1
Financial and Management Accounting
Unit1 - 4 Mark Quiz Questions
1.Capital Interchange of Goods on a w ide
Spread level Commerce Mechanism to keep
information on Permanent basis Private
property Change of owner Ship form one to
another.Money A medium of Exchange
Writing Wealth that creates
2.Book keeping and accounting seem to be
synonymous. But they are different in certain
respects. Basing on the differences, match the
following.
Book-Keeping Accounting
1.Process a. Final accounts e.Book keeping
2.Purpose b. Transactions f.Analytical
3.Basis c. Repetitive g.Reporting
4. Nature of
work
d. Recording
h.Interpreting &
presenting the final
accounts
a. 1 – a, h; 2 – b, f; 3 – c, e;
4 – d, g
b. 1 – d, h ; 2 – a, g ; 3 – b, e
; 4 – c, f
c. 1 - b, f ; 2 - c ; h; 3 - d, g;
4 - a, e
d. 1 - c, g ; 2 - b, f ; 3 - a, h;
4 – d, e
Unit2 - 4 Mark Quiz Questions
1.The firm has certain stock, which is in high
demand and
has high market value. The firm followed cost
method of
valuation.
Consistency concept
A business makes a loss in an year, but the
business shall
continue for long time
Materiality concept
Accountant of a firm is worried with the total
amount of
drawings, the partner made. He need not worry
hoiw did he
spend it because of "
Going concern concept
If a firm believes that some of the debtors are
likely to
become bad for which some reserve is to be
provided
Prudence concept
2."Moolchand, a businessman in sweets has
been in this business for more than
10 years. He did not bother to maintain any
accounts all along, even though he was
getting sizeable amount of profit every year. His
son, who has completed B.Com told him
that mai"
Answer for 'a' What concept of Accounting is
missing??
a. C. Money measurement concept
b. Accrual concept
c. Concept of periodicity
d. Concept of income recognition
3."Moolchand, a businessman in sweets has
been in this business for more than
10 years. He did not bother to maintain any
accounts all along, even though he was
getting sizeable amount of profit every year. His
son, who has completed B.Com told him
that mai"
Answer for 'b' How much expenses should be
considered for 2005?
a. Rs. 1,00,000 on an average after deducting
the cost of shop
b. Rs. 3,00,000
c. Rs. 1,50,000
d. Rs. 1,05,000 because Rs.10,50,000 is divided
by 10 years
4."Moolchand, a businessman in sweets has
been in this business for more than
10 years. He did not bother to maintain any
accounts all along, even though he was
getting sizeable amount of profit every year. His
son, who has completed B.Com told him
that mai"
Answer for 'c' How do you treat expenses on
shop construction?
a. The expenses belong to the past.
b. The expenses are business expenses
c. The expenses are part and parcel of revenue
expenses
d. The expenses are capital in nature and should
be excluded from total.
2
5."Moolchand, a businessman in sweets has
been in this business for more than
10 years. He did not bother to maintain any
accounts all along, even though he was
getting sizeable amount of profit every year. His
son, who has completed B.Com told him
that mai"
Answer for 'd' What is approximate profit or
loss for 2005?
a. Rs. 4,00,000
b. Rs. 3,00,000
c. Rs. 5,00,000
d. Rs. 2.95,000
6.Mr. Murthy is the Managing Director of Sole
Divine Company, purchased a big truck
for Rs. 15,00,000 on cash for publicity and
delivery from Tata Mohan Co. The Sole
Divine company is organised as a company with
Mr. Ekanth Ram as the sole shareholder.
Accor
a. Ekanth Ram and Tata Mohan Company
b. Mr. Murthy and Sole Divine Company
c. Mr. Murthy and Ekanth Ram
d. Sole Divine Company and Tata Mohan
Company
7.New Horizon Company has capital of 1,00,000
shares of Rs.100 each. Mr. Mahendra
holds 2000 shares fully paid. The company
proposed an annual dividend of 10%. Based
on this back ground, the accountant of Mr.
Mahendra recognised Rs.20,000 as dividend
for the
a. Consider the dividend of Rs. 20,000 for 2004-
05 and the balance Rs.10,000
received in June 2005, is consdered for 2005-06.
b. Dividend of Rs. 30,000 should be taken for
the year 2005-06 but not for the year
2004-05 since dividend is recognised when
there is a right to receive.
c. C.Whatever dividend recognised in 2004-05
may be cancelled and Rs. 30,000
paid in 2005-06 may be freshly considered
d. Since income is recognised when it is
received, consider the dividend of Rs.
30,000 for the year 2004-05, even though it is
actually received in 2005-06
8.The Directors of Chintan Ltd., decided on 31st
March, 2006, to increase the sale of its
products by 10%, on sales taking place from
June 30, 2006 on wards. The intimation
regarding the same was sent to all the
customers by June15th, 2006. From which date
a. Income is recognised only when it is received.
So even if the customers were to
accept the hike in 2007-08, then it will be
recognised
b. The revenue as a result of increase in sale
price can be recognised from June 15th
2006 itself because ultimate collection of
money is also certain
c. The revenue as a result of increase in sale
price is recognised in 2006-07 when
the sale price at increased rate begins to flow in
d. The revenue as a result of increase in sale
price can be recognised, only if
customers accept the decision.
Unit3 - 4 Mark Quiz Questions
1.Prepaid expenses Nominal (Income)
Larsen & Toubro A/c Intangible real
Goodwill Personal
Royalty received Nominal (Expenses)
Printing & Stionery Nominal (Expenses)
a. b
b. a
c. d
d. c
1.Mention the sequential order in which the
accounting trail
takes place
Mention the sequential order in which the
accounting trail takes place
a. i) Ledger posting ii) Recording and classifying
iii) Trial balance iv) Balancing v)
Trading and P&L A/c v)Balance Sheet
b. "A. i) Classifying and recording ii) Trial
Balance iii) Ledger Posting iv)
Balance.Sheet v)Trading and P&L A/c vi)
Balancing"
c. i) Classifying and recording ii) Ledger posting
iii) Balancing iv) Trial balance v)
Trading and P7L A/c vi) Balance Sheet
d. i) Balance Sheet ii) Trial Balance iii) Trading
and P&LA/c iv) Balancing v)
Ledger posting vi) Classifying and recording
2.On January 1 st, 2004 Rakesh Gen Stores had
assets of Rs. 1,85,000 and liabilities of
3

