financial managment account

8/6/2019 Financial Managment Account

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GURU GOBIND SINGH COLLEGE FOR MTMSAL 7 Main Jail Road, Hari Nagar, New Delhi 110064

Ph. 9810455330, 25138338, 25138339

FINANCIAL & MANAGEMENT ACCOUNTING\M.B.A 1ST SEM

MODEL TEST PAPER

Q1. The liabilities of a firm are of Rs 3,000 capital of the proprietor is Rs 7,000 . Thetotal assets are

A) 7,000 B) 10,000 C) 4,000 D) 3,000

Q2. The assets of a business on 31 march 2006 are worth Rs 5,000 &its capital is Rs

35,000.Its liabilities

on that date shall be.A) Rs 85,000 B) Rs 15,000 C) RS 35,000 D) Rs 5,000

Q3.In double entry system of book keeping every business tranction affects.

a. Two accounts

b. Two sides of the same account

c. The same account on two different dates

d. One account

Q4.A sale of good to Ram for cash should be debited to

a.Ram b. cash c. sale d. None of all

Q5.A wihhdrawal of cash from business by the proprietor should be credited toa. Drawing b. Capital c. cash d. Profit & loss a/c

Q6.cash account is aa. Personal a/c b. Real a/c c. Nominal a/c d. none

Q7.Goods worth Rs 1,000 taken by proprietor for personal use should be credited to

a. sales a/c b. proprietors personal a/c c. purchase a/c d. expenses a/c

Q8. Bad debts account is a

A. personal a/c b.real a/c c. nominal a/c d.none

Q9.The profit & loss a/c shows

a. The financial position of the concern

b. Profit earned or loss suffered by the firm

c. The capital invested in business

d. The asset of business

Q10.The cash book records

a. All cash receipts

b. All cash payments

c. All cash receipts & payments

d. cash & credit sales of goods


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Q11.The balance in the petty cash book is

A. An expenceb. A profit

c.An asset

d .none

Q12. If Ram has sold books for cash the entry will be recordeda.In the cash bookb.In the sales book

c. In proper journald.none

Q13.In the purchase book the record is in respect ofa.cash purchase of goods

b. credit purchase of goods dealt in

c.all purchase of goodsd. none

Q14.The sales return book records

a. The return of goods purchasedb. Return of anything purchased

c. Retun of goods sold

d. Return of anything sold

Q15.The sales book is

a. a part of journal

b. a part of ledgerc. a part of balance sheet

d. a part of profit & loss a/c

Q16.The weekly or monthly total of the purchase book is

a. posted to the debit of the purchase a/c

b. posted to the debit of the sales a/cc. posted to the credit of the purchase a/c

d. none

Q17.The total of sales book is posted to

a. The credit of sales a/cb. credit of the purchase a/c

c. credit of the capital a/cd. none


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Q18.Rs 2,000 paid as wages for erecting a machine should be debited to

a. wages a/cb. machinery a/cc. capital a/c

d.none

Q19. On purchase of old furniture the amount of Rs 1,000 spent on its repair should bedebited to

a. Repair a/c

b.furniture a/c

c. cash a/c

d.none

Q20.Goods worth Rs 50 given as charity should be credited to

a. charity a/c

b. sales a/cc. purchase a/cd.none

Q21.Goods worth Rs1,000 destroyed by fire should be credited toa. Goods lost by fire a/c

b. purchase a/cc. sales a/cd. none

Q22.Error of omission do not permit

a. correct totalling of the balance sheetb.correct totaling of the trial balancec. The trial balance to agree

d. none

Q23 The prepration of a trial balance helps in

a. correct totaling of the balance sheetb. correct totaling of the trial balance

c.Locating errors of principles

d. none

Q24 Rs 200 received from smith whose account was previously written off as bad debt

should be credited to

a. The debt recovery accountb. Smiths a/c

c. cash a/c

d.none


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Q25.Purchase of office furniture worth Rs 1200 has been debited to general expence a/c

.It isa. A clearical error

b.An error in principles

c. An erropr in omissiond. none

Q26 Sale of office furniture should be credited to

a. Sales a/c

b. office furniturec. cash a/c

d. none

Q27 Sale of old news paper should be credited to

a.Sales a/c

b. cash a/cc.sale of old newspaper a/cd.none

Q28 Fixed assets area.kept in the business for use over a long time for earning incomeb. Meant of resale

c. Meant for conversation into cash as quickly as possibled. none

Q29 Good will is a

a.Acurrent assetb. Tangible asset

c. Intangible asset

d.none

Q30 Stock is

a. included id fixed assetsb. Part of current assetsc. Intangible assets

d.none

Q31The trading a/c shows

a. financial position of the concern

b. The net profit earnedc.The gross profit earnedd. none


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Q32The profit &loss a/c shows

