Top 550+ Solved Management Accounting MCQ Questions Answer
Q. Preliminary expenses written off is--------
a. Cash transaction
b. Non-cash transaction
c. Credit transaction
d. None of the above
Q. Investment costing Rs.50,000 at the loss of Rs.3,000 cash outflow in investing activity is --------
a. Rs.53,000
b. Rs.50,000
c. Rs.47,000
d. Rs.48,000
Q. Cash from operations is equal to------------------
a. net profit after tax
b. net profit plus increase in current asset
c. net profit plus decrease in current liabilities
d. net profit plus non-cash expenses plus decrease in current assets.
Q. Increase in the amount of bills receivable results in--------------
a. decrease in cash
b. increase in cash
c. no change in cash
d. none of these
Q. Increase in the amount of bills payable results in----------
a. Decrease in cash
b. Increase in cash
c. No change in cash
d. None of these
Q. Which of the following is not an inflow of cash
a. Sale of fixed asset
b. Issue of debentures for cash
c. Funds from operation
d. Acquisition of assets
Q. Dividend paid under AS- 3 is----------
a. Cash flow from financing activity
b. Cash flow from operating activity
c. Cash flow from investing activity
d. None of these
Q. Cash flows include
a. Cash payments only
b. Cash receipts only
c. Cash receipts and payments
d. Cash and noncash incomes and expenses.
Q. Cash flow statement is based on----------
a. Cash basis of accounting
b. Accounting equation
c. Accrual basis of accounting
d. None of these
Q. Proposed dividend is classified as-----------
a. Investing activity
b. Financing activity
c. Operating activity
d. Cash equivalent
Q. Profit on sale of machinery comes under------------
a. Investing activity
b. Financing activity
c. Operating activity
d. None of these
Q. Sale of patent is classified under---------
a. Investing activity
b. Financing activity
c. Operating activity
d. None of these
Q. Rent received by a company (whose main business is real estate) is classified as
a. Investing activity
b. Financing activity
c. Operating activity
d. Cash equivalent
Q. AS-3 is related to
a. Cash flow statement
b. Funds flow statement
c. Balance sheet
d. Income statements
Q. The information to prepare a flexible budget includes:
a. Total fixed cost, total variable cost
b. Total fixed cost, total variable cost and capacity base
c. Unit fixed cost and unit variable cost
d. Total fixed cost, variable cost per unit, several levels of activity