Top 550+ Solved Management Accounting MCQ Questions Answer
Q. Cash from Operations is equal to:
a. Net Profit plus increase in outstanding Expenses
b. Net Profit plus increase in Debtors
c. Net Profit plus increase in Stock
d. Net Profit
Q. Margin of safety can be increased by
a. Decrease in setting price
b. Decline in volume of production
c. Reduction in fixed or the variable costs or both
d. None of the above
Q. When profit-volume ratio is 40 % and sales value Rs.10,000, the variable costs will be :
a. Rs. 4,000
b. Rs. 6,000
c. Rs. 10,000
d. None of these
Q. Determine B.E.P in units and amount if Units produced if Rs 10,000, Fixed cost is Rs 40,000, Selling price is Rs 50 per unit and Variable cost us Rs 30 per unit.
a. Rs 40 per unit, Rs 2,00,000
b. Rs 50 per unit, Rs 10,00,000
c. Rs 20 per unit, Rs 1,00,000
d. None of the above
Q. When margin of safety is 20% and P/V ratio is 60%, the profit will be :
a. 30%
b. 33 1/3 %
c. 12%
d. None of these
Q. The dividend is related to the market value of shares in .
a. interest cover ratio.
b. fixed dividend cover ratio.
c. debt service coverage ratio.
d. dividend yield ratio.
Q. Turnover ratio is also known as .
a. activity ratios.
b. solvency ratios.
c. liquidity ratios.
d. profitability ratios.
Q. Inventory or stock turnover ratio is also called .
a. stock velocity ratio.
b. debtors velocity ratio.
c. creditors velocity ratio.
d. working capital turnover ratio.
Q. Which ratio is calculated to ascertain the efficiency of inventory managementin terms of capital investment?
a. stock velocity ratio.
b. debtors velocity ratio.
c. creditors velocity ratio.
d. working capital turnover ratio.
Q. The ratio which measures the relationship between the cost of goods sold andthe amount of average inventory is
a. stock turnover ratio.
b. debtors velocity ratio.
c. creditors velocity ratio.
d. working capital turnover ratio.
Q. Sales – Gross Profit = .
a. net profit.
b. administrative expenses.
c. cost of production.
d. cost of goods sol
Q. Opening stock + purchases + direct expenses – closing stock =
a. net profit.
b. cost of production
c. administrative expenses.
d. cost of goods sold
Q. Debtors turnover ratio is also called .
a. stock turnover ratio.
b. debtors velocity ratio.
c. creditors velocity ratio.
d. working capital turnover ratio
Q. Creditors turnover ratio is also called .
a. stock turnover ratio.
b. debtors velocity ratio.
c. accounts payables ratio.
d. working capital turnover ratio.
Q. Which of the following shows details and results of the company's profitrelated activities for a period of time?
a. balance sheet
b. income statement
c. statement of cash flows
d. statement of financial position