Pg trb commerce(repeated question) Unit 3 accounting for management

Pg trb commerce(repeated question)

 Unit 3 accounting for management

1. Cash from operation is equal to

a) Net profit plus increase in outstanding expenses

b) Net profit plus increase in debtors

c) Net profit plus increase in stock

d) Net profit plus increase in accrued income

2. A budget which is prepared incorporating the summary of all the functions budget is called

a) Cash budget b) master budget c) sales budget d) production budget

3.financial statements are essentially based on

a)accrual basis b)going concern assumption c)consistency d)matching concept

4.in case of a limited company the term financial statements includes

a)p&l  a/c and b/s  b)p&l a/c, p&l  appropriation a/c and b/s

5.quick ratio is

6.which of the following is not profitability ratio

a)inventory turnover ratio b)gross margin c)rxpences ratio d)ROI

7.What is the amount of operating expences when salesRs. 14900/-gross profit Rs3300/- and net loss id Rs500?

a)Rs 2800 b)Rs 3800 c)Rs 11,100 d)Rs 11600

8.net profit earned plus non working capital expences is equal to

a)fund provided by operation b)use of funds  c)sinking fund d)source of fund

9.which does not come under liabilities from the following

a)bank overdraft b)income in advance c)debtors d)creditors

10)credit sales for the year Rs 12000/- bills receivables Rs 1000/- Debtors .the debt collection period is

a)6 months  b)1 month  c)2 month d)3 months

11.gross profits Rs 50,000/- profit on sale of building Rs.5000/- salaries Rs 8000/- depreciation on plant Rs 5000/- printing and stationery Rs 3000 good will written off Rs 5000/- provision for taxation Rs 10000/- the fund from operation is

a)Rs 24,000/- b)Rs39,000/- c)34,000/- d)27,000/-

12.the net income of an enterprise is Rs 162400/-:its fixed charges on martage debentures Rs 2700/- and the income tax paid by the company is Rs 162400/-.the interest coverage ratio is

a)60.5 times b)121 times c)101 times 108 times

13.the operating profit of a limited company after charging interest on debentures and tax is Rs.10000/-

The amount of interest charged is Rs 2000/- and the provision for tax is Rs 4000/- preference dividend payable Rs 1000/- the dividend coverage ratio is

a)10 times b)16 times c)12 times d)14 times

14.given that the current ratio is 2:1 if the net working capital is Rs 60000 then the amount of current liabilities would be

a)30,000 b)60000/- c)121200/- d)90,900/-

15. Stock turn over ration is

A) Liquidity ratio b)activity ratio c)profitability ratio d)solvency ratio

16. When the current ratio is 2.5 and the amount of current liability is Rs 25000/- what is the amount of current assets

a)62500/- b)12500/- c)10000 d)12000/-

17. When average stock is Rs8000/- selling price is 25% above cost and stock turnover ratio is 6 times what the amount of gross profit is

a)Rs2000/- b)Rs 4000/- c)Rs 10000/- d)Rs 12000/-

18. Which of the following is most important for finding the long term solvency of a firm?

a) debt- equity –ratio b) stock-turnover ratio c) premium and investment d) fixed asset turnover ratio

19. Which of the following is a noncurrent asset?

a) Debtors b) prepaid insurance c) land d) stock

20.if the net profit is Rs 25000 after writing off preliminary expenses Rs 5000 then the funds from operation will be

a)25000 b)30000 c)20000 d)5000

21. Sales budget is a

a) Master budget b) functional budget c) expenditure budget d) none of these

22. Which of the following is not a source of fund?

a) Purchase of machinery b) profit earned during the year c) variable cost per unit

d) Sales increases

23.if the net profit for a period is Rs 50000/- after crediting a gain on sale of asset Rs 5000/- and debiting depreciation of Rs 20000/- on fixed assets the funds from operation will be

a)Rs 70000 b)Rs75000 c)Rs 65000 d)Rs55000/-

24.budget is only a management tool.it is not a substitute for  management the above statement is

a)correct b)wrong c)correct depending upon the situation d)incomplete

25.what is the accepted standard for current ratio ?

a)2:1 b)1:2 c)1:3 d)1:1.

26.ratio of performing assets to toal assets is peculiar to

a)banking industry b)insurance industry c)public utility d)airlines company

27.the budjet manual contains

a)the objectives and principles of the budgetary control

b)duties and powers of the budget officer committee

c)accounts classification and budgeted period

d)all of these

28.balance sheet is a statement of

a)financial position b)profit&loss c)market value of investment d)replacement cost of the assets

29.cash budget is a/an -------- term budget

a)average b)long c)medium d)short

30.capacity ratio* efficiency ratiois

a)activity ratio b)quick ratio c)current ratio d)efficiency ratio

31.functional budget include

A)purchase budget  b)fixed budget c)flexible budget d)current budget

32.-------------- determines the priorities in a functional budget

a)promoters b)cost c)efficiency d)key factors

33.as a general rule quick of -------------- is considered to be satisfactory

a)1:1 b)2:1 c)1:2 d)1:4

34.the turm fund in the fund flow statement refers to

a)networking capital b)cash c)current assets d)current liabilities

35.which of the following is a liquidity ratio

a)debtors velocity b)quick ratio c)cash position ratio d)all of these

36.one of the most important tool of cost planning is

a)cost sheet b)marginal costing  c)direct costingS d)budget

37.which of the following is usually a long term budget

a)sales budget b)cash budget c)capital expenditure d)fixed budget

38.if the operating expences exceed the gross profit the excess is refere to as

a)operating income b)operating loss c)non-operating ecpences d)non-operating income

39.the ROI is the ratio between

a)turn-over and capital employed b)investment and profit

c)net operating profit and capital employed d)all  of these

40.turn over ratio is useful to the management for

a)enforcing internal discipline b)managing its debts c)evaluating performance d)managing resources

41) Which if the following is not an operating expenses

a) Office expenses b) interest paid c) selling overheads d) postage

42.long term solvency is indicated by

a)rate of return b)liquid ratio c)debt equity ratio d)capital-gearing ratio