Rs. 1,00,000. On Dec,31st 2004, the business Transation A/C Debited& credited Narration
had assets of Rs. 2,40,000 and liabilities of 1.Rent received a. P& L a/c capital e. Being
Rs.1,20,000. During the year 2004, Rakesh had profit added to capital
invested additional capital of Rs. 50,000 2.Wages paid b.Creditors a/c cash f. Being cash
and withdrew Rs. 30,000. Compute net prfit or received as rent
net loss using accounting equation 3.Profits added to capital c. cash & rent g.Being
method. cash paid to creditors
a. Rs. 50,000 4.Paid to creditors d. Wages a/c & cash h.Being
b. Rs. 45,000 wages paid in cash
c. Rs.. 65,000 a. 1- b & g, 2- c & g, 3- d & h, 4- c & e
d. Rs. 25,000 b. 1-c & f, 2-d & h, 3-a & e, 4- b & g
Unit4 - 4 Mark Quiz Questions c. 1- d & e, 2-a & h, 3- b & e, 4- a & f
1.Complete the following matrix by entering d. 1- a & e, 2 - b & f, 3- c & g, 4- d & h
either debit or credit in each cell, as shown 4.Match the following
below 1. Bills Receivable
owners capital, To Increase - credit To a. Accepted a bill in favour of Y for 3 months for
Decreases - debit credit purchases
1. Assets made
2. Gains 2. Bills Payable b. Royolty received in cash
3. Losses 3. Cash book c. stamps and postage expenses
4. Liabilities recorded
a. c. Credit & debit, debit & credit, credit & 4. Petty cash d. Gave us a bill for 4 months for
debit, debit & credit credit sales made to him
b. a. Debit & credit, credt& debit , debit & a. 1-b,2-c,3-d,4-a
credit, credit & debit b. 1-d,2-a,3-b,4-c
c. d. Debit & credit, debit & credit, debit & c. 1-c,2-d,3-a,4-b
credit, debit & credit d. 1-a,2-b,3-c,4-d
d. b. Debit & debit , credit & credit, credit & 5.Match the following
debit, credit & debit Subsidiary Book Transaction
2.Listed below a number of transactions. 1. Purchases
Identify which account to be debited and which a. Raghavendra purchased goods from us as
account to be credited, as shown for the first credit
transaction 2. Purchase Returns b. Bought goods from
Transation Debit credit ration and Co
Brought capital in cash cash capital 3. Sales c. Gupts returned goods to us
1.Received Dividend from X co 4. Sales Returns d. Padmanebts received goods
2.Paid insurance premium returned by us
3 Furniture bought from jains a. 1-c, 2-d,3-a,4-b
4.Used cash for personal purpose b. 1-a,2-b,3-c,4-d
a. Cash & Dividend Premium & cash Furniture & c. 1-d,2-c,3-b,4-a
jains Drawing & cash d. 1-b,2-d,3-a,4-c
b. X co & Dividend cash & lusur Jains & cash Unit5 - 4 Mark Quiz Questions
Drawing & bank 1.Following is the account of Hamid Bros.
c. Cash & X co lnsur &cash Furniture & cash Prepare journal entries
cash & bank A. i) Hamid Bros. A/c Dr 26,000 ii) Hamid Bros
d. Dividend & X Co his & premium Jain & A/c Dr 1,000
Furniture Cash & drawings To Sales a/c 26,000 To interest a/c 1,000
3.Match the following iii) Cash a/c Dr 12,000 iv) B/R a/c Dr6,000
4
To Hamid Bros a/c 12,000 To Hamid Bros
a/c6,000
B. i) Hamid Bros a/c Dr 12,000 ii) Hamid Bros a/c
Dr 6,000
To Cash a/c 12,000 To B / R a/c 6,000
iii) Hamid Bros a/c Dr 26,000 iv) Hamid Bros a/c
Dr 1,000
To Sales a/c 26,000 To interest a/c 1,000
C. i) Sales a/c Dr 26,000 ii) Inrterest a/c Dr 1,000
To Hamid Bros a/c 26,000 To Hamid Bros a/c
1000
iii) B / R a/c Dr 6,000 iv) Cash a/c Dr 12,000
To Hamid Bros a/c 6,000 To Hamid Bros a/c
12,000
D. i) Hamid Bros a/c Dr 12,000 ii) B/R a/c Dr
6,000
To cash a/c 12,000 To Hamid Bros a/c 6000
iii) Hamid Bros a/c Dr 26,000 iv) Hamid Bros a/c
Dr 1,000
To Sales a/c 26,000 To Interest a/c 1,000
a. c
b. a
c. d
d. b
To balance b / d Rs 5,000 By Cash Rs
12,000
To Sales 26,000 By Bills receivable 6,000
To interest 1,000 By balance
c /d
14,000
32,000 32,000
2.Match the following
. credited along with capital
a. i - c; ii - d iii - b; iv - a
b. i - a; ii - b; iii - d; iv - c
c. i - b ; ii - c iii - a; iv - d
d. i -d; ii - a; iii - c; iv - b
3.On 01-04-2006 Mr. Dhanpal started business
with Rs.2,00,000 cash and opened a bank
account with Rs.1,50,000. He purchased
furniture for his business for Rs.25,000. Goods
were bought from Deendayal for Rs.50,000 on
credit. He sold goods for Rs.27,000 in
cash and 30,000 on credit. He paid Rs. 2,500 for
business expenses during April month.
Rs. 10,000 was withdrawn for office purposes
from the bank. Find out the closing
balance of cash and bank.
a. Cash balance Rs. 99,500 and bank balance Rs.
1,20,000
b. Cash balance Rs. 99,500 and bank balance Rs.
1,40,000
c. Cash balance Rs. 90,000 and bank balance Rs.
1,30,000
d. Cash balance Rs. 99,000 and bank balance Rs.
1,40,000
4.On 1-1-2004 Debtor's account showed a debit
balance of Rs.45000 in the books of
Subramanyam. During the month of January,
2004, an amount of Rs20,000 was received
from debtors. A further sale of Rs.30,000 was
made to the debtors. Some debtors
accepted bills for Rs.20,000 and they were
allowed a discount of Rs.1,000, Prepare
debtor's account and show the closing balance.
a. Rs. 40,000
b. Rs. 34,000
c. Rs. 46,000
d. Rs. 35,000
Transaction Nature of Entry
i).Rent received in advance deducted
from rent received account
a. Opening entry
ii) Stock at the end of the year taken
to credit side of tranding account
b. Rectification entry
iii) Sales a/c is undercast, corrected in
Journal proper
c. Adjusting entry
iv) Assets are debited, liabilities are
d. Closing entry
5.The following are the transactions with
respect to goods traded by Gopal. You are
required to find out the closing stock on 31 -1-
2005. Also find how much is still due to
Suresh.?
i) Purchased goods worth Rs.50,000 on 1-1-
2005 for cash
ii) Sold goods costing Rs.20,000 for Rs.30,000 on
cash
iii) Bought goods Rs.45,000 from Suresh & Co
on credit
iv) Paid Rs.30,000 to Suresh who gave us a
discount of Rs1,000
5
v) Sold goods Rs.23,000 but their cost is
Rs.12,000 for cash
vi) Sold goods to Gangadhar for Rs12,000 on
credit,(cost Rs 9000)
vii) Received cash from Gangadhar Rs.11,500 in
full settlement.
viii) Paid carriage charges on the goods
purchased Rs.2,000.
a. Rs.30,000 ; Suresh a/c Rs. 14,000 (credit).
b. Rs. 54,000 and Suresh account Rs.
14,000( Credit)
c. Rs. 30,000 and Suresh account Rs. 15,000
(Credit)
d. Rs. 54,000 and Suresh a/c Rs. 15,000 (Credit)
Unit6 - 4 Mark Quiz Questions
1.Prepare a suspense a/c after rectifying the
following errors and show the balance
i) Equipment purchased from Dell Rs.74,587 has
been posted to Purchases
account as Rs. 74,857.
ii) Rajesh account instead of being debited, has
been credited to Rajewari account Rs.
3,800
iii) Rent paid to land lord has been debited to
land lord account Rs.12,000
iv) Sales returns book has been over cast by Rs.
120.
a. Rs. Debit balance of Rs. 7,110
b. Rs. Credit balance of Rs. 7,210
c. Rs. Debit balance of Rs. 7,200
d. Rs. Credit balance of Rs. 7,100
2.Match the following
1. Cost of goods sold+Gross
profit
a. opening stock
2. Operating profit+operating
expenses
b. cost of goods available for sale
3. Cost of goods availabe for
sale - cost of purchases
c. Net sales
4. Closing stock + cost of goods
sold
d. Total operating incomes
a. 1 - b; 2 - c; 3 -
d; 4 - b
b. 1 - a; 2 - b; 3 -
c; 4 - d
c. 1 - c; 2 - d; 3 -
a; 4 - b
d. 1 - d; 2 - a; 3 -
b; 4 - c
Unit7 - 4 Mark Quiz Questions
1.Shobha Company had the following data for
the year 2005.
Gross credit sales at catalogue price Rs. 85,000;
trade
discount allowed Rs.13,500; cash received from
customers on account Rs. 65,000; sales
returns and allowances amounted to Rs.4,600;
sales discounts Rs. 6,000 and cash sales ,
Rs.14,000. Find out sales that would appear on
the trading account for the year.
a. Rs. 80,900
b. Rs. 74,900
c. Rs. 79,800
d. Rs. 80,000
Unit8 - 4 Mark Quiz Questions
1.Accounting principles are man-made unlike
the principles of natural science,
accounting principles were not deducted from
axioms, nor is their validity verificable by
observation and experiment. They have been
evolved on “necessity is the mother of
invention”. Based on this the, special features
of management accounting can be drawn
match the correct answer.
Features Characteristics
1. Selective in nature a. Encourages all
employees for contribution
2. Provides data b. Planning for future decision
3. Future oriented c. Picks up relevant data
4. Goal congruence d. Supply of information
a. 1-c, 2-d, 3-b, 4-a
b. 1-a, 2-b, 3-c, 4-d
c. 1-b, 2-c, 3-a, 4-b
d. 1-d, 2-a, 3-b, 4-c
2.Match the following
1. BEP belong to a. Standard costing
2. Budgeting belongs to b. Marginal costing
3. Ratio analysis c. Budgetary costing
4. Variance analysis d. Financial statements
a. 2-d, 3-b, 4-c, 1-d
b. 1-d, 2-a, 3-c, 4-b
c. 4-a, 3-c, 2-d, 1-b
d. 1-b, 2-b, 3-d, 4-a
6

