1. ___________ is required to meet special exigencies such as launching of extensive marketing
campaigns for conducting research.
Correct : B. special working capital
2. The statement of changes in financial position prepared to determine only the sources and
uses of working capital between two dates of balance sheet is known as __________.
Correct : C. fund flow statement
3. What are the aspects of working capital management?
Correct : D. all of the above
4. _________ function includes a firm’s attempts to balance cash inflows and outflows.
Correct : B. liquidity
5. Firms which are capital intensive rely on _________.
Correct : C. debt
6. Hirer is entitled to claim ___________.
Correct : A. depreciation
7. Which of the following is not an advantages of trade credit?
Correct : D. buyout financing
8. Which of the following are theories for dividend relevance?
Correct : A. walter’s model
9. What is not a form of dividend?
Correct : D. split reverse
10. The percentage of earnings paid as dividends is called __________.
Correct : B. payout ration
11. What are the various methods of estimating cash?
Correct : D. all of the above
12. The art of managing, within the acceptable level of risk, the consolidated funds
optimally and profitably is called _________.
Correct : B. treasury management
13. What are the different types of underlying assets?
Correct : D. stock indices
14. What are people who buy or sell in the market to make profits called?
Correct : B. speculators
15. Which of the following is a technique that helps the exporter to sell the receivables to
any bank or financial institution without recourse?
Correct : A. forfeiting
16. Money market financial services not include:
Correct : B. merchant banking
17. Factoring involves:
Correct : D. management of receivables of borrower
18. The tools of treasury management does not include:
Correct : D. risk management
19. Under which type of bank borrowing can a borrower obtain credit from a bank
against its bills?
Correct : C. purchase or discounting of bills
20. The factors that affect dividend policy are:
Correct : A. tax consideration
21. To financial analysts, "working capital" means the same thing as __________.
Correct : C. current assets
22. Which of the following would be consistent with an aggressive approach to financing
working capital?
Correct : D. financing some long-term needs with short-term funds.
23. Which of the following would be consistent with a conservative approach to financing
working capital?
Correct : B. financing short-term needs with long-term debt.
24. -Which of the following would be consistent with a hedging (maturity matching)
approach to financing working capital?
Correct : A. financing short-term needs with short-term funds.
25. The amount of current assets that varies with seasonal requirements is referred to
as __________ working capital.
Correct : C. temporary
26. A budget is a plan of action expressed in…
Correct : C. both
27. Budget is prepared for a…
Correct : B. definite period
28. A budget is tool which helps the management in planning and control of…
Correct : A. all business activities
29. Budgetary control system acts as a friend, philosopher and guide to the…
Correct : A. management
30. Budgetary control system defines the objectives and policies of the…
Correct : D. all
31. Budgetary control facilitates easy introduction of the…
Correct : C. standard costing
32. Budgetary control helps the management in…
Correct : A. obtaining bank credit
33. Budgetary control system helps the management to eliminate…
Correct : C. both
34. Budgetary control provides a basis for…
Correct : C. remuneration plans
35. Budgetary control helps to introduce a suitable incentive and remuneration based
on…
Correct : B. inflationary conditions
36. Budgetary control __________ replace management in decision‐making.
Correct : B. cannot
37. The success of budgetary control system depends upon the willing cooperation of…
Correct : D. all the functional areas of management
38. Recording of actual performance is….
Correct : B. a step in budgetary control
39. Revision of budgets is…
Correct : C. necessary
40. Frequent revision of budgets will…
Correct : A. affects its reliability
41. Usually the production budget is stated in terms of…
Correct : C. both
42. Budget period is the…
Correct : C. period for which a budget is prepared
43. Budget period depends upon…
Correct : D. all of these
44. A key factor is one which restricts…
Correct : A. the volume of production
45. Plant utilization budget and Manufacturing overhead budgets are types of.
Correct : A. production budget
46. R&D budget and Capital expenditure budget are examples of
Correct : C. long-term budget
47. The scare factors is also known as
Correct : A. key factor
48. A budgeting process which demands each manager to justify his entire budget in
detail from beginning is
Correct : C. zero base budgeting
49. Budgetary control system facilitates centralized control with…
Correct : C. both
50. 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 :
Correct : B. rs 7,00,000
51. 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 :
Correct : A. rs 3,50,000
52. 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 :
Correct : A. rs 10,00,000
53. 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?
Correct : A. 1.2
54. 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?
