MCQ on Management Accounting 4

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Objective Questions and Answers of MBA: MCQ on Management Accounting 4

Subject: MCQ on Management Accounting 4

Part 4: List for questions and answers of Management  Accounting

 

Q1. Debt-equity ratio is a sub-part of

a) Short-term solvency ratio

b) Long-term solvency ratio

c) Debtors turnover ratio

d) None of the above

 

Q2. The ideal level of liquid ratio is

a) 3:3

b) 4:4

c) 5:5

d) All of the above

 

Q3. Stock is considered as a liquid asset as anytime it can be converted into cash immediately

a) Yes

b) NA

c) NA

d) No

 

Q4. Liquid ratio is also known as

a) Quick ratio

b) Acid test ratio

c) Working capital ratio

d) Stock turnover ratio

a) A and B

b) A and C

c) B and C

d) C and D

 

Q5. Current ratio is stated as a crude ratio because

a) It measures only the quantity of current assets

b) It measures only the quality of current assets

c) Both a and b

d) Offerings dimension 

 

Q6. The ideal level of current ratio is

a) 4:2

b) 2:1

c) Both a and b

d) None of the above

 

Q7. Which ratio is considered as safe margin of solvency?

a) Liquid ratio

b) Quick ratio

c) Current ratio

d) None of the above

 

Q8. For a bond YTM is always equal to coupon rate

a) True

b) False

c) NA

d) NA

 

Q9. In a variable growth model, the dividend is believed to grow at a constant pace forever after an initial growth period

a) True

b) False

c) NA

d) NA

 

Q10. Financial management process deals with

a) Investments

b) Financing decisions

c) Both a and b

d) None of the above

 

Q11. The only feasible purpose of financial management is

a) Wealth Maximization

b) Sales Maximization

c) Profit Maximization

d) Assets maximization 

 

Q12. Certain assumptions are essential to prepare financial statements

a) True

b) False

c) NA

d) NA

 

Q13. Which of the following statements are true?

A) Financial statements are only interim report.

B) Financial statements are also known as annual records.

C) Financial statements are historic.

a) Both A and B

b) Both A and C

c) Both B and C

d) A, B, C

 

Q14. Management accounting highlights staff relationship with top management as well as other personnel

a) True

b) False

c) NA

d) NA

 

Q15. The coverage of control reports is wider than that of information reports

a) True

b) False

c) NA

d) NA

 

Q16. Control reports come in the category of routine reports

a) True

b) False

c) NA

d) NA

 

Q17. Which of the following statements are true about responsibility accounting?

a) Responsibility accounting results in inter-departmental conflicts

b) In responsibility center more focus is paid on products, processes or jobs

c) No focus is paid on controlling costs

d) None of the above 

 

Q18. Which variance is also known as Gang composition variance?

a) Labour mix variance

b) Labour cost variance

c) Labour efficiency variance

d) None of the above

 

Q19. Given standard cost specifications time 5 hours per unit and cost Rs 5 per labour. Actual performance in cost period is production hours 10,400 and idle time 400 hours. Payment done is average per hour Rs 5.20 for 10,800 hours. Determine labour rate variance and labour efficiency variance, respectively

a) Rs 2,160 and Rs 2,000 both unfavorable

b) Rs 2,160 and Rs 2,000 both favorable

c) Rs 2,000 and Rs 2,160 both unfavorable

d) Rs 2,000 and Rs 2,160 both favorable

 

Q20. XYZ factory working for 50 hours per week employs hundred workers on a job work. The standard output is 200 units per gang hour and standard rate is Rs 1 per hour. During a week in June, five employees were paid @ Rs 1.20 per hour and ten employees were paid @ 80 paise per hour. Rest of the employees were paid @ standard hour rate The actual number of units produced was 10,200. Determine labour cost variance

a) Rs 100 favorable

b) Rs 150 unfavorable

c) Rs 150 favorable

d) Rs 100 unfavorable 

 

Part 4: List for questions and answers of Management Accountings

 

Q1. Answer: b

Q2. Answer: a

Q3. Answer: d

Q4. Answer: a

Q5. Answer: a

Q6. Answer: c

Q7. Answer: c

Q8. Answer: b

Q9. Answer: a

Q10. Answer: b

Q11. Answer: a

Q12. Answer: a

Q13. Answer: c

Q14. Answer: b

Q15. Answer: b

Q16. Answer: a

Q17. Answer: a

Q18. Answer: a

Q19. Answer: a

Q20. Answer: c