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SAMPLE MULTIPLE CHOICE QUESTIONS
TYBAF – SEM V
FINANCIAL MANAGEMENT II
1. Which of the below statements is False?
a. Corporate strategies include merger and acquisitions
b. IRR method ignores Time Value of Money
c. Dividend irrelevance model is suggested by Modigliani and Miller
d. Sensitivity analysis measures sensitivity of various factors on cash inflows
2. __________ is a situation in which actual profits of a company are not sufficient
to pay interest on debt and to pay dividends on shares
a. Under capitalisation
b. Over capitalisation
c. Normal capitalisation
d. Expected capitalisation
3. Which of the below statements is false?
a. Market value of shares of an undercapitalised company rises
b. Interest on debentures is a tax deductive expenditure
c. Wealth maximisation is the goal of financial management
d. EVA is a traditional parameter for measuring shareholders wealth
4. Payback period technique is based on _______
a. All cash flows
b. Only higher cash flows
c. Earlier cash flows
d. Selected cash flows
5. NPV of a proposal indicates ______
a. Net incremental profit
b. Net addition to wealth
c. Total value of the proposal
d. Net realizable value
6. _________ method is based on Average PAT
a. ARR
b. IRR
c. NPV
d. Payback Period
7. From the following information calculate Payback period:
Cash Outflow = ₹15,000
Yearly Cash flows =
Year Cash Inflow (₹)
1
2
3
4
3,000
4,000
5,000
4,000
5 5,000
a. 3.5 years
b. 3.8 years
c. 2.5 years
d. 4.8 years
8. Net income approach assumes ______
a. No tax rates
b. Cost of debt is more than equity rate
c. No dividend
d. Risk perception of investors change with use of debt
9. The relevance theory of dividend was supported by ________
a. Walter
b. Gordon
c. Modigliani & Miller
d. Walter & Gordon
From the below information answer Q.10. and Q.11.
ABC Ltd. has outstanding shares 2,40,000 shares selling at ₹20 per share. The
company wants to earn net profit of ₹10,00,000 during the year end. The company
decide to pay dividend of ₹3 per share at the end of the year.
The capitalization rate of risk is 15%. 10. _____________ will be price of the share if dividend is paid (MM Hypothesis)
a. ₹25
b. ₹20
c. ₹15
d. ₹23
11. _____________ will be price of the share if dividend is not paid (MM Hypothesis)
a. ₹25
b. ₹20
c. ₹15
d. ₹23
12. Exit load is typically charged on _______ prevailing at the time of sale of unit
a. Purchase price
b. Profit value
c. Face value
d. NAV
13. Which one of the below is not the disadvantage of mutual fund?
a. Unethical practices
b. Dilution
c. Cost
d. Highly regulated
14. The amount required to buy 100 units of a scheme having an entry load of 1.5%
and NAV of Rs. 20 is _______,
a. Rs. 1980
b. Rs. 2000
c. Rs. 2030
d. Rs.2500
15. Mr. Akshay can earn 20% return by investing in equity shares on his own. He is
considering a recently floated scheme of M.F in which initial expenses and annual
recurring expenses are 5% and 1.5% respectively. How much the M.F earn to
provide Mr. Akshay, a return of 20%.
a. 20.67%
b. 22.55%
c. 37.56%
d. 28.78%
16. Debt funds target ______________.
a. High growth with risk
b. Long term capital appreciation
c. Protection of principal
d. Low risk and stable income
From the below information answer Q.17 to Q.19
Present situation:
Sales = ₹80 lakhs
Variable cost = ₹50 lakhs
Fixed cost = ₹10 lakhs
Credit to debtors = 20 days
Return on investment = 18%
17. Calculate contribution:
a. ₹50,00,000
b. ₹30,00,000
c. ₹20,00,000
d. ₹10,00,000
18. Profit = _________
a. ₹50,00,000
b. ₹30,00,000
c. ₹20,00,000
d. ₹10,00,000
19. P/V Ratio = ________
a. 0.5
b. 0.375
c. 0.475
d. 0.25
20. Average investment in receivables if the credit policy increased to 75 days and
Sales increases by ₹21,000 (assuming P.V ratio remains same)
a. ₹40,000
b. ₹54,000
c. ₹54,375
d. ₹60,000
21. Shares of a closed end fund are trading at a 4% premium over NAV. If NAV of
Rs. 10 per share, what is the current market price of the fund’s shares?
a. Rs. 14
b. Rs. 9.96
c. Rs. 10.40
d. Rs. 9.60
From the below information answer Q.22. to Q.25.
