MBA/MBA Accounting MCQ Question Set 4 Sample Test,Sample questions

Question:
A capital budgeting technique that is NOT considered as discounted cash flow method is:

1.Payback period

2.Internal rate of return

3.Net present value

4.Profitability index


Question:
ABC’s and XYZ’s debt-to-total assets ratio is 0.4. What is its debt-to-equity ratio?

1.0 .2

2.0 .77

3.0.667

4.0.333


Question:
Accounting concepts are based on

1.Certain assumptions

2.Certain facts and figures

3.Certain accounting records

4.Practice experience


Question:
Aggregate of prime cost and Factory overhead is known as:

1.Work on cost

2.Work Cost

3.Cost of Production

4.Direct Cost


Question:
All costs other than direct materials cost, direct labour cost and direct expenses are known as:

1.Indirect material cost

2.Overhead

3.Indirect labour cost

4.Indirect expenses


Question:
Amount of salary paid to Suresh should be debited to ______

1.Account of Suresh

2.Salaries account

3.Cash account

4.Outstanding expenses


Question:
Book keeping is mainly concerned with

1.Recording of financial data relating to business operation

2.Designing the systems in recording classifying,summarizing the recorded data

3.Interpreting the data for internal and external users

4.Understand the liabilities


Question:
Bookkeeping is an ______________ of correctly recording of business transition.

1.Art and Science

2.Art

3.Science

4.Art or Science


Question:
Break even analysis is also called

1.Contribution Margin

2.Unit sales

3.Cost-Volume-Profit analysis

4.None of the above


Question:
Content of income statement

1.Trading account

2.Profit and loss account

3.Balance sheet

4.All of the above


Question:
Contingent liabilities should be recorded in the accounts when:

1.It is probable that the future event will occur.

2.The amount of the liability can be reasonably estimated.

3.Both (a) and (b).

4.Either (a) or (b).


Question:
Conversion cost includes cost of onverting ______________ into ______________

1.Raw material, WIP

2.Raw material, Finished goods

3.WIP, Finished goods

4.Finished goods, Saleable goods


Question:
Current ratio is 2:5.Current Liability is Rs.30,000.The Net working Capital is

1.Rs. 18,000

2.Rs. 45,000

3.Rs. (45,000)

4.Rs. (18000)


Question:
Depreciation is a ______________

1.Cash operating expenditure

2.Non cash operating expenditure

3.Cash non-operating expenditure

4.Non cash non-operating expenditure


Question:
Financial account record only

1.Actual figures

2.Budgeted figures

3.Standard figures

4.Management Figure


Question:
Financial account state the ______________ position of a concern.

1.Financial

2.Economic

3.Non financial

4.None of these


Question:
Financial accounting deals with:

1.Determination of cost

2.Determination of profit

3.Determination of price

4.Determination of selling price


Question:
Financial leverage means

1.Use of more debt capital to increase profit

2.High degree of solvency

3.Low bank finance

4.None of the above


Question:
Fixed assets and current assets are categorized as per concept of:

1.Separate entity

2.Going concern

3.Consistency

4.Time period


Question:
If a company has contingent liabilities, they appear in the _____

1.Balance sheet

2.Director’s Report

3.Foot note down the balance sheet

4.Chairman’s report


Question:
Journal Entries are known as book of ______________ Entry.

1.Original

2.Duplicate

3.Personal

4.Nominal a/c


Question:
Modern Method of Accounting was introduced by

1.M. S. Gosav

2.Wheldon

3.LucoPacioli

4.R. N. Carter


Question:
One of the problems with attempting to forecast stock market values is that

1.There are no variables that seem to predict market return

2.The earnings multiplier approach can only be used at the firm level

3.The level of uncertainty surrounding the forecast will always be quite high

4.Dividend payout ratios are highly variable


Question:
Outstanding salary account is a ______________ account

1.Nominal account

2.Real Account

3.Artificial person’s account

4.Representative personal account


Question:
Process that involves decision making with respect to investment in fixed asset

1.Valuation

2.Breakeven analysis

3.Capital budgeting

4.Material management decision


Question:
Profit from sale of assets is example for–

1.Revenue Profit

2.Capital Profit

3.Loss

4.None of these


Question:
Retained earnings statement depicts:

1.Appropriation of profits

2.Estimates of profits

3.Estimates of costs

4.Determination of profit


Question:
sales made by Mahesh for cash should be debited to

1.Cash a/c

2.Mahesh a/c

3.Sales a/c

4.Sales return a/c


Question:
The allocation of owner's private expenses to his/her business violates which of the following?