3.Match the following a. 3,15,000

1. Cause and effect b. 3,05,000
relationship c. 3,00,000
a. Guide future plan and decision making d. 3,10,000
2. Non-adherence of 4.The current liability is
Rules a. 2,10,000
b. Emphasis on system theory. b. 2,20,000
3. Economic reality c. Utility of information c. 2,00,000
4. Information system d. 2,05,000
d. Differentiate variable on the profits and 5.The liquid asset are
Profitably a. 2,10,000
a. 1-b, 2-a, 3-c, 4-d b. 2,50,000
b. 1-a, 2-d, 3-b, 4-c c. 2,49,000
c. 1-d, 2-c, 3-a, 4-b d. 2,51,00,000
d. 1-e, 2-b, 3-a, 4-d 6.The working capital is Rs 80,000 and current
4.Match the following ratio is 5, the current liability is
1. Management accounting a. 21,000
deals with b. 22,000
a. External use c. 20,000
2. Financial accounting deals d. 23,000
with Unit10 - 4 Mark Quiz Questions
b. Internal use 1.The opening and closing of share capital is Rs
3 Cost accounting deals with c. Employees. 6,00,000 and Rs 9,50,000. The
4. Human Resource preference share capital included in opening
Accounting deals with balance is Rs 1,00,000, Rs 75,000 worth of
d. Production preference shares were redeemed at 8%
a. 1-c, 2-a, 3-b, 4-d premium. Bonus shares at Rs 1 for every five
b. 1-d,2-c, 3-c, 4-a shares held. furchier, a business was purchased
c. 1-b, 2-a, 3-d, 4-c by issue of Rs 90,000 shares at a premium
d. 2-d, 3-a, 2-c, 1-b of 10%. The opening and closing balance in
Unit9 - 4 Mark Quiz Questions premium account is Rs 8,00,000 and
1.Current ratio is 5.5 :1 quick ratio is 4 to 1 14,00,000 respectively
inventory is Rs 30,000, find the current If preference shares are considered in openning
liabilities balance the flows from equity is
a. 21,000 a. 4,50,000
b. 19,000 b. 4,05,000
c. 22,000 c. 4,50,000
d. 20,000 d. 3,50,000
2.Given current ratio is 1.75, liquid ratio is 1.25, 2.The opening and closing of share capital is Rs
net net working capital is Rs 1,50,000 6,00,000 and Rs 9,50,000. The
the current assets is. Calculate the following preference share capital included in opening
current asset is balance is Rs 1,00,000, Rs 75,000 worth of
a. 3,50,000 preference shares were redeemed at 8%
b. 3,53,000 premium. Bonus shares at Rs 1 for every five
c. 3,45,000 shares held. furchier, a business was purchased
d. 3,52,000 by issue of Rs 90,000 shares at a premium
3.Given current ratio is 2.5 and working capital of 10%. The opening and closing balance in
is Rs 1,80,000. the current asset is premium account is Rs 8,00,000 and
7
14,00,000 respectively
Premium on redemption at 8% is
a. Rs 6000
b. Rs 8000
c. Rs 2000
d. Rs 4000
3.The opening and closing of share capital is Rs
6,00,000 and Rs 9,50,000. The
preference share capital included in opening
balance is Rs 1,00,000, Rs 75,000 worth of
preference shares were redeemed at 8%
premium. Bonus shares at Rs 1 for every five
shares held. furchier, a business was purchased
by issue of Rs 90,000 shares at a premium
of 10%. The opening and closing balance in
premium account is Rs 8,00,000 and
14,00,000 respectively
Redemption of Rs 75,000 on preference shares
result in
a. cash adjustment with equility
b. cash inflow
c. cash outflow
d. cash deduction from equility
4.The opening and closing of share capital is Rs
6,00,000 and Rs 9,50,000. The
preference share capital included in opening
balance is Rs 1,00,000, Rs 75,000 worth of
preference shares were redeemed at 8%
premium. Bonus shares at Rs 1 for every five
shares held. furchier, a business was purchased
by issue of Rs 90,000 shares at a premium
of 10%. The opening and closing balance in
premium account is Rs 8,00,000 and
14,00,000 respectively
The cash inflows before are adjustment are
a. 3,00,000
b. 3,50,000
c. 3,05,000
d. 15,50,000
5.The opening and closing of share capital is Rs
6,00,000 and Rs 9,50,000. The
preference share capital included in opening
balance is Rs 1,00,000, Rs 75,000 worth of
preference shares were redeemed at 8%
premium. Bonus shares at Rs 1 for every five
shares held. furchier, a business was purchased
by issue of Rs 90,000 shares at a premium
of 10%. The opening and closing balance in
premium account is Rs 8,00,000 and
14,00,000 respectively Bonus shares on equity
without preference shares is
a. Rs 1,00,000
b. Rs 1,40,000
c. Rs 1, 41,000
d. Rs 1,04,000
6.The opening and closing of share capital is Rs
6,00,000 and Rs 9,50,000. The
preference share capital included in opening
balance is Rs 1,00,000, Rs 75,000 worth of
preference shares were redeemed at 8%
premium. Bonus shares at Rs 1 for every five
shares held. furchier, a business was purchased
by issue of Rs 90,000 shares at a premium
of 10%. The opening and closing balance in
premium account is Rs 8,00,000 and
14,00,000 respectively Bonus shares after taking
preference shares
a. Rs 1,02,000
b. Rs 1,00,000
c. None
d. Rs 1,05,000
7.The opening and closing of share capital is Rs
6,00,000 and Rs 9,50,000. The
preference share capital included in opening
balance is Rs 1,00,000, Rs 75,000 worth of
preference shares were redeemed at 8%
premium. Bonus shares at Rs 1 for every five
shares held. furchier, a business was purchased
by issue of Rs 90,000 shares at a premium
of 10%. The opening and closing balance in
premium account is Rs 8,00,000 and
14,00,000 respectively Bonus shares are
_____________ to equility share capital
a. Deducted
b. Added
c. Decided
d. Deleted
8.The opening and closing of share capital is Rs
6,00,000 and Rs 9,50,000. The
preference share capital included in opening
balance is Rs 1,00,000, Rs 75,000 worth of
preference shares were redeemed at 8%
premium. Bonus shares at Rs 1 for every five
shares held. furchier, a business was purchased
by issue of Rs 90,000 shares at a premium
8

