Top 550+ Solved Management Accounting MCQ Questions Answer
Q. Disclose accounting information
a. Balance sheet
b. Trading account
c. Profit and Loss Account
d. Financial statements
Q. Afford full diagnosis of the profitability and financial position
a. Preparation of Profit and Loss Account
b. Balance Sheet
c. Final Accounts
d. Analysis of financial statements
Q. Study of the trend of the same items of two or more balance sheets
a. Common size Profit and Loss A/C
b. Common size balance sheet
c. Comparative Income statement
d. Comparative Balance Sheet
Q. Expressed as a percentage of each asset to total
a. Common size P/L A/C
b. Common size Balance Sheet
c. Comparative Income Statement
d. Trend analysis
Q. Ratios of different items for various periods are calculated and compared
a. Common size
b. Comparative
c. Trend analysis
d. Ratio analysis
Q. Yard stick which measures relationship between two variables
a. Financial statements
b. Ratio
c. Fund Flow analysis
d. Cash flow analysis
Q. The ratio which depicts the relationship between two items, one of which is drawn from the Balance Sheet and the other from the revenue account
a. Current ratio
b. Equity Ratio
c. Net Profit ratio
d. Debtors Turn over Ratio
Q. The ratio of liquid asset to current liabilities
a. Quick ratio
b. Current ratio
c. Absolute liquid ratio
d. Combined ratio
Q. Equity includes --------------
a. Equity share capital
b. Equity share capital + Preference share capital+-fictitious asset
c. Equity capital + Preference share capital + reserves And surplus-fictious asset
d. Equity capital + Preference share capital
Q. The ratio which shows the relationship b/w share holder’s fund and total assets
a. Debit equity ratio
b. Proprietary ratio
c. Solvency ratio
d. Fixed asset
Q. Long term solvency of a firm can be measured by
a. Current ratio
b. Net profit ratio
c. Gross profit ratio
d. Debt equity ratio
Q. The ratio that shows the relationship between fixed asset to share holders fund
a. Fixed asset to net worth
b. Fixed asset ratio
c. Fixed assets turn over ratio
d. Net worth ratio
Q. The index of efficiency and profitability of the business
a. Operating ratio
b. Operating profit ratio
c. Expense ratio
d. Net profit ratio
Q. The ratio that includes whether investment in inventory is efficiently used or not
a. Inventory turnover ratio
b. Working capital turn over ratio
c. Fixed asset turn over ratio
d. Activity ratio
Q. Comparison and interpretation of ratio is known as ---------------------
a. Fund flow analysis
b. Cash flow analysis
c. Ratio analysis
d. Trend analysis