Top 550+ Solved Management Accounting MCQ Questions Answer
Q. Given inventory of 24,000, other current assets of 12,000 and current liabilities of 20,000, the acid test (quick ratio) will be:
a. 1.8 :1
b. 0.6 :1
c. 1.2:1
d. 1.6 :1
Q. Quick assets do not include I)Prepaid Expense II)Advance Tax III)Marketable securities IV)Inventory
a. Only I,II and IV
b. Only III
c. All I,II,III,IV
d. Only II and III
Q. Which of these is false?
a. Working Capital=Current Assets-Current Liabilities
b. CL=CA-Working capital
c. Current Liabilities=Workin g capital -CA
d. Current Assets=Working capital+CL
Q. If average T/R are 1,00,000 ,Closing T/R are 3 times that of opening T/R .What is Closing T/R?
a. 200000
b. 75000
c. 150000
d. 50000
Q. A firm that issues stocks and bonds to raise funds results in in cashflow.
a. Decreased Cash
b. Increased Cash
c. Increased Equity
d. Increased Liabilities
Q. Which are not Investing activity? I)Receipts from sale of fixed asset II)Interest received III)Dividend paid IV)Cash Payment to acquire share of other Companies
a. Only II and III
b. Only III and IV
c. Only III
d. All are not investing activities
Q. Which of the following is not the objective of budgetary control? I)Control II)Danger of rigidity III)Motivation IV)Based on estimates
a. Only II
b. Only II and IV
c. Only II,III and IV
d. All I,II,III and IV
Q. Which statement is true.I)Fixed budget assumes Changing business conditions. II)Flexible budget is prepared for only one level of activity.
a. None is true
b. Both are true
c. Only I
d. Only II
Q. Which of the following is/are the responsibilty centres.I)Cost centre II)Investment Centre III)Profit center IV)Revenue Centre
a. All
b. Only I,II and III
c. Only I and IV
d. Only II,III and IV
Q. Labour Efficiency Variance is the sum total of I)Labour Mix variance II)Labour Cost Variance III)Idle time Variance IV)Labour yield variance
a. Only I and IV
b. All
c. Only II and III
d. Only I,III and IV
Q. Total Actual material is 1250 Kg.The Standard qty of Material A=800Kg and B=400Kg.What is the revised Std qty of A and B respectively.
a. 825kg,425Kg
b. 950Kg,300Kg
c. 833Kg,417Kg
d. 750Kg,500Kg
Q. SH=800 Hours,AR=Rs 7 ,SR=6,AH=750 Hours.Calculate labour rate variance(LRV).
a. 750 A
b. 300 F
c. 300 A
d. 750 F
Q. Yr 2019 :sales 1,20,000 and Profit8,000 ;Yr 2020:Sales 1,40,000 an profit 13,000.Calculate P/v ratio.
a. 25%
b. 40%
c. 30%
d. 35%