The earnings per share of a company is ₹8 and the rate of capitalization applicable
is 10%. Answer the following questions, assuming company follows Walter’s
Model
22. The market price of the share = ____________ if ROR = 15% and Dividend
payout ratio = 50%
a. ₹90
b. ₹100
c. ₹80
d. ₹60
23. The market price of the share = ____________ if ROR = 15% and Dividend
payout ratio = 75%
a. ₹90
b. ₹100
c. ₹80
d. ₹60
24. The market price of the share = ____________ if ROR = 10% and Dividend
payout ratio = 50%
a. ₹90
b. ₹70
c. ₹80
d. ₹60
25. The market price of the share = ____________ if ROR = 5% and Dividend payout
ratio = 75%
a. ₹90
b. ₹70
c. ₹80
d. ₹60
SAMPLE MULTIPLE CHOICE QUESTIONS
CLASS: TYBAF SEMESTER: V
SUBJECT: FINANCIAL ACCOUNTING - V
Q.1. The Underwriting commission is calculated on .
a. Net liability of the share value
b. Issue price of the shares
c. Marked application of the share value
d. Firm underwriting value of the shares
[02]
Q.2. M Limited issued shares at a face value of Rs. 100 with
premium of Rs. 20 per share. The underwriting commission
will be calculated on _ .
a. Rs. 120
b. Rs. 100
c. Rs. 80
d. Rs. 90
[02]
Q.3. According to the Companies Act the underwriting commission
on shares should not exceed _ .
a. 5%
b. 2.5%
c. 1%
d. 10%
[02]
Q.4 A company issued 20,000 equity shares which were
underwritten by X. The company received applications for
24,000 shares, Hence X will get his commission on the issue
price of shares.
a. 20,000
b. 24,000
c. 15,000
d. 22,000
[02]
Q.5 Bank A/c is _ when the net amount due from the
underwriters on the shares taken up by them is received.
a. Credited
b. Added
c. Transferred d. Debited
[02]
Q. 6 If Equity shares have been bought back out of free reserves,
amount equal to the face value of equity shares bought back
should be transferred to _.
a. Capital Redemption Reserve
b. Sinking Fund
c. Development Rebate Reserve
d. General Reserve
[02]
Q. 7 Which of the following statement is True?
a. Buy-back date is known on the date of issue
b. Buy-back date is not known on the date of issue
c. Buy-back date cannot be beyond 10 years from the date of
issue
d. Buy-back date can be beyond 10 years from the date of issue.
[02]
Q. 8 No Company shall purchase its own shares unless the buy-back
is of less than _ _.
a. 25%
b. 20%
c. 15%
d. 10%
[02]
Q. 9 Following is the journal entry for Premium adjusted on
Buyback of shares.
a. Bank A/c Dr
To Premium on Buyback of shares A/c
b. Securities Premium A/c Dr
Divisible Profits A/c Dr
To Premium on Buyback of shares A/c
c. Capital Redemption Reserve A/c Dr
Divisible Profits A/c Dr
To Premium on Buyback of shares A/c
d. Interest A/c Dr
To Premium on Buyback of shares A/c
[02]
Q. 10 On Buyback of shares there is _ in share capital.
a. Reduction
b. Increase
c. No change
d. Reserves created
[02]
Q.11
According to AS-14, Transferor Company means the company
.
a. Which is amalgamated into another company
b. Which is newly formed
c. In to which a company is amalgamated
d. Which is old in nature
[02]
Q.12 When amalgamation is in the nature of merger, the accounting
method to be followed is .
