Multiple Choice Questions (MCQ) on Management Accounting

11- Profit & Loss Account credit side has

(A) Gross profit

(B) Commission received

(C) Interested received

(D) All of the above

 

12- A started business with cash 5000, building 5000, furniture 2000, having depreciation of 10% on building. The total amount of capital comes to Rs. _______ .

(A) 11,500

(B) 12,000

(C) 12,500

(D) 13,000

 

13- Goods distributed as free sample amounted to Rs. 10,000. Prepare Neonboard Rs. 5000. The total amount transfer to advertisement account is Rs.____

(A) 5,000

(B) 10,000

(C) 15,000

(D) 20,000

 

14- Following error(s) does (do) not affect the trial balance

(A) Error of Principle

(B) Error of Omission

(C) Error of Commission

(D) All of the above

 

15-Dividend received is _________ income.

(A) An operating

(B) A non-operating

(C) Both (A) and (B)

(D) None of the above

 

16- Standard may not be necessarily useful for this purpose.

(A) Forecasting

(B) Coordinating

(C) Planning

(D) None of the above

 

17- If during a month anticipated sales are 5,000 kg, opening stock is 1,000 kg and closing stock is 500 kg then what will be the quantity of production.

(A) 3,500 kg

(B) 4,000 kg

(C) 4,500 kg

(D) 5,000 kg

 

18-The following method(s) is (are) used to measure labour turnover

(A) Separation method

(B) Replacement method

(C) Flux method

(D) All of the above

 

19- If the profit volume ratio is 25%, then the variable cost is equal to ________ of sales value.

(A) 0.25

(B) 0.50

(C) 0.75

(D) 0.90

 

20- Contribution represents pool of resources available for meeting all costs other than ________.

(A) Fixed costs

(B) Variable costs

(C) Labour costs

(D) Material costs

 

ANSWERS:

11-(D), 12-(A), 13-(C), 14-(D), 15-(B), 16-(A), 17-(C), 18-(D), 19-(C), 20-(B)