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This set of Management Accounting Multiple Choice Questions & Answers (MCQs) focuses on Management Accounting Set 15

Q1 | 20,000 equity shares of Rs.10 each issued at 10% premium , cash is Rs-------------------
  • Rs.2,00,000
  • Rs.2,10,000
  • Rs.2,15,000
  • Rs.2,20,000
Q2 | Preliminary expenses written off is--------
  • Cash transaction
  • Non-cash transaction
  • Credit transaction
  • None of the above
Q3 | Investment costing Rs.50,000 at the loss of Rs.3,000 cash outflow in investing activity is --------
  • Rs.53,000
  • Rs.50,000
  • Rs.47,000
  • Rs.48,000
Q4 | Cash from operations is equal to------------------
  • net profit after tax
  • net profit plus increase in current asset
  • net profit plus decrease in current liabilities
  • net profit plus non-cash expenses plus decrease in current assets.
Q5 | Increase in the amount of bills receivable results in--------------
  • decrease in cash
  • increase in cash
  • no change in cash
  • none of these
Q6 | Increase in the amount of bills payable results in----------
  • Decrease in cash
  • Increase in cash
  • No change in cash
  • None of these
Q7 | Which of the following is not an inflow of cash
  • Sale of fixed asset
  • Issue of debentures for cash
  • Funds from operation
  • Acquisition of assets
Q8 | Dividend paid under AS- 3 is----------
  • Cash flow from financing activity
  • Cash flow from operating activity
  • Cash flow from investing activity
  • None of these
Q9 | Cash flows include
  • Cash payments only
  • Cash receipts only
  • Cash receipts and payments
  • Cash and noncash incomes and expenses.
Q10 | Cash flow statement is based on----------
  • Cash basis of accounting
  • Accounting equation
  • Accrual basis of accounting
  • None of these
Q11 | Proposed dividend is classified as-----------
  • Investing activity
  • Financing activity
  • Operating activity
  • Cash equivalent
Q12 | Profit on sale of machinery comes under------------
  • Investing activity
  • Financing activity
  • Operating activity
  • None of these
Q13 | Sale of patent is classified under---------
  • Investing activity
  • Financing activity
  • Operating activity
  • None of these
Q14 | Rent received by a company (whose main business is real estate) is classified as
  • Investing activity
  • Financing activity
  • Operating activity
  • Cash equivalent
Q15 | AS-3 is related to
  • Cash flow statement
  • Funds flow statement
  • Balance sheet
  • Income statements
Q16 | The information to prepare a flexible budget includes:
  • Total fixed cost, total variable cost
  • Total fixed cost, total variable cost and capacity base
  • Unit fixed cost and unit variable cost
  • Total fixed cost, variable cost per unit, several levels of activity
Q17 | The scarce factor of production is known as
  • Key factor
  • Linking factor
  • Critical factor
  • All of the above
Q18 | Which of the following is a budget designed to furnish budgeted costs for any level of activity attained
  • Fixed budget
  • Flexible budget
  • Master budget
  • Production budget
Q19 | Flexible budgets are useful for
  • Planning purpose only
  • Planning, performance evaluation and feedback control
  • Control of performance only
  • Nothing at all
Q20 | The budget that summarize future plans for acquisition of plant facilities and equipment is the
  • Cash budget
  • Sales budget
  • Capital expenditure budget
  • None of the above
Q21 | A report comparing actual results with the budget figure is called a ___________
  • Budget report
  • Budget performance report
  • Flexible budget report
  • None of the above
Q22 | Profit plan(or budget) is a
  • Long term financial plan
  • Short term financial plan
  • Long term non financial plan
  • Short term non financial plan
Q23 | The objectives, procedures, organizational structure and authority and responsibility in writing about a budget is shown in
  • Budget manual
  • Budget plans
  • Budget titles
  • None of the above
Q24 | Which budget is prepared after the preparation of all functional budgets
  • Flexible budget
  • Cash budget
  • Master budget
  • Production budget
Q25 | The overall responsibility for the functions of the budget committee lies on the _____________
  • Chief accountant
  • Financial executive or controller
  • Budget director or budget officer
  • Top management