Correct : A. 1.2
55. 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
Correct : A. 0.6667
56. Gauri Ltd has a debt equity of 3:2 and total assets turnover is 2. If NP ratio is 10%. The ROE is
Correct : B. 0.5
57. 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 :
Correct : B. 0.35
58. Current Assets are Rs 5,00,000 and Current liabilities are Rs 2,00,000. The Current ratio is
Correct : C. 2.5
59. WIP is Rs 14,000, COGS is Rs 1,50,000, 360 days in a year WIP Turnover period is :
Correct : C. 34 days
60. 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
Correct : B. rs 80,00,000
61. 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 :
Correct : C. rs 84,000
62. In Management accounting,emphasis and focus should be
Correct : A. future oriented
63. What are the characteristics of management accounting?
Correct : D. All of the above
64. The management accounting can be stated an extension of
I)Cost Accounting
II)Financial Accounting
Correct : C. Both I and II
65. Management accounting assists the management
Correct : D. In planning, decision making and control
66. Which of the following is not the limitation of Management Accounting?
I)Developing Stage
II)Resistance from Staff
III)Lack of wide knowledge
IV)Decision Making
Correct : C. Only IV
67. Data in management accounting is derived from
Correct : D. All of the above
68. Financial accounting is the art of
I)Classifying
II)Interpreting
III)Recording
IV)Summarizing .
Write Correct sequence.
Correct : B. III,I,IV,II
69. Which statement is true.
I)Cost records are compulsory in all industries.
II)Management accounting records are compulsory by law.
Correct : A. Both are False
70. Which technique used for figures of two or more periods are placed side by side to facilitate easy and meaningful comparisons?
Correct : A. Comparative Statements
71. Total Assets in 2018 10 lac(Negative );in 2019 15 Lac (Positive).What is the Percentage change?
Correct : C. 250%
72. What is treated as the base in common size P& L statement.
Correct : A. RFO
73. Working capital=45,000 ,Total Debt=1,00,000 , LT debt=70,000, what is value of Current assets?
Correct : D. 75000
74. If Inventory turnover ratio=5 times,what is avg age if inventory?
Correct : A. 73 days
75. What is formula of Capital employed?
I)Shareholder's Funds+Non Current Liabilities
II)Total Assets-Current Liabilities
III)Non Current Assets-Working capital
IV)Total Assets-Total Liabilities
Correct : D. Only I and II
76. Which items are added in Current year profit to get Net profit before tax.
I)Interim dividend
II)Provision for tax
III)Refund of tax
IV)Transfer to reserves
Correct : D. Only I,II and IV
77. Which are financing activities?
I)Issue of shares
II)Interest Paid
III)Dividend paid
IV)Redemption of debentures
Correct : B. Only I,II and IV
78. Which of the following is not the objective of budgetary control?
I)Control
II)Danger of rigidity
III)Motivation
IV)Based on estimates
Correct : B. Only II and IV
79. Which of the following is the limitation of Zero based budgeting.
I)Resist new ideas
II)Control on expenditure
III)Requires proper training
IV)Conflicts
Correct : D. Only I,III and IV
80. The fixed administration expenses are Rs 50,000 at 10,000 units of production.What will be the per unit fixed cost at 8000 units?
Correct : C. Rs 6.25 per unit
81. Labour Efficiency Variance is the sum total of
I)Labour Mix variance
II)Labour Cost Variance
III)Idle time Variance
IV)Labour yield variance
Correct : D. Only I,III and IV
82. 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.
Correct : C. 833Kg,417Kg
83. AQ=2500Kg ,SP=Rs 2.5,SQ=2400Kg,AP=Rs 3 .Calculate Material Cost variance.
Correct : B. 1500 A
84. BE point=40,000 ,Fixed Cost=15,000.Calculate P/V ratio.
Correct : D. 37.50%
85. Calculate Break Even Point in units if Fixed cost is 15,000 ,SP=15 and VC=12
Correct : D. 5000 units
86. Calculate Profit if Mos=40%,P/v ratio=50% and Actual Sales=10,00,000.
Correct : C. 200000
87. Variable cost ratio =80% and Mos=40%.Calculate P/V ratio and BEP(in Percentage) respectively.
Correct : B. 20%,60%
88. At Break even point,Contribution is equal to .
Correct : C. Fixed Cost
89. Which statement is true.I)Fixed budget assumes Changing business conditions. II)Flexible budget is prepared for only one
level of activity.
91. 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
Correct : B. Rs 8000
92. Type of accounting which specialises in providing information about detailed cost of products?
Correct : A. Cost Accounting
93. What is included in scope of management accounting?
I)Internal Control
II)Budgeting
III)Reporting to management
IV)Office Services
Correct : B. ALL I,II,III,IV
94. Which of the following is the basis of difference between Financial and Management Accounting?
Correct : D. All of the above
95. What are the objectives of Cost accounting?I)Cost Ascertainment II)Cost Control
Correct : B. Both I & II
96. The status of management accountant is at what level as compared to cost accountant?
Correct : C. Higher
97. Which statement is true.I)Financial accounts are prepared according to Accounting Standards. II)Management Accounting reports are also prepared according to accounting standard.
Correct : C. Only I
98. What indicate the relationship of different items of a financial statement with some common item by expressing each item as a percentage of the common item.
Correct : C. Common size Statements
99. Which is not the limitation of financial analysis?
I)Effect of personal Bias
II)Identify Trend
III)Judge Efficiency
IV)Different accounting policies
Correct : B. Only II and III
100. Given inventory of 24,000, other current assets of 12,000 and current liabilities of 20,000, the acid test (quick ratio) will be: