Management Accounting MCQs with Answers
Multiple Choice Questions
40 Pages
SBJ
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Sai Bhai Johal
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- DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45Subject: Management Accounting Subject code: B305FM Class: SY BBAPROF. MUBINA ATTARI www.dacc.edu.inUnit :1 IntroductionMultiple Choice Questions:1. ………………………Accounting is concerned with measurement of thecost and value of people for the organization.a) Financial Accountingb) Management Accountingc) Corporate Accountingd) Human resource Accounting2. The important objective of …………………..accounting is to organize theaccumulated financial data into meaningful information.a) Financial Accountingb) Management Accountingc) Corporate Accountingd) Human resource Accounting3. ……………………..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 Accountingb) Management Accountingc) Corporate Accountingd) Human resource Accounting4. Planning is that function of ……………………..which requires an efficient systemof decision – making.a) Financeb) Managementc) H.Rd) Administration.5. Financial ……………..ensures effective utilization of available financial resourcesin the long period.a) Accountingb) Planningc) Management
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- DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45Subject: Management Accounting Subject code: B305FM Class: SY BBAPROF. MUBINA ATTARI www.dacc.edu.ind) Administration.6. …………………..costs are pre-determined targets adainst which actual resultsare evaluated.a) Marginalb) Standardc) Actuald) Budgeted7. Financial Accounting data is primarily meant for …………………a) External usersb) Internal usersc) Employeesd) Bank8. Cost Accountant should report to the ……………management.a) Topb) Middle.c) Administrationd) Lower9. The transaction which increase working capital are ………….. of fundsa) Sourcesb) Applicationc) Utilizationd) Diversion10. Management accounting begins where………………. accounting ends.a) Financial Accountingb) Management Accountingc) Cost Accountingd) Human resource AccountingAnswer key1d2a3b4b5b6b7a8a9a10c
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- DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45Subject: Management Accounting Subject code: B305FM Class: SY BBAPROF. MUBINA ATTARI www.dacc.edu.inUnit2: Analysis & interpretation of financial statementMultiple Choice Questions:1. When the concept of ratio is defined in respect to the item shown in thefinancial statements, it is termed asA. Accounting ratioB. Financial ratioC costing ratioD. none of the above2. The relationship between two financial variables can be expressed in:A Pure ratioB. PercentageC. Rate or timeD. all the above3. Stock is considered as a liquid asset as anytime it can be converted into cashimmediately.A. YesB. NoC. Only YESD. None of the above4 . Return on properties funds is also known as.A. Return on net worthB. Return on shareholders funC. Return on the shareholders investmentD. All the above
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- DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45Subject: Management Accounting Subject code: B305FM Class: SY BBAPROF. MUBINA ATTARI www.dacc.edu.in5. What will be the Gross Profit if , total sales is Rs 2,60,000,cost of net goods soldis Rs 2,00,000 & sales return is Rs10,000 ?A. 13 %B. 28%C. 26%D. 20%6.Liquid asset is determined byA. Current asset - stock - prepaid expenseB. Current asset + Stock +prepaid expenseC. Current asset + prepaid expenseD .None of the above7.Which of the following is not included in current assets.A. DebtorsB. StockC. Cash at bankD. Cash in hand8. Liquidity ratios are expressed inA. Pure ratio formB. PercentageC. Rate or timeD. None of the above9. Working capital turnover ratio can be determined by :A. ( Gross profit / Working capital )B. ( Cost of goods sold / Net sales )C. ( Cost of goods sold / Working capital)D. None of the above
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- DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45Subject: Management Accounting Subject code: B305FM Class: SY BBAPROF. MUBINA ATTARI www.dacc.edu.in10. Determine Working capital turnover ratio if, Current asset is Rs 1,50,000,current liability is Rs 1,00,000 & cost of goods sold is Rs 3,00,000.A. 5 timesB. 6 timesC. 3 timesD. 1.5 times11. The ratio analysis is helpful to management in taking several decisions, but asa mechanical substitute for judgement and thinking, it is worse than useless.A. TrueB. FalseC. may be falseD. both a and b12. Profit for the objective of calculating a ratio may be taken asA. Profit before tax but after interestB. Profit before interest &taxC. Profit after interest & taxD. All the above13. If sales is Rs 5,00,000 & net profit is Rs 1,20,000 Net profit ratio isA. 24%B. 416%C. 60%D. None of the above