a. Debt Method
b. Equity method
c. Purchase Method
d. Pooling of interest method
[02]
Q.13 Loss or profit on Realisation A/c is transferred by the transferor
company under amalgamation to _ _ .
a. Preference shareholder A/c
b. Equity shareholder A/c
c. Profit & Loss Appropriation A/c
d. Revenue A/c
[02]
Q.14 Intrinsic value of each equity share of the transferor company is
Rs. 250 and that of the transferee company is Rs. 400. The ratio
of exchange of shares on the basis of intrinsic value is
_.
a. 2:1
b. 8:8
c. 8:5
d. 2:4
[02]
Q.15 Accounting Standard (AS) 14 does not distinguish between
amalgamation and _ .
a. Absorption
b. External Reconstruction c. Internal Reconstruction
[2]
d. Merger
Q. 16 Consolidation or sub-division of share capital of the company
involves-
a) Alteration of Share Capital
b) Variation of Shareholders’ Right
c) Reduction of Share Capital
d) Compromise /Arrangement
[02]
Q. 17 Surrender of fully paid shares amounts to _.
a) Reduction of Share Capital
b) Alternation of Share Capital
c) Variation of Shareholders’ Right
d) Compromise /Arrangement
[02]
Q. 18 Reduction of shares capital of a company means reduction in
a) Only called up share capital
b) Subscribed and/or paid-up share capital
c) Only authorized capital
d) Reduction in unpaid value of share
[02]
Q. 19
__ assets must be written off under internal
reconstruction
a) Fixed Assets and Current Assets
b) Fictitious Assets and Fixed Assets
c) Current Assets and Intangible Assets
d) Fictitious assets and Intangible assets
[02]
Q. 20 Shares of ₹100 each (paid-up value ₹ 90 each) are reduced to
shares of nominal value of ₹ 90 each in a scheme of
reconstruction.
a) There is a credit of ₹ 10 per shares to Capital Reduction
A/c
b) There is a credit of ₹ 90 per shares to Capital Reduction
A/c
c) There will be no credit to Capital Reduction A/c
d) There is a credit of ₹ 80 per shares to Capital Reduction
A/c
[02]
Q. 21 List H shows Account.
a. Deficiency Surplus
b. Preferential Creditors
c. Fixed Assets Account
d. Profit & Loss Account
[02]
Q. 22 Following is treated as Over-riding preferential creditors.
a. Retirement Benefits of Employees
b. Salary due to employees exceeding Rs. 20,000
c. Retirement Benefits to workers
d. Remuneration to investigators
[02]
Q. 23 Amount of Retirement benefits of employees exceeding Rs.
20,000 per employee is treated as .
a. Unsecured creditor
b. Secured creditor
c. Over-riding preferential creditor
d. Preferential creditor
[02]
Q. 24 Bills were discounted to the extent of Rs. 10,000 of which bills of
Rs. 4,000 are likely to be dishonoured. Hence, the liability to rank
in respect of these bills will be .
a. Rs. 14,000
b. Rs. 10,000
c. Rs. 4,000
d. Rs. 6,000
[02]
Q. 25 A past member is not liable to make a contribution if the
liability was contracted after he ceased to be a .
a. Lender
b. Shareholder
c. Member
d. Debenture holder
[02]
MULTIPLE CHOICE SAMPLE QUESTIONS
FINANCIAL ACCOUNTING VI
Q.1. Limited Liability Partnership (LLP) charter document is
called____.
(a) LLP Charter of Company
(b) LLP Articles of Association
(c) LLP Memorandum of Association
(d) LLP Agreement
Q.2. A limited liability partnership (LLP) final account Bank
overdraft shall be reflected under which heading in the Balance
sheet?
