Top 550+ Solved Management Accounting MCQ Questions Answer
Q. Which of the following financial statements is also known as a statement offinancial position?
a. balance sheet
b. statement of cash flows
c. income statement
d. none of the above
Q. Which of the following are techniques, tools or methods of analysis andinterpretation of financial statements?
a. ratio analysis
b. average analysis
c. trend analysis
d. all of the above
Q. Which of the following is NOT a key ratio in the prediction of bankruptcy asdeveloped by Edward Altman?
a. debt to equity
b. current ratio
c. retained earnings as a percent of total assets
d. total assets
Q. _______________ ratios measure the ability of a firm to earn an adequatereturn on sales, total assets and invested capital.
a. asset utilization
b. liquidity
c. profitability
d. debt utilization
Q. The ________ ratios help determines the degree of financial risk and earningsvolatility present in a firm.
a. profitability
b. asset utilization
c. liquidity
d. none of the above.
Q. __________ analysis is the process of studying a series of ratios for a companyand/or industry over time.
a. dupont
b. trend
c. common size
d. all of the above
Q. The most precise test of liquidity is
a. quick ratio
b. current ratio
c. absolute liquid ratio
d. none of the above
Q. Debt-equity ratio is a sub-part of
a. short-term solvency ratio
b. long-term solvency ratio
c. debtors turnover ratio
d. none of the above
Q. Quick ratio is 1.8:1, current ratio is 2.7:1 and current liabilities are Rs 60,000.Determine value of stock.
a. rs 54,000
b. rs 60,000
c. rs 1, 62,000
d. none of the above
Q. Funds flow statements are prepared so as to
a. to identify the changes in working capital
b. to identify reasons behind change in working capital
c. to know the item-wise outflow of funds during given period
d. all of the above
Q. Net Profit ratio is calculated by
a. (gross profit/gross sales) *100
b. (gross profit/net sales) *100
c. (net profit/net sales) *100
d. none of the above
Q. If sales is Rs 5, 00,000 and net profit is Rs 1, 20,000 Net Profit ratio is
a. 24%
b. 41%
c. 60%
d. none of the above
Q. Which of the following costs is not relevant when considering the closure of a department within a factory?
a. Variable overheads
b. Direct materials
c. Fixed overheads
d. Direct labour