Multiple Choice Questions (MCQ) on Accountancy
1- Which of the following is/are not the primary function(s) of accounting?
(A) Comparison & evaluation
(C) Government regulation and taxation
2- _______ means, future liability for capital expenditure in respect of which contracts have been made.
(A) Capital employed
(B) Capital commitment
(C) Capital reserve
(D) Cost of goods sold
3- A _______ is any contract that gives rise to both a financial asset of one enterprise and a financial liability or equity shares of another enterprise
(A) Foreign currency
(B) Financial instrument
(C) Government grant
(D) Intangible asset
4- Ledger is book for _______
(A) Analytical record
(B) Chronological record
(C) Alphabetical record
(D) None of the above
5- _______ are the specific accounting principles and the methods of applying those principles adopted by an enterprise in the preparation and presentation of financial statements
(A) Accounting policies
(B) Mercantile basis of accounting
(C) Annual reports
(D) Capital commitment
6- Which of the following is not regarded as method of redemption of debentures?
(A) By payment in Lumpsum
(B) By payment in installments
(C) By purchase in open market
(D) By conversion into debentures
7- With respect to methods of share valuation, Asset Backing Method is also called as _______
(A) Intrinsic Value Method
(B) Earning Capacity Method
(C) Fair Value Method
(D) Yield-basis Method
8- Which of the following not regarded as main objective of cost accounting?
(A) Ascertainment of cost
(B) Determination of selling price
(C) To provide relevant information for decision making
(D) Managing funds and treasury operations
9- Following costs are incurred when inferior products are delivered to customers.
(A) Prevention costs
(B) Appraisal costs
(C) Internal failure costs
(D) External failure Costs
10- The essential requirements for successful implementation are described as the six C’s of Total Quality Management. Which of the following statement represent the six C’s?
(A) Commitment, Culture, Continuous improvement, Co-operation, Customer focus & Control
(B) Commitment, Cost, Continuous improvement, Co-operation, Customer focus & Control
(C) Commitment, Culture, Continuous improvement, Co-operation, Collaboration & Control
(D) Commitment, Culture, Conservatism, Co-operation, Customer focus & Control
11- Six Sigma is a set of practices originally developed by _______ to systematically improve processes by eliminating defects
12- To avoid Total Quality Paralysis, the principles (called the four P’s) of Total Quality Management should be followed. Which of the following statement represent the four P’s?
(A) People, Process, Problem & Preparation
(B) People, Profit, Problem & Preparation
(C) People, Process, Prudence & Preparation
(D) People, Prudence, Problem & Profit
13- Kanban is a _______ approach to ensuring a continuous supply of inventory or product. Kanbans were designed to support the Just in time (JIT) philosophy.
14- Following refers to the ongoing continuous improvement program that focuses on the reduction of waste in the production process, thereby further lowering costs below the initial targets specified during the design phase.
(A) Six Sigma
(B) Total Quality Management
(C) Kaizen Costing
(D) Life Cycle Costing
15- _______ can be defined as a process of systematic review that is applied to existing product designs in order to compare the function of the product required by a customer to meet their requirements at the lowest cost consistent with the specified performance and reliability needed
(A) Value Analysis
(B) Six Sigma
(C) Kaizen Costing
(D) Target Costing
1-(B), 2-(B), 3-(B), 4-(A), 5-(A), 6-(D), 7-(A), 8-(D), 9-(D), 10-(A), 11-(), 12-(), 13-(A), 14-(C), 15-(A),