of 10%. The opening and closing balance in 2."Operating loss is 10,000 Decrease in debtors
premium account is Rs 8,00,000 and Rs 12,000 increase in prepaid 4,000.
14,00,000 respectively Bonus shares bring in decrease in current liabilities Rs 30,000 net cash
a. No cash used in operating activities"
b. None a. 23,000
c. Cash outflow b. 25,000
d. Cash inflow c. 24,000
9.The opening and closing of share capital is Rs d. 32,000
6,00,000 and Rs 9,50,000. The 3."The opening and closing value of land is Rs
preference share capital included in opening 12,000 and Rs 10,800. A piece of land has
balance is Rs 1,00,000, Rs 75,000 worth of been sold for Rs2,400 at a profit of 100% the
preference shares were redeemed at 8% operating gain is "
premium. Bonus shares at Rs 1 for every five a. 2,000
shares held. furchier, a business was purchased b. 2,600
by issue of Rs 90,000 shares at a premium c. 1,200
of 10%. The opening and closing balance in d. 2,400
premium account is Rs 8,00,000 and 4.Cash and cash equivalent of cash in hand is Rs
14,00,000 respectively Bonus shares are 1200 and bank OD is Rs 12,500 is
calculated on a. 11,300
a. Called-up b. 17,300
b. Authorised capital c. 13,700
c. Paid up d. 11,300
d. Issued 5.Cash in hand is Rs 10,000, cash at bank is Rs
10.The opening and closing of share capital is Rs 5,000, the cash and cash equident is
6,00,000 and Rs 9,50,000. The a. 18,000
preference share capital included in opening b. 2,000
balance is Rs 1,00,000, Rs 75,000 worth of c. 2,000
preference shares were redeemed at 8% d. 18,000
premium. Bonus shares at Rs 1 for every five 6.Investment costing Rs 20,000 were sold at a
shares held. furchier, a business was purchased profit of Rs 5,000 the cash flow is
by issue of Rs 90,000 shares at a premium a. 25,000
of 10%. The opening and closing balance in b. 20,000
premium account is Rs 8,00,000 and c. 30,000
14,00,000 respectively Issue of the 90,000 d. 15,000
shares towards purchase consideration results 7.Net loss is Rs 45,000 Decrease in provision for
in bad and doubtful debt is Rs 1000, the
a. Reduction operating loss is
b. Recession a. 46,000
c. Rejection b. 48,000
d. Remission c. 45,000
Unit11 - 4 Mark Quiz Questions d. 44,000
1."Given net profit is Rs 45,000.loss on sale of 8.Net profit is Rs 40,000; tax paid is Rs 9,000,
machinery is Rs 2000. Depreciation is Rs the profit before tax is
18,000. Funds from operation are." a. 30,000
a. 56,000 b. 40,000
b. 20,000 c. 31,000
c. 65,000 d. 49,000
d. 47,000
9

9.Opening and closing capital is Rs 7,00,000 and d. Sales

Rs 5,80,000, the net loss is 8.Total cost - selling overhads is
a. 12,80,600 a. Sales
b. 1,21,000 b. Cost of product
c. Nil c. None
d. 1,20,000 d. Cost of sales
10.Purchase of asset Rs 3,00,000 sale of Unit13 - 4 Mark Quiz Questions
building Rs 2,90,000 net cash under investing is 1.BEP is 1000 units CPU is Rs 5 the fixed cost is
a. 5,80,000 a. 5200
b. 5,60,000 b. None
c. 5,90,000 c. 5100
d. 10,000 d. 5000
Unit12 - 4 Mark Quiz Questions 2.BEP is Rs 10,000, CPU Rs 2 ,Total fixed cost is
1.Cost of production - administration overheads a. 1500
is b. 1000
a. Factory cost c. 1800
b. Prime cost d. 1200
c. Factory overheads 3.BEP is Rs 30,000, MOS is Rs 50,000 actual
d. All sales is
2.Direct labor + factory overhead is a. 82000
a. Concession cost b. 81000
b. Contradiction cost c. 80000
c. Confusion cost d. 83000
d. Converation cost 4.FC is Rs 10,000, CPU is Rs 5 ,BEP in units are
3.Prime cost + factory + admin overheads is a. 2100
a. Cost of sales b. 2500
b. Sales c. 2200
c. All d. 2000
d. Cost of production 5.FC is Rs 10,000, VC per unit is Rs 8, SP is Rs 10
4.Prime cost + factory overhead is per unit, the BEP in units is
a. Sales a. 5100
b. Total cost b. 5200
c. Factory cost c. 5000
d. Totality cost d. 5300
5.Prime cost + over heads is 6.FC is Rs 7,000 profit is Rs 3,000 sales are Rs
a. All 50,000, the MCSR is
b. Cost of sales a. 0.25
c. Cost of goods sold b. none
d. Cost of production c. 0.1
6.Sales-profit is d. 0.2
a. Retail cost 7.MCSR is 30 % , marginal sales ratio is 40% ,the
b. All profit percentage on sale is
c. Removal cost a. 12
d. Total cost b. 21
7.Total cost + profit is c. 30
a. Prime cost d. 25
b. Factory cost 8.MCSR is 40% sales value is Rs 10,000, the
c. Cost of production variable cost is
10

