MCQOPTIONS
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MCQOPTIONS
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.
| 51. |
It may not be ______ to measure exactly the output of service departments in an organization. |
| A. | Feasible |
| B. | Necessary |
| C. | Either (a) or (b) |
| D. | None of these |
| Answer» D. None of these | |
| 52. |
_______ is designed after assessment of the volume of output to be produced during budget period. |
| A. | Cost budget |
| B. | Sales budget |
| C. | Production budget |
| D. | None of the above |
| Answer» B. Sales budget | |
| 53. |
In profit center revenue represents a monetary measure of output emanating from a profit center in a given period irrespective whether |
| A. | The revenue is realized or not |
| B. | The output is sold or not |
| C. | Both a and b |
| D. | None of the above |
| Answer» D. None of the above | |
| 54. |
Net Profit during the year 1,00,000Debtors in the beginning the year of 30,000Debtors at the end of the year 36,000What is the amount of Cash From Operating Activities? |
| A. | 30,000 |
| B. | 94,000 |
| C. | 1,06,000 |
| D. | 1,66,000 |
| Answer» C. 1,06,000 | |
| 55. |
Total Actual material is 1250 Kg.The Standard qty of Material A=800Kg and B=400Kg.What is the revised Std qty of A and B respectively. |
| A. | 825kg,425Kg |
| B. | 950Kg,300Kg |
| C. | 833Kg,417Kg |
| D. | 750Kg,500Kg |
| Answer» D. 750Kg,500Kg | |
| 56. |
The wages due from Mar 20 ,Apr 20 and May 20 are Rs8000,Rs9000 and Rs 10,000 respectively.There is delay in payment of wages of 2 months.What will be the wages paid in May |
| A. | Rs 9000 |
| B. | Rs 8000 |
| C. | Rs 10000 |
| D. | Rs 27000 |
| Answer» C. Rs 10000 | |
| 57. |
What is included in scope of management accounting?I)Internal ControlII)BudgetingIII)Reporting to managementIV)Office Services |
| A. | Only II,III,IV |
| B. | ALL I,II,III,IV |
| C. | Only II and IV |
| D. | Only I,II,IV |
| Answer» C. Only II and IV | |
| 58. |
Which is not the limitation of financial analysis?I)Effect of personal BiasII)Identify TrendIII)Judge EfficiencyIV)Different accounting policies |
| A. | Only I |
| B. | Only II and III |
| C. | Only II , III and IV |
| D. | Only I and IV |
| Answer» C. Only II , III and IV | |
| 59. |
Calculate Break Even Point in units if Fixed cost is 15,000 ,SP=15 and VC=12 |
| A. | 1000 units |
| B. | 1250 units |
| C. | 1500 units |
| D. | 5000 units |
| Answer» E. | |
| 60. |
Net Profit during the year 30,000Creditors in the beginning 24,000Creditors at the end 16,000What is the amount of cash from operating activities? |
| A. | 30,000 |
| B. | 34,000 |
| C. | 22,000 |
| D. | 40,000 |
| Answer» D. 40,000 | |
| 61. |
__________ is a detailed budget of cash receipts and cash expenditure incorporating both revenue and capital items. |
| A. | Cash Budget |
| B. | Capital Expenditure Budget |
| C. | Sales Budget |
| D. | Overhead Budget |
| Answer» B. Capital Expenditure Budget | |
| 62. |
Quick assets do not includeI)Prepaid ExpenseII)Advance TaxIII)Marketable securitiesIV)Inventory |
| A. | Only I,II and IV |
| B. | Only III |
| C. | All I,II,III,IV |
| D. | Only II and III |
| Answer» B. Only III | |
| 63. |
Labour Efficiency Variance is the sum total ofI)Labour Mix varianceII)Labour Cost VarianceIII)Idle time VarianceIV)Labour yield variance |
| A. | Only I and IV |
| B. | All |
| C. | Only II and III |
| D. | Only I,III and IV |
| Answer» E. | |
| 64. |
The ratio which shows the proportion of profits retained in the business out of the current year s profits is |
| A. | retained earnings ratio. |
| B. | pay out ratio |
| C. | earnings per share. |
| D. | price earnings ratio. |
| Answer» B. pay out ratio | |
| 65. |
Which statement is true.I)Fixed budget assumes Changing business conditions. II)Flexible budget is prepared for only one level of activity. |
| A. | None is true |
| B. | Both are true |
| C. | Only I |
| D. | Only II |
| Answer» B. Both are true | |
| 66. |
A Local Authority is preparing cash Budget for its refuse disposal department. Which of the following items would not be included in the cash budget? |
| A. | Capital cost of a new collection vehicle |
| B. | Depreciation of the machinery |
| C. | Operatives wages |
| D. | Fuel for the collection Vehicles |
| Answer» C. Operatives wages | |
| 67. |
The responsibility accounting is a system by which the responsibility is assigned to the concerned persons - |
| A. | To increase sales |
| B. | To control cash |
| C. | To increase production |
| D. | All of the above |
| Answer» C. To increase production | |
| 68. |
The Carl Care Company established the following direct labour cost standards for one unit of product Z: Standard hours: 1.5 hours Standard rate: $20 per hour Standard cost: $30 (1.5 hours @ $20 per hour)During the month of July, 20,000 direct labour hours were worked, and 12,500 units ofproduct Z were manufactured. The total wages related to direct labour in July were$405,000. The direct labour rate variance for July was: |
| A. | $5,000 unfavourable |
| B. | $5,000 favourable |
| C. | $30,000 favourable |
| D. | $30,000 unfavourable |
| Answer» B. $5,000 favourable | |