a. financial position of the concernb. The net profit earned

c.The gross profit earned

d.none

Q33 closing stock is valued ata. cost

b. Market value

c.cost of market price which ever is lowerd. none

Q34 The drawing of a proprietor for the year 2002 are Rs 15,000.profit for the year Rs25,000 & Capital at the end Rs 70,000.calculate the capital at the beginning

a. Rs 60,000

b. Rs 70,000c. Rs 80,000d. Rs 55,000

Q35 outstanding rent isa. real a/c

b. personal a/c

c.personal a/c with out named. an expense

Q36 outstanding income is

a. an assetb. a liability

c. an expense

d. none

Q37 The manager is entitles to commission of 5% on profit before deductionthe

commission .The profitis Rs 2100, therefore commission will bea. Rs 100

b. Rs105c. Rs110.53d. none

Q38 prepaid rent is

A. an assetb. a liabitity

c. an expense

d none


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Q40 Ideal current ratio is

a. 1:1b.1:2

c. 2:1

d 2:2

Q41.liquid asset do not includea. cash

b. bank

c. debtors

d. stock

Q42 stock turnover ratio is calculated by dividing cost of good sold bya. opening stock

b. closing stock

c. average stockd. none

Q43when the equity capital exceed ib comparission with the debentures & preference

share the capital structure the capital structure is refered toA. high geased

b. low geasedc. even geasedd. none

Q44Net profit ratio is the ratio of

a. net operating profit to the net salesb.net profit after tax to net salesc. net profit before tax to net sales

d. none

Q45.average payment period 2 months hence creditor turnover will be

a. 6 timesb. 5 times

c.3times

d.none

Q46. opening stock Rs 8000, closing stock Rs 1,00,000,cost of good sold Rs

3,60,000.hence stock tunnover ratio is

a. 2timesb. 4 timesc. 4.5 times

d. none


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Q47.period cost are

A. variable costb. fixed costc. prime cost

d. overhead cost

Q48 when fixed cost is Rs 10,000 & p/v ratio is 20%.Break even point will beA.Rs 2000

b. Rs 5000

c. Rs 50,000d.none

Q49 when fixed cost is Rs 7000,profit is Rs3000,&sales Rs 5000, the p/v ratioa.14%

b.6%

c.20%d none

Q50.Break even point is

a. minimum profitb. minimum loss

c. maximum profit

d. neither profit nor loss

Q51.what will be the effect of B.E.N. by the increase in fixed asset

a. decrease

b. increasec. no change

d. none

Q52.when p/v ratio is 25% &b.e.n. is 50,000 then the fixed cost will be

a. Rs 10,000

b. 2,00,000c. 12,500d. 2000

Q53. A budget that gives a summary of all the functional budgets & projected profit

&loss a/c is known as

a. capital budget

b. sales budgetc. master budgetd flexible budget


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Q54.The budget that is set 1st& all the other budgets are subordinate to it is

a. cash budgetb. master budget

c. sales budget

d. capital expenditure budget

Q55.which of the following is not current liabilitya. mortigage loanb. bank over draft

c out standing wagesd. bills payable

Q56 sales of machinery isA.use of fund

b. source of fund

c.no flow of fundd.none

Q57.which of the following is not a cash inflow

a.purchase of fixed assetsb. sale of good

c. Issue of debentures

d. sale of fixed assets

Q58.which of the following is not a cash outflow

a. increase in prepaid expenses

b. increase in stockc. increase in bills receivables

d .increasing in outstanding expenses

Q59. Which of the following is an example of non cash expeses

a. depreciation

b. wages & salariesc. telephone expenses

d. none

Q60. Total sales Rs 2,00,000, opening debtor Rs 15,000 ,debtors in ending Rs 28,000

cash sales

a. Rs 1,87,000

b. 2,13,000c. 2,15,000

d . none


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Q61.Net profit year for the year Rs 15,000.interest received in advance on 1 april 2006,

Rs 2000 & 31.3.2007 Rs 3000. cash from operations will bea. Rs 10,000

b. 13,000

c. 16,000d.none

Q62. The difference between actual lost & standard cost is known as

a. varience

b. profitc. differential cost

d. loss

Q63.standard costing helps in

a. measuring efficiency

b. reducing lossc. controlling pricesd. none.

Q64.Standard quantity 250 units .actual unit 260 units.standard prices Rs 5 per unit.actual prices Rs 5.5 per unit .calculate material price per unit.

a.130(a)b. 150 (a)c. 150(f)

d 150 (f)

Q65. The branch of accountring which primarily deal with processing & presentingaccounting date for internal use in a concern is

a. financial accounting

b. lost account

c. management accounting

d. none

Q66.Marginal costing includes which element

a. ascertainment of marginal cost

b. findind out effects on profit ,due to changes in volume or type of output.C. differentiating between fixed & variable costs

d. all of the above.