a. 6000 5.Opening and closing balance of cash in April

b. 8000 are Rs 15,000 and Rs 27,200. The
c. 5000 expenses use Rs 71,800, the receipts are
d. 4000 a. 1,52,600
9.Net profit is 10% , MCSR is 50% the MOS is b. 1,25,000
a. 0.1 c. 1,56,200
b. 0.25 d. 99000
c. None Unit15 - 4 Mark Quiz Questions
d. 0.2 1.Actual material cost is 900 units.Unit price is
10.When MCSR is 50%, MOS is 40 % ,profit on Rs 9, standard cost is 1000 units at Rs 6
sales is per unit Material cost variance is Rs 550(A) and
a. 0.25 material price variance is Rs 150(F),
b. 0.2 material usage variance is
c. 33.3333333333333 a. 700(A)
d. All b. 400(F)
Unit14 - 4 Mark Quiz Questions c. 700(F)
1."Wages paid July Rs 32,000, Aug Rs 32,000, d. 400(A)
Sept Rs 32,000, Oct Rs 40,000 Nov 2.Actual material cost is 900 units.Unit price is
32,000. Lag in payment for wages 1/8 month. Rs 9, standard cost is 1000 units at Rs 6
The amount of budget is for Sept, Oct, Nov per unit Material price variance is
is a. 1200(A)
a. 33,000, 33,000, 39,000 b. 1800(A)
b. 32,000, 33,000, 39,000 c. 2400(F)
c. 39,000, 32,000, 33,000 d. 600(F)
d. 32,000, 39,000, 33,000 3.Actual material cost is 900 units.Unit price is
2.Cash balance at close of April Rs 27,200 Rs 9, standard cost is 1000 units at Rs 6
Receipts of may Rs 1,14,200 and payments Rs per unit Material usage variance is
78,500 the closing balance of may is a. 1000 (A)
a. 53700 b. 2000 (A)
b. 35070 c. 1800 (F)
c. 35700 d. 600 (F)
d. 37500 4.Actual material cost is 900 units.Unit price is
3.Closing balance of June is Rs 48,700, Rs 9, standard cost is 1000 units at Rs 6
payments are Rs 69,000 receipts are Rs per unit Materials cost variance is
1,17,700 a. 1200 (A)
the opening balance is b. 2400 (F)
a. 87400 c. 2400 (F)
b. 47800 d. 1200 (F)
c. 78400 5.Actual material cost is 900 units.Unit price is
d. 48700 Rs 9, standard cost is 1000 units at Rs 6
4.Factory expenses from July to Nov is Rs 5,000 per unit MMV is Rs 19,000(a) MYV Rs 34,000(a)
each . Lag in payments is 1/2 month. MPV is Rs 13,000(a), material quanty
The expenses from Sept to Nov are variance is
a. 5,000, 6,000, 4,000 a. 53,000(A)
b. 5,000 , 5,000 , 5,000 b. 47,000(A)
c. 5,000, 6,000 c. 66,000(A)
d. none d. 32,000(A)
11
6.Actual material cost is 900 units.Unit price is
Rs 9, standard cost is 1000 units at Rs 6
per unit MPV is Rs 300(A) MMV 150(A),
Material quantity variance is
a. 500(A)
b. 100(A)
c. 400(A)
d. 100(F)
7.Material requirement 80 Kgs cost per Kg Rs
1.50 Material consumed 75 Kgs cost per
Kg 1.75 Material Price Variance to
a. 81.75(F)
b. 18.75(F)
c. 81.75(A)
d. 18.75(A)
8.Material requirement 80 Kgs cost per Kg Rs
1.50 Material consumed 75 Kgs cost per
Kg 1.75 Material Usage Variance is
a. 7.50(F)
b. 7.00(A)
c. 7.8
d. 7.50(A)
9.Material requirement 80 Kgs cost per Kg Rs
1.50 Material consumed 75 Kgs cost per
Kg 1.75 Materuak Cost Variance is
a. 11.25(A)
b. 11.25(F)
c. 12.51(F)
d. 12.51(A)
10.Material requirement 80 Kgs cost per Kg Rs
1.50 Material consumed 75 Kgs cost per
Kg 1.75 Production of certain unit is assumed fo
require 18 hours labor at a rate of Rs
1.25 per hour Time taken was 16 hours with a
rate of Rs 1.50 per hours The price
variance is
a. 4(F)
b. 4.10(A)
c. 4.10(F)
d. 4(A)
Financial and Management Accounting
Unit1 - 1 Mark Quiz Questions
1.Accounting was practiced through the means
of cones, discs, spheres and pellets representing
the token to measure commodities like sheep,
clothing or bread. In which civilization this type
of practice was prevalent?
a. Babylonia
b. Rome
c. Indian civilization
d. America
2.Indicate the best answer for the question as
what is the primary function of book keeping.
a. Recording economic data
b. Calculate profit and loss at the end of an
accounting period
c. Classification and recording business
transactions
d. Obtain non economic data
3.One of the ingredients responsible for the
creation of double entry book keeping is
Private property. What does this mean?
a. Right to modify the ownership of goods
b. Power to transfer physical possession of
goods
c. Right to transfer public property from one
person to another.
d. Right to transfer ownership of goods from one
person to another
4.The scope of Accounting is
a. Preparation of ledger accounts and final
accounts
b. Preparation of final accounts
c. Recording transactions, posting to ledger,
prepare trial balance and final accounts
d. Recording and final accounts preparation
5.What is Accountancy?
a. Subject of record keeping
b. Profession of accounting
c. System of holding a person accountable
d. Knowledge of finding out profit or loss
6.What is the relationship between book keeping
and accounting?
a. Both are concerned with recording economic
data
b. They are synonymous.
c. Book keeping is concerned with recording
transactions while accounting is
measuring, analyzing and communicating the
financial data
d. Accounting stops, book keeping starts
7.What new branch of accounting did emerge
from industrial revolution?
a. Government Accounting
b. Financial Accounting
c. Management Accounting
d. Cost Accounting
12
8.Which of the following is non financial
transaction?
a. Production manager and Marketing manager
quarrel each other in office
b. Receiving commission for services rendered
c. Payment of income tax
d. Purchasing house property for personal
purposes
9.Why did corporate form of organization create
a need for increased financial disclosure
and reporting?
a. Owing to separation between ownership and
management
b. Owing to demand from shareholders
c. Owing to the large size of the organization.
d. Owing to increased number of stake holders
10.Why is book keeping necessary?
a. One can not remember particulars of all
transactions, taking place during an
accounting period
b. Business transactions take place rarely
c. It is more a formality
d. To satisfy the stakeholders
Unit2 - 1 Mark Quiz Questions
1.A business unit is set up to exist for a long
time. It is
a. Concept
b. Luck
c. Convention
d. Practice
2.A convention is different from a concept
because
a. It is a presumption
b. It is a time tested principle
c. Convention represents meaningless customs
d. It is subjective and convenient principle
3.A has deposited Rs.5 lakh in four installments
during the first four weeks of starting a
financial company. Next month, the company is
closed without paying back the money.
Does this defeat the business concept of
a. Separate business Unit
b. Money measurement concept
c. Accrual concept
d. Going concern concept
4.A manufacturing Company has produced
50000 units of a product costing Rs.2,50,000.
What accounting concept is missing in the above
statement?
a. Accrual concept
b. Separate business unit
c. Money measurement concept
d. Periodicity concept
5.A manufacturing Company has produced
50000 units of a product during 2006. What
accounting concept is missing in the above
statement?
a. Going concern concept
b. Accrual concept
c. Money measurement concept
d. Separate business unit
6.Accounting Principles are based on
a. Arbitrary practice
b. Convenience
c. Subjectivity
d. Practicability
7.Building is an asset, depreciated usually under
fixed installment method. Is it
a. Convention
b. Necessity
c. Unreasonable habit
d. Concept
8.Business entity is distinct from its owner. This
helps in
a. If business goes off, the owner does not
b. If owner dies, the business does continue
c. If business ceases to exist, the owner also
ceases.
d. Treating business unit is independent of its
owner
9.What do you mean by a concept?
a. A willful prediction
b. Reasonable assumption
c. Universal characteristic
d. A regulated condition
10.Why do we need principles?
a. To fulfill a formality
b. To build up a science
c. To lay down rules for action
d. To control activities
Unit3 - 1 Mark Quiz Questions
1."Capital is invested in the business. How does
it impact the accounting equation?"
a. Cash increases the liability and capital
increases asset of the business
b. Capital of the business increases
c. Capital appears as a liability and cash appears
as asset to the business.
d. Cash is received into the business as asset
2."Patent rights" Account is a _____
a. Tangible real account
b. Intangible real account
13
c. Personal account
d. Nominal account
3."Ramesh has taken a loan of Rs.20000 from
Suresh.How does this transaction affect the
asset and liablility of his business?"
a. Liability of Ramesh increases and cash in the
business decreases
b. B.Liability of the business decreases and Cash
as an asset of the business
decreases
c. Liability of Ramesh increases and Cash
(Asset) balance in the business increases
d. Liability of Ramesh decreases and cash in the
business increases
4.What do you understand by an 'Account'?
a. It is part and parcel of Accountancy
b. It is commonly used accounting terminology
c. It is an indicator of a head
d. It is a summary of transactions pertaining to a
particular head
5.What is 'Accounting Trail'?
a. Process of commencing from recording to
preparation of final accounts
b. Process of preparing a trial balance
c. Process of preparing all accounts
d. Process of finding out P & L Account
6.What is a personal account?
a. Account relating to individuals and persons.
b. It is an individual transaction
c. It is a private account
d. It is not real or nominal account.
7.What is a real Account?
a. Account which is existing
b. Account which is tangible and can be felt
c. Account which is not personal
d. Account which is truthful
8.What is mercantile system of double entry?
a. System adopted by merchants.
b. System of recording only cash transactions
c. Ststem of recording both cash and credit
transactions
d. System of recording only credit transactions
9.What is single entry system of book keeping?
a. Transactions get recorded only once
b. Only one aspect of transaction is recorded
c. It is simple to understand
d. Only a few personal accounts and real
accounts are considered in single entry
10.Why is double entry system of book keeping
better than single entry system?
a. Both aspects of a transaction are recorded
b. Double entry is more elaborate
c. Transactions get recorded doubletime
d. All transactions are recorded
Unit4 - 1 Mark Quiz Questions
1.Credit sales create
a. Supplier
b. Tr. Creditors
c. Agents
d. Tr. Debtors
2.Debit all assets and credit all liabilities. This
principle hold good because, they belong
to
a. Nominal accounts
b. Real accounts
c. Personal and real a/s accounts
d. Personal accounts
3.How do you read this journal entry cash
account: Dr To capital account
a. cash account debtor to credit of capital
account
b. cash account is debited to capital account
c. cash account debtor to capital account
d. cash account is debit capital account is credit
4.If credit purchases are recorded in purchases
book, in which book purchases are
recorded
a. journal
b. bank pass book
c. Journal proper
d. cash book
5.Indicate the correct principle for nominal
accounts
a. Debit all impersonal assets and credit all
impersonal liabilities
b. Debit all expenses or losses and credit all
incurs orgains
c. Debit the giver and credit the receiver
d. Debit all payments and credit all receipts
6.Narration to each journal entry is necessary
because
a. It is formality or convention
b. It is a clear indication of transation
c. It is difficult to remember why is it drawn
d. It describes the transaction
7.Purchases book is a subsidiary book
containing
a. All purchases
b. cash purchases of goods
c. Purchases of goods
d. Purchases of goods only
14
8.Sales books, also called sales day book,
contains
a. Credit sales of goods
b. Sales of goods made during an accounting
period
c. Sales of goods and other assets
d. Cash sales of goods
9.State the rule of journalising with regard to
personal accounts
a. Debit what comes in and credit wher goes amt
b. Debit all assets and credit all liabilities
c. Debit the given and credit the receiver
d. Debit the receiver and credit the given
10.Subsidiary books are also books of original
entry because
a. They contain non busing transactions
b. They contain record of subsidiary transaction
c. They contain record of transactions
d. They contain original record of transactions
11.Subsidiary books are also called journal
because
a. They are prepared in substitution to journal
b. They are prepared by llarge organisations
c. They are note books of original entry, but
prepared in the place of journal
d. They contain the same particular as journal
contains
12.What do you mean by primary books of
accounts
a. They are the books containing original entry
b. They are important books
c. They are not secondary
d. They are the first books
13.What is in ward invoice
a. Document to show the description of
purchases of goods made
b. Document issued by receiver of goods
c. Document issued by godown keeper
d. Document that comes in
14.What is journalising
a. A career of journalism
b. Process of making a record
c. Writing a transaction in a book
d. Systematic recording of journal entries in
journal
15.What is the double entry principle for real
accounts
a. Debit all expenses and credit all incomes
b. Debit what is benefitied and credit what is not
benefited
c. Debit what comes in and credit what goes
amount
d. b.Debit the receiver and credit the giver
Unit5 - 1 Mark Quiz Questions
1.What is closing entry?
a. Entry on the date of closing the accounting
period
b. An entry to close the business
c. Entry to close revenue accounts to prepare
final accounts
d. Entry drawn at the end of the day
2.What is Journal Proper?
a. Journal , properly being maintained
b. Journal of all uncovered accounts
c. Journal containing proper accounts
d. Journal containing all such transactions, not
covered byGeneral Journal or
subsidiary books
3.What is opening journal entry?
a. Journal entry found on opening the Journal
b. Entry made at the beginning of the journal
c. Entry made on the opening date of accounting
year
d. Entry of assets and liabilities and capital as on
the opening date of the accounting
period
4.What is secondary book in accounting? Is it
a. Replica of Journal
b. Book of less importance
c. Book of second entry to ensure internal check
d. Ledger of accounts, posting being made from
journal
Unit6 - 1 Mark Quiz Questions
1.Identify in the following an error that can be
disclosed by TB
a. Salary account is wrongly debited instead of
repairs are
b. b.Mr X a/c is debited more by Rs 100 and
Mrs X a/c is debited less by Rs 100
c. A transaction of purchase is completely not
taken to journal at all
d. Sales a/c is undercast by Rs 500
2.If assets accounts and expenses accounts are
shown on debit side of TB, what accounts
are shown an credit side of TB
a. Income & capital accounts
b. Income accounts
c. Liabilities, capital and income accounts
d. Liabilities and capital accounts
3.If personal account shows a credit balance,
what does this indicate ?
15
a. It indicates 'Creditor'
b. It indicates an item of income
c. It indicates a 'Debtors'
d. It indicates an asset
4.If T.B does not tally , what is its
consequence ?
a. P&L A/C may not tally
b. Trading A/C may not tally
c. Balancesheet does not tally
d. Profit/ loss may not be correct
5.Interest on fixed Deposit is an item found in
TB
a. Neither debit not credit
b. On credit
c. Both debit and credit
d. On Debit side
6.The object of preparing trial balance is
a. To check arithmetic accuracy of ledger
posting
b. To classify different accounts such as
personal, real & nominal
c. To verify the correctness of journal entries
d. To summarise ledger accounts
7.The two methods of preparing trial balance are
a. Total method & credit method
b. Debit method & credit method
c. Horizontal & vertical methods
d. Journalising & ledger
8.There are 2 types of errors in accounting
process. They are
a. Good and bad errors
b. Intentional and unintentional
c. String & weak errors
d. Disclosed and not disclosed by TB
9.What do you mean by error disclosed by TB ?
a. Error that are dangerous
b. Errors which are not closed
c. Errors that are notified by TB
d. Error that can be found as TB does nto tally
10.Which of the following contains error of
commission?
a. Ramanan,s account is debited instead of
ramana's a/c
b. An invoice of Rs 1200 is takenas Rs 1020 in
the journal
c. Ravi,s account is debited by Rs 2000 but
posted to the credit side of his a/c
d. Plant purchased is transferred to purchases a/c
Unit7 - 1 Mark Quiz Questions
1.Final accounts are prepared recognizing the
concept of
a. Money measurement concept
b. Income recognition concept
c. Separate entity concept
d. Accrual Concept
2.If outstanding expense account appears in the
trial balance, what does it mean?
a. Outstanding expenses of last year, to be
adjusted in the current year
b. Closing balance of outstanding expenses of
current year
c. Expenses of current year outstanding
d. Outstanding expenses to be considered in
P&L A/C
3.On which side outstanding expenses account
appear in the balance sheet?
a. Asset side
b. Appears in trial balance
c. Appears in Journal proper
d. Appears on liability side
4.Prepaid tax for 2004-05 is Rs.12,000 and
prepaid tax for 2005-06 is Rs.18,000. If the
taxes payable for the year is Rs.88,000, find out
what is the actual tax paid in 2005-06?
a. Rs. 82,000
b. Rs. 88,000
c. Rs.58,000
d. Rs. 94,000
5.Rent paid per month is Rs.5,000 . During the
year 2005-06 the rent actually paid was
Rs. 75,000. Find out what is prepaid in the year
2005-06?
a. Rs.15,000
b. Rs.5,000
c. Rs.20,000
d. Rs. 10,000
6.The basis for preparing Final Accounts is
a. Journal proper
b. Trial Balance
c. Journal entries
d. Ledger accounts
7.What is outstanding expense?
a. Expense yet to be incurred
b. Expense incurred but not yet paid
c. Expense which is outstanding
d. Expense incurred and paid
8.What is prepaid expense?
a. Expense paid in advance in the current year
relating to coming year.
b. Expenses to be paid in future
c. Expense paid in advance for current year
16

