Hello sir I am here as I want to get the MCQs question related to MBA(Finance) so will you please provide me the questions??

As per your demand here I am providing you MCQs question related to MBA(Finance)


1) The definition ‘Management Accounting is the presentation of accounting information in such a way as to assist management in the creation of policy and the day-to-day operation of an undertaking.’
a. Ango-American Council on Productivity
b. AICPA
c. Robert N. Anthony
d. All of the above

2) Agency cost consists of
a. Binding
b. Monitoring
c. Opportunity and structure cost
d. All of the above

3) Finance Function comprises
a. Safe custody of funds only
b. Expenditure of funds only
c. Procurement of finance only
d. Procurement & effective use of funds

4) The objective of wealth maximization takes into account
a. Amount of returns expected
b. Timing of anticipated returns
c. Risk associated with uncertainty of returns
d. All of the above

5) Financial management mainly focuses on
a. Efficient management of every business
b. Brand dimension
c. Arrangement of funds
d. All elements of acquiring and using means of financial resources for financial activities

6) Liquid assets is determined by
a. Current assets – stock - Prepaid expenses
b. Current assets + stock + prepaid expenses
c. Current assets + Prepaid expenses
d. None of the above

7) Which of the following is not included in current assets?
a. Debtors
b. Stock
c. Cash at bank
d. Cash in hand

8) Higher the ratio, the more favorable it is, doesn’t stand true for
a. Operating ratio
b. Liquidity ratio
c. Net profit ratio
d. Stock turnover ratio

9) The most precise test of liquidity is
a. Quick ratio
b. Current ratio
c. Absolute Liquid ratio
d. None of the above

10) Quick ratio is 1.8:1, current ratio is 2.7:1 and current liabilities are Rs 60,000. Determine value of stock.
a. Rs 54,000
b. Rs 60,000
c. Rs 1,62,000
d. None of the above

11) Collection of debtors
a. Decreases current ratio
b. Increases current ratio
c. Has no effect on current ratio
d. None of the above

12) Provision of taxation is treated as
a. As a current liability
b. As an appropriation of profits
c. Either a or b
d. None of the above

13) As per accounting standard AS3, provision for taxation should be treated as
a. As a current liability
b. As an appropriation of profits
c. Either a or b
d. None of the above

14) Which of the following statement is true?
A) If the amount of good will increases during current year, the difference is treated as purchase of goodwill.
B) If the amount of good will decreases during current year, It will treated as written off.

a. Only A
b. Only B
c. Both A and B
d. None of the above

15) The opening and closing balance of general reserves are Rs 10,000 and Rs 9,000, respectively. It is stated in addition information that a loss of Rs 1000 has been written off in general reserves. In such a case, decline in reserve and loss on investment will be adjusted in P&L account.
a. True
b. False


16) Which of the following statements are false?
A) Old Furniture written off doesn’t affect cash flow.
B) Cash flow statement is a substitute for cash account.
C) Appropriation of retained earnings is not shown in Cash flow statement.
D) Net cash flow during a period can never be negative.

a. A, B, C
b. B, C, D
c. C, D, A
d. None of the above

17) Which of the following is not a cash inflow?
a. Decrease in debtors
b. Issue of shares
c. Decrease in creditors
d. Sale of fixed assets

18) Which of the following is not a cash outflow?
a. Increase in Prepaid expenses
b. Increase in debtors
c. Increase in stock
d. Increase in creditors

19) While preparing Marginal cost and Contribution Statement, if any factor of production is key factor then ________ should be expressed in terms of per unit of Key factor.
a. Profit
b. Sales
c. Contribution
d. None of the above

20) Which of the following principles should be followed while making a decision to drop a product/line?
a. Product yielding lowest contribution should be given top priority in production programme
b. A product line should be dropped, if it yields positive contribution
c. If any factor is key factor, the product/line should be dropped, which gives maximum contribution per unit of key factor
d. None of the above

21) Rahul has an amount of Rs 3,00,000 which is invested in a business. He desires 15% return on his fund. It is known from the past cost data analysis that fixed costs are Rs 1,50,000 per annum and variable costs of operation are 60% of sales. Determine sales volume to get 15% return. Also tell shut down point of the business, if he would spend Rs 50,000 even if business has to be closed.
a. Rs 2,50,000 and Rs 4,00,000
b. Rs 2,50,000 and Rs 4,87,500
c. Rs 4,87,500 and Rs 2,50,000
d. Rs 4,00,000 and Rs 2,00,000

22) A facility, the installed capacity of which is 1,00,000 units, has budgeted 70% level of activity as Materials Rs 1,05,000, Wages Rs 1,40,000 Variable overheads Rs 70,000 and Fixed overheads Rs 20,000. Production is now proposed at 80,000 units. Determine Marginal cost p.u., Differential cost, and Differential cost p.u.
a. Rs 2, Rs 20,000, Rs 4.5
b. Rs 4.5, Rs 45,000, Rs 4.5
c. Rs 5, Rs 50,000, Rs 5
d. None of the above

