1. …………….is concerned with recording transactions and preparing financial
reports for the external and internal users of accounting.
Correct : B. financial accounting
2. The Branch of accounting concerned with collection, determining and
controlling cost of products and services is called………………
Correct : C. cost accounting
3. ……………is concerned with providing information to management for taking
managerial decisions.
Correct : A. management accounting
4. The father of Double Entry system is………………
Correct : A. luca pacioli
5. ……………….is the art of recording, classifying and summarizing in a
significant manner and in terms of money, transactions and events, which are in part, at least of financial character and interpreting the results there of.
Correct : B. accounting
6. Which among the following do not belong to the category of Accounting ?
Correct : D. none of these
7. The objective of financial accounting is to find out…………………..
Correct : A. profitability and financial position
8. ……………….journal is used to record credit sale of goods
Correct : A. sales journal
9. The ………….Management is mainly concerned with the policy decisions.
Correct : A. top
10. The Prime function of accounting is to ………………………..
Correct : C. classify and record business transactions
11. The basic function of Management Accounting is to ……………………….
Correct : C. assist the management in performing its functions effectively
12. Management accounting provides invaluable services to Management in
performing…………..
Correct : A. all management functions
13. Accounting designed to serve parties external to the operating
responsibility of the firm is termed as…………….
Correct : B. financial accounting
14. Cost Accounting and Management Accounting are ……………….. in nature.
Correct : A. complementary
15. Management accounting has a ……….. scope than cost accounting.
Correct : A. wider
16. …………….is the amount of expenditure [actual or notional] incurred on or
attributable to a given thing.
Correct : C. cost
17. ………………..is the technique and process of ascertaining costs
Correct : C. cost accounting
18. ………..is the process of accounting for cost which includes the application
of cost control methods and ascertainment of profitability of activities
Correct : C. cost accounting
19. Which among the following is not a management accounting technique?
Correct : D. none
20. ………..Accounting is concerned with historical data
Correct : C. financial accounting
21. ……………..is the process of identifying the financial strengths and
weakness of the firm by properly establishing relationship between the items of balance sheet and Profit and Loss Account
Correct : B. financial analysis
22. ……………explains what has happened to a business unit as a result of
operations between two balance sheet dates.
Correct : C. both of these
23. The analysis done by investors , credit agencies , government agencies and
other creditors who have no access to the internal records of a company is known as ……………..
Correct : C. external analysis
24. The analysis done by persons who have access to the books of account and
other information related to the business is termed as……………
Correct : A. internal analysis
25. In ………………..type of analysis , financial statements for a number of
years are reviewed and analyzed.
Correct : B. horizontal analysis
26. ……………..type of analysis is based on the data from year to year rather
than on one date, and also termed as dynamic analysis.
Correct : B. horizontal analysis
27. ………….analysis is useful in comparing performance of several companies
in the same group, or division or department of the same company.
Correct : A. vertical analysis
28. ………………. are prepared so as to provide time perspective to the
consideration of various elements of financial position embodied in such statements.
Correct : A. comparative statements
29. ……………….are the statements, in which figures reported are converted into
percentages to some common base.
Correct : B. common size statements
30. The term fixed assets includes
Correct : B. furniture
31. The following is a recorded fact
Correct : B. debtors
32. The term current assets does not include
Correct : C. long term deferred charges
33. In case of a limited company, the term financial statements includes………
Correct : B. profit and loss account, profit and loss appropriation account and balance sheet
34. Assets and liabilities in a Balance sheet may be arranged in the order of …..
Correct : C. both of these
35. Income statement matches the …………… incurred in the accounting year
Correct : C. both of these
36. …………..are statements of financial position at different periods
Correct : A. comparative statements
37. An increase in current asset accompanied by the increase in current
liabilities of the same amount will…………………
Correct : B. not improve short term financial position
38. Which among the following is an example for horizontal analysis ?
Correct : D. a & b
39. If the Gross sales of a concern is Rs.200000 and sales return is 20000,
Gross profit is 150000.cost of goods sold is……………………..
Correct : B. 30000
40. Given opening stock is Rs.20000, Direct expenses 10000, Closing stock
5000.Cost of goods sold is ……………………
Correct : A. 25000
41. Ratio of Net sales to Net working capital is a ………………………..
Correct : A. working capital turnover ratio
42. Observing changes in financial analysis across the years is ……………
Correct : B. horizontal analysis
43. Ratio of net profit before interest and tax to sales is ……………….
Correct : A. operating profit ratio
44. The statistical yardstick that provides a measure of relationship between
two accounting figures is ……………………
Correct : B. the accounting ratio
45. ……………….is a statement which lists all the sources of funds and
applications of funds taken place in a business during a particular period
Correct : A. fund flow statement
46. The overall net increase or decrease in working capital is found out by
preparing…………………
Correct : C. statement showing changes in working capital
47. Which one of the following is a source of fund ?
Correct : D. issue of shares for cash
48. Which among the following is a sources of fund ?
Correct : D. all of these
49. Which among the following is an application of fund ?
Correct : D. all of these
50. ……………is only internal source of funds
Correct : A. fund from operations
51. Which among the following do not result in the flow of fund /
Correct : D. all of these
52. Fund flow refers to changes in ------------- capital
Correct : B. working
53. Net profit earned plus non working capital expenses is equal to …………..
Correct : A. fund provided by operations
54. ……………….refers to firms investment in current assets.