(a) Short Term Borrowings
(b) Secured Loans
(c) Unsecured Loans
(d) Current liabilities
Q.3. In an LLP the liability of a partner is restricted to______
(a) amount of his agreed contribution
(b) face value of shares
c) unlimited
d) Rs. 40,00,000
Q4 LLP must also have at least ______ "designated partners” of
which at least ____ have to be a resident Indian
(a) Five , Two
(b) Two , One
(c) Ten , Three
(d) Six , Four
Q5 A limited liability partnership (LLP) final account Wages and
Salaries shall be reflected under which heading in the
Profit/Loss Account?
(a) Personnel Expenses
(b) Administrative Expenses
(c) Selling Expenses
(d) Purchase and Direct Expenses
Q6 Goodwill is __________
(a) A tangible asset
(b) An intangible asset
(c) A fictitious asset
(d) An Intangible Fixed Asset that has a realizable value
Q7 Value of a partly paid equity share is equal to __________.
(a) calls in arrears per share
(b) paid-up value per share
(c) value of fully paid share - calls unpaid per share
(d) market Value of Shares
Q8 Net asset value method is based on the assumption that the
company is __________.
(a) a going concern
(b) going to be liquidated
(c) temporary shut down
(d) in lockdown
Q9 If the FMP is Rs. 2,11,000 and the Normal Profit is Rs.
1,80,000 what is the Super Profit?
(a) Rs.3,91,000
(b) Rs. 31,000
(c) Rs. 15,500
(d) Rs. 62,000
Q10 If the Capital Employed is Rs. 13,00,000 and the Normal rate of
Return is 12.5%, what will the Normal Profit be?
(a) Rs.1,30,000
(b) Rs. 1,31,000
(c) Rs. 1,15,500
(d) Rs. 1,62,500
Q11
NBFC means______
(a) Non Banking Financial Companies
(b) Non Banking Financial Corporations
(c) Non Business Financial Companies
(d) Non Borrowing Financial Corporations
Q12 A NBFC is considered as systematically important if the asset
size is _____ or more.
(a) Rs. 200 crores
(b) Rs 800 crores
(c) Rs. 1000 crores
(d) Rs. 500 crores
Q13 A NBFC must register with the ______.
(a) UTI
(b) SBI
(c) SEBI
(d) RBI
Q14 Banking companies in India are governed by _____.
a. Banking Regulation Act
b. Indian Partnership Act
c. Indian Companies Act
d. Insurance Regulatory Act
Q15 Banks must maintain SLR of _____.
a. 30%
b. 25%
c. 35%
d. 20%
Q16 Non- banking assets are shown under _____________.
a. Other Current Assets
b. Advances
c. Non- Banking Assets
d. Fixed Assets
Q17 Bills purchased and discounted is treated as NPA when they
remain unpaid for more than _______ days.
a. 60
b. 45
c. 30
d. 90
Q18 Provision for standard Asset in respect of advances to
commercial Real Estate sector is _________%.
a. 0.25%
b. 0.75%
c. 1%
d. 2%
Q19 Provision for Tax ₹ 25,000/-
Provision for Doubtful Debt ₹ 20,000/-
And Rebate on bills discounted ₹ 15,000/-
In this case ₹___________ will be shown under Provisions and
Contingencies while preparing the Profit & Loss Account.
a. ₹ 20,000
b. ₹ 25,000
c. ₹ 60,000
d. ₹ 45,000
Q20 i. Rebate on bill discounted can be deducted from Advances in
Balance sheet
ii. Rebate on bill discounted can be added to Other Liabilities in
Balance sheet
State the correctness of the above statements:
a. Statement i is incorrect but Statement ii is correct.
b. Statement i is correct but Statement ii is incorrect.
c. Statement i and Statement ii are correct.
d. Statement i and Statement ii are incorrect.
