Multiple Choice Questions (MCQ) on Accountancy
16- As per the concept of Balanced Scorecard, which of the following objectives will be considered under Financial Perspective?
(A) Improve Return on Investment
(B) Improve Brand Recognition
(C) Improve Product Quality
(D) Expansion of Eco-friendly product line
17- A comparison between the cost of goods sold of two or more firms in the same industry is made easier with the help of:
(A) Comparative Statement of Profit and Loss
(B) Comparative Balance Sheet
(C) Common-size Income Statement
(D) Common-size Balance Sheet
18- The ratios used to measure the effectiveness of the use of capital or assets in a business are known as:
(A) Profitability ratios
(B) Turnover ratios
(C) Solvency ratios
(D) Liquidity ratios
19- Which of the following is considered as Cash flow relating to Investment activity
(A) Cash proceeds from issue of shares
(B) Cash proceeds from sale of fixed assets
(C) Income tax paid
(D) Dividend paid on equity shares
20- _______ is a statement of an estimated performance to be achieved in given time, expressed in currency value or quantity or both
(A) Budget
(B) Budget Center
(C) Budgetary Control
(D) Budget Manual
21- Which of the following means that the responsibility of various levels of management is predetermined in terms of output or result keeping in view the authority vested with them.
(A) Flexible Budget
(B) Cash Budget
(C) Zero Based Budgeting
(D) Performance Budgeting
22- Which of the following is regarded as a External reason for human resource accounting ?
(A) To improve human resource management
(B) To focus on employees as assets
(C) To retain qualified labor force.
(D) To profile the enterprise and improve its image.
23- Management Accounting and Cost Accounting are _______ to each other.
(A) Supplementary
(B) Complementary
(C) Opposite
(D) Independent
24- Which of the following is not a factor to be considered while planning for working capital requirement?
(A) Identify cash balance
(B) Identify level of inventory
(C) Operating efficiency
(D) Ranking of the firm as per industry norms
25- An individual is said to be _______ when he or she attempts to found and build a company from personal finances or from the operating revenues of the new company.
(A) Boot strapping
(B) Angel Investor
(C) Venture capital fund
(D) Business angels
26- Which of the following can be regarded as an emerging trend in finance and accounting?
(A) Cloud-based Accounting
(B) Financial Accounting
(C) Cost Accounting
(D) Human Resource Accounting
27- _______ implies systematic, critical and special examination of the records of a business for a specific purpose
(A) Auditing
(B) Internal Control
(C) Investigation
(D) Accounting
28- Lean system is an organized method for waste minimization without sacrificing productivity within a manufacturing system. There are generally seven types of wastes. Which of the following are the seven wastes?
(A) Underproduction, Inventory, Waiting, Motion, Trading, Rework from defects and Over-Processing.
(B) Overproduction, Idle, Waiting, Merger, Transportation, Rework from defects and Under-Processing
(C) Overproduction, Inventory, Waiting, Motion, Transportation, Rework from defects and Over-Processing.
(D) Overproduction, Insurance, Waiting, Motion, Transportation, Review from defects and Over-Processing
29- There are 4 key components of Business Process Re-engineering. Which of the following are the 4 key components?
i. Fundamental Rethinking ii. Radical Redesign iii. Dramatic Improvements iv. End to End Business Processes v. Value Analysis vi. Cost of Quality
(A) (i), (ii), (iii) and (iv)
(B) (i), (ii), (iii) and (vi)
(C) (i), (ii), (iii) and (v)
(D) (i), (ii), (iv) and (vi)
30- Which of the following are the Six C’s for successful implementation of Total Quality Management?
i. Collaboration ii. Conservation iii. Commitment iv. Culture v. Continuous improvement vi. Co-operation vii. Customer focus viii. Control
(A) (i), (ii), (iii), (iv), (v) and (vi)
(B) (i), (ii), (iv), (v), (vi) and (vii)
(C) (ii), (iv), (v), (vi), (vii) and (viii)
(D) (iii), (iv), (v), (vi), (vii) and (viii)
ANSWERS:
16-(A), 17-(C), 18-(B), 19-(B), 20-(A), 21-(D), 22-(D), 23-(A), 24-(D), 25-(A), 26-(A), 27-(C), 28-(C), 29-(A), 30-(D)