MCQ on Management Accounting 6

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Objective Questions and Answers of MBA: MCQ on Management Accounting 6

Subject: MCQ on Management Accounting 6

Part 6: List for questions and answers of Management Accountings

 

Q1.Listed Enterprises need to prepare Cash Flow Statement only under indirect method

a) True

b) False

 

Q2.The balance of fixed assets of Y Ltd. At cost at the end of 2013 and 2014 were Rs 5,70,800 and Rs 6,15,300. During the year 2014 a machinery costing Rs 60,000 was sold. Determine the purchase of fixed assets

a) Rs 1,04,500

b) Rs 1,40,500

c) Rs 1,64,500

d) None of the above

 

Q3.The Balance sheet of Ram at end of 2013 and 2014 disclose investments in shares of Rs 2000 and Rs 3000, respectively. Rs 100 as pre-acquisition dividend has been credited to investments account. Determine purchase of investments

a) Rs 5000

b) Rs 1000

c) Rs 1,100

d) None of the above

 

Q4.Determine Working capital turnover ratio if, Current assets is Rs 1,50,000, current liabilities is Rs 1,00,000 and Cost of goods sold is Rs 3,00,000

a) 5 times

b) 6 times

c) 3 times

d) 1.5 times

 

Q5.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 

 

Q6.Determine Debtors turnover ratio if, closing debtors is Rs 40,000, Cash sales is 25% of credit sales and excess of closing debtors over opening debtors is Rs 20,000

a) 4 times

b) 2 times

c) 6 times

d) 8 times

 

Q7.A bond is said to be issued at premium when

a) Coupon rate is greater than Required returns

b) Coupon rate = Required returns

c) Coupon rate is less than Required returns

d) None of the above

 

Q8.Schedules attached with the balance sheet forms a part of the financial statements

a) True

b) False

c) NA

d) NA

 

Q9.The statement of financial position and the balance sheet are synonyms

a) True

b) False

 

Q10.Management accounting deals with

a) Quantitative information

b) Qualitative information

c) Both a and b

d) None of the above

 

Q11._________ indicates the variances and the reasons behind such variances

a) Control reports

b) Information reports

c) Static reports

d) All of the above 

 

Q12.Responsibility accounting is not useful in following the principle of management by exception

a) True

b) False

c) NA

d) NA

 

Q13.Given standard time per unit is 80 hours, standard time per hour @ Rs 1 per hour, actual time per unit is 90 hours and actual rate per hour @ Rs 1.10 per hour. Determine labour cost variance, labour rate variance and labour efficiency variance

a) Rs 11, Rs 22 and Rs 10 all unfavorable

b) Rs 19, Rs 9 and Rs 10 all favorable

c) Rs 19, Rs 9 and Rs 10 all unfavorable

d) Rs 11, Rs 22 and Rs 10 all favorable

 

Q14.Which of the following statements are true about labour idle time?

a) Labour idle time variance is not caused by non-availability of raw material

b) Labour idle time variance is measured as : Abnormal idle hours * Actual hourly rate

c) Labour idle time variance is always unfavorable or adverse

d) All of the above

 

Q15.To get to labour efficiency variance, the formula to be applied is

a) Total standard labour cost of actual output – Total actual cost of actual output

b) (Standard rate per hour – Actual rate per hour) * Actual Hours

c) (Standard time – Actual time) * Standard rate per hour

d) Abnormal idle hours * Standard hourly rate

 

Q16.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

 

Q17.Agency cost consists of

a) Binding

b) Monitoring

c) Opportunity and structure cost

d) All of the above 

 

Q18.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

 

Q19.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

 

Q20.In a firm, the forecast of wages for month of December, January, February and March are Rs 4,800, Rs 6,000, Rs 6,400 and Rs 6,800. The time-lag in payment of wages is 1/8 month. Determine the amount of wages payable in each month January to March

a) Rs 6,750, Rs 6,350 and Rs 5,850

b) Rs 5,850, Rs 6,350 and Rs 6,750

c) Rs 5,850, Rs 6,750 and Rs 6,350

d) None of the above 

 

Part 6: List for questions and answers of Management Accountings

 

Q1. Answer: a

Q2. Answer: a

Q3. Answer: c

Q4. Answer: b

Q5. Answer: c

Q6. Answer: a

Q7. Answer: a

Q8. Answer:

Q9. Answer:

Q10. Answer: c

Q11. Answer: a

Q12. Answer:

Q13. Answer: c

Q14. Answer: c

Q15. Answer: c

Q16. Answer: a

Q17. Answer: d

Q18. Answer: d

Q19. Answer: d

Q20. Answer: b