Financial Management and Acting nayan

8/9/2019 Financial Management and Acting nayan

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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

workd. 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


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 recognition3."Moolchand, a businessman in sweets has






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 shopb. Rs. 3,00,000

c. Rs. 1,50,000

d. Rs. 1,05,000 because Rs.10,50,000 is divided

by 10 years







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.


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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 withMr. 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%. Basedon 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 theaccounting 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


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Rs. 1,00,000. On Dec,31st 2004, the business

had assets of Rs. 2,40,000 and liabilities of

Rs.1,20,000. During the year 2004, Rakesh had

invested additional capital of Rs. 50,000

and withdrew Rs. 30,000. Compute net prfit or

net loss using accounting equation

method.

a. Rs. 50,000

b. Rs. 45,000

c. Rs.. 65,000

d. Rs. 25,000


1.Complete the following matrix by entering

either debit or credit in each cell, as shown

below

owners capital, To Increase - credit To

Decreases - debit

1. Assets2. Gains

3. Losses

4. Liabilities

a. c. Credit & debit, debit & credit, credit &

debit, debit & credit

b. a. Debit & credit, credt& debit , debit &

credit, credit & debit

c. d. Debit & credit, debit & credit, debit &

credit, debit & credit

d. b. Debit & debit , credit & credit, credit &

debit, credit & debit2.Listed below a number of transactions.

Identify which account to be debited and which

account to be credited, as shown for the first

transaction

Transation Debit credit

Brought capital in cash cash capital

1.Received Dividend from X co

2.Paid insurance premium

3 Furniture bought from jains

4.Used cash for personal purpose

a. Cash & Dividend Premium & cash Furniture &

jains Drawing & cash

b. X co & Dividend cash & lusur Jains & cash

Drawing & bank

c. Cash & X co lnsur &cash Furniture & cash

cash & bank

d. Dividend & X Co his & premium Jain &

Furniture Cash & drawings

3.Match the following

Transation A/C Debited& credited Narration

1.Rent received a. P& L a/c capital e. Being

profit added to capital

2.Wages paid b.Creditors a/c cash f. Being cash

received as rent

3.Profits added to capital c. cash & rent g.Being

cash paid to creditors

4.Paid to creditors d. Wages a/c & cash h.Being

wages paid in cash

a. 1- b & g, 2- c & g, 3- d & h, 4- c & e

b. 1-c & f, 2-d & h, 3-a & e, 4- b & g

c. 1- d & e, 2-a & h, 3- b & e, 4- a & f

d. 1- a & e, 2 - b & f, 3- c & g, 4- d & h


1. Bills Receivable

a. Accepted a bill in favour of Y for 3 months for

credit purchases

made2. Bills Payable b. Royolty received in cash

3. Cash book c. stamps and postage expenses

recorded

4. Petty cash d. Gave us a bill for 4 months for

credit sales made to him

a. 1-b,2-c,3-d,4-a

b. 1-d,2-a,3-b,4-c

c. 1-c,2-d,3-a,4-b

d. 1-a,2-b,3-c,4-d


Subsidiary Book Transaction1. Purchases

a. Raghavendra purchased goods from us as

credit

2. Purchase Returns b. Bought goods from

ration and Co

3. Sales c. Gupts returned goods to us

4. Sales Returns d. Padmanebts received goods

returned by us

a. 1-c, 2-d,3-a,4-b

b. 1-a,2-b,3-c,4-d

c. 1-d,2-c,3-b,4-a

d. 1-b,2-d,3-a,4-c


1.Following is the account of Hamid Bros.

Prepare journal entries

A. i) Hamid Bros. A/c Dr 26,000 ii) Hamid Bros

A/c Dr 1,000

To Sales a/c 26,000 To interest a/c 1,000

iii) Cash a/c Dr 12,000 iv) B/R a/c Dr6,000


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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/cDr 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 /d14,000

32,000 32,000


.

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. 40,000b. 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 inJournal proper

c. Adjusting entry

iv) Assets are debited, liabilities are

credited along with capital

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


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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)


1.Prepare a suspense a/c after rectifying the

following errors and show the balance

i) Equipment purchased from Dell Rs.74,587 hasbeen 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. 7,210c. Rs. Debit balance of Rs. 7,200

d. Rs. Credit balance of Rs. 7,100


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


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. 79,800d. Rs. 80,000


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


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


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1. Cause and effect

relationship

a. Guide future plan and decision making

2. Non-adherence of

Rules

b. Emphasis on system theory.

3. Economic reality c. Utility of information

4. Information system

d. Differentiate variable on the profits and

Profitably

a. 1-b, 2-a, 3-c, 4-d

b. 1-a, 2-d, 3-b, 4-c

c. 1-d, 2-c, 3-a, 4-b

d. 1-e, 2-b, 3-a, 4-d


1. Management accounting

deals witha. External use

2. Financial accounting deals

with

b. Internal use

3 Cost accounting deals with c. Employees.

4. Human Resource

Accounting deals with

d. Production

a. 1-c, 2-a, 3-b, 4-d

b. 1-d,2-c, 3-c, 4-a

c. 1-b, 2-a, 3-d, 4-cd. 2-d, 3-a, 2-c, 1-b


1.Current ratio is 5.5 :1 quick ratio is 4 to 1

inventory is Rs 30,000, find the current

liabilities

a. 21,000

b. 19,000

c. 22,000

d. 20,000

2.Given current ratio is 1.75, liquid ratio is 1.25,

net net working capital is Rs 1,50,000

the current assets is. Calculate the following

current asset is

a. 3,50,000

b. 3,53,000

c. 3,45,000

d. 3,52,000

3.Given current ratio is 2.5 and working capital

is Rs 1,80,000. the current asset is

a. 3,15,000

b. 3,05,000

c. 3,00,000

d. 3,10,000

4.The current liability is

a. 2,10,000

b. 2,20,000

c. 2,00,000

d. 2,05,000

5.The liquid asset are

a. 2,10,000

b. 2,50,000

c. 2,49,000

d. 2,51,00,000

6.The working capital is Rs 80,000 and current

ratio is 5, the current liability is

a. 21,000

b. 22,000c. 20,000

d. 23,000


1.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 premiumof 10%. The opening and closing balance in

