with measurement of the cost and value of people for the organization.

A. financial accounting
B. management accounting
C. corporate accounting
D. human resource accounting
Answer» E.
Discussion
2.

..accounting is the adoption and analysis of accountinginformation and its diagnosis and explanation in such a way so as to assist thedecision -makers.

A. financial accounting
B. management accounting
C. corporate accounting
D. human resource accounting
Answer» C. corporate accounting
Discussion
3.

..costs are pre-determined targets adainst which actual results are evaluated.

A. marginal
B. standard
C. actual
D. budgeted
Answer» C. actual
Discussion
4.

The important objective of ..accounting is to organize the accumulated financial data into meaningful information.

A. financial accounting
B. management accounting
C. corporate accounting
D. human resource accounting
Answer» B. management accounting
Discussion
5.

Planning is that function of ..which requires an efficient system of decision making.

A. finance
B. management
C. h.r
D. administration.
Answer» C. h.r
Discussion
6.

Budgetary control helps to introduce a suitable incentive and remuneration based on

A. changes in government policies
B. inflationary conditions
C. both
D. none
Answer» C. both
Discussion
7.

Plant utilization budget and Manufacturing overhead budgets are types of.

A. production budget
B. sales budget
C. cost budget
D. none of the above
Answer» B. sales budget
Discussion
8.

The management accounting can be stated an extension ofI)Cost AccountingII)Financial Accounting

A. Only I
B. Only II
C. Both I and II
D. None of the Above
Answer» D. None of the Above
Discussion
9.

Which of the following is not the limitation of Management Accounting?I)Developing StageII)Resistance from StaffIII)Lack of wide knowledgeIV)Decision Making

A. Only I,II,III
B. Both I & IV
C. Only IV
D. Only I
Answer» D. Only I
Discussion
10.

What is formula of Capital employed?I)Shareholder's Funds+Non Current LiabilitiesII)Total Assets-Current LiabilitiesIII)Non Current Assets-Working capitalIV)Total Assets-Total Liabilities

A. Only III and IV
B. Only I,II and III
C. All I,II,III,IV
D. Only I and II
Answer» E.
Discussion
11.

Which of the following is expenses ratio?(a) Administrative expenses ratio(b) Selling and Distribution expenses ratio(c) Factory expenses ratio(d) Finance Expenses ratio

A. A, B and D
B. A, C and D
C. A, B and C
D. A, B , C, D
Answer» E.
Discussion
12.

Quick ratio is 1.8:1, current ratio is 2.7:1 and current liabilities are Rs 60,000. Determine value of stock.

A. Rs 54,000
B. Rs 60,000
C. Rs 1, 62,000
D. None of the above
Answer» B. Rs 60,000
Discussion
13.

A Company s Quick Ratio is 1.5 : 1; Current Liabilities are 2,00,000 and Inventory is 1,80,000. Current Ratio will be :

A. 0.9 : 1
B. 1.9 : 1
C. 1.4 : 1
D. 2.4 : 1
Answer» E.
Discussion
14.

Which items are added in Current year profit to get Net profit before tax.I)Interim dividendII)Provision for taxIII)Refund of taxIV)Transfer to reserves

A. All
B. Only III
C. Only II and IV
D. Only I,II and IV
Answer» E.
Discussion
15.

In deciding the appropriate level of current assets for the firm, management is confrontedwith_____________.

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.
Discussion
16.

According to ________ working capital refers to the company s total investment in current assets.

A. net concept
B. gross concept
C. equal concept
D. accounting concept
Answer» C. equal concept
Discussion
17.

Which of the following is/are the responsibilty centres.I)Cost centreII)Investment CentreIII)Profit centerIV)Revenue Centre

A. All
B. Only I,II and III
C. Only I and IV
D. Only II,III and IV
Answer» B. Only I,II and III
Discussion
18.

Debtors Turnover ratio is also known as(a) Receivables turnover ratio(b) Debtors velocity(c) Stock velocity(d) Payable turnover ratio

A. A and B
B. A and C
C. B and C
D. C and D
Answer» B. A and C
Discussion
19.

The ratio which determines the profitability from the shareholder s point of view is .

