Top 550+ Solved Management Accounting MCQ Questions Answer
Q. Cash Flow Statement is also known as
a. Statement of Changes in Financial Position on Cash basis
b. Statement accounting for variation in cash
c. Both a and b
d. None of the above
Q. The objectives of Cash Flow Statement are (i) Analysis of cash position(ii) Short-term cash planning(iii) Evaluation of liquidity(iv) Comparison of operating Performance
a. Both A and B
b. Both A and C
c. Both B and D
d. A, B, C, D
Q. Cash Flow Statement is based upon
a. Cash basis of accounting
b. Accrual basis of accounting
c. Credit basis of accounting
d. None of the above
Q. As per Accounting Standard-3, Cash Flow is classified into
a. Operating activities and investing activities
b. Investing activities and financing activities
c. Operating activities and financing activities
d. Operating activities, financing activities and investing activities
Q. Which of the following is not a cash outflow?
a. Increase in Prepaid expenses
b. Increase in debtors
c. Increase in stock
d. Increase in creditors
Q. Which of the following is not a cash inflow?
a. Decrease in debtors
b. Issue of shares
c. Decrease in creditors
d. Sale of fixed assets
Q. When a fixed asset is bought as hire purchase, interest element is classified under ______ and loan element is classified under________.
a. Operating activities, financing activities
b. Financing activities, investing activities
c. Investing activities, operating activities
d. None of the above
Q. In the case of financial enterprises, the cash flow resulting from interest and dividend received and interest paid should be classified as cash flow from
a. Operating activities
b. Financing activities
c. Investing activities
d. None of the above
Q. As per AS-3, Cash Flow Statement is mandatory for(a) All enterprises(b) Companies listed on a stock exchange(c) Companies with a turnover of more than Rs 50 crores
a. Both A and B
b. Both A and C
c. Both C and B
d. None of the above
Q. Cash outflow on purchases is calculated by
a. Purchases + Opening Creditors + Opening B/P – Closing Creditors - Closing B/P
b. Purchases + Opening Creditors - Closing Creditors + Closing B/P
c. Purchases - Opening Creditors - Opening B/P + Closing Creditors + Closing B/P
d. None of the above
Q. While preparing Cash Flow Statement, non-cash items and non-operating items are not required to be adjusted under________
a. Indirect method
b. Direct method
c. Both a and b
d. None of the above
Q. Cash Flow Statement is prepared from
a. Profit and loss account
b. Balance Sheet
c. Additional Information
d. All of the above
Q. When the concept of ratio is defined in respected to the items shown in the financial statements, it is termed as
a. Accounting ratio
b. Financial ratio
c. Costing ratio
d. None of the above
Q. Profit for the objective of calculating a ratio may be taken as
a. Profit before tax but after interest
b. Profit before interest and tax
c. Profit after interest and tax
d. All of the above
Q. Which of the following falls under Profitability ratios?(a) General Profitability ratios(b) Overall Profitability ratios(c) Comprehensive Profitability ratios
a. A and B
b. A and C
c. B and C
d. None of the above