Management Accounting MCQ Questions Answers

1. Planned investments and cash dividends are deducted from ________ to arrive at free cash flow.

2. Testing a prototype of a new product is an example of a ________.

3. Both job order costing and process costing ________.

4. ____ is using a single authentication credential that is shared across multiple networks.

5. Operating cycle method uses _____.

6. ______ is a long term source of working capital.

7. _____ is a temporary source of working capital.

8. The Gross working capital is based on ______ concept.

9. Net working capital represents_______.

10. Gross working capital represents_______.

11. Working capital is also called as ______ capital.

12. _______ refers to the length of the period for which a budget is prepared.

13. Budget is derived from the French word _______.

14. Zero based budgeting was first used by _______.

15. ______ budget is prepared first.

16. Fixed – variable cost classification is significant in _______.

17. Operating budgets cover a period of_____.

18. Which one is usually a long term budget?

19. If variable and fixed costs at 60% capacity are Rs 12,000 and Rs 9,000 respectively, total cost at 80% capacity will be

20. A budget is:

21. Sales budget is ______.

22. Budgets can be classified according to

23. Which of the following is a type of budget according to function?

24. In USA marginal costing is referred as_____.

25. Contribution is also called ______.

26. BEP is _____ by changes in fixed cost.

27. At BEP ____ is equal to fixed cost

28. Marginal cost does not include ______

29. CVP stands for

30. Managers utilizes marginal costing for

31. The formula for Margin of Safety is one of the following ________

32. _______ is the excess of sales over the break even sales.

33. Expenses that do not vary with the volume of production are known as _______

34. The break even chart helps the management in _____

35. The profit at which total revenue is equal to total cost is called ______

36. The profit at which total revenue is equal to total cost is called ______

37. The profit of an undertaking is affected by _______

38. Contribution/sales is equal to _______

39. Profit volume ratio establishes the relationship between _______

40. Sales Rs. 100000, variable cost Rs. 50000 and net profit ratio is 10% on sales, find out fixed cost.

41. The other name of marginal costing is _______

42. Marginal costing technique helps the management in deciding _____

43. The term contribution refers to ____

44. Marginal costing is the most useful technique for the ______

45. Provision for tax is _____ activity.

46. Increase in bills payable results in _______.

47. Cash flow include_______.

48. Dividend paid is ______ activity.

49. Sale of goods is a _______ activity.

50. AS- 3 deals with______statement.

51. .Which of the following cannot be treated as revenue expenditure?

52. If the change, because of a business transaction results in the increase of fund then the transactions responsible for such a change is said to be ____

53. Added to the purchases

54. Goods withdrawn by the proprietor for his personal use are

55. Which one of the following is an example of sources of funds?

56. Which one of the following is capital expenditure?

57. Expenditure incurred on research is an example of

58. Redeemable preference shares is __

59. Identify the item which is not an operating expense

60. Goodwill is a ______ transaction.

61. Purchase of plant will mean_____ working capital.

62. Issue of capital will mean _____ working capital.

63. Stock in the beginning results in ______of funds.

64. The word fund means the difference between _____ and current liabilities.

65. To test the liquidity of a concern which of the following ratios are useful?

66. Interest coverage Ratio is given by

67. EPS is calculated as

68. Current ratio should normally be

69. What does creditors turnover ratio take into account?

70. dentify the transaction that has no effect on the current ratio.

71. Current ratio is a ------ ratio

72. n the debt equity ratio, equity refers to

73. In the computation of the debtors turnover ratio accounts receivable includes

74. Acid test ratio should normally be ----

75. In the debt equity ratio, external equity refers to_____.

76. Acid test ratio is equal to quick current assets divided by ____.

77. The gross profit ratio is the ratio of gross profit to ______.

78. ROI stands for?

79. The stock turnover ratio may be calculated as ___.

80. The stock turnover ratio is ____ .

81. Given that current liabilities are at Rs. 300,000, current ratio is 3:1 and quick ratio is 1:1, the value of stock will be:

82. If the stock turnover ratio is 4 times and the collection period is 30 days the operating cycle would be _____ days.

83. A ____ is a simple arithmetical expression of the relationship between two numbers.

84. ______ analysis involves comparison of financial data of a firm with other firms.

85. _____ analysis compares various items in the financial data for one accounting year.

86. ______ analysis compares various items in the financial data for one accounting year.

87. ____ analysis compares the financial data for several years.

88. Retained earnings statement depicts _____

89. Preparation of financial statements is essential under _______.

90. Business entity concept distinguishes between _____.

91. Going concern concept assumes business as a_____.

92. Financial accounts record only______.

93. Profit and Loss Account is also called_______.

94. The balance sheet is a __ of the assets, liabilities and capital of a concern as on particular date.

95. Which of the following accounting equation is correct?

96. Accounting is concerned with

97. The use of management accounting is

98. Amount spent on an advertisement campaign, the benefit of which is likely to last for three years is a

99. he term current asset doesn’t cover _______.

100. Interpretation of accounts is the