premium account is Rs 8,00,000 and

14,00,000 respectively

If preference shares are considered in openning

balance the flows from equity is

a. 4,50,000

b. 4,05,000

c. 4,50,000

d. 3,50,000


6,00,000 and Rs 9,50,000. The






by issue of Rs 90,000 shares at a premium

of 10%. The opening and closing balance in



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Premium on redemption at 8% is

a. Rs 6000

b. Rs 8000

c. Rs 2000

d. Rs 4000


6,00,000 and Rs 9,50,000. The










Redemption of Rs 75,000 on preference sharesresult in

a. cash adjustment with equility

b. cash inflow

c. cash outflow

d. cash deduction from equility


6,00,000 and Rs 9,50,000. The




premium. Bonus shares at Rs 1 for every fiveshares held. furchier, a business was purchased





The cash inflows before are adjustment are

a. 3,00,000

b. 3,50,000

c. 3,05,000

d. 15,50,000


6,00,000 and Rs 9,50,000. The









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


6,00,000 and Rs 9,50,000. The








premium account is Rs 8,00,000 and14,00,000 respectively Bonus shares after

taking preference shares

a. Rs 1,02,000

b. Rs 1,00,000

c. None

d. Rs 1,05,000


6,00,000 and Rs 9,50,000. The



preference shares were redeemed at 8%premium. Bonus shares at Rs 1 for every five





14,00,000 respectively Bonus shares are

_____________ to equility share capital

a. Deducted

b. Added

c. Decided

d. Deleted


6,00,000 and Rs 9,50,000. The








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14,00,000 respectively Bonus shares bring in

a. No cash

b. None

c. Cash outflow

d. Cash inflow


6,00,000 and Rs 9,50,000. The









14,00,000 respectively Bonus shares arecalculated on

a. Called-up

b. Authorised capital

c. Paid up

d. Issued


6,00,000 and Rs 9,50,000. The




premium. Bonus shares at Rs 1 for every fiveshares held. furchier, a business was purchased




14,00,000 respectively Issue of the 90,000

shares towards purchase consideration results

in

a. Reduction

b. Recession

c. Rejection

d. Remission


1."Given net profit is Rs 45,000.loss on sale of

machinery is Rs 2000. Depreciation is Rs

18,000. Funds from operation are."

a. 56,000

b. 20,000

c. 65,000

d. 47,000

2."Operating loss is 10,000 Decrease in debtors

Rs 12,000 increase in prepaid 4,000.

decrease in current liabilities Rs 30,000 net cash

used in operating activities"

a. 23,000

b. 25,000

c. 24,000

d. 32,000

3."The opening and closing value of land is Rs

12,000 and Rs 10,800. A piece of land has

been sold for Rs2,400 at a profit of 100% the

operating gain is "

