1) Management accounting is related with
A) The problem of choice making
B) Recording of transactions
C) Cause and effect relationships
a. A and B
b. B and C
c. A and C
d. None of the above
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2) Analysis of any financial Statement comprises
a. Balance sheet
b. P&L Account
c. Trading account
d. All of the above
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3) Which of the following statements are true?
A) Common-size balance sheet shows relative value of the various items.
B) In the common size income statement, each product is represented as a percentage of the net sales figure.
C) Common size income statements represent the various elements as a percentage of the gross profit.
a. Both A and B
b. Both A and C
c. Both B and C
d. A, B, C
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4) The point of tangency between risk return indifferences curves and efficient frontier highlights:
a. Optimal portfolio
b. Efficient portfolio
c. Sub-optimal portfolio
d. None of the above
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5) A portfolio comprises two securities and the expected return on them is 12% and 16% respectively. Determine return of portfolio if first security constitutes 40% of total portfolio.
a. 12.4%
b. 13.4%
c. 14.4%
d. 15.4%
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6) Net operating profit ratio determines ___________ while net profit ratio determines
a. Overall efficiency of the business, working efficiency of the management
b. Working efficiency of the management, overall efficiency of the business
c. Overall efficiency of the external market, working efficiency of the internal management
d. None of the above
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Answer
Explanation
Related Ques
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ANSWER: Working efficiency of the management, overall efficiency of the business
Explanation:
No explanation is available for this question!
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7) Operating ratio is calculated by
a. (Operating Cost / Gross sales) * 100
b. (Operating Cost / Gross sales) * 100
c. (Operating cost / Net sales) * 100
d. None of the above
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8) Determine Operating ratio, if operating expenses is Rs 60,000, Sales is Rs 9,40,000, Sales Return is Rs 40,000 and Cost of net goods sold is Rs 6,60,000.
a. 80%
b. 15%
c. 25%
d. 11%
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9) If reserve for bad and doubtful debts is mentioned in the question of Funds Flow Statement Preparation, it can be shown as
a. In the schedule by deducting from total debtors under current assets
b. In the schedule separately under the heading of capital liabilities
c. Both a and b
d. None of the above
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10) Funds Flow Statement is also known as
a. Statement of Funds Flow
b. Statement of Sources and Application of Funds
c. Statement of Sources and Uses of Funds
d. All of the above
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11) Cash outflow on purchases is calculated by
a. Purchases + Opening Creditors + Opening B/P – Closing Creditors - Closing B/P
b. Purchases + Opening Creditors - Closing Creditors + Closing B/P
c. Purchases - Opening Creditors - Opening B/P + Closing Creditors + Closing B/P
d. None of the above
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Answer
Explanation
Related Ques
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ANSWER: Purchases + Opening Creditors + Opening B/P – Closing Creditors - Closing B/P
Explanation:
No explanation is available for this question!
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12) The amount of operating expenses which are actually been paid in cash are shown under:
a. Cash flow from sales
b. Cash outflow on purchases
c. Cash outflow on expenses
d. None of the above
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13) Given salary expenses Rs 40,000, Outstanding in the beginning of the year: Rs 5,000 and outstanding at the end of the year Rs 10,000. Cash outflow on salary will be:
a. Rs 45,000
b. Rs 35,000
c. Rs 55,000
d. Rs 15,000
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14) In Analytical method of calculating marginal costing, it is determined on the basis of past records.
a. True
b. False
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15) Theory of contribution is the excess of sales over variable costs.
a. True
b. False
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16) Which of the following statements related to Contribution Analysis are true?
a. If contribution is zero, there is loss equal to fixed costs
b. If contribution is negative, loss is less than fixed costs
c. If contribution is positive and more than fixed cost there will be profit
d. All of the above
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Answer
Explanation
Related Ques
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ANSWER: If contribution is zero, there is loss equal to fixed costs
Explanation:
No explanation is available for this question!
