MCQ on Management Accounting 2

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Objective Questions and Answers of MBA: MCQ on Management Accounting 2

Subject: MCQ on Management Accounting 2

Part 2: List for questions and answers of Management Accountings

 

Q1.Which of the following statement is true?

A) If the amount of good will increases during current year, the difference is treated as purchase of goodwill

B) If the amount of good will decreases during current year, It will treated as written off

a) Only A

b) Only B

c) Both A and B

d) None of the above

 

Q2.As per accounting standard AS3, provision for taxation should be treated as

a) As a current liability

b) As an appropriation of profits

c) Either a or b

d) None of the above

 

Q3.Provision of taxation is treated as

a) As a current liability

b) As an appropriation of profits

c) Either a or b

d) None of the above

 

Q4.Collection of debtors

a) Decreases current ratio

b) Increases current ratio

c) Has no effect on current ratio

d) None of the above

 

Q5.Quick ratio is 1.8:1, current ratio is 2.7:1 and current liabilities are Rs 60,000. Determine value of stock

a) Rs 54,000

b) Rs 60,000

c) Rs 1,62,000

d) None of the above

 

Q6.The most precise test of liquidity is

a) Quick ratio

b) Current ratio

c) Absolute Liquid ratio

d) None of the above 

 

Q7.Higher the ratio, the more favorable it is, doesn’t stand true for

a) Operating ratio

b) Liquidity ratio

c) Net profit ratio

d) Stock turnover ratio

 

Q8.Which of the following is not included in current assets?

a) Debtors

b) Stock

c) Cash at bank

d) Cash in hand

 

Q9.Liquid assets is determined by

a) Current assets – stock – Prepaid expenses

b) Current assets + stock + prepaid expenses

c) Current assets + Prepaid expenses

d) None of the above

 

Q10.Financial management mainly focuses on

a) Efficient management of every business

b) Brand dimension

c) Arrangement of funds

d) All elements of acquiring and using means of financial resources for financial activities

 

Q11.The objective of wealth maximization takes into account

a) Amount of returns expected

b) Timing of anticipated returns

c) Risk associated with uncertainty of returns

d) All of the above

 

Q12.Finance Function comprises

a) Safe custody of funds only

b) Expenditure of funds only

c) Procurement of finance only

d) Procurement and effective use of funds 

 

Q13.Agency cost consists of

a) Binding

b) Monitoring

c) Opportunity and structure cost

d) All of the above

 

Q14.The definition ‘Management Accounting is the presentation of accounting information in such a way as to assist management in the creation of policy and the day-to-day operation of an undertaking

a) Ango-American Council on Productivity

b) AICPA

c) Robert N. Anthony

d) All of the above

 

Q15.__________ conveys detailed summary pertaining to various activities of the organization

a) Master summary control report

b) Subsidiary summary control report

c) Interim summary control report

d) None of the above

 

Q16._________ is a monthly profit and loss account, wherein the actual results of the concerned month are compared with the budgeted figures of that month

a) Master summary control report

b) Subsidiary summary control report

c) Interim summary control report

d) None of the above

 

Q17.In a company Department A recorded losses in the first half of the current year. The sale of department is Rs 90,000 and uncontrollable costs are Rs 91,000, Advice the management whether its operations should be continued or terminated

a) Continued

b) Terminated

c) Insufficient information

d) None of the above

 

Q18.In a control report of Department X, it is mentioned as indirect materials are Rs 1,000, Indirect labour Rs 900, Overtime Charges Rs 100, Depreciation on equipment Rs 500, Allocated factory overhead (38% of factory space) Rs 4300, Allocated overhead of repair shop is Rs 1200. Determine total costs treating department X as a responsibility center.

a) Rs 3200

b) Rs 2200

c) Rs 1200

d) None of the above

 

Q19.The formula to estimate overhead cost variances is

a) Actual output * Standard overhead rate + actual variable overhead

b) Actual output * Standard overhead rate per unit – actual overhead cost

c) Actual output * Standard overhead rate per unit * actual overhead cost

d) None of the above

 

Q20.Idle hours are not deducted in

a) Labour efficiency variance

b) Labour rate variance

c) Both a and b

d) None of the above

 

Part 2: List for questions and answers of Management Accountings

 

Q1. Answer: c

Q2. Answer: b

Q3. Answer: c

Q4. Answer: a

Q5. Answer: a

Q6. Answer: c

Q7. Answer: a

Q8. Answer: b

Q9. Answer: a

Q10. Answer: d

Q11. Answer: d

Q12. Answer: d

Q13. Answer: d

Q14. Answer: d

Q15. Answer: b

Q16. Answer: a

Q17. Answer: c

Q18. Answer: a

Q19. Answer: b

Q20. Answer: b