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- DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45Subject: Management Accounting Subject code: B305FM Class: SY BBAPROF. MUBINA ATTARI www.dacc.edu.in14. General profitability ratios are based onA. InvestmentB. SalesC. A & BD. None of the above15. Determine stock turnover ratio if, Opening stock is Rs 31,000 , Closing stock isRs 29,000, Sales is Rs 3,20,000 & Gross profit ratio is 25% on sales.A. 31 timesB. 11 timesC. 8 timesD. 32 times16. Financial Statement Analysis can be used for assessment of past performanceonly.A. falseB. true17. Ratio analysis is an important means of expressing the relationship betweentwo numbers.A. trueB. false18. Ratio analysis helps in investment decision.A. trueB. false19. Liquid Ratio is also known as 2:1 ratio.A. falseB. true
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- DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45Subject: Management Accounting Subject code: B305FM Class: SY BBAPROF. MUBINA ATTARI www.dacc.edu.in20. Current ratio indicates the solvency position of the business.a. trueb. false21. An ideal Liquid ratio is considered as 1:1a. trueb. false22. The gross profit represents the net margin.a. falseb. true23. Reliability of ratios depend upon the reliability of financial data.a. trueb. false24. Ratio analysis ensures effective cost control.a. trueb. false25. An ideal current ratio is considered as 1:2a. falseb. true26.The ratios which reveal the final result of the managerial policies andperformance is .A. turnover ratios.B. profitability ratios.C. short term solvency ratio.D. long term solvency ratio.
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- DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45Subject: Management Accounting Subject code: B305FM Class: SY BBAPROF. MUBINA ATTARI www.dacc.edu.in27. Return on investment is a .A. turnover ratios.B. short term solvency ratio.C. profitability ratios.D. long term solvency ratio.28. Net profit ratio is a .A. turnover ratio.B. long term solvency ratio.C. short term solvency ratioD. profitability ratio.29. Stock turnover ratio is a .A. turnover ratio.B. profitability ratio.C. short term solvency ratio.D. long term solvency ratio.30. Current ratio is aA. short-term solvency ratio.B. long-term solvency ratio.C. profitability ratio.D. turnover ratio.31.Proprietary ratio is a .A. short-term solvency ratio.B. long-term solvency ratio.C. profitability ratio.D. turnover ratio.
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- DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45Subject: Management Accounting Subject code: B305FM Class: SY BBAPROF. MUBINA ATTARI www.dacc.edu.in32. Fixed assets ratio is aA. short-term solvency ratio.B. long-term solvency ratio.C. profitability ratio.D. turnover ratio.33. Fixed assets turnover ratio is aA. short-term solvency ratio.B. long-term solvency ratio.C. profitability ratio.D. turnover ratio.34.The ratio which measures the profit in relation to capital employed is known asA. return on investment.B. gross profit ratio.C. operating ratio.D. operating profit ratio.35. The ratio which determines the profitability from the shareholder’s point ofview is .A. return on investment.B. gross profit ratio.C. return on shareholders funds.D. operating profit ratio.36.Return on equity is also calledA. return on investment.B. gross profit ratio.C. return on shareholders funds.D. return on net worth.
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- DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45Subject: Management Accounting Subject code: B305FM Class: SY BBAPROF. MUBINA ATTARI www.dacc.edu.in37. Preliminary expenses is an example ofA. fixed assets.B. current assets.C. fictitious assets.D. current liabilities.38. Prepaid expenses is an example of .A. fixed assets.B. current assets.C. fictitious assets.D. current liabilities.39. The ratio which is calculated to measure the productivity of total assets isA. return on equity.B. return on share holders funds.C. return on total assets.D. return on equity share holders’ funds.40. The ratio which shows the proportion of profits retained in the business out ofthe current year’s profits isA. retained earnings ratio.B. pay out ratioC. earnings per share.D. price earnings ratio.41. The ratio which indicates earnings per share reflected by the market price is .A. retained earnings ratio.B. pay out ratio.C. earnings per share.D. price earnings ratio.
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