MCQ on Management Accounting

Question :141) Cash equivalent are usually of short term but highly —————–investments

(a) liquid
(b) Fixed
(c) Changed
(d) None of these

Question :142) Cash flow statements (based on AS-3) should be prepared and presented under——————method.

(a) Direct
(b) Indirect
(c) Permanence
(d) None of these

Question :143) Income tax paid should be shown separately as the cash flows from———– activities.

(a) Financing
(b) Investing
(c) Operating
(d) Others

Question :144) Buy back of shares is shown under———————–

(a) operating activities
(b) investing activities
(c) financing activities
(d) none of these

Question :145) Increase in prepaid expenses——————–cash

(a) Increases
(b) Added
(c) Decreases
(d) None of these

Question :146) Dividend paid are classified under——————-activities

(a) Financing
(b) Investing
(c) Operating
(d) Others

Question :147) Cash payment suppliers of goods and services are shown under————-.

(a) Operating
(b) Financing
(c) Investing
(d) None of the above

Question :148) 20,000 equity shares of Rs.10 each issued at 10% premium , cash is Rs——————-

(a) Rs.2,00,000
(b) Rs.2,10,000
(c) Rs.2,15,000
(d) Rs.2,20,000

Question :149) Preliminary expenses written off is——–

(a) Cash transaction
(b) Non-cash transaction
(c) Credit transaction
(d) None of the above

Question :150) Investment costing Rs.50,000 at the loss of Rs.3,000 cash outflow in investing activity is ——–

(a) Rs.53,000
(b) Rs.50,000
(c) Rs.47,000
(d) Rs.48,000

Question :151) Cash from operations is equal to——————

(a) net profit after tax
(b) net profit plus increase in current asset
(c) net profit plus decrease in current liabilities
(d) net profit plus non-cash expenses plus decrease in current assets.

Question :152) Increase in the amount of bills receivable results in————–

(a) decrease in cash
(b) increase in cash
(c) no change in cash
(d) none of these

Question :153) Increase in the amount of bills payable results in———-

(a) Decrease in cash
(b) Increase in cash
(c) No change in cash
(d) None of these

Question :154) Which of the following is not an inflow of cash

(a) Sale of fixed asset
(b) Issue of debentures for cash
(c) Funds from operation
(d) Acquisition of assets

Question :155) Dividend paid under AS- 3 is———-

(a) Cash flow from financing activity
(b) Cash flow from operating activity
(c) Cash flow from investing activity
(d) None of these

Question :156) Cash flows include

(a) Cash payments only
(b) Cash receipts only
(c) Cash receipts and payments
(d) Cash and noncash incomes and expenses.

Question :157) Cash flow statement is based on———-

(a) Cash basis of accounting
(b) Accounting equation
(c) Accrual basis of accounting
(d) None of these

Question :158) Proposed dividend is classified as———–

(a) Investing activity
(b) Financing activity
(c) Operating activity
(d) Cash equivalent

Question :159) Profit on sale of machinery comes under————

(a) Investing activity
(b) Financing activity
(c) Operating activity
(d) None of these

Question :160) Sale of patent is classified under———

(a) Investing activity
(b) Financing activity
(c) Operating activity
(d) None of these

Question :161) Rent received by a company (whose main business is real estate) is classified as

(a) Investing activity
(b) Financing activity
(c) Operating activity
(d) Cash equivalent

Question :162) AS-3 is related to

(a) Cash flow statement
(b) Funds flow statement
(c) Balance sheet
(d) Income statements

Question :163) The information to prepare a flexible budget includes:

(a) Total fixed cost, total variable cost
(b) Total fixed cost, total variable cost and capacity base
(c) Unit fixed cost and unit variable cost
(d) Total fixed cost, variable cost per unit, several levels of activity

Question :164) The scarce factor of production is known as

(a) Key factor
(b) Linking factor
(c) Critical factor
(d) All of the above

Question :165) Which of the following is a budget designed to furnish budgeted costs for any level of activity attained