1.Accrual concept

2.Matching concept

3.Separate business entity concept

4.Consistency concept


Question:
The amount brought in by the proprietor in the business should be credited to

1.Cash a/c

2.Capital a/c

3.Drawing a/c

4.Bank a/c


Question:
The convention of conservatism when applied to the balance sheet result in.

1.Understand the asset

2.Understand the liabilities

3.Overstatement of capital

4.None of these


Question:
The coupon is the

1.Amount of discount received when a Bond is purchased

2.Amount paid to a Bond dealer when a Bond is purchased

3.Difference between the Bid and Ask Price

4.Stated Interest Payment on a Bond


Question:
The Future Value (FV) of $1000 in 5 years at 5% interest rate will be:

1.$1,000.00

2.$1,276.28

3.$999.99

4.$1,500.52


Question:
The rent paid to land lord to be credited to

1.Land lord a/c

2.Rent a/c

3.Cash a/c

4.Tenant a/c


Question:
The return of goods by the customer should be debited to

1.Customer a/c

2.Sales return a/c

3.Goods a/c

4.Purchase return a/c


Question:
The use of management accounting is

1.Compulsory

2.Optional

3.Obligation

4.Statutory requirement


Question:
The work of factory employees that can be physically associated with converting raw material into finished goods is classified as ––

1.Manufacturing overhead

2.Indirect materials

3.Indirect labour

4.Direct labour


Question:
The ______________ is a common term for the market consensus value of the required return on a stock.

1.Dividend payout ratio

2.Intrinsic value

3.Market capitalization rate

4.Plowback rate


Question:
The ______________ is defined as the present value of all cash proceeds to the investor in the stock.

1.Dividend payout ratio

2.Intrinsic value

3.Market capitalization rate

4.Plowback ratio


Question:
Under which concept it is assumed that the enterprises has neither the intention nor the necessity of liquidation or of curtailing materiality the scale of operation

1.Revenue realization concept

2.Matching cost concept

3.Going concern concept

4.None of these


Question:
What is the value of a $1,000 Face Value Bond that has twenty years remaining to Maturity, 10 % Coupon (paid annually), and is priced to yield 6%?

1.$ 980

2.$ 1,000

3.1,263

4.None


Question:
When a Bond's Yield to Maturity is greater than the Bond's Coupon Rate, the Bond

1.Is selling at a Premium

2.Has reached its Maturity Date

3.Is priced at Par

4.Is selling at a Discount


Question:
When the market's Required Rate of Return for a particular Bond is much less than its Coupon Rate, the Bond is selling at

1.Premium

2.Discount

3.Par

4.Face


Question:
Which group of ratios measures a firm's ability to meet short-term obligations?

1.Liquidity ratios

2.Debt ratios

3.Coverage ratios

4.Profitability ratios


Question:
Which group of ratios relates profits to sales and investment?

1.Liquidity ratios

2.Debt ratios

3.Coverage ratios

4.Profitability ratios


Question:
Which of following is (are) Direct Claim Security?

1.Bonds

2.Option

3.Shares

4.a and c


Question:
Which of the following is a characteristic of a coupon bond?

1.Pays interest on a regular basis (typically every six months)

2.Does not pay interest on a regular basis but pays a lump sum at maturity

3.Total payment must be made at the end of period

4.All of above statement are correct


Question:
Which of the following is an advantage of a corporation that is NOT an advantage as in a partnership?

1.Limited liability

2.Capital shortage

3.Single taxation

4.All of the above


Question:
Which of the following statements are false?

1.All liability is a debt for your business

2.Debtor are a asset for business

3.The accounting equation shows how much of your assets belong to the owner, and how much belong to people outside business

4.None of the above


Question:
Which one of following is not Direct Claim Security?

1.Bonds

2.Option

3.Shares

4.Stock


Question:
You wish to earn a return of 10% on each of two stocks, C and D. Each of the stocks is expected to pay a dividend of Rs2 in the upcoming year. The expected growth rate of dividends is 9% for stock C and nine percent for stock D. The intrinsic value of stock C ______________.