Q21 The policy which insures the goods at different places is
________.
a. Specific Policy
b. Floating Policy
c. Valued Policy
d. Replacement Policy
Q22 When more than one policy is taken to cover the same risk it is
called as _____________.
a. Re-insurance accepted
b. Reinsurance Ceded
c. Double Insurance
d. Marine Insurance
Q23 Claim on Re-insurance accepted is added to _________.
a. Claims Incurred
b. Commission Received
c. Premium Earned
d. Discount
Q24 Opening Balance of Claims ₹ 10,000,
Claims incurred during the year ₹ 1,00,000
Closing Balance of Claims ₹ 25,000
In the above case the balance in Claims would be ₹
___________.
a. 10,000
b. 1,10,000
c. 85,000
d. 1,15,000
Q25 While preparing final accounts of insurance companies, Share
premium is disclosed under __________.
a. Share Capital
b. Reserves & Surplus
c. Provisions
d. Borrowings
SAMPLE MULTIPLE CHOICE QUESTIONS
TYBAF SEM V
INIRECT TAXES I (GST)
Questions
1. GST in India is a _______ tax
a) Origin based
b) Manufacture based
c) Distributor based
d) Destination based
2. GST is levied on which of these following items?
a) Edible Oil
b) High speed Diesel
c) Motor Spirit
d) Natural Gas
3. Decision is taken by _______ majority in GST Council Meeting
a) 95%
b) 50%
c) 25%
d) 75%
4. The idea of GST in India was first mooted by the Kelkar task force in the year
_______
a) 2008
b) 2004
c) 2012
d) 2000
5. Service under GST includes _______
a) Money
b) Goods
c) Securities
d) Activities relating to use of money
6. Which of the following is not exempted -?
a) Health care service to human beings by authorized medical practitioners / para
medics
b) Slaughtering of animals
c) Rearing horses
d) Health care services to Animals/Birds
7. Can composition scheme be availed if the registered person effects inter-State
supplies?
a) Yes
b) No
c) Yes, subject to prior approval of the Central Government
d) Yes, subject to prior approval of the concerned State Government
8. Is there any ceiling limit prescribed on the rate under IGST?
a) 14%
b) 40%
c) 26%
d) 30%
9. _________ taxable supplies of goods or services or both, or any combination
thereof, which are naturally bundled and supplied in conjunction with each other
in the ordinary course of business, one of which is a principal supply.
a) Composite Supply
b) Principal Supply
c) Mixed Supply
d) Inward Supply
10. Under GST law Compensation cess is applicable on _______
a) Petroleum products and Alcohol
b) Consumer goods
c) All goods
d) Luxury articles and demerit goods
11. Mr. Suresh manufactured 1800 litre of finished products, sold at price of Rs. 10
per liter as follows Goods sold within State 800 litre ,Goods sold in inter-State
sale - . 1000 liter.
Further, CGST and SGST rate on the finished product of dealer is 6% and 6%
respectively. Further IGST rate is 12%.
Calculate tax liability of SGST and CGST to be paid after tax credit.
a) SGST and CGST Rs. 480
b) SGST and CGST Rs. 600
c) SGST and CGST Rs. 1200
d) SGST and CGST Rs. 2160
12. The place of supply of goods imported into India shall be _______
a) The location of exporter
b) The location of the importer
c) State in which imported goods reaches first
d) Place of supply not applicable
13. If it is not possible to determine the time of supply, the time of supply shall be
_______
a) decided by the supplier
b) decided by the recipient
c) date of entry in the books of recipient
d) date of entry in the books of supplier
14. What is the time of supply of vouchers when the supply with respect to the
voucher is not identifiable?
a) Date of issue of voucher
b) Date of redemption of voucher
c) Earlier of date of issue of voucher and date of redemption of voucher
d) Date of issue of voucher and date of redemption of voucher whichever is later
15. Place of supply of food taken on board at Delhi for an aircraft departing from
Delhi to Bangalore via Hyderabad is
a) Address of the aircraft carrier mentioned on the invoice of the supplier
b) Delhi
c) Jaipur
d) Hyderabad
16. Section _______ of the Central Goods & Service Tax Act, 2017
deals with value of supply
a) 16
b) 15
c) 30
d) 27
17. From the following information determine the value of taxable
supply as per provision of Section 15 of the CGST Act, 2017:
List Price including GST @ 5% – Rs. 10,50,000
Cost of Packing not included in price – Rs. 35,000
Freight and insurance charges paid by recipient on behalf of supplier not
included in price – Rs. 20,000
a) Rs. 10,00,000
b) Rs. 11,05,000
c) Rs. 10,55,000
d) Rs. 10,85,000
18. Within how many days an application for revocation of cancellation
of registration can be made?
a) Within 7 days from the date of service of the cancellation order.
b) Within 15 days from the date of issue of the cancellation order.
c) Within 45 days from the date of issue of the cancellation order.
d) Within 30 days from the date of service of the cancellation order.
