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Rv. Row Multiple Choice Questions:: - Chapter - 1: Introduction To Management Accounting
Rv. Row Multiple Choice Questions:: - Chapter - 1: Introduction To Management Accounting
Com | Sam 5,
e CO
ISDS ASEEE A EE SVE AE TORS EG CET
a) %8,00,000 b)
employed
. Refer to question No. 31 and find out capital %35,00,000
ad)
8
b) % 33,00,000 c) % 20,50,000
a) %32,80,000
n No. 31 and find out unsecu red loans
Refer to questio % 13,00,000
#¢
Sales 50,00
Depreciation Ssibo
Operating Expenses 36,00,000
Non-Operating Income 2,00,000
Increase in Inventory 4, 000
Net Prot before tax is ,
a) © 13,50,000 b) %1
99.000 ©) &38,00,000 d) % 54,00,000
317
wee Questions arr
i .
4. Kumar Ltd. furnished the following information :
45 pS 000
rating Profit Before tax 1 60 0.000
provision for Tax 4.00; 000
Non-Operating Income
5.00) 000
pividend Paid e 3.00,000
Transfer to General Reserv
Net profit transferred to balance sheet is
ae ares som
Sun Ltd. for a
g Following information is provided by
zg
20,00,000
Share Cap ita l
5,00,000
Reserves 4,00,000
Debentures
3,00,000
Creditors
will be % 32,00,000
The shareholders fund c) % 29,00,000 000. d)Shareh
7% 25, 00, 000 b) & 20, 00,000 d is € 25, 00, olders fund will be
a) ati ons of fun d amo unt ed to % 40,00,000. Loan fun
g9, Tota l app lic
000 c) % 65,00,000 d) % 10,00,000
20, 00, 000 b) 2 15, 00,
a) * ,
ormations :
9, Soni Ltd. supplied the following inf
z
40,00,000
Fixed Assets 15,00,000
Current Assets 20,00,000
Investments
10,00,000
Current Liabilities 5,00,000
Debentures
Total of sources of fund is c) %70,00,000 4) % 60,00,000
a) % 65,00,000 b) = 55,00,000
lowing information :
61. Moni Ltd. presented the fol z
50,00,000
General Reserve
10,00,000
Securities Premium
60,00,000
Capital Reserve 8,00,000
Proposed Dividend 2,00,000
Creditors
s to
Reserves & Surplus amount c) 2 1,10,00,000 d) 2 70,00,000
b) Zz 60,00,000
a) 2 1,20,00,000
ing information :
62. Z Ltd. furnished the follow z
10,00,000
Fixed Assets
5,00,000
Current Assets 2,00,000
Current Liabilities
Capital Employed is d) % 12,00,000
2 15,00,000 c) 7% 17,00,000
b) (10 —c), (11 -¢), (12 - d),
a) % 13,00,000 (6 —a), (7- a), (8 -— a), (9 -¢),
, (2—a), 3-4(15),- 4),(4b) G~ a), (20 — a), (21 — b), (22 —— a), (23 - b)s
[Aus. (1 —a)—a), (14 —¢), (16 — a), (17 - a), (18 — b), (19 =— b),
a), (31 - b), (32 - a), (33 a), (34 - a),
(13 — ¢), (30
(28 - a), (29
(24 — b), (25 — a), (26 - c), (27 - a), - ©)» (40 — a), (41 — ©), (42 — a), (43 - a), (44
- b), (45 -¢),
(38 - d), (39 (55 — a), (56 — a),
(35 ~ a), (36 - b), (37 - °)» b), (50 - 4), (51 —a), (52 —a), (53 — b), (54 — b),
(48 - a) (49 -
(46 - d), (47 - b), — a), (62 —a)]
(57 — a), (58 — a), (59 - b), (60- a), (61
|
[Chapter 3: Analysis and Interpretation of Financial Statements
is @ tool of
1. ~ Common size statement b) Horizontal analysis
a) Vertical analysis d) Fundamental analysis
c) Technical analysis is also known as
Common size statement b) 100% statement
a) percentage statement d) small sized statement.
¢) most common statement
1 Accounting (F ¥s Came? (enw. my:
”
s erie |
Current Liabilities 2
Long Term Loan 1,440
Equity Share Capital 1,920
Retained Earnings 2.560
Total Liabilities and Share’ | 2.080
How appear inEquity
» long long term | oan willi moldess the « 88.000
25% g
a)Followin formati by 24%” Sze Balance15% Sheet? d) 10%
p. information is extracted fro c)
013 the Annual Report of HCL Ltd.
z a 2015
Sales 6,22 x
Cost of Goods Sold 4 00 bbe 6,50,000 7,13,600
Operatining g Ey Expenses "en,
1,80,000 4,10,000 4,60,000
.60,
Net Operating Profit 42,000 2,00,000 2,00,000
In a common size income statement of 2015 »
oe
Operating expenses
a
are expressed as
a) 25% b) 28.02%
sont “em c) 43% d) 20%
mon size inc
24 . 3)Inacom
64.46% ome aT of 2015 cost of goods sold is expressed as
9, 9,
wh 2 sigh a]
95. In a trend %, statement of income ‘for 2015, , where 2013 is the base year, operating expenses are
expressed as
would increase:
: 2. Which of the following
Debt equity ratio is 1 against purchase of fixed assets
s
a) Issue of debentureom debtors
b) Cash received fr
c) Payment to creditors dit
d) Purchase of goods on * 500,000. Interest = 1, 00,000, interest coverage will be
c) 7 times d) 12 times
. N.P. before interest & tax Stimes
b) 1 4 times, closing stock % 10,000 in excess of opening
a) 4 times stock turnove!
1,00,000,
Cost of goods sold dz < il be
stock, opening & closing stock wil b) % 25,000, & 40,000
a) % 20,000, < 30,000 d) %25,000, % 80,000
fund & 2,40,000, Tax rate
24,00 000, N.P. after interest and tax = 50,000, Proprietors
€) 15,000, employed will be
15% Debentures % 4,00,00U, Z 1,00,000. Return on capital
c) 25% d) 30%
15% pref. share -— 2%
50%.
loyed & 12,00,000, Current Liabilities 1,00,000. Debt Equity Ratio
a) 20% Capitjal emp
Total debt % 9,00,000.
b) 3:1 c) 15:1 d) 2.5:1
will be
a) 2:1 .
322 rw Introduction to Management Accounting (SY B.Com) (Sem py;
51. Debt Equity Ratio is 2. The change in the ratio due it of 2 months j<
to purchaseof fixed meee cok (a) & (b)
a) Increase b) decrease c) No effect Seige 20,000, Preference Capita
52. Shareholders fund is € 80,000, Total debt is % 1,80,000 current liabilities ¥ 20,000,
% 40,000. The capital gearing ratio will be
a) 5:1 b) 4:1
ad 5.511
53. ce) 3:
N.P. before interest & tax is Z 3,20,000 interest is ¥ 40,000. The interest a A tein eis
a) 6times b) 8 times c) 5.5 times
54. Opening Stock is % 20,000 closing stock % 10,000, Purchases = 50,000 wages 3 000, carriage 7 2,000
The stock turnover ratio is
a) 2.33 times b) 3.57 times c) 4.33 times times.
47
55. Cost of goods sold is % 5,40,000. Net Sales % 6,00,000
Sales Returns % 10,000. The G.P. ratio is
a) 20%; b) 15%; c) 12%; d) 10%
56. G.P. Ratio is 20%, Purchase of goods & 20,000 will ; :
a) Increase G.P. b) DecreaseG.P. .c) Nochange in G.P. d) mone € 20006 u
57. Operating Profit Ratio of a company is 20% What is the effect of purchase of goods
YUU on f
operating profit? D
a) Nochange x
b) Increase c) Decrease . z
58. Net Profit afer interest & tax % 2,22,000, Equity Capital (10 each) = 1,00,000. The EPS is ie
a) 20.20 b) 22.20 c) 26 d) 30.35 .
59. EPS % 22.20, P.P. per share € 222. The P/E ratio is
ey
a) 15 b) 10 c) 20 d) 25 :
60. The quick ratio is 2:1 cash received from debtors will
e 4
a) Improve b) Reduce c) Not change
61. :
Net credit sales 1,00,000. Average debtors T 25,000. Collection period is
if
a) 1 Month b) 3 Months c) 5 Months d) 7 Months “
62. Operating Profit ratio if Operating ratio is 85%
. id
a) 15% b) 18% c) 20% d) 25% ey
63. Working Capital is = 1,20,000, Total debt % 2,60,000, Long term
debt & 2,00,000. The current ratio is “a
a) 2:1 b) 1: c) 15:1 d) 3:1 &
64. Current ratio is 4.5, Liquid ratio is 3, Inventory is ¥ 36,000,
the liquid assets will be . i
a) %72,000 b) 2% 78,000 c) % 75,000
65. d) % 65,000 ee
Gross Profit ratio is a
a) Balance sheet ratio 3
b) Revenue statement ratio
c) Combined ratio d) None of the above
66. Buying policies are judged by
a) Gross Profit ratio b) Net Profit ratio c) ROI d) P/E ratio
67. Proprietary ratio is a
a) Balance sheet ratio
b) Revenue statement ratio
c) Combined ratio
d) None to the above
68. Debt Equity Ratio is a
a) Revenue Statement Ratio
b) Balance sheet ratio
c) Combined
n ratio
69. Stock working capital ratio is a
d) None of the above
a) Revenue Statement ratio
c) Combined Tatio b) Balance sheet ratio
70. Administrative expense ratio is a d) None of the above
a) Revenue statement ratio
c) Combin. ed ratio. b) Balance sheet ratio
71. Net operating profit ratio is g d) None of the above o
a) Balance rie
c) Combine: rao b) Revenue statement ratio
72. Operating ratio is a d) None of the above
a) ealance ae ratio
c) Combined b) Revenue statement ratio
ratio
73. ROlisa d) None of the above
a)| Combin
Bala nceedShee t ratio
vain
b) Revenue Statement ratio
d) None of the above
te Questions
_—,
Giosing stock of
Raw materials z
w.LP
20,000
Finished Goods 14,000
purchases
Cost of goods sold 21,000
96,000
Sales
1,40,000
Closing Debtors 1,60,000
Closing Creditors
32,000
No. of days in a year 360 days ie
Refer to the above question ang
answer t i
17. Raw material stock holding period is ne Boning
18. a)et
Shey
Coie holding b)period75 isdays c) 60 daysy 4) 73 days7
a) 97 days b) 46 days
19. Credit period allowed to debtors is ©) 50 days ; a
20.
a) 75 days
Credit period
b) 72 days °) 794 d) 84 days
allowed by creditors is ue ; *
o) 2) Gays b)is 85 days c) 55 days d) 60 days
21. Operating cycle period
a) 146 days b) 141 days c) 165 days d) 190 days
22. Following information is about the firm :
Material storage period 85 days
Finished Goods storage period 10 days
Collection period 30 days
Payment period 24 days
Processing period 15 days
The operating cycle of the firm is : ,
a) 116 days; b) =: 124 days; c) * 90 days; d) 156 days
23. Cost of Material Consumption 67,500
Opening Stock of Materials 12,500
Closing Stock of Materials 10,000
. One year vod i 360 days
ol iesial storag\
storage YD)period ts67 : days; _¢) 85 days; d) 91 days
24. Excessive investment in current assets results in 8) Lew Prodiesity
a) High Profitability 4) b&e
c) High liquidity Its in
25. Inadequate investment in current assets resu b) High profitability
a) Low liquidity d) a&b
c) Low solvency — ts adversely.
26. High investment in inventory affects 2 b) Long term solvency
a) Liquidity — d) None of the above
¢) credit worthiness
27. Higher cash/Bank ee b) _ increases profitability
a) decreases profitabi tr ciency d) None of the above
c) increases operating‘s raised from
28. Working capital finance ! b) Cash credit
a) Bank overdraft d) All of the above
c) Billfinance cludes _
29. Cash working capital ie reciation b) Inventory at cost less depreciation
a) Fixed Assets ar depreciation d) None of the above
c) Inventory at cos
1 Accounting (S.¥.8.Com.) (Sem. -. typ)
men
528 ware Introduction to Manage