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1) Who coined the concept of management accounting? a. R.N Anthony b. James H. Bliss c. J. Batty d. American Accounting Association
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2) 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
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3) The term ‘Financial Statement’ covers a. Profit & Loss Statement b. Balance sheet and Profit & Loss Statement appropriation account c. Profit & Loss Statement and Balance sheet d. None of the above
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4) There is no difference between the capital market line and security market line as both the terms are same. a. True b. False
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5) The value of a bond and debenture is a. Present value of interest payments it gets b. Present value of contractual payments it gets till maturity c. Present value of redemption amount d. None of the above
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6) 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
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7) While calculating Earnings per share, if both equity and preference share capitals are there, then a. Preference share is deducted from the net profit b. Equity share capital is deducted from the net profit c. Both a and b d. None of the above
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8) Turnover ratios are also known as a. Activity ratios b. Performance ratios c. Both a and b d. None of the above
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9) The share capital of A Ltd. stood at Rs 20,00,000 in 2013 and at Rs 26 lac in 2014. As per records, the company bought asset of another company for Rs 6 lac payable in fully paid shares. These assets included Goodwill Rs 2,00,000 Machinery Rs 1,83,600 and Stock Rs 2,16,400. What is the fund from issue of shares? a. Rs 2,15,600 b. Rs 2,16,400 c. Rs 2,00,000 d. None of the above
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10) Debentures are Rs 2,50,000 and Rs 3,50,000 in the balance sheet of 2013 and 2014. 1000 of the debentures of Rs 100 each were issued at per in 2014 of which 400 debentures were issued to a supplier for the purchase of a machine. Determine amount of issue for debentures for the purpose of funds flow statement. a. Rs 60,000 b. Rs 40,000 c. Rs 10,000 d. None of the above
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11) Which of the following are cash flow from financing activities?
A) Interest received B) Dividend received C) Interest paid D) Dividend paid a. Both A and B b. Both A and C c. Both C and D d. A, B, C and D
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12) Acquisition and disposal of long term assets is included in a. Cash flow from investing activities b. Cash flow from financing activities c. Cash flow from operating activities d. None of the above
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13) Which of the following statements represent example of cash flow from investing activities? a. Cash advances and loans made by financial enterprises b. Cash advances and loans made to third parties c. Both a and b d. None of the above
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14) Absorption costing is also known as a. Historical costing b. Total costing c. Both a and b d. None of the above
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15) Given production is 1,00,000 units, fixed costs is Rs 2,00,000 Selling price is Rs 10 per unit and variable cost is Rs 6 per unit. Determine profit using technique of marginal costing. a. Rs 2,00,000 b. Rs 8,00,000 c. Rs 6,00,000 d. None of the above
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16) Which of the following statements are true about absorption & marginal costing? a. In absorption costing, cost is divided into three major parts while in marginal costing, cost is divided into two main parts b. In absorption costing period is important and in marginal costing product is important c. Both a and b d. None of the above
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17) 4000 mobiles need to be made and sold in a monopoly market. The desired profit is Rs 2,00,000. The variable cost per mobile is Rs 100 and the total fixed costs are Rs 40,000. Find out unit selling price. a. Rs 160 per mobile b. Rs 1,600 per mobile c. Rs 1.60 per mobile d. None of the above
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18) When there is tough competition and price-cut is on war, the focus should be on a. Normal price b. Depression price c. Minimum price d. None of the above
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19) Differential costs are obtained on the basis of a. Absorption costing b. Marginal costing c. Both a and b d. None of the above
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20) Calculate sales in rupees for desired profit if fixed cost is Rs 10,000, selling price is Rs 20 per unit, Variable cost is Rs 15 per unit and desired profit is Rs 1 per unit. a. Rs 20,000 b. Rs 50,000 c. Rs 70,000 d. Rs 10,000
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21) Determine sales in units for desired profit if Fixed cost is Rs 15,000, desired profit is Rs 5,000 Selling price per unit is Rs 20 and Variable cost per unit is Rs 16. a. 5,000 units b. Rs 5,000 c. Rs 10,000 d. 10,000 units
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22) What will be sales in units if fixed cost is Rs 50,000, Contribution per unit is Rs 60 and desired profit per unit is Rs 10. a. 6,000 units b. Rs 1,000 c. 1,000 units d. Rs 6,000
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23) Given Break even sales is 40,000 Profit earned is Rs 2,000 and fixed cost is Rs 8,000. Determine actual sales. a. Rs 50,000 b. Rs 20,000 c. Rs 32,000 d. None of the above
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24) What will be the sales amount required to earn a profit of Rs 4,00,000, if fixed cost is Rs 80,000, direct material is Rs 5 per unit, direct labor Rs 2 per unit, direct overhead 100% of direct labor and selling price is Rs 12 per unit. a. Rs 19,20,000 b. Rs 3,20,000 c. Rs 12,90,000 d. None of the above
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25) Which of the following standards cannot be used for cost control? a. Basic Standard b. Normal Standard c. Both a and b d. None of the above
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26) Which of the following statements are not true about normal standards? a. Normal Standards are meant to smooth out fluctuations caused by cyclical and seasonal changes b. Normal Standards can be applied for absorption of overheads for a long period of time c. In establishing normal standards, allowance is given to normal fatigue and breaks, and normal waste and scrap d. None of the above
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27) Standard costing committee is responsible for a. Computation of variances b. Linking the deviations with responsibilities c. Setting all types of standards d. All of the above
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28) ABC Company plans a sale of 96,000 units of TV product line in the first fiscal quarter, 1,20,000 TV units in second quarter, and 1,32,000 units and 1,50,000 units in third and fourth quarter, and 1,56,000 units in the first quarter of next year. Given that at the beginning of first fiscal quarter, the company has 16,000 units in stock. Also, at the end of each quarter, ABC Company wants to maintain an inventory equal to one-sixth of the sales for the next fiscal quarter. Determine units to be manufactured in first and second quarter of the year. a. 10,00,000 and 1,35,000 b. 10,00,000 and 1,22,000 c. Insufficient data d. None of the above
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29) Given the budgeted output in second quarter is 8,000 units. In the first quarter, Fixed overheads were Rs 40,000 Variable overheads were Rs 5 per unit ( Rs 40,000) and semi variable were 20,000 ( 60% varying @ Rs 3 per unit). Determine the total manufacturing overhead budget for the second quarter. a. Rs 1,12,000 b. 1,12,000 units c. Insufficient data d. None of the above
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30) In fixed budgets costs are classified according to their nature. a. True b. False
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