Management Accounting Set 20
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This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Management Accounting Set 20
Q1 | The objectives of Cash Flow Statement are (i) Analysis of cash position(ii) Short-term cash planning(iii) Evaluation of liquidity(iv) Comparison of operating Performance
- Both A and B
- Both A and C
- Both B and D
- A, B, C, D
Q2 | Cash Flow Statement is based upon
- Cash basis of accounting
- Accrual basis of accounting
- Credit basis of accounting
- None of the above
Q3 | As per Accounting Standard-3, Cash Flow is classified into
- Operating activities and investing activities
- Investing activities and financing activities
- Operating activities and financing activities
- Operating activities, financing activities and investing activities
Q4 | Which of the following is not a cash outflow?
- Increase in Prepaid expenses
- Increase in debtors
- Increase in stock
- Increase in creditors
Q5 | Which of the following is not a cash inflow?
- Decrease in debtors
- Issue of shares
- Decrease in creditors
- Sale of fixed assets
Q6 | When a fixed asset is bought as hire purchase, interest element is classified under ______ and loan element is classified under________.
- Operating activities, financing activities
- Financing activities, investing activities
- Investing activities, operating activities
- None of the above
Q7 | In the case of financial enterprises, the cash flow resulting from interest and dividend received and interest paid should be classified as cash flow from
- Operating activities
- Financing activities
- Investing activities
- None of the above
Q8 | As per AS-3, Cash Flow Statement is mandatory for(a) All enterprises(b) Companies listed on a stock exchange(c) Companies with a turnover of more than Rs 50 crores
- Both A and B
- Both A and C
- Both C and B
- None of the above
Q9 | Cash outflow on purchases is calculated by
- Purchases + Opening Creditors + Opening B/P – Closing Creditors - Closing B/P
- Purchases + Opening Creditors - Closing Creditors + Closing B/P
- Purchases - Opening Creditors - Opening B/P + Closing Creditors + Closing B/P
- None of the above
Q10 | While preparing Cash Flow Statement, non-cash items and non-operating items are not required to be adjusted under________
- Indirect method
- Direct method
- Both a and b
- None of the above
Q11 | Cash Flow Statement is prepared from
- Profit and loss account
- Balance Sheet
- Additional Information
- All of the above
Q12 | When the concept of ratio is defined in respected to the items shown in the financial statements, it is termed as
- Accounting ratio
- Financial ratio
- Costing ratio
- None of the above
Q13 | Profit for the objective of calculating a ratio may be taken as
- Profit before tax but after interest
- Profit before interest and tax
- Profit after interest and tax
- All of the above
Q14 | Which of the following falls under Profitability ratios?(a) General Profitability ratios(b) Overall Profitability ratios(c) Comprehensive Profitability ratios
- A and B
- A and C
- B and C
- None of the above
Q15 | Gross Profit ratio is also termed as
- Gross Profit Margin
- Gross Margin to net sales
- Both a and b
- All of the above
Q16 | Operating ratio is calculated by
- (Operating Cost/Gross sales)*100
- (Operating Cost/Gross sales)*100
- (Operating cost/Net sales)*100
- None of the above
Q17 | Which of the following is expenses ratio?(a) Administrative expenses ratio(b) Selling and Distribution expenses ratio(c) Factory expenses ratio(d) Finance Expenses ratio
- A, B and D
- A, C and D
- A, B and C
- A, B , C, D
Q18 | Return on equity capital is calculated on basis of:
- Funds of equity shareholders
- Equity capital only
- Either a or b
- None of the above
Q19 | Turnover ratios are also known as
- Activity ratios
- Performance ratios
- Both a and b
- None of the above
Q20 | Debtors Turnover ratio is also known as(a) Receivables turnover ratio(b) Debtors velocity(c) Stock velocity(d) Payable turnover ratio
- A and B
- A and C
- B and C
- C and D
Q21 | Liquid assets is determined by
- Current assets-stock-Prepaid expenses
- Current assets +stock+ prepaid expenses
- Current assets +Prepaid expenses
- None of the above
Q22 | Comparison of financial statements highlights the trend of the _________ of the business.
- Financial position
- Performance
- Profitability
- All of the above
Q23 | Analysis of any financial Statement comprises
- Balance sheet
- P&L Account
- Trading account
- All of the above
Q24 | Which of the following are techniques, tools or methods of analysis and interpretation of financial statements?
- Ratio Analysis
- Average Analysis
- Trend Analysis
- All of the above
Q25 | Interpretation of accounts is the
- Art and science of translating the figures
- To know financial strengths and weaknesses of a business
- To know the causes for the prevailing performance of business
- All of the above