(a) Fixed budget
(b) Flexible budget
(c) Master budget
(d) Production budget

Question :166) Flexible budgets are useful for

(a) Planning purpose only
(b) Planning, performance evaluation and feedback control
(c) Control of performance only
(d) Nothing at all

Question :167) The budget that summarize future plans for acquisition of plant facilities and equipment is the

(a) Cash budget
(b) Sales budget
(c) Capital expenditure budget
(d) None of the above

Question :168) A report comparing actual results with the budget figure is called a ___________

(a) Budget report
(b) Budget performance report
(c) Flexible budget report
(d) None of the above

Question :169) Profit plan(or budget) is a

(a) Long term financial plan
(b) Short term financial plan
(c) Long term non financial plan
(d) Short term non financial plan

Question :170) The objectives, procedures, organizational structure and authority and responsibility in writing about a budget is shown in

(a) Budget manual
(b) Budget plans
(c) Budget titles
(d) None of the above

Question :171) Which budget is prepared after the preparation of all functional budgets

(a) Flexible budget
(b) Cash budget
(c) Master budget
(d) Production budget

Question :172) The overall responsibility for the functions of the budget committee lies on the _____________

(a) Chief accountant
(b) Financial executive or controller
(c) Budget director or budget officer
(d) Top management

Question :173) For preparing an effective budget it needs accounting information which is

(a) Structured around the past data need of the management
(b) Structured around the line communication needs of the management
(c) Structured around financial needs of the management
(d) Structured around the planning and control needs of the management

Question :174) Long period budgets are prepared under

(a) Receipts and payment method
(b) Balance sheet method
(c) Adjusted profit and loss method
(d) Receipts and payments, balance sheet method

Question :175) A budget specifies the operations to be performed during the next year is called __________

(a) Operation budget
(b) Responsibility budget
(c) Activity budget
(d) Flexible budget

Question :176) The branch of accounting which primarily deals with processing and presenting accounting data fro internal use is ________________

(a) Cost accounting
(b) Financial accounting
(c) Management accounting
(d) Inflation accounting

Question :177) The term management accounting was used in

(a) 1950
(b) 1939
(c) 1910
(d) 1947

Question :178) Management accounting is also known as _______________

(a) Price level accounting
(b) Historical accounting
(c) Decision accounting
(d) None of these

Question :179) Which of the following is not a technique of management accounting

(a) Budgetary control
(b) Standard costing
(c) Marginal costing
(d) Process costing

Question :180) Management accounting is helpful in increasing _______________

(a) Performance
(b) Profitability
(c) Efficiency
(d) Production

Question :181) Management accounting has a ___________ scope than cost accounting

(a) Wider
(b) Narrower
(c) Smaller
(d) None of these

Question :182) Management accounting helps in ___________ data

(a) Analysis
(b) Interpretation
(c) Analysis and interpretation
(d) None of these

Question :183) Management accounting provides alternative choices for managerial ___________

(a) Decisions
(b) Policies
(c) Uses
(d) None of these

Question :184) Publication of management accounting statements are ______________

(a) Compulsory
(b) Not optional
(c) Optional
(d) None of these

Question :185) Management accounting deals only with that information which is useful to the ___________

(a) Accountant
(b) Owners
(c) Management
(d) All of the above

Question :186) The prime function of management accounting is to ——————————-

(a) Interpret financial data
(b) Assist the management in performing its functions
(c) Record business transaction
(d) None of these

Question :187) Management accounting relates to ________

(a) Recording of accounting data
(b) Recording of costing data
(c) Presentation of accounting data
(d) None of these

Question :188) Management accounting analyses accounting data with the help of ————————-

(a) Auditors
(b) Statutory forms
(c) Tools and techniques
(d) None of these

Question :189) Management accounting and cost accounting functions are ————————–

(a) Neutral in effect
(b) Complementary in nature
(c) Contradictory in nature
(d) None of these

Question :190) Management accounting provides valuable services to management in performing ____

(a) Coordinating functions
(b) Controlling functions
(c) Planning functions
(d) All managerial functions