Q67.Variable cost is also known asa. marginal costb. fixed cost

c. noned all


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Q68. Variance analysis involves two elements

a. measurement of individual varianceb. identification of causes of each variance

c. all

d none

Q69 .The standard of material includea. material quantity

b. material price

c. noned. all(a&B)

Q70.Objectives of budgetary control area. planning the policy

b. coordinating activities

c. controlling costd. all

Q71.work cost is also known as

A. flat costb. manufacturing costc. total cost

d. cost of production

Q72. prime cost is also known as

A. direct cost

b. first costc. flat cost

d. all

Q73. Total of work cost &office overhead are known as

a. manufacturing cost

b. direct costc. cost of production

d .none

Q74.In a cost sheet stock of finished goods is adjusted at the stage of

a. prime cost

b. works cost

c. cost of productiond. none


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Q75. In cost sheet realisable value of scrap is deducted from

a. direct cost

b. works cost

c. cost of production

d. none

Q76.In a cost sheet stock of work in progressis adjusted at the stage ofa. direct cost

b. works cost

c. cost of productiond. none

Q77.If profit is 25% of cost ,it will be------% of sales

a. 20%

b 15%

c 30%d. none

Q78.If profit is 50% of cost ,it will be ____%of cost

a. 100%b. 75%

c. 60%

d. none

Q79.cost price Rs 18,000,33 .profit on selling price amount of profit will be

a. Rs 6000

b. 9000c. 4500

d none

Q80.Total sales are Rs 5,00,000, 25%. Profit on cost .Total profit would be

a. Rs 1,00,000

b. 1,25,000c. 1,50,000

d. Rs 1,66,670

Q81. If prime cost Rs 16,000 factory overheads 25% of prime cost &office overheads

75% of factory overheads, office cost would be

a. Rs 3000

b. 15,000

c. 23,000

d. none


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Q82. If prime cost Rs 24000, office cost,Rs 30,000,office overheads 50% of office

overheads , factory cost would bea. Rs 3000

b. 27,000

c. 26,000d. 28,000

Q83.If prime cost Rs 18,000 , factory cost Rs 21,600 , factory overhead 45%, of direct

wages, the amount of direct material would be.

a. Rs 8000b. 4,800

c. 10,000d. none

Q84. If opening balance of material Rs 6000, closing balancers 45,0007 value of material

used Rs 75,000, amount of material purchased would bea. Rs 60,000b. 90,000

c.30,000

d.none

Q85.If units produced during the month are 10,000 (out of which 2,000 units were un

sold) cost of production is Rs 62,000 & selling expenses per unit is Rs 1.80 ,cost of saleswould be

a. Rs 64,000

b. 67,600

c.92,400d. none

Q86. cost accounting isa. part of managerial accounting

b.part of financial accounting

c. part of responsibility accountingd.none

Q87.Ascertainment of cost with the help of actual expenses incurred in termed asa. Historical costingb. standard costing

c. marginal costing

d. absorption costing

Q88.An examples of variable cost

a. Rent,rates,& taxesb. Interest on capital

c. Direct material costd. Depreciation on machinery


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Q89.variable cost are such costs which

a. per unit remains the fixedb. per unit does not remain constant

c. Do not vary with variation in output

d. none

Q90.Which of the following is factory overheadsa. salary

b. drawing office expenses

c. legal expensesd. none

Q91.Which of the following items is not included in cost accountsa. Rent of warehouse

b. share transport fee

c. office rentd. depreciation on furniture

Q92. Advantages of budgetary control

a. ensure effective use of resourcesb. sets up standard costing

c. Increase employee productivity

d. all

Q93. contribution can be represented as follows

a. contribution=selling price-variable cost

b. contribution = fixed cost + profit /lossc. contribution= p/v ratio*sales

d. all

Q94. Sub fields of accounts are

a. book keeping &financial accounting

b. cost &management accountingc. social responsibility accounting

d. all

Q95.It is arrived at by the deducting the direct cost of goods sold from sales proceeds

a. gross profitb. net profit

c. alld. none


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Q96.Example of current asset is

a. buildingb. machinery

c. stock

d. creditors

Q97.Wages paid for installitation of machinery is debited to wages a/c instead ofmachinery this is an erroe of

a. principal

b. omissionc. commission

d. compensation

Q98.If the total of the debit side of an account is greater than credit side the balance of

such a/c is

a. Debit balanceb. credit balancec. no balance

d. none

Q99.The valuation principle of assets & liabilities depend on

a. matching concept

b. realization conceptc. cost concept

d. going concern concept

Q100.Capital is a ____________for business.a. assets

b. liabilities

c. expensesd. none.

financial managment account

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