A. return on investment.
B. gross profit ratio.
C. return on shareholders funds.
D. operating profit ratio.
Answer» D. operating profit ratio.
Discussion
20.

Which are not Investing activity?I)Receipts from sale of fixed assetII)Interest receivedIII)Dividend paidIV)Cash Payment to acquire share of other Companies

A. Only II and III
B. Only III and IV
C. Only III
D. All are not investing activities
Answer» D. All are not investing activities
Discussion
21.

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)
Discussion
22.

The management accounting can be stated an extension of(i) Cost Accounting(ii) Financial Accounting(iii) Responsibility Accounting

A. Both (i) and (ii)
B. Both (i) and (iii)
C. Both (ii) and (iii)
D. (i), (ii), (iii)
Answer» E.
Discussion
23.

Which of the following is true about management accounting?(i) Management accounting is associated with presentation of accounting data.(ii) Management accounting is extremely sensitive to investors needs.

A. Only (i)
B. Only (ii)
C. Both (i) and (ii)
D. None of the above
Answer» B. Only (ii)
Discussion
24.

Which of the following is true about management accounting?A) Management accounting is associated with presentation of accounting data.B) Management accounting is extremely sensitive to investors needs.

A. Only A
B. Only B
C. Both A and B
D. None of the above
Answer» B. Only B
Discussion
25.

Which of the following are tools of management accounting?(i) Decision accounting(ii) Standard costing(iii) Budgetary control(iv) Human Resources 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)
Discussion
26.

Management accounting is(i) Subjective(ii) Objective

A. Only (i)
B. Only (ii)
C. Both (i) and (ii)
D. None of the above
Answer» B. Only (ii)
Discussion
27.

Management accounting is related withA) The problem of choice makingB) Recording of transactionsC) Cause and effect relationships

A. A and B
B. B and C
C. A and C
D. All are false
Answer» D. All are false
Discussion
28.

Management accounting is related with(i) The problem of choice making(ii) Recording of transactions(iii) Cause and effect relationships

A. (i) and (ii)
B. (ii) and (iii)
C. (i) and (iii)
D. All are false
Answer» D. All are false
Discussion
29.

Which of the following statements correctly distinguishes between financial and management accounting?

A. Management accounting reports on the whole organization.
B. Financial accounting is oriented toward the future.
C. Financial accounting is primarily concerned with providing information for internal users.
D. Management accounting is oriented more toward the planning and control
Answer» E.
Discussion
30.

The objectives of Cash Flow Statement are (i) Analysis of cash position(ii) Short-term cash planning(iii) Evaluation of liquidity(iv) Comparison of operating Performance

A. Both A and B
B. Both A and C
C. Both B and D
D. A, B, C, D
Answer» E.
Discussion
31.

Which of the following statements are true?(a) Marginal costing is not an independent system of costing.(b) In marginal costing all elements of cost are divided into fixed and variable components.(c) In marginal costing fixed costs are treated as product cost.(d) Marginal costing is not a technique of cost analysis.

A. A and B
B. B and C
C. A and D
D. B and D
Answer» B. B and C
Discussion
32.

Which of the following is not the objective of budgetary control?I)ControlII)Danger of rigidityIII)MotivationIV)Based on estimates

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
Discussion
33.

Which of the following are the assumptions of marginal costing?1) All the elements of cost can be divided into fixed and variable components.2) Total fixed cost remains constant at all levels of output.3) Total variable costs vary in proportion to the volume of output.4) Per unit selling price remain unchanged at all levels of operating activity.

A. A and B
B. B and C
C. A and D
D. A, B, C and D
Answer» E.
Discussion
34.

Which of the following is not the objective of budgetary control? I)Control II)Danger of rigidity III)Motivation IV)Based on estimates

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
Discussion
35.