19. Mr. Vaishak having his professional setup in Mumbai, gives the
following details of services provided by him:
Date Amount (Rs.)
01/03/2020 4,00,000
03/03/2020 8,00,000
07/03/2020 5,00,000
10/03/2020 3,50,000
24/03/2020 5,00,000
From which date is he liable to register under GST?
a) 24/03/2020
b) 03/03/2020
c) 10/03/2020
d) 07/03/2020
20. Duplicate delivery challan shall be for _______
a) Consignee
b) Transporter
c) Consigner
d) Job worker
21. If the prices are increased after renegotiations, the supplier should issue ______
a) Credit note with GST
b) Debit note without GST
c) Credit note without GST
d) Debit note with GST
22. Input tax credit (ITC) of IGST can be first utilized to pay output liability of
_______.
a) SGST
b) CGST
c) IGST
d) UTGST
23. ITC can be availed on ________.
a) Possession of prescribed invoice / debit note
b) Receipt of goods/services
c) Tax on such supply has been paid to government and return being furnished by
the supplier
d) Fulfilling all the above conditions
24. What is deemed to be the date of deposit in the electronic cash ledger?
a) Date on which amount gets debited in the accounts of the taxable person
b) Date on which payment is initiated and approved by the taxable person
c) Date of credit to the account of the appropriate Government
d) Earliest of the above three dates
25. Which of the following will be excluded from the computation of ‘aggregate
turnover’?
a) Value of taxable supplies
b) Value of exempt Supplies
c) Value of inward supplies on which tax is paid on reverse charge basis
d) Non-taxable supplies
SAMPLE MULTIPLE CHOICE QUESTIONS
TYBAF SEM V
INTERNATIONAL FINANCE
1. Derivatives trading commenced first on______________
a. Chicago Board of Trade
b. Chicago Board Options exchange
c. Chicago Merchantile exchange
d. London International futures and options exchange
2. Spot price of a stock is Rs. 1100; risk free interest rate is 5%; fair value for a 9 months
contract is Rs. ___________.
a. 1155
b. 1141
c. 1128
d. 1114
3. Which of the following is not an example of a forward contract?
a. An agreement to buy a car in the future at a specified price.
b. An agreement to buy an airplane ticket at a future date for a certain price.
c. An agreement to buy a TV today at the posted price
d. An agreement to subscribed to a newspaper at a specified price at a future date
4. India's journey with Derivatives began in the year _____________.
a. 2002
b. 2000
c. 2010
d. 2007
5. Basis is calculated as
a. Spot price + futures price
b. Spot price – futures price
c. Futures price- spot price
d. Futures price- fair value
6. The term ___________ means ‘to reduce risk’
a. Arbitrage
b. Hedge
c. Speculate
d. Trade
7. Spreads involving options of the same underlying asset with same expiration but
different strike price are __________.
a. Vertical
b. Straight
c. Horizontal
d. Diagonal
8. Rs. 222 is the Current price of ABC stock. Rs. 260 strike put is quoted at Rs. 45.
What is the instrinsic value?
a. -38
b. 38
c. 7
d. -7
9. ____________ is a bearish strategy for options.
