Objective type Questions on Business Management
1- Among the following who is not an external user of accounting information?
A:- Creditors and Lenders
B:- Owners and Managers
C:- Government
D:- None
2- What is GAAP?
A:- Generally Agreed Accounting principles
B:- Government Approved Accounting Practices
C:- Generally Accepted Auditing Practices
D:- Generally Accepted Accounting Principles
3- A business records a financial transaction in the period it occurs. Which accounting concept applies here?
A:- Money measurement concept
B:- Accrual concept
C:- Accounting period concept
D:- Business entity concept
4- In Accounting AR stands for
A:- Audited report
B:- Annual report
C:- Account receivable
D:- Agreement receivable
5- Which statement helps to assess the financial position of an organization?
A:- Trading account
B:- Profit/Loss Statement
C:- Cash flow statement
D:- Balance Sheet
6- Provision for bad debt is created from
A:- Gross profit
B:- Net profit
C:- Debtors
D:- None of these
7- Discounts on the issue of shares and capitalized expenditures are examples of:
A:- Current assets
B:- Fictitious assets
C:- Fixed assets
D:- Current liabilities
8- The costing method best suitable for the pharmaceutical industry is
A:- Job costing
B:- Process costing
C:- Unit Costing
D:- Batch costing
9- Which of the following is NOT an objective of Cost Accounting?
A:- Cost Elimination
B:- Cost Ascertainment
C:- Cost Control
D:- Cost Reduction
10- Which one is NOT a feature of Oligopoly
A:- Free Entry and Exit of firms
B:- Identical products
C:- Possibility of collusion
D:- Interdependence of firms
ANSWERS:
1-(B), 2-(D), 3-(B), 4-(C), 5-(D), 6-(C), 7-(B), 8-(D), 9-(A), 10-(A)