(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 labor price variance is

A. Rs.770 favourable
B. Rs.770 unfavourable
C. Rs.1,030 favourable
D. Rs.1,030 unfavourable
Answer» C. Rs.1,030 favourable
Discussion
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 labor quantity variance is

A. Rs.1,830 unfavourable
B. Rs.1,830 favourable
C. Rs.1,800 favourable
D. Rs.1,800 unfavourable
Answer» D. Rs.1,800 unfavourable
Discussion
37.

(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.
Discussion
38.

Match the columns(i) Activity Ratio -------------------- i) (Actual hours worked / Budgeted hours) * 100(ii) Capacity Ratio ------------------ ii) (Standard hours of actual production / Actual hours worked) * 100(iii) Efficiency Ratio ----------------- iii) (Standard hours for actual output / Budgeted hours) * 100

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
Discussion
39.

Which of the following are tools of management accounting?A) Decision accountingB) Standard costingC) Budgetary controlD) Human Resources 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
Discussion
40.

Which of the following matter is relevant with cash receipts and disbursement method of preparing Cash Budget ?

A. While determining the cash payments, it is necessary to estimate the credit sales.
B. While estimating cash receipts, it is not necessary to estimate the figure of credit sales.
C. Debtors Ratio is used to estimate the timings when cash collections would be obtained from credit sales.
D. While estimating the total amount of cash payment for purchases, it is necessary to decide from which suppliers materials are to be purchased.
Answer» D. While estimating the total amount of cash payment for purchases, it is necessary to decide from which suppliers materials are to be purchased.
Discussion
41.

Which of the following matter is to be taken into account which preparing Material Purchase Budget ?

A. The supplier from whom materials are to be purchased.
B. The procedure of storing and preserving materials after they are received.
C. The prices at which receipts and issues of materials are to be recorded in stores ledger.
D. The maximum and minimum quantities of materials to be purchased.
Answer» E.
Discussion
42.

A budget which is prepared in a manner so as to give the budgeted cost for any level of activity is known as -

A. Master budget
B. Zero base budget
C. Functional budget
D. Flexible budget
Answer» E.
Discussion
43.

Which of the following costing activities is associated with the financial accounting system?

A. determining the cost of a department
B. determining the cost of goods sold for financial statements
C. preparing budgets
D. determining the cost of a customer
Answer» C. preparing budgets
Discussion
44.

Which of the following activities is NOT significant to the advancement of information technology?

A. enterprise resource planning software
B. emergence of electronic commerce
C. theory of constraints
D. decision support systems
Answer» D. decision support systems
Discussion
45.

Which are financing activities?I)Issue of sharesII)Interest PaidIII)Dividend paidIV)Redemption of debentures

A. All
B. Only I,II and IV
C. Only I and IV
D. Only I,III and IV
Answer» C. Only I and IV
Discussion
46.

In make or buy decision, it is profitable to buy from outside only when the supplier s price is below the firm s own ___________.

A. Fixed Cost
B. Variable Cost
C. Total Cost
D. Prime Cost
Answer» C. Total Cost
Discussion
47.

Which of the following is the limitation of Zero based budgeting.I)Resist new ideasII)Control on expenditureIII)Requires proper trainingIV)Conflicts

A. All
B. Only I and IV
C. Only III and IV
D. Only I,III and IV
Answer» E.
Discussion
48.

When the sales increase from Rs. 40,000 to Rs. 60,000 and profit increases by Rs. 5,000, the P/V ratio is -

A. 20%
B. 30%
C. 25%
D. 40%
Answer» D. 40%
Discussion
49.

To establish an effective system of standard costing it is essential that1) The technical process of operation should be prone to planning2) The cost of the products should be given3) The process or operating costs of products should be provided4) The standard costing should be consistent with the technical procedure of the production of the specific entity

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
Discussion
50.

The cost that tends to remain constant irrespective of the level of activity is called _______.

A. Variable cost
B. Fixed cost
C. Total cost
D. All of the above
Answer» C. Total cost
Discussion