1.Will be the same as the intrinsic value of stock D

2.Will be less than the intrinsic value of stock D

3.Cannot be calculated without knowing the rate of return on the market portfolio

4.None of the above is a correct statement


Question:
You wish to earn a return of 13% on each of two stocks, X and Y. Stock X is expected to pay a dividend of Rs. 3 in the upcoming year while Stock Y is expected to pay a dividend of Rs. 4 in the upcoming year. The expected growth rate of dividends for both stocks is 7%. The intrinsic value of stock X:

1.Will be greater than the intrinsic value of stock Y

2.Will be the same as the intrinsic value of stock Y

3.Will be less than the intrinsic value of stock Y

4.Cannot be calculated without knowing the market rate of return


Question:
____ is responsible for financial inventory, management, financial planning etc.

1.Shareholders

2.Treasurer

3.Controller

4.Board of Directors


Question:
______________ is a summary of all transactions relating to particular account.

1.Balance sheet

2.Trial Balance

3.Ledger

4.Journal


Question:
______________ means expanding the number of investments which cover different kinds of stocks.

1.Diversification

2.Standard deviation

3.Variance

4.Covariance


More MCQS

  1. MBA Accounting MCQ Question Set 1
  2. MBA Accounting MCQ Question Set 2
  3. MBA Accounting MCQ Question Set 3
  4. MBA Accounting MCQ Question Set 4
  5. MBA Accounting MCQ Question Set 5
  6. MBA Accounting MCQ Question Set 6
  7. MBA Accounting MCQ Question Set 7
  8. MBA Accounting MCQ Question Set 8
  9. MBA Accounting MCQ Question Set 9
  10. MBA Accounting MCQ Question Set 10
  11. MBA Advertising and Sales Promotion Mcq Set 1
  12. MBA Advertising and Sales Promotion Mcq Set 2
  13. MBA Advertising and Sales Promotion Mcq Set 3
  14. MBA Advertising and Sales Promotion Mcq Set 4
  15. MBA Advertising and Sales Promotion Mcq Set 5
  16. MBA Advertising and Sales Promotion Mcq Set 6
  17. MBA Advertising and Sales Promotion Mcq Set 7
  18. MBA Advertising and Sales Promotion Mcq Set 8
  19. MBA Advertising and Sales Promotion Mcq Set 9
  20. MBA Advertising and Sales Promotion Mcq Set 10
  21. MBA Advertising and Sales Promotion Mcq Set 11
  22. MBA Advertising and Sales Promotion Mcq Set 12
  23. MBA Advertising and Sales Promotion Mcq Set 13
  24. MBA Behavioural and Allied Sciences MCQ Set 1
  25. MBA Behavioural and Allied Sciences MCQ Set 2
  26. MBA Behavioural and Allied Sciences MCQ Set 3
  27. MBA Behavioural and Allied Sciences MCQ Set 4
  28. MBA Behavioural and Allied Sciences MCQ Set 5
  29. MBA Behavioural and Allied Sciences MCQ Set 6
  30. MBA Behavioural and Allied Sciences MCQ Set 7
  31. MBA Behavioural and Allied Sciences MCQ Set 8
  32. MBA Behavioural and Allied Sciences MCQ Set 9
  33. MBA Behavioural and Allied Sciences MCQ Set 10
  34. MBA Brand Management MCQ Set 1
  35. MBA Brand Management MCQ Set 2
  36. MBA Brand Management MCQ Set 3
  37. MBA Brand Management MCQ Set 4
  38. MBA Brand Management MCQ Set 5
  39. MBA Business Communication MCQ Set 1
  40. MBA Business Communication MCQ Set 2
  41. MBA Business Communication MCQ Set 3
  42. MBA Business Communication MCQ Set 4
  43. MBA Business Communication MCQ Set 5
  44. MBA Business Communication MCQ Set 6
  45. MBA Business Communication MCQ Set 7
  46. MBA Business Communication MCQ Set 8
  47. MBA Business Communication MCQ Set 9
  48. MBA Brand Management MCQ Set 10
  49. MBA Brand Management MCQ Set 11
  50. MBA Business Economics MCQ Set 1
  51. MBA Business Economics MCQ Set 2
