Correct : D. Receipts and payments, balance sheet method
2. A budget specifies the operations to be performed during the next year is called __________
Correct : C. Activity budget
3. The branch of accounting which primarily deals with processing and presenting accounting data fro internal use is ________________
Correct : C. Management accounting
4. The term management accounting was used in
Correct : A. 1950
5. Management accounting is also known as _______________
Correct : C. Decision accounting
6. Which of the following is not a technique of management accounting
Correct : D. Process costing
7. Management accounting is helpful in increasing _______________
Correct : C. Efficiency
8. Management accounting has a ___________ scope than cost accounting
Correct : A. Wider
9. Management accounting helps in ___________ data
Correct : C. Analysis and interpretation
10. Management accounting provides alternative choices for managerial ___________
Correct : A. Decisions
11. Publication of management accounting statements are ______________
Correct : B. Not optional
12. Management accounting deals only with that information which is useful to the ___________
Correct : C. Management
13. The prime function of management accounting is to -------------------------------
Correct : B. Assist the management in performing its functions
14. Management accounting relates to ________
Correct : C. Presentation of accounting data
15. Management accounting analyses accounting data with the help of -------------------------
Correct : C. Tools and techniques
16. Management accounting and cost accounting functions are --------------------------
Correct : B. Complementary in nature
17. Management accounting provides valuable services to management in performing ____
Correct : D. All managerial functions
18. Management accounting and financial accounting differ in that management accounting
information is prepared
Correct : B. using whatever methods, the company finds beneficial.
19. Management accounting is the branch of accounting concerned with reporting to
Correct : B. shareholders.
20. The use of management accounting is
Correct : A. Optional
21. The management accounting can be stated an extension of A) Cost Accounting B) Financial Accounting C) Responsibility Accounting
Correct : D. A,
22. 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.
Correct : A. Only A
23. Which of the following are tools of management accounting?
A) Decision accounting
B) Standard costing
C) Budgetary control
D) Human Resources Accounting
Correct : C. A, B and C
24. Management accounting is related with
A) The problem of choice making
B) Recording of transactions
C) Cause and effect relationships
Correct : C. A and C
25. Management accountancy is a structure for
Correct : C. Decision making
26. The prime function of financial accounting is to
Correct : A. Classify and Record the economic data
27. If net profit is ₹ 50,000 after writing off goodwill ₹ 10,000 then the Cash Flow from operating activities will be:
Correct : A. ₹ 60,000
28. Net Profit during the year ₹ 1,00,000
Debtors in the beginning the year of ₹ 30,000
Debtors at the end of the year ₹ 36,000
What is the amount of Cash From Operating Activities?
Correct : B. ₹ 94,000
29. Net Profit during the year ₹ 30,000
Creditors in the beginning ₹ 24,000
Creditors at the end ₹ 16,000
What is the amount of cash from operating activities?
Correct : C. ₹ 22,000
30. Financing Activities bring changes in
Correct : C. Both a and b
31. For year 2018 Equity Share Capital is Rs 3,00,000 Preference Share Capital is Rs.1,00,000,10% debentures is Rs.2,00,000 and Share premium is Rs.30,000. For year 2019 Equity Share Capital is Rs 4,00,000 Preference Share Capital is Rs.60,000 10% debentures is Rs.1,00,000 and Share premium is 40,000. Also given, Dividend paid on shares Rs 15,000 and Interest paid on debentures Rs. 20,000. Determine net cash flow from financing activities.
Correct : B. Outflow of Rs 65,000
32. Which of the following falls under Profitability Ratios?
A) General Profitability ratios
B) Overall Profitability ratios
C) Comprehensive Profitability ratios
Correct : A. A and B
33. While calculating Gross Profit Ratio,
Correct : A. Closing stock is deducted from cost of goods sold
34. Gross Profit Ratio is calculated by
Correct : B. (Gross Profit/Net sales)*100
35. Given Sales is Rs.2,40,000 and Gross Profit is 60,000, the Gross Profit Ratio is
Correct : B. 25%
36. If selling price is fixed 25% above the cost, the Gross Profit Ratio is
Correct : D. 20%
37. Determine Stock Turnover Ratio if, Opening stock is Rs 31,000, Closing stock is Rs 29,000, Sales is Rs 3,20,000 and Gross profit ratio is 25% on sales.