23) As per Cash flow method Increase in current liabilities and decrease in current assets are
a. Deducted from opening balance of cash
b. Added to opening balance of cash
c. Not included in cash budget
d. None of the above

24) In cash flow method for preparing cash budget, payment of dividends and prepaid payments are
a. Deducted from opening balance of cash
b. Added to opening balance of cash
c. Not included in cash budget
d. None of the above

25) Cash budget deals with historical data whereas Cash Flow Statement deals with future data.
a. True
b. False

26) Variable overhead variance is represented by expenditure variance only.
a. True
b. False

27) If the actual output is more than the budgeted output, volume variance is
a. Favorable
b. Non-favorable
c. No impact
d. None of the above

28) The capacity variance arises when
a. There are more working hours than the budgeted working hours
b. There are less working hours than the budgeted working hours
c. Both a and b
d. None of the above

29) Analysis of overhead variances can be done by
a. Two variance method
b. Three variance method
c. Four variance method
d. All of the above

30) Given budgeted output, number of working days, fixed overheads and variable overheads are 15,000 units, 25, Rs 30,000 and Rs 45,000 respectively. The actual output, number of working days, fixed overheads and variable overheads are 16,000 units, 27, Rs 30,500 and Rs 47,000, respectively. The increase in capacity is 5%. Determine variable overhead expenditure variance and fixed overhead variance, respectively.
a. Rs 1,500 and Rs 1,000 favorable
b. Rs 1,500 and Rs 1,000 unfavorable
c. Rs 1,000 and Rs 1,500 unfavorable
d. Rs 1,000 and Rs 1,500 favorable

31) ABC Ltd is operating a system of standard costing with closing of books done every quarter. The budgeted overheads are Rs 2,55,000. Also, the overhead rate was pre-decided @ Rs 5.1 per labour hours and during a quarter actually used 52,000 labour hours, instead of 51,000 hours. The actual overheads resulted in a rate of Rs 4.9 per labour hours. What is volume variance?
a. Rs 5,100 favorable
b. Rs 5,200 favorable
c. Rs 5,100 unfavorable
d. Rs 5,200 unfavorable

32) Sales margin variance due to volume can be classified into _____parts.
a. 3
b. 2
c. 4
d. 5

33) The formula to estimate the sales margin variance due to sales mixture is
a. Standard profit - Revised standard profit
b. Revised standard profit - Budgeted profit
c. Standard profit + Revised standard profit
d. Revised standard profit + Budgeted profit

34) Sales margin variance due to sales quantities is measured as
a. Standard profit - Revised standard profit
b. Revised standard profit - Budgeted profit
c. Standard profit + Revised standard profit
d. Revised standard profit + Budgeted profit

35) When actual price is higher or lower than the standard price, then it is
a. Sales price variance
b. Sales volume variance
c. Sales mix variance
d. Sales quantity variance

36) The corrective actions after the analysis of variances has to be taken by
a. Cost accountant
b. Management
c. Both a and b
d. None of the above

37) The type of standard that is best suited for cost control objective is
a. Normal standard
b. Basic standard
c. Expected standard
d. Ideal standard

38) Volume variance arises when
a. There is rise in overhead rate per hour
b. There is decline in overhead rate per hour
c. There is decrease or increase in actual output compared to the budgeted output
d. None of the above

39) There are three departments A, B and C in a company, The sales of A, B and C are Rs 3,52,000, Rs 2,88,000 and Rs 1,60,000, respectively. The variable costs of A, B and C are Rs 2,40,000, Rs 1,76,000 and Rs 1,44,000 respectively. The direct fixed costs of A, B and C are Rs 28,000, Rs 22,400 and Rs 12,800. Rank the different departments on basis of relative profitability.
a. A- Rank 3, B- Rank 1 and C- Rank 2
b. A- Rank 2, B- Rank 1 and C- Rank 3
c. A- Rank 3, B- Rank 2 and C- Rank 1
d. Insufficient data

40) Which of the following is a kind of information report?
a. Trend reports
b. Analytical report
c. Activity reports
d. All of the above

41) ___________ are just income statements, wherein the results of one particular year are compared with the findings of past several years.
a. Subsidiary trend reports
b. Analytical report
c. Activity reports
d. Master trend report

42) Analytical reports are based on the ______ comparison of results.
a. Horizontal
b. Vertical
c. Symmetrical
d. None of the above

43) A balance sheet is a form of
a. Dynamic financial reports
b. Static financial reports
c. Activity reports
d. None of the above

44) Financial control report comes under
a. Dynamic financial reports
b. Static financial reports
c. Extensive Activity report
d. None of the above