a. 2,000

b. 2,600

c. 1,200

d. 2,400

4.Cash and cash equivalent of cash in hand is Rs

1200 and bank OD is Rs 12,500 isa. 11,300

b. 17,300

c. 13,700

d. 11,300

5.Cash in hand is Rs 10,000, cash at bank is Rs

5,000, the cash and cash equident is

a. 18,000

b. 2,000

c. 2,000

d. 18,000

6.Investment costing Rs 20,000 were sold at aprofit of Rs 5,000 the cash flow is

a. 25,000

b. 20,000

c. 30,000

d. 15,000

7.Net loss is Rs 45,000 Decrease in provision for

bad and doubtful debt is Rs 1000, the

operating loss is

a. 46,000

b. 48,000

c. 45,000

d. 44,000

8.Net profit is Rs 40,000; tax paid is Rs 9,000,

the profit before tax is

a. 30,000

b. 40,000

c. 31,000

d. 49,000


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

Rs 5,80,000, the net loss is

a. 12,80,600

b. 1,21,000

c. Nil

d. 1,20,000

10.Purchase of asset Rs 3,00,000 sale of

building Rs 2,90,000 net cash under investing is

a. 5,80,000

b. 5,60,000

c. 5,90,000

d. 10,000


1.Cost of production - administration overheads

is

a. Factory cost

b. Prime cost

c. Factory overheadsd. All

2.Direct labor + factory overhead is

a. Concession cost

b. Contradiction cost

c. Confusion cost

d. Converation cost

3.Prime cost + factory + admin overheads is

a. Cost of sales

b. Sales

c. All

d. Cost of production4.Prime cost + factory overhead is

a. Sales

b. Total cost

c. Factory cost

d. Totality cost

5.Prime cost + over heads is

a. All

b. Cost of sales

c. Cost of goods sold

d. Cost of production

6.Sales-profit is

a. Retail cost

b. All

c. Removal cost

d. Total cost

7.Total cost + profit is

a. Prime cost

b. Factory cost

c. Cost of production

d. Sales

8.Total cost - selling overhads is

a. Sales

b. Cost of product

c. None

d. Cost of sales


1.BEP is 1000 units CPU is Rs 5 the fixed cost is

a. 5200

b. None

c. 5100

d. 5000

2.BEP is Rs 10,000, CPU Rs 2 ,Total fixed cost is

a. 1500

b. 1000

c. 1800

d. 1200

3.BEP is Rs 30,000, MOS is Rs 50,000 actualsales is

a. 82000

b. 81000

c. 80000

d. 83000

4.FC is Rs 10,000, CPU is Rs 5 ,BEP in units are

a. 2100

b. 2500

c. 2200

d. 2000

5.FC is Rs 10,000, VC per unit is Rs 8, SP is Rs 10per unit, the BEP in units is

a. 5100

b. 5200

c. 5000

d. 5300

6.FC is Rs 7,000 profit is Rs 3,000 sales are Rs

50,000, the MCSR is

a. 0.25

b. none

c. 0.1

d. 0.2

7.MCSR is 30 % , marginal sales ratio is 40% ,the

profit percentage on sale is

a. 12

b. 21

c. 30

d. 25

8.MCSR is 40% sales value is Rs 10,000, the

variable cost is


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a. 6000

b. 8000

c. 5000

d. 4000

9.Net profit is 10% , MCSR is 50% the MOS is

a. 0.1

b. 0.25

c. None

d. 0.2

10.When MCSR is 50%, MOS is 40 % ,profit on

sales is

a. 0.25

b. 0.2

c. 33.3333333333333

d. All


1."Wages paid July Rs 32,000, Aug Rs 32,000,

Sept Rs 32,000, Oct Rs 40,000 Nov32,000. Lag in payment for wages 1/8 month.

The amount of budget is for Sept, Oct, Nov

is

a. 33,000, 33,000, 39,000

b. 32,000, 33,000, 39,000

c. 39,000, 32,000, 33,000

d. 32,000, 39,000, 33,000

2.Cash balance at close of April Rs 27,200

Receipts of may Rs 1,14,200 and payments Rs

78,500 the closing balance of may is

a. 53700b. 35070

c. 35700

d. 37500

3.Closing balance of June is Rs 48,700,

payments are Rs 69,000 receipts are Rs

1,17,700

the opening balance is

a. 87400

b. 47800

c. 78400

d. 48700

4.Factory expenses from July to Nov is Rs 5,000

each . Lag in payments is 1/2 month.

The expenses from Sept to Nov are

a. 5,000, 6,000, 4,000

b. 5,000 , 5,000 , 5,000

c. 5,000, 6,000

d. none

5.Opening and closing balance of cash in April

are Rs 15,000 and Rs 27,200. The

expenses use Rs 71,800, the receipts are

a. 1,52,600

b. 1,25,000

c. 1,56,200

d. 99000


1.Actual material cost is 900 units.Unit price is

Rs 9, standard cost is 1000 units at Rs 6

per unit Material cost variance is Rs 550(A) and

material price variance is Rs 150(F),

material usage variance is

a. 700(A)

b. 400(F)

c. 700(F)

d. 400(A)

2.Actual material cost is 900 units.Unit price isRs 9, standard cost is 1000 units at Rs 6

per unit Material price variance is

a. 1200(A)

b. 1800(A)

c. 2400(F)

d. 600(F)



per unit Material usage variance is

a. 1000 (A)

b. 2000 (A)c. 1800 (F)

d. 600 (F)



per unit Materials cost variance is

a. 1200 (A)

b. 2400 (F)

c. 2400 (F)

d. 1200 (F)



per unit MMV is Rs 19,000(a) MYV Rs 34,000(a)

MPV is Rs 13,000(a), material quanty

variance is

a. 53,000(A)

b. 47,000(A)

c. 66,000(A)

d. 32,000(A)


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1."Capital is invested in the business. Howdoes it impact the accounting equation?"a. Cash increases the liability and capitalincreases asset of the businessb. Capital of the business increasesc. Capital appears as a liability and cash

appears as asset to the business.d. Cash is received into the business asasset2."Patent rights" Account is a _____a. Tangible real accountb. Intangible real accountc. Personal accountd. Nominal account3."Ramesh has taken a loan of Rs.20000from Suresh.How does this transactionaffect theasset and liablility of his business?"

a. Liability of Ramesh increases and cash inthe business decreasesb. B.Liability of the business decreases andCash as an asset of the businessdecreasesc. Liability of Ramesh increases and Cash(Asset) balance in the business increasesd. Liability of Ramesh decreases and cashin the business increases4.What do you understand by an 'Account'?a. It is part and parcel of Accountancyb. It is commonly used accounting

terminologyc. It is an indicator of a headd. It is a summary of transactions pertainingto a particular head5.What is 'Accounting Trail'?a. Process of commencing from recording topreparation of final accountsb. Process of preparing a trial balancec. Process of preparing all accountsd. Process of finding out P & L Account6.What is a personal account?a. Account relating to individuals and

persons.b. It is an individual transactionc. It is a private accountd. It is not real or nominal account.7.What is a real Account?a. Account which is existingb. Account which is tangible and can be feltc. Account which is not personald. Account which is truthful