Correct : C. 8 times
38. Which of the following is not included in quick assets?
Correct : B. Stock
39. Quick ratio is 1.8:1, current ratio is 2.7:1 and current liabilities are
Rs 60,000. Determine value of stock.
Correct : A. Rs 54,000
40. A Current Ratio of Less than One means
Correct : C. Current Assets < Current Liabilities,
41. A firm has Capital of Rs. 10,00,000; Sales of Rs. 5,00,000; Gross Profit of Rs. 2,00,000 and Expenses of Rs. 1,00,000. What is the Net Profit Ratio?
Correct : C. 10%
42. A Company has a material standard of 1 kg. per unit of output. Each kg. has a standard price of Rs.25 per kg. Company paid Rs.1,27,500 for 5000 kg., which they used to produce 4,700 units. What is the direct material price variance?
Correct : A. Rs.2,500 unfavourable
43. Company has a material standard of 1.1 kg. per unit of output. Each kg. has a standard price of Rs.25 per. Company paid Rs.1,18,800? for 5,100 kg. which they used to produce 4,900 units. What is the direct materials quantity variance?
Correct : A. Rs.7,250 favourable
44. (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
Correct : B. Rs.770 unfavourable
45. (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
Correct : C. Rs.1,800 favourable
46. (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
Correct : D. Rs.1,930 favourable
47. Material cost variances is measured as
Correct : A. Total standard cost - Total actual cost
48. When the actual cost is less than the standard cost, the difference is termed as
Correct : A. Favourable variance
49. The formula to estimate Labour Mix variance is
Correct : B. (Standard rate per hour - Actual rate per hour) * Actual Hours
50. Given standard time per unit is 80 hours, standard time per hour @ Rs 1 per hour, actual time per unit is 90 hours and actual rate per hour @ Rs 1.10 per hour. Determine labour cost variance, labour rate variance and labour efficiency variance.
Correct : C. Rs 19, Rs 9 and Rs 10 all unfavorable
51. The formula used for calculation of labour rate variance is
Correct : B. (Standard rate per hour - Actual rate per hour) * Actual Hours
52. The data related to Production of T are for material X standard data and actual data are 40 kgs @ Rs 10 and 55 kgs @ Rs 9, respectively. The standard data and actual data for material Y are 50 kgs @ Rs 5 and 35 kgs @ Rs 7. Determine material usage variance.
Correct : B. Rs 75 unfavorable
53. Material yield variance arises when
Correct : C. Both a and b
54. While calculating material mix variance, if revised standard quantity is greater than actual quantity, the variance is
Correct : B. Favorable
55. To produce Product A 2 kg of material X at Rs 10 per kg is required . During February 800 units of Product, A were produced. Actual price paid for material X is Rs 9 per kg and total cost Rs 15,300. Determine material cost variance.
Correct : A. Rs 700 favorable
56. In a manufacturing firm, the standard quantity of material was set at 10 kg and standard price was fixed at Rs. 2 per kg. The actual quantity consumed was 12 kg and the actual price paid was Rs 1.90 per kg. Determine material usage variance.
Correct : B. Rs 4 unfavorable
57. Marginal Cost is the aggregate of all
Correct : B. Variable Costs
58. The other name of Marginal Costing is…
Correct : D. All of the above
59. While making make or buy decision under marginal costing, external purchase price of the articles must be compared with its
Correct : C. Variable Cost
60. Shut down cost is:
Correct : B. Unavoidable Fixed Cost
61. Profit volume ratio can be improved by
Correct : A. Reducing variable cost
62. When Profit is Rs.5000 and P/V ratio is 20%, Margin of Safety is---------
Correct : B. 25000
63. When selling price of product A is Rs.25 and product B is Rs. 20 and respective variable cost is Rs. 23 and Rs.16. The fixed cost is Rs.750, which of the following sales mix of product A and product B should be adopted to maximize the profit.