d. Expenses paid after preparation of final c. Principles

accounts d. Activities
9.What is the purpose of preparing final 8.Management accounting is an
accounts? ______________ to the management.
a. To find the operational performance of the a. Accounting information.
business for an accounting period b. Accounting service
b. To know the balance at the end of the c. Accounting necessity
accounting period d. Accounting procedure
c. To know expenses and revenues 9.The data management accounting is required
d. To find out profit or loss for
10.Which type of account, is outstanding a. ersonal use
expense? b. External use
a. Real account c. Internal use
b. Personal account d. Official use
c. Ficticious account 10.The scope of management accounting is
d. Nominal account based on.
Unit8 - 1 Mark Quiz Questions a. Financial data
1.A budget is b. Historical financial data
a. Verbal expression c. Historical production data
b. Qualitative expression d. Historical cash data.
c. Quantitative expression Unit9 - 1 Mark Quiz Questions
d. Written expression 1.Acid test ratio excludes
2.Budgetary control is a. Capital
a. Reaction in advance b. Liability
b. Action in advance c. Asset
c. No action in advance d. Inventory
d. Planning in advance 2.Acid test ratio is
3.Budgetary control is done through a. current liabilities – stock / current assets
a. Production b. current assets + stock / current liabilities
b. Budgets c. current assets / current liabilities
c. Cash d. current liabilities – stock / current assets
d. Credit e. current assets – stock / current liabilities
4.Decision-making in any field is primarily a 3.Analysis means
_______ of management. a. Integration
a. Responsibility b. Separation
b. Function c. Narration
c. Duty d. Creation
d. Action 4.Current ratio compares:
5.Decisions are made. a. Current assets with current liabilities
a. Ever b. Fixed assets with current assets
b. Only once c. Current assets with fixed asset
c. Time to time d. Current assets with current asset
d. At emergency. 5.Current ratio deals with
6.Forecasting and planning function include: a. Mutual obligation
a. Short and long term rejection. b. Mid-term obligation
b. Short and long term forecasts c. Long-term obligation
c. Short and long term decisions. d. Short-term obligation
d. Short and long term objection 6.Current ratio is
7.Functions of Management Accounting include. a. current assets * current liability
a. Decisions b. current assets – current liability
b. Postulates c. current asset / current liabilities
17