8.What is mercantile system of doubleentry?a. System adopted by merchants.b. System of recording only cashtransactionsc. Ststem of recording both cash and credit

transactionsd. System of recording only credittransactions9.What is single entry system of bookkeeping?a. Transactions get recorded only onceb. Only one aspect of transaction isrecordedc. It is simple to understandd. Only a few personal accounts and realaccounts are considered in single entry10.Why is double entry system of book

keeping better than single entry system?a. Both aspects of a transaction arerecordedb. Double entry is more elaboratec. Transactions get recorded doubletimed. All transactions are recordedUnit4 - 1 Mark Quiz Questions

1.Credit sales createa. Supplierb. Tr. Creditorsc. Agentsd. Tr. Debtors

2.Debit all assets and credit all liabilities.This principle hold good because, theybelongtoa. Nominal accountsb. Real accountsc. Personal and real a/s accountsd. Personal accounts3.How do you read this journal entry cashaccount: Dr To capital accounta. cash account debtor to credit of capitalaccount

b. cash account is debited to capital accountc. cash account debtor to capital accountd. cash account is debit capital account iscredit4.If credit purchases are recorded inpurchases book, in which book purchasesarerecordeda. journal


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b. bank pass bookc. Journal properd. cash book5.Indicate the correct principle for nominalaccountsa. Debit all impersonal assets and credit all

impersonal liabilitiesb. Debit all expenses or losses and credit allincurs orgainsc. Debit the giver and credit the receiverd. Debit all payments and credit all receipts6.Narration to each journal entry isnecessary becausea. It is formality or conventionb. It is a clear indication of transationc. It is difficult to remember why is it drawnd. It describes the transaction7.Purchases book is a subsidiary book

containinga. All purchasesb. cash purchases of goodsc. Purchases of goodsd. Purchases of goods only8.Sales books, also called sales day book,containsa. Credit sales of goodsb. Sales of goods made during anaccounting periodc. Sales of goods and other assetsd. Cash sales of goods

9.State the rule of journalising with regard topersonal accountsa. Debit what comes in and credit whergoes amtb. Debit all assets and credit all liabilitiesc. Debit the given and credit the receiverd. Debit the receiver and credit the given10.Subsidiary books are also books oforiginal entry becausea. They contain non busing transactionsb. They contain record of subsidiarytransaction

c. They contain record of transactionsd. They contain original record oftransactions11.Subsidiary books are also called journalbecausea. They are prepared in substitution to

journalb. They are prepared by llarge organisations

c. They are note books of original entry, butprepared in the place of journald. They contain the same particular as

journal contains12.What do you mean by primary books ofaccounts

a. They are the books containing originalentryb. They are important booksc. They are not secondaryd. They are the first books13.What is in ward invoicea. Document to show the description ofpurchases of goods madeb. Document issued by receiver of goodsc. Document issued by godown keeperd. Document that comes in14.What is journalising

a. A career of journalismb. Process of making a recordc. Writing a transaction in a bookd. Systematic recording of journal entries in

journal15.What is the double entry principle for realaccountsa. Debit all expenses and credit all incomesb. Debit what is benefitied and credit what isnot benefitedc. Debit what comes in and credit what goesamount

d. b.Debit the receiver and credit the giverUnit5 - 1 Mark Quiz Questions

1.What is closing entry?a. Entry on the date of closing theaccounting periodb. An entry to close the businessc. Entry to close revenue accounts toprepare final accountsd. Entry drawn at the end of the day2.What is Journal Proper?a. Journal , properly being maintainedb. Journal of all uncovered accounts

c. Journal containing proper accountsd. Journal containing all such transactions,not covered byGeneral Journal orsubsidiary books3.What is opening journal entry?a. Journal entry found on opening theJournalb. Entry made at the beginning of the

journal


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c. Entry made on the opening date ofaccounting yeard. Entry of assets and liabilities and capitalas on the opening date of the accountingperiod4.What is secondary book in accounting? Is

ita. Replica of Journalb. Book of less importancec. Book of second entry to ensure internalcheckd. Ledger of accounts, posting being madefrom journalUnit6 - 1 Mark Quiz Questions

1.Identify in the following an error that canbe disclosed by TBa. Salary account is wrongly debited insteadof repairs are

b. b.Mr X a/c is debited more by Rs 100 andMrs X a/c is debited less by Rs 100c. A transaction of purchase is completelynot taken to journal at alld. Sales a/c is undercast by Rs 5002.If assets accounts and expenses accountsare shown on debit side of TB, whataccountsare shown an credit side of TBa. Income & capital accountsb. Income accountsc. Liabilities, capital and income accounts

d. Liabilities and capital accounts3.If personal account shows a creditbalance, what does this indicate ?a. It indicates 'Creditor'b. It indicates an item of incomec. It indicates a 'Debtors'd. It indicates an asset4.If T.B does not tally , what is itsconsequence ?a. P&L A/C may not tallyb. Trading A/C may not tallyc. Balancesheet does not tally

d. Profit/ loss may not be correct5.Interest on fixed Deposit is an item foundin TBa. Neither debit not creditb. On creditc. Both debit and creditd. On Debit side6.The object of preparing trial balance is

a. To check arithmetic accuracy of ledgerpostingb. To classify different accounts such aspersonal, real & nominalc. To verify the correctness of journalentries

d. To summarise ledger accounts7.The two methods of preparing trialbalance area. Total method & credit methodb. Debit method & credit methodc. Horizontal & vertical methodsd. Journalising & ledger8.There are 2 types of errors in accountingprocess. They area. Good and bad errorsb. Intentional and unintentionalc. String & weak errors

d. Disclosed and not disclosed by TB9.What do you mean by error disclosed byTB ?a. Error that are dangerousb. Errors which are not closedc. Errors that are notified by TBd. Error that can be found as TB does ntotally10.Which of the following contains error ofcommission?a. Ramanan,s account is debited instead oframana's a/c

b. An invoice of Rs 1200 is takenas Rs 1020in the journalc. Ravi,s account is debited by Rs 2000 butposted to the credit side of his a/cd. Plant purchased is transferred topurchases a/cUnit7 - 1 Mark Quiz Questions

