MCQ Test For MBA

hii sir I wants to get the MCQ question of Management Accounting of MBA will you please provide me the questions of the Management Accounting of MBA ?

[Shaleen]

As you asking for the MCQ question of Management Accounting of MBA the questions are as follow :
The definition ‘Management Accounting is the presentation of accounting information in such a way as to assist management in the creation of policy and the day-to-day operation of an undertaking.’

a. Ango-American Council on Productivity
b. AICPA
c. Robert N. Anthony
d. All of the above

2) Agency cost consists of

a. Binding
b. Monitoring
c. Opportunity and structure cost
d. All of the above

3) Finance Function comprises

a. Safe custody of funds only
b. Expenditure of funds only
c. Procurement of finance only
d. Procurement & effective use of funds

4) The objective of wealth maximization takes into account

a. Amount of returns expected
b. Timing of anticipated returns
c. Risk associated with uncertainty of returns
d. All of the above

5) Financial management mainly focuses on

a. Efficient management of every business
b. Brand dimension
c. Arrangement of funds
d. All elements of acquiring and using means of financial resources for financial activities

6) Liquid assets is determined by

a. Current assets – stock - Prepaid expenses
b. Current assets + stock + prepaid expenses
c. Current assets + Prepaid expenses
d. None of the above

7) Which of the following is not included in current assets?

a. Debtors
b. Stock
c. Cash at bank
d. Cash in hand

8) Higher the ratio, the more favorable it is, doesn’t stand true for

a. Operating ratio
b. Liquidity ratio
c. Net profit ratio
d. Stock turnover ratio

9) The most precise test of liquidity is

a. Quick ratio
b. Current ratio
c. Absolute Liquid ratio
d. None of the above

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

a. Rs 54,000
b. Rs 60,000
c. Rs 1,62,000
d. None of the above

11) Collection of debtors

a. Decreases current ratio
b. Increases current ratio
c. Has no effect on current ratio
d. None of the above

12) Provision of taxation is treated as

a. As a current liability
b. As an appropriation of profits
c. Either a or b
d. None of the above

13) As per accounting standard AS3, provision for taxation should be treated as

a. As a current liability
b. As an appropriation of profits
c. Either a or b
d. None of the above

14) Which of the following statement is true?

A) If the amount of good will increases during current year, the difference is treated as purchase of goodwill.
B) If the amount of good will decreases during current year, It will treated as written off.
a. Only A
b. Only B
c. Both A and B
d. None of the above

15) The opening and closing balance of general reserves are Rs 10,000 and Rs 9,000, respectively. It is stated in addition information that a loss of Rs 1000 has been written off in general reserves. In such a case, decline in reserve and loss on investment will be adjusted in P&L account.
a. True
b. False

16) Which of the following statements are false?
A) Old Furniture written off doesn’t affect cash flow.
B) Cash flow statement is a substitute for cash account.
C) Appropriation of retained earnings is not shown in Cash flow statement.
D) Net cash flow during a period can never be negative.
a. A, B, C
b. B, C, D
c. C, D, A
d. None of the above

17) Which of the following is not a cash inflow?
a. Decrease in debtors
b. Issue of shares
c. Decrease in creditors
d. Sale of fixed assets

18) Which of the following is not a cash outflow?
a. Increase in Prepaid expenses
b. Increase in debtors
c. Increase in stock
d. Increase in creditors

19) While preparing Marginal cost and Contribution Statement, if any factor of production is key factor then ________ should be expressed in terms of per unit of Key factor.
a. Profit
b. Sales
c. Contribution
d. None of the above
20) Which of the following principles should be followed while making a decision to drop a product/line?
a. Product yielding lowest contribution should be given top priority in production programme
b. A product line should be dropped, if it yields positive contribution
c. If any factor is key factor, the product/line should be dropped, which gives maximum contribution per unit of key factor
d. None of the above