Management Accounting Set 1

Bachelor of Business Administration (BBA),

Bachelor of Banking and Insurance (BBI),

Bachelor of Commerce (B Com)

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This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Management Accounting Set 1

Q1 | Fixed assets are Rs 5,00,000 , Current assets are Rs 3,00,000, Current liabilities are Rs 1,00,000. There is no investment. Capital employed will be :
  • rs 8,00,000
  • rs 7,00,000
  • rs 9,00,000
  • rs 6,00,000
Answer: rs 7,00,000
Q2 | Current liabilities include creditors Rs 2,00,000, Bills payable Rs 1,00,00 Expenses payable Rs 50,000 Bank Overdraft Rs 2,00,000. Quick liabilites will be :
  • rs 3,50,000
  • rs 3,00,000
  • rs 2,50,000
  • rs 2,00,000
Answer: rs 3,50,000
Q3 | Fixed assets include premises Rs 10,00,000, Machinery Rs 5,00,000 Furniture Rs 2,00,000 Vehicles Rs 3,00,000 Live stock Rs 1,00,000 Goodwill Rs 2,00,000, Patents & Copy rights Rs 1,50,000, Underwriting commission Rs 50,000 Fixed tangible immovable asset will be :
  • rs 10,00,000
  • rs 20,00,000
  • rs 3,00,000
  • rs1,50,000
Answer: rs 10,00,000
Q4 | Kumar Ltd. reported net sales Rs 9,00,000, Rs 9,90,000 and Rs 10,80,000 in the year 2013, 2014 and 2015. If 2013 is the base year what is the trend % for 2015?
  • 1.2
  • 0.75
  • 0.8
  • 0.9
Answer: 1.2
Q5 | Total current assets are Rs 30,000, Rs 54,000 and Rs 66,000 in 2013, 2014 and 2015 respectively. If 2013 is the base year what is the % increase from 2013 to 2015?
  • 1.2
  • 1.25
  • 0.6
  • 0.5
Answer: 1.2
Q6 | Cost of goods sold for a company is Rs 30,00,000, Rs 24,00,000 and Rs 18,00,000 for 2015, 2014 and 2013 respectively. If 2013 is the base year the percentage increase in cost of goods sold from 2013 to 2015 is
  • 0.6667
  • 0.7
  • 0.5
  • 0.45
Answer: 0.6667
Q7 | Gauri Ltd has a debt equity of 3:2 and total assets turnover is 2. If NP ratio is 10%. The ROE is
  • 0.4
  • 0.5
  • 0.35
  • 0.2
Answer: 0.5
Q8 | ABC Ltd has total assets turnover ratio and total assets to Net worth are 1.75 and 2 respectively. If NP ratio is 10% the ROE will be :
  • 0.2
  • 0.35
  • 0.4
  • 0.6
Answer: 0.35
Q9 | Current Assets are Rs 5,00,000 and Current liabilities are Rs 2,00,000. The Current ratio is
  • 1.5
  • 1.75
  • 2.5
  • 3.20,
Answer: 2.5
Q10 | WIP is Rs 14,000, COGS is Rs 1,50,000, 360 days in a year WIP Turnover period is :
  • 30 days
  • 40 days
  • 34 days
  • 45 days
Answer: 34 days
Q11 | S Ltd has a plan to produce 52,000 units for the year 2020-21 selling price is Rs 1,000 per unit. Credit allowed to customers is 8 weeks. One year consists of 52 weeks. The debtors value is
  • rs 40,00,000
  • rs 80,00,000
  • rs 70,00,000
  • rs 60,00,000
Answer: rs 80,00,000
Q12 | K Ltd has decided to produce and sell 5,000 units during the year 2020-21. S.P. is Rs 200 per unit. 70% of sales will be on credit and credit period wil be 6 weeks. One year consists of 50 weeks. The debtors will be :
  • rs 70,000
  • rs 80,000
  • rs 84,000
  • rs 95,000
Answer: rs 84,000
Q13 | ………………………Accounting is concerned with measurement of thecost and value of people for the organization.
  • financial accounting
  • management accounting
  • corporate accounting
  • human resource accounting
Answer: human resource accounting
Q14 | The important objective of …………………..accounting is to organize theaccumulated financial data into meaningful information.
  • financial accounting
  • management accounting
  • corporate accounting
  • human resource accounting
Answer: financial accounting
Q15 | ……………………..accounting is the adoption and analysis of accountinginformation and its diagnosis and explanation in such a way so as to assist thedecision -makers.
  • financial accounting
  • management accounting
  • corporate accounting
  • human resource accounting
Answer: management accounting
Q16 | Planning is that function of ……………………..which requires an efficient systemof decision – making.
  • finance
  • management
  • h.r
  • administration.
Answer: management
Q17 | …………………..costs are pre-determined targets adainst which actual resultsare evaluated.
  • marginal
  • standard
  • actual
  • budgeted
Answer: standard
Q18 | Financial Accounting data is primarily meant for …………………
  • external users
  • internal users
  • employees
  • bank
Answer: external users
Q19 | Cost Accountant should report to the ……………management.
  • top
  • middle.
  • administration
  • lower
Answer: top
Q20 | The transaction which increase working capital are ………….. of funds
  • sources
  • application
  • utilization
  • diversion
Answer: sources
Q21 | Management accounting begins where………………. accounting ends.
  • financial accounting
  • management accounting
  • cost accounting
  • human resource accounting
Answer: cost accounting
Q22 | Stock is considered as a liquid asset as anytime it can be converted into cashimmediately.
  • yes
  • no
  • only yes
  • none of the above
Answer: no
Q23 | . Return on properties funds is also known as.
  • return on net worth
  • return on shareholders fun
  • return on the shareholders investment
  • all the above
Answer: all the above
Q24 | What will be the Gross Profit if , total sales is Rs 2,60,000,cost of net goods soldis Rs 2,00,000 & sales return is Rs10,000 ?
  • 13%
  • 28%
  • 26%
  • 20%
Answer: 20%
Q25 | Which of the following is not included in current assets.
  • debtors
  • stock
  • cash at bank
  • cash in hand
Answer: stock
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