1.Final accounts are prepared recognizingthe concept ofa. Money measurement conceptb. Income recognition conceptc. Separate entity concept

d. Accrual Concept2.If outstanding expense account appears inthe trial balance, what does it mean?a. Outstanding expenses of last year, to beadjusted in the current yearb. Closing balance of outstanding expensesof current yearc. Expenses of current year outstanding


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d. Outstanding expenses to be consideredin P&L A/C3.On which side outstanding expensesaccount appear in the balance sheet?a. Asset sideb. Appears in trial balance

c. Appears in Journal properd. Appears on liability side4.Prepaid tax for 2004-05 is Rs.12,000 andprepaid tax for 2005-06 is Rs.18,000. If thetaxes payable for the year is Rs.88,000, findout what is the actual tax paid in 2005-06?a. Rs. 82,000b. Rs. 88,000c. Rs.58,000d. Rs. 94,0005.Rent paid per month is Rs.5,000 . Duringthe year 2005-06 the rent actually paid was

Rs. 75,000. Find out what is prepaid in theyear 2005-06?a. Rs.15,000b. Rs.5,000c. Rs.20,000d. Rs. 10,0006.The basis for preparing Final Accounts isa. Journal properb. Trial Balancec. Journal entriesd. Ledger accounts7.What is outstanding expense?

a. Expense yet to be incurredb. Expense incurred but not yet paidc. Expense which is outstandingd. Expense incurred and paid8.What is prepaid expense?a. Expense paid in advance in the currentyear relating to coming year.b. Expenses to be paid in futurec. Expense paid in advance for current yeard. Expenses paid after preparation of finalaccounts9.What is the purpose of preparing final

accounts?a. To find the operational performance ofthe business for an accounting periodb. To know the balance at the end of theaccounting periodc. To know expenses and revenuesd. To find out profit or loss10.Which type of account, is outstandingexpense?

a. Real accountb. Personal accountc. Ficticious accountd. Nominal accountUnit8 - 1 Mark Quiz Questions

1.A budget is

a. Verbal expressionb. Qualitative expressionc. Quantitative expressiond. Written expression2.Budgetary control isa. Reaction in advanceb. Action in advancec. No action in advanced. Planning in advance3.Budgetary control is done througha. Productionb. Budgets

c. Cashd. Credit4.Decision-making in any field is primarily a

_______ of management.a. Responsibilityb. Functionc. Dutyd. Action5.Decisions are made.a. Everb. Only oncec. Time to time

d. At emergency.6.Forecasting and planning function include:a. Short and long term rejection.b. Short and long term forecastsc. Short and long term decisions.d. Short and long term objection7.Functions of Management Accountinginclude.a. Decisionsb. Postulatesc. Principlesd. Activities

8.Management accounting is an______________ to the management.a. Accounting information.b. Accounting servicec. Accounting necessityd. Accounting procedure9.The data management accounting isrequired fora. ersonal use


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b. External usec. Internal used. Official use10.The scope of management accounting isbased on.a. Financial data

b. Historical financial datac. Historical production datad. Historical cash data.Unit9 - 1 Mark Quiz Questions

1.Acid test ratio excludesa. Capitalb. Liabilityc. Assetd. Inventory2.Acid test ratio isa. current liabilities stock / current assetsb. current assets + stock / current liabilities

c. current assets / current liabilitiesd. current liabilities stock / current assetse. current assets stock / current liabilities3.Analysis meansa. Integrationb. Separationc. Narrationd. Creation4.Current ratio compares:a. Current assets with current liabilitiesb. Fixed assets with current assetsc. Current assets with fixed asset

d. Current assets with current asset5.Current ratio deals witha. Mutual obligationb. Mid-term obligationc. Long-term obligationd. Short-term obligation6.Current ratio isa. current assets * current liabilityb. current assets current liabilityc. current asset / current liabilitiesd. current assets + current liability7.Current ratio is expressed as

a. Averageb. Proportionc. percentaged. Turnover8.Current ratio which is lower than industryratio indicates problem ona. Liquidityb. Liabilityc. Viability

d. Profitability9.Financial ratios are meant fora. Assessing performance and statusb. Possessing performance and statusc. Positioning performance and statusd. Proving performance and status

10.For fair food industries the CR may bea. Equal to noneb. Equal to onec. Less than 1d. More than 111.Liquidly deals with ___________ to casha. Convertabilityb. Suitabilityc. Rigidityd. Rapidity12.Ratio analysis helps to makea. Deletion

b. Decisionc. Deductiond. Rejection13.Ratio analysis is aa. Boltb. Nutc. Screwd. Tool14.Ratio analysis is a technique ofa. Analysis and finalizationb. Analysis and introductionc. Analysis and conclusion

d. Analysis and interpretation15.Ratio can be expressed as:a. Proportion, percentage, turnoverb. Revision, division, conclusionc. Addition, subtraction, multiplicationd. Calculation, division, simplification16.Ratio deals witha. b.Global relationshipb. Legal relationshipc. Quantitative relationshipd. Local relationship17.Ratio is based on

a. Comparsionb. Causationc. Narrationd. Relation18.Ratio is calculated bya. Multiplying one figure with anotherb. Adding one figure with anotherc. Subtracting one figure with anotherd. Dividing one figure with another