d. current assets + current liability d. Local relationship

7.Current ratio is expressed as 17.Ratio is based on
a. Average a. Comparsion
b. Proportion b. Causation
c. percentage c. Narration
d. Turnover d. Relation
8.Current ratio which is lower than industry ratio 18.Ratio is calculated by
indicates problem on a. Multiplying one figure with another
a. Liquidity b. Adding one figure with another
b. Liability c. Subtracting one figure with another
c. Viability d. Dividing one figure with another
d. Profitability 19.Ratio means
9.Financial ratios are meant for a. One number expressed in percentage
a. Assessing performance and status b. One number multiplied by itself
b. Possessing performance and status c. One character expressed in numbers
c. Positioning performance and status d. One number expressed in terms of another
d. Proving performance and status 20.Rule of Thumb of current ratio is
10.For fair food industries the CR may be a. 2: -1
a. Equal to none b. 1: -1
b. Equal to one c. 1:1
c. Less than 1 d. 2:1
d. More than 1 Unit10 - 1 Mark Quiz Questions
11.Liquidly deals with ___________ to cash 1.Fund flow analyses the movement of
a. Convertability a. Creditors
b. Suitability b. c.Debtors
c. Rigidity c. Funds
d. Rapidity d. Persons
12.Ratio analysis helps to make 2.Fund flow analysis is a
a. Deletion __________________technique
b. Decision a. obsoletete
c. Deduction b. useless
d. Rejection c. Traditional
13.Ratio analysis is a d. modern
a. Bolt 3.Fund flow deal with changes in
b. Nut a. Personnel items
c. Screw b. Financial items
d. Tool c. Technical item
14.Ratio analysis is a technique of d. Production items
a. Analysis and finalization 4.fund flow indicates the inflows and outflows
b. Analysis and introduction of
c. Analysis and conclusion a. Cash
d. Analysis and interpretation b. Income
15.Ratio can be expressed as: c. Loss
a. Proportion, percentage, turnover d. Profit
b. Revision, division, conclusion 5.Fund flow shows the movement of funds
c. Addition, subtraction, multiplication between
d. Calculation, division, simplification a. Profit and loss dates
16.Ratio deals with b. Trading dates
a. b.Global relationship c. Two balance sheet dates
b. Legal relationship d. Income & expenditure dates
c. Quantitative relationship 6.Funds are used in a narrow sense indicating
18

a. Profit d. Production
b. Income Unit12 - 1 Mark Quiz Questions
c. Cash 1.Components of a cost is
d. Assets a. Direct
7.Increase in CA will increase the b. Both (a) and (b)
a. CL c. Indirect
b. WC d. None
c. CA 2.Cost is a sacritice of expense in
d. none a. Present
8.Schedule of working capital changes is b. Past
prepared to find c. Advance
a. Net change d. None
b. No change 3.Cost is amount of resources
c. Gross change b. Given up
d. Negative change c. Gone up
9.SWC deals with only d. Grown up
a. CA and FA 4.Cost refer to
b. CA and FL a. Expense
c. CA and CL b. Source
d. CA and fictious assets c. Application
10.The objective of fund flow is to inform the d. Income
shareholders about 5.Element of cost is
a. wastage of funds a. All the three
b. Use of funds b. Materials
c. Misuse of funds c. Expenses
d. Savings of funds d. Labor
Unit11 - 1 Mark Quiz Questions 6.Materials may be
1.CFS brings in a. Finished are
a. Liquidity b. Both (a) and (b)
b. Profitability c. None
c. Insolvency d. Raw materials
d. Liquidation 7.Materials may be
2.CFS deals with cash a. Direct and Indirect
a. Inflows b. Direct or Indirect
b. Both (a) and (b) c. Direct
c. Outflows d. Indirect
d. None 8.Notional expenditure does not involve
3.CFS depends on a. Cash inflow
a. Receipt b. Source
b. Loss c. None
c. Both b & c d. Cash outlay
d. Profit 9.Resources are expressed in
4.CFS explain reasons for low balance of a. Money equivant
a. Asset b. Both a and b
b. Overdraft c. Kind
c. Cash d. Money
d. Profit 10.Unit 1980's, CA was in the domain of
5.CFS is a document of a. Doctor
a. Finance b. Engineer
b. Sales c. Economist
c. Personnel d. Daughter
19

11.CFS is measured based on c. None

a. Statement d. Variable
b. Expenses 6.Fixed cost remains constant
c. Income a. In price
d. Both (a) & (b) b. In value
12.CFS is prepared to know the position of c. In total
a. Asset d. Per unit
b. Profit 7.Information entile
c. Flow a. Benefit
d. Cash b. Cost
13.CFS is prepared with the help of c. None
a. Pass book d. Both (a) and (b)
b. Cash book 8.Information is
c. Balance sheet a. Commodity
d. Petty cash book b. Brutality
14.Its importance of CFS is in its c. Vitality
a. Range d. Modality
b. Short term 9.Marginal cost is
c. All a. Variable
d. Plan b. Semi variable
15.Object of CFS is to show causes of c. None
a. Changes d. Fixed
b. Charges 10.Marginal cost is not a system of
c. Chases a. Cost calculation
d. Chooses b. Cost manipulation
Unit13 - 1 Mark Quiz Questions c. Cost ascertainment
1.All cost can be classified as d. None
a. Fixed 11.Marginal costing considers only cost of
b. Semi a. Fixed
c. both (a) and (b) b. Semi-variable
d. Variable c. None
2.Break even analysis is d. Variable
a. Extended cost 12.Marginal costing excludes
b. Expanded cost a. Fixed costs
c. Extension of MC b. Variable
d. None c. None
3.Break-even a technique of studing the relation d. Semi-variable
of 13.Mariginal cost is also known as
a. Cost -volume-sales a. Variable cost
b. Cost volume profit b. None
c. Cost -volume - income c. Variance cost
d. Cost volume -production d. Standard cost
4.Break-even analysis aims to aim it to measure 14.Sales mix will remain
variations of a. both (a) and (b)
a. All b. All the three
b. Cost with volume c. Variable
c. Cost with money d. Constant
d. Cost with time 15.Under marginal cost, costs are classified as
5.Fixed cost per unit remain a. None
a. Constant b. Fixed
b. Fixed c. Variable
20

d. Both (a) and (b) d. coordination

16.Under marginal costing, WIP is valued as 6.Budgetary control is a ____ for management
a. Factory cost control
b. Marginal cost a. fitting
c. Prime cost b. tool
d. Total cost c. none
17.Variable cost is constant in d. fixtures
a. Both (a) and (b) 7.Budgetary control is control of
b. None a. output
c. Total b. operation
d. Per unit c. both a and b
18.Variable cost varies in d. none
a. None 8.Budgetary control objective is to maximise
b. Total a. income
c. Proportion b. profits
d. Ratio c. loss
19.Variable cost varies in d. expenses
a. Sales 9.In budgeting planning refers to budget
b. None a. calculation
c. Both (a) and (b) b. valuation
d. Production c. preparation
20.Variable cost varies in d. manipulation
a. Per unit 10.Planning deals with gools of operation
b. Both (a) and (b) pertaining to
c. None a. short term
d. Total b. both (a) and (b) none
Unit14 - 1 Mark Quiz Questions c. none
1.Budget are d. long term
a. elaborate Unit15 - 1 Mark Quiz Questions
b. actual 1.Allowances are made for ___________while
c. estimate setting standards
d. accrual a. both a and c
2.Budget is a statement of b. wastages of abnormal
a. financial c. normal wastage
b. none d. Abnormal wastage
c. quantitative 2.Analysis of actual costs with _______ is done
d. both (a) and (b) with standard costing
3.Budget is an a. Pre-mature
a. economic service b. Pre-determined
b. political service c. prepaid
c. family service d. Pre-conceived
d. national service 3.For direct material, focus is on
4.Budget is an exercise of a. both a and c
a. Forward plan b. price
b. vertical plan c. Quantity
c. backward plan d. none
d. horizontal plan 4.In standard costing standards are based on
5.Budgetary control brings in a. technical info
a. consolidation b. research info
b. cooperation c. economic info
c. covariation d. general info
21