a. Long call
b. Short put
c. Short call
d. Long call butterfly
10. Exchange rates are determined in ____________
a. Foreign exchange market
b. Stock market
c. Capital market
d. Money market
11. A __________ is our account of our money, held by you.
a. Nostro
b. Vostro
c. Loro
d. Noro
12. In Holgate principle, if Bid > Ask, swap points for forward rate are to be __________.
a. Added
b. Subtracted
c. Multiplied
d. Divided
13. The immediate (T + 2) exchange of one currency for another is a _____________
a. Forward transaction
b. Spot transaction
c. Money transaction
d. Exchange transaction
14. __________ quote is also known as reference rate.
a. Bid
b. Ask
c. Spread
d. Mid
15. ___________ states that exchange rate between currencies is directly affected by their
interest rate.
a. IRP Theory
b. PPP theory
c. Fishers parity theory
d. Selling theory
16. The risk of an exchange rate changing between the transaction date and the
subsequent settlement data is called ______________.
a. Economic
b. Translation
c. Transaction
d. Price
17. The risk that a government may default on its debt obligation is ____________ .
a. Political risk
b. Sovereign risk
c. Transfer risk
d. Transaction risk
18. 1 GBP = $ 0.739, it is a direct quote for __________.
a. UK
b. USA
c. India
d. Germany
19. Indirect quote is 100 INR/CHF 2.5858 -2.5868. Direct quote for this will be
___________.
a. CHF/INR 38.6758 – 38.6728
b. CHF/INR 38.6728 – 38. 6758
c. INR/ CHF 38.6758 – 38.6728
d. INR/CHF 38.6728 – 38.6758
20. For quote GBP/SEK 6.4750-6.4850; % spread is ____________
a. 0.01%
b. 0.1534%
c. 0.1543%
d. 0.1454%
21. USD/INR 46.6375 – 25 and EUR/USD 1.2870 -80; 100 INR/EUR is ____________.
a. 1.6666 – 1.6670
b. 1.6543 – 1.6789
c. 1.6660 – 1.6646
d. 1.6646 – 1.6660
22. Spread = 0.0014; % spread = 0.0810%; Mid rate = ___________
a. 1.8274
b. 1.7284
c. 1. 7248
d. 1.7482
23. A simultaneous purchase and sale of foreign exchange for two different dates is called
____________.
a. Currency devalue
b. Currency swap
c. Currency valuation
d. Currency exchange
24. A contract that requires the investor to buy securities on a future date is called a
___________.
a. Short contract
b. Long contract
c. Hedge
d. Cross
25. _____________ is a technique in which exposure is managed by shifting the time of
exposure by accelerating or delaying the receivables or payables.
a. Matching
b. Leading and lagging
c. Invoicing in domestic currency
d. Forward contracts
SAMPLE MULTIPLE CHOICE QUESTIONS
TYBAF SEM V
COST ACCOUNTING
1. ______ _________ is a cost driver for personnel activities.
(a)Volume of activity
(b)Recruitment Activity
(c)Capital expenditure
(d)No of systems operational
2. Reduction in _______ labour reduces cost.
(a)Indirect
(b)factory
(c)Direct
(d)turnover
3. For purchasing cost, no of purchase order is a ________ ________.
(a)cost pool
(b)Cost unit
(c)Cost control
(d)Cost driver
4. ABM implementation requires support of
(a)Workers
(b)Top level management
(c)Middle level management
(d)Lower level management
5. Inter-firm comparison is better described as ________
(a)a method of costing
(b)a method of allocation of overheads
(c)a technique of evaluating the performance of firms in an industry
(d)related to marginal costing
6. Uniform costing facilitates comparison of cost and profits among ______
(a)different firms in different industries
(b)different firms in same industries
(c)comparison among different industries
(d)comparison within the departments of the firms
7. In order to implement uniform costing within an industry, it is essential to have
(a)mutual conflicts among firms in an industry
(b)Mutual relations and understanding among the firms.
(c) Absolutely no communication between the firms.
(d)Difference in cost accounting practices.
8. ______ is a written document providing guidelines to the participating firms to organize
their cost accounting system in a similar manner to ensure inter-firm comparison possible.
