TOPIC 5: FINANCIAL MANAGEMENT · Sixth Semester Management MCQ ’s Financial Management Designed & Developed by – S. K. Rawat ... TOPIC 5: FINANCIAL MANAGEMENT Sr. No. ... Sales

Sixth Semester Management MCQ’s Financial Management

Designed & Developed by – S. K. Rawat 5.1

TOPIC 5: FINANCIAL MANAGEMENT Sr. No.

Statement Option (a) Option (b) Option (c) Option (d) Ans

1 ________________________________ is concerned with procurement, allocation and control of financial resources of a firm.

Financial management

Material management

Personnel management

Operation management

a

2 Which is a not element of financial management? Financial management

Material management



d

3 _________________________________________is the management of finance of an organization in order to achieve financial objectives.

Financial management

Material management



a

4 Financial control ensures _______________________________________________. Efficient assets utilization

Security of businesses assets

Shareholder’s interest is served

All of these d

5 Financial decision making is related to ________________________________. Investment Financing Dividends All of these d

6 Objectives of financial management are _______________________________. Profit maximization

Wealth maximization

To ensure regular and adequate supply of funds

All of these d

7 Which of the following is not objective of financial management? Profit maximization

Wealth maximization

To ensure safe working conditions

To ensure regular and adequate supply of funds

d

8 Which of the following is not objective of financial management?

To ensure effective, efficient and economical utilization of funds

To ensure safety on investment, by investing funds in sound businesses

To provide sufficient returns to the shareholder

None d



9 Which of the following is objective of financial management? To provide sufficient returns to the shareholder

To plan a suitable capital structure

To ensure the availability of timely, relevant and reliable financial information

All of these d

10 Which of the following is function of financial management?

Forecast the future financial requirement of the organization considering investment, expansion etc.

Determine the sources from which finance can be obtained

Motivate the existing sources of finance to provide further finance in the future when required

All of these d

11 Which of the following is function of financial management? Decide whether to finance a new plant or not

Decide basis for the expenditure of funds

Allocate budget to each department considering their requirements

All of these d

12 Which of the following is function of financial management?

(i) Keep a check and control over the expenditure (ii) Periodically evaluate the progress of each department

Only (i) Only (ii) Both (i) and (ii) None of these c

13 Which of the following is function of financial management? Keep a check and control over the expenditure

Periodically evaluate the progress of each department

Determine the financial of the organization after analysing efficiency

Fix product price giving due consideration to profit optimization

a

15 Which of the following is not function of financial management?

Periodically evaluate the material consumption of each department

Decide whether to finance a new plant or not

Decide basis for the expenditure of funds

Determine the financial position of the organization after analysing efficiency

a



16 Which of the following statement with respect to financial management is wrong?

The wealth invested in business to generate income is called capital

If the capital is not managed properly no losses may be incurred

Financial management is the management of finance of an organization in order to achieve financial objectives

None of these b

17 Which of the following about capital is wrong? Capital is required to start the business

Capital is required to run the business

Capital is required to expand the business

None of these d

18 The capital required for a business is _______________________. Fixed capital Working capital Both a and b None of these c

19 Which of the following is wrong about capital management?

Fixed capital management ensures that a company has sufficient funds to purchase fixed assets

Working capital management ensures that a company has sufficient cash flow

Fixed capital management ensures that a company has sufficient cash flow in order to meet its short-term debt obligations and operating expenses

None of these c


Fixed capital management ensures that a company has sufficient funds to purchase fixed assets

Working capital management ensures that a company has sufficient cash flow in order to meet operating expenses

Working capital management ensures that a company has sufficient cash flow in order to meet its short-term debt obligations

All of these d




Fixed capital management ensures that a company has sufficient funds to purchase fixed assets required for starting the business

Fixed capital management ensures that a company has sufficient funds to purchase fixed assets required for improving the business

Fixed capital management ensures that a company has sufficient funds to purchase fixed assets required for expanding and diversifying the business

None of these d


Working capital management ensures that a company has sufficient cash flow in order to meet its short-term debt obligations

Working capital management ensures that a company has sufficient cash flow in order to meet operating expenses

Working capital management ensures that a company has sufficient cash flow in order to purchase fixed assets

None of these c

23 Which of the following statement is wrong?

Fixed assets are used over and over again for a number of years

The capital invested in assets of durable nature for repeated use over a long period is called fixed capital