5.Normal allowances are based on 16.The meaning of standard costing is focussed

a. normal time on
b. Ideal time a. labor control
c. none b. cost control
d. Idle time c. material control
6.Standard costing are commonly used in d. financial control
a. None
b. service
c. manufacturing organization Financial Management
d. both a and d Unit1 - 2 Mark Quiz Questions
7.Standard costing is a system of 1.Any project which generads ______ crates
a. cost control wealth
b. cost classification a. Preventive net present value
c. cost ascertainment b. Positive net present value
d. none c. Possible net present value
8.Standard costing is a system of d. Possessive net present value
a. Financial accounting 2.Controller performs
b. Cost accounting a. RMS
c. none b. None
d. management accounting c. IMS
9.Standard costing is mainly applied to d. MIS
a. processes 3.Dividend payments make a shareholder
b. products a. Sorrow
c. both a and b b. None
d. none c. Loyal
10.Standard costing is normally associated with d. Happy
a. marterial control 4.Dividend yield is an important determinant
b. overhead control for.
c. Budgetary control a. Retail prices
d. labor control b. Stock prices
11.Standard costing restricts only with c. Local prices
a. revenues d. Wholesale prices
b. costs 5.Dividends are not payable to.
c. both a and b a. Equity shareholders
d. income b. Debentureholders
12.Standards are determined by the department c. Outside creditors
of d. Both B and C
a. sales 6.Financial implications are the result of.
b. production a. Concerete decision
c. Engineering b. Corporate decision
d. Finance c. Composite decision
13.Standards are fixed for d. Corporation decision
a. all 7.Financial management should focus on.
b. material a. All
c. labor b. Effective deployment
d. overheads c. Procurement of funds
14.Standards on labor is on the basis of d. Funds on least cost
a. time study 8.In financing decisions the risk is known as risk
b. motion study of.
c. both a and c a. Solvency
d. none b. Insolvent
22

c. Insolvency 18.____ is the indication of shareholders wealth

d. Solvent maximization
9.Invesment decisions are. a. None
a. Erratic b. Normal value
b. Elastic c. Local value
c. Classic d. Market value
d. Magic 19.______ is the cardinal rule of financial
10.One of the Treasurer's function is management
a. Managing office a. Value Prounciation
b. None b. Value minimization
c. Obtaining finance c. Value initiation
d. Managing men d. Value maximization
11.Performance is evaluvated in term of. 20______consider time value of money
a. Liabilty a. Cash maximization
b. Profitability b. Profit maximization
c. Credibility c. Wealth maximization
d. Viability d. None
12.Profit maximization is based on. 21.________is based on cash flows
a. Efficiency a. Welfare maximization
b. Accuracy b. Warefare maximization
c. Deficiency c. Wish maximization
d. Dependency d. Wealth maximization
13.Study of financial management calls for the Unit2 - 2 Mark Quiz Questions
knowledge on 1.A financial plan is
a. Manipulating money a. Value addition
b. Misusing money b. Value diminuation
c. Mopping up money c. Value creation
d. managing money d. Value accumulation
14.Today the finance management approach 2.Captalization theories are
is____ in nature a. Cost
a. Technical b. Earning
b. Analytical c. None
c. Diabetical d. Both A and B
d. None 3.Composition of long term funds is
15.Under perfect competition, allocation of a. Optimization
resources shall be based on the goal of b. Organisation
a. Wealth maximization c. None
b. Growth maximization d. Capitalization
c. Profit maximization 3.Corporate objectives could be grouped into
d. Cost maximization a. Qualitative vs quatitative
16.Wealth maximization considers b. None
a. Cash value of money c. Qualitative and quantitative
b. Goods value of money d. Quantitative vs quantitive
c. Time value of money 4.Debt, equity refers to
d. None a. Sources of funds divided
17.Wealth maximization is based on b. Sources of funds grouped
a. Cash flow c. None
b. Goods flow d. Sources of funds eliminated
c. Traffic flow 5.Finance manager should concentrate on:
d. Profit flow a. Long and short term sales
b. Long and short term plan
23

c. None 14.Value creation results in

d. Long and short term document a. Book marking
6.Financial plan indicates. b. None
a. Quantum and composition of funds c. Bench marking
b. Competition of funds d. Land marking
c. None 15.What total capital is more than ture value it is
d. Composition of funds a. Over Captilazed
7.Financial plan shall case for b. Over absortbed
a. Detailed cash requirments c. None
b. Detailed funds requirments d. Over ublised
c. None 16.When actual capitalization is lower than
d. Detailed growth requirments capitalization, it is
8.Forecast of funds can be obtained a. Under - quoted
from___________Source b. Under - written
a. External c. Under - capitalized
b. Internal d. Under - valued
c. Both A and B Unit3 - 2 Mark Quiz Questions
d. None 1.A rupee received today has ________value
9.Grouping of fixed and working capital refers a. Less
to b. None
a. Cash requirment c. More
b. None d. Constant
c. Captial requirment 2.During inflation, a rupee has a
d. Staff requirment higher____________power
10.Raw material cost 40% of sales . Now raw a. Hoarding
materials cost increasing 10% but selling b. None
price increases by 5% cost of raw materials will c. Purchasing
be. d. Selling
a. 44/100 3.Even cash inflows refers to.
b. 44/105 a. Uniformity
c. 40/105 b. Rationality
d. None c. Duality
11.Seasonal peak requirements to be met from d. Reality
_________borrowings 4.Future value is a _________work
a. Long term a. Bad
b. None b. Guess
c. Mid term c. Raw
d. Short term d. None
12.Short term and long term objectives are 5.In zero time period _______taken place
needed for to operate in a. Redemption
_________environment b. None
a. None c. Investment
b. Dynamic d. Recovery
c. Dynasty 6.In zero time period, cash flows
d. Dynamite a. None
13.Through financial planning________ of asset b. Out
is enhanced c. Netrualiser
a. Productivity d. In
b. Capacity 7.Normally, value of many ________ over a
c. Normality period
d. Selectivity a. Constant
24

b. Changes a. Perinneal
c. Charges b. Potential
d. None c. Positive
8.Payout of Rs. 5000 annually in 10 years is d. Initial
known as. 17.___________-takes place at ZTP
a. Calamities a. Cash overflows
b. Annuities b. Cash inflows
c. Perpetuities c. None
d. None d. Cash outflows
9.Productive emplyment of money Unit4 - 2 Mark Quiz Questions
genarate________returns 1.Annual payments to shareholders are known
a. Row as
b. Rubbish a. Dividend
c. Real b. Profit
d. Reel c. Interest
10.Sinking fund is created for a _________ d. None
purpose 2.Bond - Yield methods are applicable to
a. 2. Specific a. Equity shares
b. Social b. Perference shares
c. General c. Bonds
d. Personal d. Assets
11.Time value has an influence 3.Book value concept is
on________opportunity a. Acquisition minus amortized value
a. Personal b. Depreciated value
b. Personnel c. Amortized value
c. Dividend d. Monetary value
d. Investment 4.Discount rate is the ________ expectation
12.Under compounding method convertion is from securities
a. Future to present a. None
b. present to present b. Employer
c. Future to future c. Invester
d. Present to future d. Inspector
13.Under discounting method is convertion is 5.If the coupon rate is Rs. 80 and market price is
a. Future to present Rs. 920, the current yield is
b. Future to future a. 8.7%
c. Present to future b. d .7.5%
d. Present to present c. 7.8%
14.Under discounting technique, determination d. 9.2%
of ________ of a future amount takes 6.In case of loss made by company , dividends
place are paid out of________
a. Current value a. capital
b. Past value b. Assets
c. Present value c. None
d. Excess value d. Reserves
15.Uneven cash flows is not equal to: 7.In India perpetual bonds are popular
a. Entire cash flow a. Not sure
b. Enhanced cash flow b. False
c. Even cash flow c. None
d. Enlarged cash flow d. True
16.Zero time period refers to 8.In liquidation , intangiable assets are:
________investment period a. Exclended
25

b. None 14.Under multi-period valuation model, the

c. Included formula is
d. Seculended a. Dn / (O l + ke )n
9.In perpetual bonds, _________ value is known b. Dn'n
a. Face c. None
b. Base d. (l + ke )n
c. None 15.Under semi-annual system, interest payable
d. Phase is _________than annual interest
10.On purchase of a share , stream dividends is payments
for : a. More
a. Present b. None
b. None c. Constant
c. Past d. Less
d. Future 16.Under variable growth model, dividends
11.Price earning ratio refers to payment for a. Dove hit
________ rupee earnings b. Dove tail
a. Each c. None
b. None d. Tail of dove
c. Constant 17.Valuaion of bonds and shares link the risk
d. Total and return to establish_________
12.The book value approach to equity valuation a. Company worth
is the _________ of the company b. Asset worth
a. Public worth c. National worth
b. Intrinsic worth d. Natural worth
c. Net worth 18.Value is concerned with
d. Personal worth a. Future inflows
13.Under constant growth , dividends tend to b. Fast inflows
a. Constant c. Fake inflows
b. Increase d. Further inflows
c. Decrease 19.The motive of shareholder for holding share
d. Erode is due to_________
Answer: