740+ Management Accounting Solved MCQs

………………………Accounting is concerned with measurement of the cost and value of people for the organization.

The important objective of …………………..accounting is to organize the accumulated financial data into meaningful information.

……………………..accounting is the adoption and analysis of accounting
information and its diagnosis and explanation in such a way so as to assist the
decision -makers.

Planning is that function of ……………………..which requires an efficient system of decision – making.

…………………..costs are pre-determined targets adainst which actual results are evaluated.

Financial Accounting data is primarily meant for …………………

Cost Accountant should report to the ……………management.

The transaction which increase working capital are ………….. of funds

Management accounting begins where………………. accounting ends.

Chapter: Analysis & interpretation of financial statement

Stock is considered as a liquid asset as anytime it can be converted into cash immediately.

. Return on properties funds is also known as.

What will be the Gross Profit if , total sales is Rs 2,60,000,cost of net goods sold is Rs 2,00,000 & sales return is Rs10,000 ?

Which of the following is not included in current assets.

Liquidity ratios are expressed in

Working capital turnover ratio can be determined by :

Determine Working capital turnover ratio if, Current asset is Rs 1,50,000, current liability is Rs 1,00,000 & cost of goods sold is Rs 3,00,000.

The ratio analysis is helpful to management in taking several decisions, but as a mechanical substitute for judgement and thinking, it is worse than useless.

Profit for the objective of calculating a ratio may be taken as

If sales is Rs 5,00,000 & net profit is Rs 1,20,000 Net profit ratio is

General profitability ratios are based on

The ratios which reveal the final result of the managerial policies and performance is .

Return on investment is a .

Net profit ratio is a .

Stock turnover ratio is a .

Current ratio is a

Proprietary ratio is a .

Fixed assets ratio is a

Fixed assets turnover ratio is a

The ratio which measures the profit in relation to capital employed is known as

The ratio which determines the profitability from the shareholder’s point of view is .

Return on equity is also called

Preliminary expenses is an example of

Prepaid expenses is an example of .

The ratio which is calculated to measure the productivity of total assets is

The ratio which shows the proportion of profits retained in the business out of the current year’s profits is

The ratio which indicates earnings per share reflected by the market price is .

The ratio establishes the relationship between profit before interest and tax and fixed interest charges is .

The ratio shows the preference dividend as a proportion of profit available for shareholders is

The dividend is related to the market value of shares in .

Turnover ratio is also known as .

Inventory or stock turnover ratio is also called .

Which ratio is calculated to ascertain the efficiency of inventory management in terms of capital investment?

The ratio which measures the relationship between the cost of goods sold and the amount of average inventory is

Sales – Gross Profit = .

Opening stock + purchases + direct expenses – closing stock =

Debtors turnover ratio is also called .

Creditors turnover ratio is also called .

Which of the following shows details and results of the company's profitrelated activities for a period of time?

Which of the following financial statements is also known as a statement of financial position?

A firm has Capital of Rs. 10,00,000; Sales of Rs. 5,00,000; Gross Profit of Rs. 2,00,000 and Expenses of Rs.1,00,000. What is the Net Profit Ratio?

Which technique used for figures of two or more periods are placed side by side to facilitate easy and meaningful comparisons?

Which of the following are techniques, tools or methods of analysis and interpretation of financial statements?

Which of the following is NOT a key ratio in the prediction of bankruptcy as developed by Edward Altman?

_______________ ratios measure the ability of a firm to earn an adequate return on sales, total assets and invested capital.

The ________ ratios help determines the degree of financial risk and earnings volatility present in a firm.

__________ analysis is the process of studying a series of ratios for a company and/or industry over time.

The ideal level of current ratio is

The most precise test of liquidity is

Debt-equity ratio is a sub-part of

Quick ratio is 1.8:1, current ratio is 2.7:1 and current liabilities are Rs 60,000. Determine value of stock.

Funds flow statements are prepared so as to

Net Profit ratio is calculated by

If sales is Rs 5, 00,000 and net profit is Rs 1, 20,000 Net Profit ratio is

Operating ratio is calculated by

Chapter: working capital

The financial decision making that relates to current assets or short term asset is known as __________________.

In what order should current assets be present on a statement of financial position?

If value of opening inventories increases, what happens to the value of gross profit?

What does the statement of comprehensive income show?

Depreciation is applied to non-current assets in the statement of financial position in order to

What would be the most likely impact on trade receivables days if invoice discounting was offered to and accepted by a large customer of a business?

___________in accounting, is when the costs to acquire an asset are expensed over the life of that asset rather than in the period it was incurred?

Capitalization is the sum of a corporation’s stock, long term debts &________?

__________ is a situation in which actual profits of a company are not sufficient enough to pay interest on debentures, on loans and pay dividends on shares over a period of time?

Asset structure = _________+__________.

In finance, "working capital" means the same thing as __________.

In deciding the appropriate level of current assets for the firm, management is confronted
with
_____________.

Permanent working capital ___________.

Net working capital refers to ___________.

To financial analysts, "gross working capital" means the same thing as ________.

An example of fixed asset is________.

Which one of the following is not the determinant of the working capital?

Permanent working capital ___

Which one of the following is not a method to find working capital requirement?

The Capital used for meeting routine and repetitive expenses of day to day business operations is called____.

Gross working capital represents __________.

Net working capital is the excess of current assets over ________.

A positive (net) working capital will arise when current assets exceed _________.

The net working capital, being the difference between current assets and current liabilities is a _______.

The Funds required by way of permanent working capital should be provided by __________.

Service and Financial concerns may have _____.

_____ is that minimum amount which should always be present in the business to carry out the activities without a break.

Working capital over and above the fixed working capital would be termed as _______.

__________ denotes a situation of too much or excessive working capital.

_________ being the life blood of a business requires to be maintained in reasonably adequate quantity to run business successfully.

According to ________ working capital refers to the company’s total investment in current assets.

According to ________ working capital refers to the difference between current assets and current liabilities.

The funds required for running an organisation are generally called as ____________.

The __________ is required to ensure circulation of operating cycle.

________ is the excess amount over the requirement for regular working capital.

The working capital required to meet the seasonal need of the business is called _______.

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