Correct : B. gross working capital
55. ……………..means excess of current assets over current liabilities.
Correct : C. net working capital
56. ……………….means cash and other assets which are expected to be sold or
consumed during the normal operating cycle of business.
Correct : D. current assets
57. Which among the following asset is excluded from current assets ?
Correct : A. loose tools
58. Which transaction results in flow of funds ?
Correct : D. none of these
59. There will be flow of funds, if a transaction involves………………..
Correct : D. all of these
60. The flow of funds occurs when a transaction changes on the one hand a
non current account and on the other hand a …………..
Correct : C. a or b
61. …………….assets are those which in the ordinary course of business can be
converted into cash within a short period of time.
Correct : A. current
62. ………..liabilities are those which are intended to be paid in the ordinary
course of business within a short period.
Correct : A. current
63. Goods purchased for cash. This transaction involves…………..
Correct : B. no flow of fund
64. Which among the following transaction involves no flow of fund ?
Correct : D. conversion of debentures into shares.
65. Which among the following transaction involves flow of fund ?
Correct : D. raising of long term loans
66. While preparing ……………statement, both capital and revenue items are
considered.
Correct : A. fund flow statement
67. ……………..is a tool of management for financial analysis and helps in
making decisions.
Correct : A. fund flow statement
68. …………statement shows changes in financial position and hence dynamic
in nature
Correct : A. fund flow statement
69. Increase in Accounts payable when compared to previous year results in
…………….of working capital
Correct : B. decrease
70. Decrease in Working capital constitutes …………………
Correct : A. source of fund
71. …………….is the dividend paid to the members of a company during a
financial year before the finalization of annual accounts.
Correct : C. interim dividend
72. Fund lost in operations represent………………..
Correct : B. outflow of funds
73. Which of the following results in Increase of working capital ?
Correct : A. increase in current assets
74. Which among the following results in decrease of working capital ?
Correct : A. increase in current liabilities
75. According to SEBI requirements Cash flow statement is prepared by
categorizing cash flows into operating, investing and …………..activities
Correct : A. financing
76. Cash flow statement is a statement which describes inflows and outflows of……
Correct : B. cash and cash equivalents
77. Cash, according to cash flow statement comprises of ……………
Correct : C. cash in hand and demand deposits with banks
78. ………are short term , highly liquid investments that are readily convertible
into known amounts of cash and which are subject to an insignificant risk of changes in value.
Correct : A. cash equivalents
79. Flow of cash is said to have taken place when any transactions makes
changes in the amount of ………….before happening of the transactions.
Correct : C. both of these
80. Which among the following are examples of cash flow from operating
activities ?
Correct : D. all of these
81. Which among the following is not an example of cash flow from operating
activities ?
Correct : D. cash receipts from disposal of fixed assets
82. The essence of marginal costing is that ……………… cost is considered on
the whole as separate.
Correct : A. fixed
83. ………….cost represents the amount of any given volume of output by which
aggregate costs are changed if the volume of output is increased by one unit.
Correct : B. marginal cost
84. ………. Is the increase or decrease in total cost which results from producing or selling additional or fewer units of a product or from a change in the method of production or distribution such as the use of improved
machinery, addition or exclusion of a product or territory or selection of an additional sales channel.
Correct : B. marginal cost
85. …………cost is defined as the aggregate of variable costs or prime costs plus
variable overheads.
Correct : B. marginal cost
86. Marginal costing is a …………… of costing
Correct : C. technique
87. Under marginal costing, ……… Costs are regarded as costs of the products.
Correct : A. variable costs
88. Under marginal costing, …………… costs are treated as period costs and
charged to profit and loss account for the period for which they are incurred
Correct : B. fixed costs
89. Under marginal costing, stocks of finished goods and work-in-process are
valued at …………….. costs only
Correct : C. marginal cost
90. ………………..is the excess of sales over marginal cost of sales
Correct : D. contribution
91. ………………..cost remains constant per unit of output irrespective of the
level of output and thus fluctuates directly in proportion to changes in the volume of output
Correct : A. variable costs
92. …………..costs are the increase or decrease in total cost that result from
producing additional or fewer units or from the adoption of an alternative course of action.
Correct : D. differential cost
93. Marginal cost and differential cost are the same when ……..costs do not
change with change in output
Correct : B. fixed costs
94. ………………is the practice of charging all costs, both variable and fixed, to
operations, processes, or products
Correct : B. absorption costing
95. In absorption costing, managerial decision making is based upon …………..