| 69. |
Financial accounting is primarily concerned with providing financial reports to all of the following EXCEPT |
| A. | creditors such as banks and other financial institutions. |
| B. | creditors such as suppliers. |
| C. | shareholders of the company. |
| D. | management of the firm. |
| Answer» E. | |
| 70. |
Management Accounting is and financial accounting differ in that management accounting information is prepared |
| A. | Following prescribed rules |
| B. | Using whatever methods the company finds beneficial |
| C. | For shareholders |
| D. | To summarize the whole company with little detail |
| Answer» C. For shareholders | |
| 71. |
Management accounting and financial accounting differ in that management accounting information is prepared |
| A. | following prescribed rules |
| B. | using whatever methods, the company finds beneficial. |
| C. | for shareholders. |
| D. | to summarize the whole company with little detail. |
| Answer» C. for shareholders. | |
| 72. |
Which of the following falls under Profitability Ratios?A) General Profitability ratiosB) Overall Profitability ratiosC) Comprehensive Profitability ratios |
| A. | A and B |
| B. | A and C |
| C. | B and C |
| D. | None of the above |
| Answer» B. A and C | |
| 73. |
Which of the following falls under Profitability ratios?(a) General Profitability ratios(b) Overall Profitability ratios(c) Comprehensive Profitability ratios |
| A. | A and B |
| B. | A and C |
| C. | B and C |
| D. | None of the above |
| Answer» B. A and C | |
| 74. |
As per AS-3, Cash Flow Statement is mandatory for(a) All enterprises(b) Companies listed on a stock exchange(c) Companies with a turnover of more than Rs 50 crores |
| 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 | |
| 75. |
Which statement is true.I)Cost records are compulsory in all industries.II)Management accounting records are compulsory by law. |
| A. | Both are False |
| B. | Only II |
| C. | Both I and II |
| D. | Only I |
| Answer» B. Only II | |
| 76. |
Financial accounting is the art ofI)ClassifyingII)InterpretingIII)RecordingIV)Summarizing .Write Correct sequence. |
| A. | III,IV,II,I |
| B. | III,I,IV,II |
| C. | III,I,II,IV |
| D. | III,IV,I,II |
| Answer» C. III,I,II,IV | |
| 77. |
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 | |
| 78. |
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 | |
| 79. |
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 | |
| 80. |
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 | |
| 81. |
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 | |
| 82. |
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 | |
| 83. |
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 | |
| 84. |
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, | |
| 85. |
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 | |
| 86. |
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 | |
| 87. |
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 | |
| 88. |
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 | |
| 89. |
Budgetary control system facilitates centralized control with… |
| A. | decentralized activity |
| B. | centralized activity |
| C. | both |
| D. | none |
| Answer» D. none | |
| 90. |
A budgeting process which demands each manager to justify his entire budget in detail from beginning is |
| A. | functional budget |
| B. | master budget |
| C. | zero base budgeting |
| D. | none of the above |
| Answer» D. none of the above | |
| 91. |
R&D budget and Capital expenditure budget are examples of |
| A. | short-term budget |
| B. | current budget |
| C. | long-term budget |
| D. | none of the above |
| Answer» D. none of the above | |
| 92. |
The scare factors is also known as |
| A. | key factor |
| B. | abnormal factor |
| C. | linking factor |
| D. | none of the above |
| Answer» B. abnormal factor | |
| 93. |
A key factor is one which restricts… |
| A. | the volume of production |
| B. | the volume of sales |
| C. | the volume of purchase |
| D. | all of the above |
| Answer» B. the volume of sales | |
| 94. |
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. | |
| 95. |
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 | |
| 96. |
Budget period is the… |
| A. | period of budget committee |
| B. | period of budget centres |
| C. | period for which a budget is prepared |
| D. | period of budget officer |
| Answer» D. period of budget officer | |
| 97. |
Usually the production budget is stated in terms of… |
| A. | money |
| B. | quantity |
| C. | both |
| D. | none |
| Answer» D. none | |
| 98. |
Frequent revision of budgets will… |
| A. | affects its reliability |
| B. | increase the accuracy |
| C. | both |
| D. | subjective matter |
| Answer» B. increase the accuracy | |
| 99. |
Revision of budgets is… |
| A. | unnecessary |
| B. | can’t determine |
| C. | necessary |
| D. | inadequate data |
| Answer» D. inadequate data | |
| 100. |
Recording of actual performance is…. |
| A. | an advantage of budgetary control |
| B. | a step in budgetary control |
| C. | a limitation of budgetary control |
| D. | none |
| Answer» C. a limitation of budgetary control | |