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MCQ Problems / Explanations



The net working capital, being the difference between current assets and current liabilities is a _______.

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The Capital used for meeting routine and repetitive expenses of day to day business operations is called____.

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In deciding the appropriate level of current assets for the firm, management is confronted with _____________.

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__________ is a situation in which actual profits of a company are not sufficient enough to pay interest on debentu...

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___________in accounting, is when the costs to acquire an asset are expensed over the life of that asset rather tha...

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What would be the most likely impact on trade receivables days if invoice discounting was offered to and accepted b...

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…………………..costs are pre-determined targets adainst which actual results are evaluated.

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Planning is that function of ……………………..which requires an efficient system of decision – making.

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……………………..accounting is the adoption and analysis of accounting information and its diagnosis and explanation in su...

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The important objective of …………………..accounting is to organize the accumulated financial data into meaningful inform...

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………………………Accounting is concerned with measurement of the cost and value of people for the organization.

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A budgeting process which demands each manager to justify his entire budget in detail from beginning is

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The ratio which determines the profitability from the shareholder’s point of view is .

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The ratios which reveal the final result of the managerial policies and performance is .

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The ratio analysis is helpful to management in taking several decisions, but as a mechanical substitute for judgeme...

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Determine Working capital turnover ratio if, Current asset is ₹ 1,50,000, current liability is ₹ 1,00,000 & cost of...

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What will be the Gross Profit if , total sales is ₹ 2,60,000,cost of net goods sold is ₹ 2,00,000 & sales return is...

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Stock is considered as a liquid asset as anytime it can be converted into cash immediately.

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Management accounting provides valuable services to management in performing ____

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Management accounting and cost accounting functions are --------------------------

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Management accounting analyses accounting data with the help of -------------------------

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Management accounting relates to ________

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The prime function of management accounting is to -------------------------------

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Management accounting deals only with that information which is useful to the ___________

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Publication of management accounting statements are ______________

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Management accounting provides alternative choices for managerial ___________

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Management accounting helps in ___________ data

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Management accounting has a ___________ scope than cost accounting

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Management accounting is helpful in increasing _______________

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Which of the following is not a technique of management accounting

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Management accounting is also known as _______________

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The term management accounting was used in

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The branch of accounting which primarily deals with processing and presenting accounting data fro internal use is _...

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A budget specifies the operations to be performed during the next year is called __________

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Long period budgets are prepared under

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For preparing an effective budget it needs accounting information which is

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The overall responsibility for the functions of the budget committee lies on the _____________

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Which budget is prepared after the preparation of all functional budgets

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The objectives, procedures, organizational structure and authority and responsibility in writing about a budget is ...

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Profit plan(or budget) is a

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A report comparing actual results with the budget figure is called a ___________

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The budget that summarize future plans for acquisition of plant facilities and equipment is the

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Flexible budgets are useful for

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Which of the following is a budget designed to furnish budgeted costs for any level of activity attained

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The scarce factor of production is known as

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The information to prepare a flexible budget includes:

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AS-3 is related to

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Rent received by a company (whose main business is real estate) is classified as

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Sale of patent is classified under---------

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Profit on sale of machinery comes under------------

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Proposed dividend is classified as-----------

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Cash flow statement is based on----------

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Cash flows include

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Dividend paid under AS- 3 is----------

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Which of the following is not an inflow of cash

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Increase in the amount of bills payable results in----------

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Increase in the amount of bills receivable results in--------------

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Cash from operations is equal to------------------

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Investment costing ₹.50,000 at the loss of ₹.3,000 cash outflow in investing activity is --------

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Preliminary expenses written off is--------

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20,000 equity shares of ₹.10 each issued at 10% premium , cash is ₹-------------------

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Cash payment suppliers of goods and services are shown under-------------.

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Dividend paid are classified under-------------------activities

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Increase in prepaid expenses--------------------cash

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Buy back of shares is shown under-----------------------

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Income tax paid should be shown separately as the cash flows from----------- activities.

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Cash flow statements (based on AS-3) should be prepared and presented under------------------method.

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Cash equivalent are usually of short term but highly -----------------investments

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Cash flow statement is based on past records, so it is---------in nature

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Purchase of building by issue of debenture is a---------item and it is ignored in cash flow statement

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Purchase of fixed asset is classified as------activity

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Provision for tax is shown as a part of-----------activity

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Goodwill written off is-----------to the net profit made during the year for calculating the cash from operation

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Decrease in a creditor is a---------------- of cash

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Cash flow statement is prepared by taking the ------------- balance of cash

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Proposed dividend is a--------

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Which of the following does not affect working capital---------

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Which of the following does not affect the fund flow statement

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Stock in the beginning results in-----------

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Depreciation is a source of fund-------------------

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Stock at the end results in-----------------------

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Salaries ₹.20000,depreciation for the period is ₹.30000 other operating expenses are ₹.9000, net loss for the perio...

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Increase in working capital is-----------------------

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Inflow of fund does not take place due to----------------

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Current liabilities are equals to-------------------------------

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Which of the following is a non-current liability

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Gross profit are ₹.50,000 and expenses not result in the application of funds are ₹.10000 funds from operation will...

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Current assets are ₹.6,00,000 current liabilities are ₹.3,00,000 the debtors realized ₹.40,000, the impact on net w...

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Which of the following is an application of fund

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Which of the following will affect the flow of fund

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Which of the following is non-current asset

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In the fund flow statement, depreciation is----------------

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Funds from operations are --------------of funds

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-------------------means transfer of economic value of firm from one asset or equity to another.

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Net decrease in working capital results in --------------------of funds

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Net increase in working capital results in----------------of funds

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Decrease in current liabilities --------------------working capital

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Increase in current assets-------------working capital

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Increases in current liabilities --------------working capital

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----------account is prepared to know funds from operation

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