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17) Marginal costing is helpful in
a. Price determination only in long term
b. Monopoly conditions
c. Both a and b
d. None of the above
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18) The various aspects of a price policy are
A) Normal price
B) Minimum price
C) Depression price
D) Special price including dumping
a. Both A and B
b. Both B and C
c. Both C and D
d. None of the above
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19) Differential cost is a part of routine accounting records.
a. True
b. False
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20) What will be the B.E.P if Variable cost ratio is 70% and Fixed cost is Rs 36,000.
a. Rs 3,20,000
b. Rs 2,20,000
c. Rs 1,20,000
d. None of the above
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21) Calculate B.E.P if Fixed cost is Rs 1,50,000, Variable cost is Rs 2,00,000 and Profit is Rs 1,50,000.
a. Rs 2,00,000
b. Rs 2,50,000
c. Rs 3,00,000
d. None of the above
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22) Given Sales in first and second year is Rs 80,000 and Rs 90,000 respectively. Also, profit is Rs 10,000 and Rs 14,000 respectively. What is the break-even point in rupees?
a. Rs 10,000
b. Rs 24,000
c. Rs 55,000
d. None of the above
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23) Margin of safety is that sales which is above Break-even point.
a. True
b. False
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24) Margin of safety can be increased by
a. Decrease in setting price
b. Decline in volume of production
c. Reduction in fixed or the variable costs or both
d. None of the above
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Answer
Explanation
Related Ques
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ANSWER: Reduction in fixed or the variable costs or both
Explanation:
No explanation is available for this question!
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25) The standard which can be attained under the most favorable conditions possible.
a. Attainable Standard
b. Ideal Standard
c. Expected Standard
d. None of the above
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26) ________reflects a level of attainment based on high level efficiency which can be achieved.
a. Attainable Standard
b. Expected Standard
c. Both a and b
d. None of the above
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27) ________ requires constant revision according to the real circumstances.
a. Attainable Standard
b. Perfection Standard
c. Ideal Standard
d. None of the above
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28) ________ is the first step of budgetary system and all other budgets depends on it.
a. Cost budget
b. Sales budget
c. Production budget
d. None of the above
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29) _______ is designed after assessment of the volume of output to be produced during budget period.
a. Cost budget
b. Sales budget
c. Production budget
d. None of the above
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30) While preparing direct materials budget, the price and quality of the raw materials are accounted.
a. True
b. False
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31) Which of the following statements are true about cash budget?
a. Cash budget and cash flow statement are same
b. Fixed expenses are not shown in cash budget
c. Actual payments and receipts are shown in cash budget
d. None of the above
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32) A columnar statement is prepared in ________ in which first column shows items of payments and receipts, whereas the other columns represents the amount of payments and receipts in each time break-up of budget period.
a. Cash Accounting method
b. Budgeted method
c. Cash flow method
d. None of the above
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33) At 50% capacity expenses are Rs 10,000, which increase by 10% between 60% and 80% level of activity and 20% thereafter. These are
a. Variable expenses
b. Semi-variable expenses
c. Both a and b
d. None of the above
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34) If semi-variable cost at 60% level of production is Rs 40,000 and at 80% level is Rs 44,000. What will it be at 100% level of production?
a. Rs 40,000
b. Rs 42,000
c. Rs 44,000
d. Rs 48,000
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35) When process loss is not given, what should be calculated?
a. Material sub-usage variance
b. Material yield variance
c. Both a and b
d. None of the above
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36) When actual output is different from standard output, determine
a. Standard cost of revised standard mix for standard output
b. Actual yield for standard output
c. Standard quantity for actual output
d. None of the above
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37) In case only actual data and standard data are given without any indication of output
a. Standard quantity has to be calculated
b. Standard quantity has not to be calculated
c. Inadequate information
d. None of the above
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38) Management auditor should be conversant with the nature of production activities in organization.
a. True
b. False
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39) In cost centers manager have no revenue responsibilities.
a. True
b. False
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40) On the basis of techniques of preparation, the managerial reports can be classified into
a. Operating reports and financial reports
b. Trend reports and analytical reports
c. Individual activity reports and joint activity reports
d. Internal reports and external reports
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