(a)Cost audit report
(b)uniform cost manual
(c)Cost sheet
(d)Cost card
9. A system whereby cost and financial accounts are maintained in different set of books is
called as ______
(a)Non-integrated accounting
(b)integrated accounting
(c)Separate accounting
(d)Differential accounting
10. Integral accounts eliminate the necessity of operating
(a)Cost Ledger Control Account
(b)Stores Ledger Control Account
(c)Overhead Adjustment Account
(d)Wages Ledger Control Account
11. A document that authorizes and records the issue of material for use
(a)Material Requisition Note
(b)Material Transfer Note
(c)Material Return Note
(d)Materials Issue Analysis Sheet
12. A document which is a classified record of material issues, returns and transfers
(a)Material Requisition Note
(b)Material Transfer Note
(c)Material Return Note
(d)Materials Issue Analysis Sheet
13. What is an interlocking bookkeeping system?
(a)A single, combined system containing both cost accounting and financial accounting
records
(b)A system combining cost accounting and management accounting
(c)A system where separate accounts are kept for cost accounting and for management
accounting
(d)A system where separate accounts are kept for cost accounting and for financial
accounting
14. Unit of cost for hospital is _____ _____.
(a)per ton
(b)per km
(c)per unit
(d)per bed
15. Cost of petrol is _____ cost.
(a)semi variable
(b)fixed
(c)maintenance
(d)variable
16. From the following particulars, calculate the cost-unit. Distance (Km) - 10, No. of trips to
and fro - 5, No. of days of operation in a month - 25, No. of vehicles - Total - 10, Capacity of
each vehicle in tones - 2, No. of Vehicles-laid up for repairs daily-10%, Capacity of vehicles
actually used - 80%.
(a)2000
(b)22500
(c)18000
(d)21600
17. There are 100 rooms in the hotel. 80% of the rooms are generally occupied in summer and
30% in winter. The period of summer and winter may be considered to be of 6 months and in
each case a month may be assumed to be 30 days. Wages of the room attendant Rs.20 per day.
There is a room attendant for each room. He is paid wages when the room is occupied. Room
attendant wages for summer are
(a)288000
(b)360000
(c)108000
(d)72000
18. A hospital is having 25 beds. For 120 days in the year, it had the full capacity of 25
patients per day and for another 80 days, it had on an average 20 beds only occupied per day.
Year is taken s 360 days. The cost unit is
(a)9000 patient days
(b)4600 patient days
(c)200 patient days
(d)6000 patient days
19. Which of the following does not use process costing?
(a)Oil refining
(b)Sugar
(c)Distilleries
(d)Aircraft manufacturing
20. Consider the following statements relating to process costing. Statement 1: Normal losses
are credited to the process account at the cost per unit incurred on normal production.
Statement 2 : Abnormal gains are debited to the process account at the cost per unit incurred on
normal production.
(a)Both statements are true
(b)Neither statement is true
(c)Statement 1 is only true
(d)Statement 2 is only true
21. In process costing what are equivalent units?
(a)Production output expressed as expected performance
(b)Production of homogeneous product
(c)Notional whole units representing incomplete work
(d)units produced in more than one process 22. A manufacturing process had no work-in-progress at the beginning of a period. 20,000 unit
of raw material, costing Rs.8.20 per unit, were input to the process in the period. 18,600
completed units were transferred out. Conversion cost was Rs.7.65 per completed unit and
Rs.6.12 per incomplete unit. What was the value of the closing Work-in-progress?
(a)Rs.8,568
(b)Rs.20,048
(c)Rs.22,190
(d)Rs.30,788
23. Cost of the process is ` 33,040 scrap value of Normal Loss is ` 800 Input 800 units Normal
Loss 200 units. Cost per unit will be
(a)50
(b)51.25
(c) 53.73
(d)55
24. A form of operation costing where standardized goods are produced.
(a)Standard Costing
(b)Marginal Costing
(c)Process Costing
(d)ABC Costing
25. Which of the following would be regarded as a variable cost in the annual operation of a
motor vehicle?
(a)Hire purchase payments
(b)Insurance
(c)Petrol
(d)Tyre replacement