  52. MBA Business Economics MCQ Set 3
  53. MBA Business Economics MCQ Set 4
  54. MBA Business Economics MCQ Set 5
  55. MBA Business Economics MCQ Set 6
  56. MBA Business Environment MCQ Set 1
  57. MBA Business Environment MCQ Set 2
  58. MBA Business Environment MCQ Set 3
  59. MBA Business Environment MCQ Set 4
  60. MBA Business Environment MCQ Set 5
  61. MBA Business Environment MCQ Set 6
  62. MBA Business Environment MCQ Set 7
  63. MBA Business Environment MCQ Set 8
  64. MBA Business Environment MCQ Set 9
  65. MBA Business Ethics and Governance MCQ Set 1
  66. MBA Business Law Mcq Set 1
  67. MBA Business Law Mcq Set 2
  68. MBA Business Law Mcq Set 3
  69. MBA Business Law Mcq Set 4
  70. MBA Business Law Mcq Set 5
  71. MBA Business Law Mcq Set 6
  72. MBA Business Law Mcq Set 7
  73. MBA Business Law Mcq Set 8
  74. MBA Business Law Mcq Set 9
  75. MBA Business Mathematics Mcq Set 1
  76. MBA Business Mathematics Mcq Set 2
  77. MBA Business Mathematics Mcq Set 3
  78. MBA Business Mathematics Mcq Set 4
  79. MBA Business Mathematics Mcq Set 5
  80. MBA Business Mathematics Mcq Set 6
  81. MBA Business Statistics Mcq Set 1
  82. MBA Business Statistics Mcq Set 2
  83. MBA Computers In Management Mcq Set 1
  84. MBA Computers In Management Mcq Set 2
  85. MBA Computers In Management Mcq Set 3
  86. MBA Computers In Management Mcq Set 4
  87. MAB Cost and Managerial Accounting Mcq Set 1
  88. MBA Cost and Managerial Accounting Mcq Set 1
  89. MBA Cost and Managerial Accounting Mcq Set 2
  90. MBA Cost and Managerial Accounting Mcq Set 3
  91. MBA Cost and Managerial Accounting Mcq Set 4
  92. MBA Cost and Managerial Accounting Mcq Set 5
  93. MBA Cost and Managerial Accounting Mcq Set 6
  94. MBA Cost and Managerial Accounting Mcq Set 7
  95. MBA Cost and Managerial Accounting Mcq Set 8
  96. MBA Cost and Managerial Accounting Mcq Set 9
  97. MBA Cost and Managerial Accounting Mcq Set 10
  98. MBA Cost and Managerial Accounting Mcq Set 11
  99. MBA E-Business MCQ Set 1
  100. MBA E-Business MCQ Set 2
  101. MBA E-Business MCQ Set 3
  102. MBA E-Business MCQ Set 4
  103. MBA English Language MCQ Set 1
  104. MBA English Language MCQ Set 2
  105. MBA Entrepreneurship Management MCQ Set 1
  106. MBA Entrepreneurship Management MCQ Set 2
  107. MBA Entrepreneurship Management MCQ Set 3
  108. MBA Entrepreneurship Management MCQ Set 4
  109. MBA Entrepreneurship Management MCQ Set 5
  110. MBA Entrepreneurship Management MCQ Set 6
  111. MBA Financial Management MCQ Set 1
  112. MBA Financial Management MCQ Set 2
  113. MBA Financial Management MCQ Set 3
  114. MBA Financial Management MCQ Set 4
  115. MBA Financial Management MCQ Set 5
  116. MBA Financial Management MCQ Set 6
  117. MBA Financial Management MCQ Set 7
  118. MBA Financial Management MCQ Set 8
  119. MBA Financial Management MCQ Set 9
  120. MBA Financial Management MCQ Set 10
  121. MBA Financial Management MCQ Set 11
  122. MBA Financial Management MCQ Set 12
  123. MBA Human Resource Management Mcq Set 1
  124. MBA Human Resource Management Mcq Set 2
  125. MBA Human Resource Management Mcq Set 3
  126. MBA Human Resource Management Mcq Set 4
  127. MBA Human Resource Management Mcq Set 5
  128. MBA Human Resource Management Mcq Set 6
  129. MBA Human Resource Management Mcq Set 7
  130. MBA Human Resource Management Mcq Set 8
  131. MBA Insurance and Risk Management Mcq Set 1
  132. MBA Insurance and Risk Management Mcq Set 2
  133. MBA Insurance and Risk Management Mcq Set 3
  134. MBA Insurance and Risk Management Mcq Set 4
  135. MBA Insurance and Risk Management Mcq Set 5