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19.Ratio meansa. One number expressed in percentageb. One number multiplied by itselfc. One character expressed in numbersd. One number expressed in terms ofanother

20.Rule of Thumb of current ratio isa. 2: -1b. 1: -1c. 1:1d. 2:1Unit10 - 1 Mark Quiz Questions

1.Fund flow analyses the movement ofa. Creditorsb. c.Debtorsc. Fundsd. Persons2.Fund flow analysis is a

__________________techniquea. obsoleteteb. uselessc. Traditionald. modern3.Fund flow deal with changes ina. Personnel itemsb. Financial itemsc. Technical itemd. Production items4.fund flow indicates the inflows andoutflows of

a. Cashb. Incomec. Lossd. Profit5.Fund flow shows the movement of fundsbetweena. Profit and loss datesb. Trading datesc. Two balance sheet datesd. Income & expenditure dates6.Funds are used in a narrow senseindicating

a. Profitb. Incomec. Cashd. Assets7.Increase in CA will increase thea. CLb. WCc. CAd. none

8.Schedule of working capital changes isprepared to finda. Net changeb. No changec. Gross changed. Negative change

9.SWC deals with onlya. CA and FAb. CA and FLc. CA and CLd. CA and fictious assets10.The objective of fund flow is to inform theshareholders abouta. wastage of fundsb. Use of fundsc. Misuse of fundsd. Savings of fundsUnit11 - 1 Mark Quiz Questions

1.CFS brings ina. Liquidityb. Profitabilityc. Insolvencyd. Liquidation2.CFS deals with casha. Inflowsb. Both (a) and (b)c. Outflowsd. None3.CFS depends ona. Receipt

b. Lossc. Both b & cd. Profit4.CFS explain reasons for low balance ofa. Assetb. Overdraftc. Cashd. Profit5.CFS is a document ofa. Financeb. Salesc. Personnel

d. ProductionUnit12 - 1 Mark Quiz Questions

1.Components of a cost isa. Directb. Both (a) and (b)c. Indirectd. None2.Cost is a sacritice of expense ina. Present


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b. Pastc. Advanced. None3.Cost is amount of resourcesb. Given upc. Gone up

d. Grown up4.Cost refer toa. Expenseb. Sourcec. Applicationd. Income5.Element of cost isa. All the threeb. Materialsc. Expensesd. Labor6.Materials may be

a. Finished areb. Both (a) and (b)c. Noned. Raw materials7.Materials may bea. Direct and Indirectb. Direct or Indirectc. Directd. Indirect8.Notional expenditure does not involvea. Cash inflowb. Source

c. Noned. Cash outlay9.Resources are expressed ina. Money equivantb. Both a and bc. Kindd. Money10.Unit 1980's, CA was in the domain ofa. Doctorb. Engineerc. Economistd. Daughter

11.CFS is measured based ona. Statementb. Expensesc. Incomed. Both (a) & (b)12.CFS is prepared to know the position ofa. Assetb. Profitc. Flow

d. Cash13.CFS is prepared with the help ofa. Pass bookb. Cash bookc. Balance sheetd. Petty cash book

14.Its importance of CFS is in itsa. Rangeb. Short termc. Alld. Plan15.Object of CFS is to show causes ofa. Changesb. Chargesc. Chasesd. ChoosesUnit13 - 1 Mark Quiz Questions

1.All cost can be classified as

a. Fixedb. Semic. both (a) and (b)d. Variable2.Break even analysis isa. Extended costb. Expanded costc. Extension of MCd. None3.Break-even a technique of studing therelation ofa. Cost -volume-sales

b. Cost volume profitc. Cost -volume - incomed. Cost volume -production4.Break-even analysis aims to aim it tomeasure variations ofa. Allb. Cost with volumec. Cost with moneyd. Cost with time5.Fixed cost per unit remaina. Constantb. Fixed

c. Noned. Variable6.Fixed cost remains constanta. In priceb. In valuec. In totald. Per unit7.Information entilea. Benefit


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b. Costc. Noned. Both (a) and (b)8.Information isa. Commodityb. Brutality

c. Vitalityd. Modality9.Marginal cost isa. Variableb. Semi variablec. Noned. Fixed10.Marginal cost is not a system ofa. Cost calculationb. Cost manipulationc. Cost ascertainmentd. None

11.Marginal costing considers only cost ofa. Fixedb. Semi-variablec. Noned. Variable12.Marginal costing excludesa. Fixed costsb. Variablec. Noned. Semi-variable13.Mariginal cost is also known asa. Variable cost

b. Nonec. Variance costd. Standard cost14.Sales mix will remaina. both (a) and (b)b. All the threec. Variabled. Constant15.Under marginal cost, costs are classifiedasa. Noneb. Fixed

c. Variabled. Both (a) and (b)16.Under marginal costing, WIP is valuedasa. Factory costb. Marginal costc. Prime costd. Total cost17.Variable cost is constant in

a. Both (a) and (b)b. Nonec. Totald. Per unit18.Variable cost varies ina. None

b. Totalc. Proportiond. Ratio19.Variable cost varies ina. Salesb. Nonec. Both (a) and (b)d. Production20.Variable cost varies ina. Per unitb. Both (a) and (b)c. None

d. TotalUnit14 - 1 Mark Quiz Questions

1.Budget area. elaborateb. actualc. estimated. accrual2.Budget is a statement ofa. financialb. nonec. quantitatived. both (a) and (b)