Correct : D. 150 units of A & 350 units of B
64. The breakdown of cost of a component of a company is Material Rs.275, Labour Rs. 175 ,other Variable costs Rs.50 and Depreciation Rs.125. At what price the product should be available in the market so that company should buy from the market.
Correct : D. None
65. Costs Which ------------between different alternatives are to be ignored.
Correct : C. Are constant costs
66. When selling price is Rs.200 Per unit, Variable Cost Rs.150 per unit and Fixed Cost is Rs.50000 at which capacity level the cost per unit would be minimum.
Correct : D. 85%
67. The profit volume ratio (P/V Ratio)
Correct : B. 20%
68. The Break-Even Point sales are
Correct : C. Rs.3000000
69. The Variable Cost in 2018 are
Correct : C. Rs.3200000
70. The Fixed Cost are
Correct : B. Rs.300000
71. If projected sales in the year 2020 to be Rs.6500000 find out the corresponding profit
Correct : D. Rs.1000000
72. Balance sheet indicates the financial status of the business ____.
Correct : D. At given period
73. __do not give the returns during the same period during which they are paid for
Correct : B. Fixed assets
74. Following is (are) called the element(s) of Cost
Correct : D. All of the above
75. _________ Accounting becomes a source of information for Management Accounting.
Correct : A. Financial
76. Profit and Loss Account debit side includes
Correct : D. All of the above
77. The following is (are) the indirect labour cost(s)
Correct : D. All of the above
78. The term management accounting was first coined in
Correct : B. 1950
79. Management accounting is
(i) Subjective
(ii) Objective
Correct : A. Only (i)
80. The management accounting can be stated an extension of
(i) Cost Accounting
(ii) Financial Accounting
(iii) Responsibility Accounting
Correct : D. (i), (ii), (iii)
81. 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.
Correct : A. Only (i)
82. Which of the following are tools of management accounting?
(i) Decision accounting
(ii) Standard costing
(iii) Budgetary control
(iv) Human Resources Accounting
Correct : C. (i),(ii) and (iii)
83. Management accounting is related with
(i) The problem of choice making
(ii) Recording of transactions
(iii) Cause and effect relationships
Correct : C. (i) and (iii)
84. Who coined the concept of management accounting?
Correct : B. James H. Bliss
85. 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.
Correct : C. (i),(ii) and (iii)
86. Management accounting deals with
Correct : C. Both a and b
87. The definition ‘Management Accounting is the presentation of accounting information in such a way as to assist management in the creation of policy and the day-to-day operation of an undertaking.’
Correct : A. Anglo-American Council on Productivity
88. The prime function of accounting is to:
Correct : B. provide the informational basis for action
89. The basic function of management accounting is to:
Correct : C. assist the management in performing its functions effectively
90. Management accounting involves
Correct : B. Analysis and interpretation of data
91. Management accounting provides invaluable services to management in performing:
Correct : A. All management functions
92. Cost accounting mainly helps the management in:
Correct : B. Providing information to the management for decision-making.
93. Variable cost per unit:
Correct : B. Fluctuates with the volume of production
94. If the activity level increases 10%, total variable costs will
Correct : A. remain the same
95. Opportunity cost helps in:
Correct : C. Making managerial decisions
96. Conversion cost is the sum total of:
Correct : C. Indirect wages and factory overheads
97. Fixed cost per unit increases when:
Correct : D. None of the above
98. Cost behaviour analysis is a study of how a firm's costs
Correct : C. respond to changes in activity levels within the company
99. Cash Flow Statement is also known as
Correct : C. Both a and b
100. 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