  136. MBA Insurance and Risk Management Mcq Set 6
  137. MBA Management Information Systems Mcq Set 1
  138. MBA Management Information Systems Mcq Set 2
  139. MBA Management Information Systems Mcq Set 3
  140. MBA Management Information Systems Mcq Set 4
  141. MBA Management Information Systems Mcq Set 5
  142. MBA Management Information Systems Mcq Set 6
  143. MBA Management Information Systems Mcq Set 7
  144. MBA Management Information Systems Mcq Set 8
  145. MBA Management Information Systems Mcq Set 9
  146. MBA Marketing Management Mcq Set 1
  147. MBA Marketing Management Mcq Set 2
  148. MBA Marketing Management Mcq Set 3
  149. MBA Marketing Management Mcq Set 4
  150. MBA Marketing Management Mcq Set 5
  151. MBA Marketing Management Mcq Set 6
  152. MBA Marketing Management Mcq Set 7
  153. MBA Marketing Management Mcq Set 8
  154. MBA Marketing Management Mcq Set 9
  155. MBA Marketing Management Mcq Set 10
  156. MBA Marketing Management Mcq Set 11
  157. MBA Marketing Management Mcq Set 12
  158. MBA Marketing Management Mcq Set 13
  159. MBA Media Planning Mcq Set 1
  160. MBA Media Planning Mcq Set 2
  161. MBA Media Planning Mcq Set 3
  162. MBA Media Planning Mcq Set 4
  163. MBA Operations Research Mcq Set 1
  164. MBA Operations Research Mcq Set 2
  165. MBA Operations Research Mcq Set 3
  166. MBA Operations Research Mcq Set 4
  167. MBA Operations Research Mcq Set 5
  168. MBA Organisational Behavior Mcq Set 1
  169. MBA Organisational Behavior Mcq Set 2
  170. MBA Organisational Behavior Mcq Set 3
  171. MBA Organisational Behavior Mcq Set 4
  172. MBA Principles and Practices of Management Mcq Set 1
  173. MBA Principles and Practices of Management Mcq Set 2
  174. MBA Principles and Practices of Management Mcq Set 3
  175. MBA Principles and Practices of Management Mcq Set 4
  176. MBA Principles and Practices of Management Mcq Set 5
  177. MBA Principles and Practices of Management Mcq Set 6
  178. MBA Principles and Practices of Management Mcq Set 7
  179. MBA Principles and Practices of Management Mcq Set 8
  180. MBA Principles and Practices of Management Mcq Set 9
  181. MBA Production and Operations Management Mcq Set 1
  182. MBA Production and Operations Management Mcq Set 2
  183. MBA Production and Operations Management Mcq Set 3
  184. MBA Production and Operations Management Mcq Set 4
  185. MBA Production and Operations Management Mcq Set 5
  186. MBA Production and Operations Management Mcq Set 6
  187. MBA Production and Operations Management Mcq Set 7
  188. MBA Production and Operations Management Mcq Set 8
  189. MBA Production and Operations Management Mcq Set 9
  190. MBA Production and Operations Management Mcq Set 10
  191. MBA System Analysis and Design Mcq Set 1
  192. MBA System Analysis and Design Mcq Set 2
  193. MBA System Analysis and Design Mcq Set 3
  194. MBA System Analysis and Design Mcq Set 4
  195. MBA System Analysis and Design Mcq Set 5
  196. MBA System Analysis and Design Mcq Set 6
  197. MBA System Analysis and Design Mcq Set 7
  198. MBA System Analysis and Design Mcq Set 8
  199. MBA System Analysis and Design Mcq Set 9
  200. MBA Total Quality Management Mcq Set 1
  201. MBA Total Quality Management Mcq Set 2
  202. MBA Total Quality Management Mcq Set 3
  203. MBA Total Quality Management Mcq Set 4
  204. MBA Total Quality Management Mcq Set 5
  205. MBA Total Quality Management Mcq Set 6
  206. MBA Total Quality Management Mcq Set 7
  207. MBA Total Quality Management Mcq Set 8
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