3.Budget is ana. economic serviceb. political servicec. family serviced. national service4.Budget is an exercise ofa. Forward planb. vertical planc. backward pland. horizontal plan5.Budgetary control brings ina. consolidation

b. cooperationc. covariationd. coordination6.Budgetary control is a ____ formanagement controla. fittingb. toolc. noned. fixtures


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7.Budgetary control is control ofa. outputb. operationc. both a and bd. none8.Budgetary control objective is to maximise

a. incomeb. profitsc. lossd. expenses9.In budgeting planning refers to budgeta. calculationb. valuationc. preparationd. manipulation10.Planning deals with gools of operationpertaining toa. short term

b. both (a) and (b) nonec. noned. long termUnit15 - 1 Mark Quiz Questions

1.Allowances are made for___________while setting standardsa. both a and cb. wastages of abnormalc. normal wastaged. Abnormal wastage2.Analysis of actual costs with _______ isdone with standard costing

a. Pre-matureb. Pre-determinedc. prepaidd. Pre-conceived3.For direct material, focus is ona. both a and cb. pricec. Quantityd. none4.In standard costing standards are basedona. technical info

b. research infoc. economic infod. general info5.Normal allowances are based ona. normal timeb. Ideal timec. noned. Idle time6.Standard costing are commonly used in

a. Noneb. servicec. manufacturing organizationd. both a and d7.Standard costing is a system ofa. cost control

b. cost classificationc. cost ascertainmentd. none8.Standard costing is a system ofa. Financial accountingb. Cost accountingc. noned. management accounting9.Standard costing is mainly applied toa. processesb. productsc. both a and b

d. none10.Standard costing is normally associatedwitha. marterial controlb. overhead controlc. Budgetary controld. labor control11.Standard costing restricts only witha. revenuesb. costsc. both a and bd. income

12.Standards are determined by thedepartment ofa. salesb. productionc. Engineeringd. Finance13.Standards are fixed fora. allb. materialc. labord. overheads14.Standards on labor is on the basis of

a. time studyb. motion studyc. both a and cd. none16.The meaning of standard costing isfocussed ona. labor controlb. cost controlc. material control


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d. financial control

Financial ManagementUnit1 - 2 Mark Quiz Questions1.Any project which generads ______

crates wealtha. Preventive net present valueb. Positive net present valuec. Possible net present valued. Possessive net present value2.Controller performsa. RMSb. Nonec. IMSd. MIS3.Dividend payments make a shareholdera. Sorrow

b. Nonec. Loyald. Happy4.Dividend yield is an important determinantfor.a. Retail pricesb. Stock pricesc. Local pricesd. Wholesale prices5.Dividends are not payable to.a. Equity shareholdersb. Debentureholders

c. Outside creditorsd. Both B and C6.Financial implications are the result of.a. Concerete decisionb. Corporate decisionc. Composite decisiond. Corporation decision7.Financial management should focus on.a. Allb. Effective deploymentc. Procurement of fundsd. Funds on least cost

8.In financing decisions the risk is known asrisk of.a. Solvencyb. Insolventc. Insolvencyd. Solvent9.Invesment decisions are.a. Erraticb. Elastic

c. Classicd. Magic10.One of the Treasurer's function isa. Managing officeb. Nonec. Obtaining finance

d. Managing men11.Performance is evaluvated in term of.a. Liabiltyb. Profitabilityc. Credibilityd. Viability12.Profit maximization is based on.a. Efficiencyb. Accuracyc. Deficiencyd. Dependency13.Study of financial management calls for

the knowledge ona. Manipulating moneyb. Misusing moneyc. Mopping up moneyd. managing money14.Today the finance managementapproach is____ in naturea. Technicalb. Analyticalc. Diabeticald. None15.Under perfect competition, allocation of

resources shall be based on the goal ofa. Wealth maximizationb. Growth maximizationc. Profit maximizationd. Cost maximization16.Wealth maximization considersa. Cash value of moneyb. Goods value of moneyc. Time value of moneyd. None17.Wealth maximization is based ona. Cash flow

b. Goods flowc. Traffic flowd. Profit flow18.____ is the indication of shareholderswealth maximizationa. Noneb. Normal valuec. Local valued. Market value


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19.______ is the cardinal rule of financialmanagementa. Value Prounciationb. Value minimizationc. Value initiationd. Value maximization

