Top 550+ Solved Management Accounting MCQ Questions Answer
Q. Gross Profit ratio is also termed as
a. Gross Profit Margin
b. Gross Margin to net sales
c. Both a and b
d. All of the above
Q. Operating ratio is calculated by
a. (Operating Cost/Gross sales)*100
b. (Operating Cost/Gross sales)*100
c. (Operating cost/Net sales)*100
d. None of the above
Q. Which of the following is expenses ratio?(a) Administrative expenses ratio(b) Selling and Distribution expenses ratio(c) Factory expenses ratio(d) Finance Expenses ratio
a. A, B and D
b. A, C and D
c. A, B and C
d. A, B , C, D
Q. Return on equity capital is calculated on basis of:
a. Funds of equity shareholders
b. Equity capital only
c. Either a or b
d. None of the above
Q. Turnover ratios are also known as
a. Activity ratios
b. Performance ratios
c. Both a and b
d. None of the above
Q. Debtors Turnover ratio is also known as(a) Receivables turnover ratio(b) Debtors velocity(c) Stock velocity(d) Payable turnover ratio
a. A and B
b. A and C
c. B and C
d. C and D
Q. Liquid assets is determined by
a. Current assets-stock-Prepaid expenses
b. Current assets +stock+ prepaid expenses
c. Current assets +Prepaid expenses
d. None of the above
Q. Comparison of financial statements highlights the trend of the _________ of the business.
a. Financial position
b. Performance
c. Profitability
d. All of the above
Q. Analysis of any financial Statement comprises
a. Balance sheet
b. P&L Account
c. Trading account
d. All of the above
Q. Which of the following are techniques, tools or methods of analysis and interpretation of financial statements?
a. Ratio Analysis
b. Average Analysis
c. Trend Analysis
d. All of the above
Q. Interpretation of accounts is the
a. Art and science of translating the figures
b. To know financial strengths and weaknesses of a business
c. To know the causes for the prevailing performance of business
d. All of the above
Q. The form of balance sheet is
a. Vertical
b. Horizontal
c. Horizontal and vertical
d. Horizontal or vertical
Q. A budgeting process which demands each manager to justify his entire budget in detail from beginning is
a. Functional budget
b. Master budget
c. Zero base budgeting
d. None of the above
Q. Match the columns(i) Activity Ratio -------------------- i) (Actual hours worked / Budgeted hours) * 100(ii) Capacity Ratio ------------------ ii) (Standard hours of actual production / Actual hours worked) * 100(iii) Efficiency Ratio ----------------- iii) (Standard hours for actual output / Budgeted hours) * 100
a. A-ii, B-iii, C-i
b. A-i, B-ii, C-iii
c. A-iii, B-i, C-ii
d. None of the above