20______consider time value of moneya. Cash maximizationb. Profit maximizationc. Wealth maximizationd. None21.________is based on cash flowsa. Welfare maximizationb. Warefare maximizationc. Wish maximizationd. Wealth maximizationUnit2 - 2 Mark Quiz Questions1.A financial plan is

a. Value additionb. Value diminuationc. Value creationd. Value accumulation2.Captalization theories area. Costb. Earningc. Noned. Both A and B3.Composition of long term funds isa. Optimizationb. Organisation

c. Noned. Capitalization3.Corporate objectives could be groupedintoa. Qualitative vs quatitativeb. Nonec. Qualitative and quantitatived. Quantitative vs quantitive4.Debt, equity refers toa. Sources of funds dividedb. Sources of funds groupedc. None

d. Sources of funds eliminated5.Finance manager should concentrate on:a. Long and short term salesb. Long and short term planc. Noned. Long and short term document6.Financial plan indicates.a. Quantum and composition of fundsb. Competition of funds

c. Noned. Composition of funds7.Financial plan shall case fora. Detailed cash requirmentsb. Detailed funds requirmentsc. None

d. Detailed growth requirments8.Forecast of funds can be obtainedfrom___________Sourcea. Externalb. Internalc. Both A and Bd. None9.Grouping of fixed and working capitalrefers toa. Cash requirmentb. Nonec. Captial requirment

d. Staff requirment10.Raw material cost 40% of sales . Nowraw materials cost increasing 10% butsellingprice increases by 5% cost of raw materialswill be.a. 44/100b. 44/105c. 40/105d. None11.Seasonal peak requirements to be metfrom _________borrowings

a. Long termb. Nonec. Mid termd. Short term12.Short term and long term objectives areneeded for to operate in

_________environmenta. Noneb. Dynamicc. Dynastyd. Dynamite13.Through financial planning________ of

asset is enhanceda. Productivityb. Capacityc. Normalityd. Selectivity14.Value creation results ina. Book markingb. Nonec. Bench marking


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d. Land marking15.What total capital is more than ture valueit isa. Over Captilazedb. Over absortbedc. None

d. Over ublised16.When actual capitalization is lower thancapitalization, it isa. Under - quotedb. Under - writtenc. Under - capitalizedd. Under - valuedUnit3 - 2 Mark Quiz Questions1.A rupee received today has

________valuea. Lessb. None

c. Mored. Constant2.During inflation, a rupee has ahigher____________powera. Hoardingb. Nonec. Purchasingd. Selling3.Even cash inflows refers to.a. Uniformityb. Rationalityc. Duality

d. Reality4.Future value is a _________worka. Badb. Guessc. Rawd. None5.In zero time period _______taken placea. Redemptionb. Nonec. Investmentd. Recovery6.In zero time period, cash flows

a. Noneb. Outc. Netrualiserd. In7.Normally, value of many ________ over aperioda. Constantb. Changesc. Charges

d. None8.Payout of Rs. 5000 annually in 10 years isknown as.a. Calamitiesb. Annuitiesc. Perpetuities

d. None9.Productive emplyment of moneygenarate________returnsa. Rowb. Rubbishc. Reald. Reel10.Sinking fund is created for a _________purposea. 2. Specificb. Socialc. General

d. Personal11.Time value has an influenceon________opportunitya. Personalb. Personnelc. Dividendd. Investment12.Under compounding method convertionisa. Future to presentb. present to presentc. Future to future

d. Present to future13.Under discounting method is convertionisa. Future to presentb. Future to futurec. Present to futured. Present to present14.Under discounting technique,determination of ________ of a futureamount takesplacea. Current value

b. Past valuec. Present valued. Excess value15.Uneven cash flows is not equal to:a. Entire cash flowb. Enhanced cash flowc. Even cash flowd. Enlarged cash flow


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16.Zero time period refers to________investment perioda. Perinnealb. Potentialc. Positived. Initial

17.___________-takes place at ZTPa. Cash overflowsb. Cash inflowsc. Noned. Cash outflowsUnit4 - 2 Mark Quiz Questions1.Annual payments to shareholders areknown asa. Dividendb. Profitc. Interestd. None

2.Bond - Yield methods are applicable toa. Equity sharesb. Perference sharesc. Bondsd. Assets3.Book value concept isa. Acquisition minus amortized valueb. Depreciated valuec. Amortized valued. Monetary value4.Discount rate is the ________ expectationfrom securities

a. Noneb. Employerc. Investerd. Inspector5.If the coupon rate is Rs. 80 and marketprice is Rs. 920, the current yield isa. 8.7%b. d .7.5%c. 7.8%d. 9.2%6.In case of loss made by company ,dividends are paid out of________

a. capitalb. Assetsc. Noned. Reserves7.In India perpetual bonds are populara. Not sureb. Falsec. Noned. True

8.In liquidation , intangiable assets are:a. Exclendedb. Nonec. Includedd. Seculended9.In perpetual bonds, _________ value is

knowna. Faceb. Basec. Noned. Phase10.On purchase of a share , streamdividends is for :a. Presentb. Nonec. Pastd. Future11.Price earning ratio refers to payment for

________ rupee earningsa. Eachb. Nonec. Constantd. Total12.The book value approach to equityvaluation is the _________ of the companya. Public worthb. Intrinsic worthc. Net worthd. Personal worth13.Under constant growth , dividends tend

toa. Constantb. Increasec. Decreased. Erode14.Under multi-period valuation model, theformula isa. Dn / (O l + ke )nb. Dn'nc. Noned. (l + ke )n15.Under semi-annual system, interest

payable is _________than annual interestpaymentsa. Moreb. Nonec. Constantd. Less16.Under variable growth model, dividendsa. Dove hitb. Dove tail


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c. Noned. Tail of dove17.Valuaion of bonds and shares link therisk and return to establish_________a. Company worthb. Asset worth

c. National worthd. Natural worth

18.Value is concerned witha. Future inflowsb. Fast inflowsc. Fake inflowsd. Further inflows19.The motive of shareholder for holding

share is due to_________Answer:

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