Both None of these d

24 Fixed capital is required for ____________________________________________. Land building Equipment and machinery

All of these d

25 Fixed capital is not required for _______________________________________. Land Building Equipment and machinery

None of these d

26 Working capital is required for _______________________________________. Building Payment of employee salaries

Equipment and machinery

All of these b



27 Working capital is required for ________________________________________. Furniture Building

Maintaining stock of partly finished and finished products

All of these c

28 Working capital is required for ________________________________________. Land Building Payment of insurance, rent

None of these c

29 Working capital is not required for __________________________________. Land Purchase of raw material, spare parts and supplies


Payment of employee salaries

a

30 Working capital is not required for __________________________________.

Payment of light and telephone bill, water charges, municipality bills etc.

Advertisement and selling expanses

Payment and insurance, rent

Furniture d

31 Working capital is not required for __________________________________. Stationary Transportation and shipping expenses

Cash to be maintained for emergency etc.

None of these d

32 Working capital is not required for ___________________________________.



Advertisement and selling expanses

None of these d

33 Fixed capital is not required for _______________________________________. To give credit to distributors, retailers, etc.

Machines, equipment and plant maintenance costs

Stationary, transportation and shipping expenses

All of these d

34 Fixed capital is not required for _______________________________________. Advertisement and selling expanses

Payment and insurance, rent

Furniture Both a and b d



35 Fixed capital is not required for ______________________________________.


payment of employee salaries


All of these d

36 Fixed capital is not required for _____________________________________. Land Building Equipment and machinery

Cash to be maintained for emergency

d

37 Working capital is calculated as ______________________________________.

Working capital=current assets-current liabilities

Working capital=fixed assets-current liabilities

Working capital=current assets-fixed liabilities

None of these a

38 The amount of working capital required depends on ________________ ___________________________________________________________________________.

time required from manufacturing/selling the product

credit facilities offered by supplies

credit facilities to the customers

All of these d

39 Fixed capital can be financed through ________________________________. Shares Long term debentures

Loan from banks All of these d

40 Fixed capital cannot be financed through ____________________________. Loan from financial institutions

Public deposits Retained earnings None of these d

41 Working capital can be financed through ____________________________. Share Medium term debentures

Loan from banks All of these d

42 Working capital can be financed through ____________________________. Franchising Trade credit Customer’s advance

All of these d

43 Fixed capital can be financed through ________________________________. Cash credit Overdraft Discounting of bills

None of these d

44 Short term sources of finance are required for ______________________. 0-1 years 1-5 years Above 5 years None of these a

45 Medium term sources of finance are required for ___________________. 0-1 years 1-5 years Above 5 years None of these b



46 Long term sources of finance are required for _______________________. 0-1 years 1-5 years Above 5 years None of these c

47 _____________________ is a forecast of the revenues, expenses and resources over a specified future period of time.

Budget Debenture Share Balance sheet a

48 A joint stock company divides the capital required into units of equal denomination of Rs.1, 2, 5 or 10. Each unit is called as ______________.

Budget Debenture Share Balance sheet c

49 ____________________ is a medium to long-term debt instrument, bearing fixed interest issued by a company.

Budget Debenture Share Balance sheet c

50 Which of the following statement is wrong? Shareholder are the owners of the company

Debenture holder are creditor of the company

Shareholder get dividend

None of these d

51 _______________ is the establishment of budgets, continuous comparison of actual with budgeted results and adjustment of performances against them.

Budgetary control Budget Share Balance sheet a

52 ________________ is record of an organization that registers all financial transactions. It is a written statement of all business dealings or debts and credits

Budget An account Journal Share b

53 A ________________ is a book or computer file in which all monetary transection are originally entered.

Budget Account Journal Ledger c

54 ______________ is the principle book or computer file in which the monitory transactions of a business are posted in the form of debits and credits.

Budget Account Ledger Journal c

55 ______________ is prepared to co-ordinate between various budgets. Master budget Sales budget Production budget

Material budget a

56 The ____________ budget is a forecast of the number of products that must be manufactured.

Sales Production Purchase Cash b

57 The __________ budget generally deals only with the direct materials. Master Sales Production Material d

58 ____________ budget represents the quantities of the materials to be purchased and the estimated costs of the material.

Sales Production Purchase Materials c



59 _____________ budget shows the estimate of direct labour needed to carry out the budget output.

Material Purchase Labour Overhead c

60 A ____________ budget is one which is design to change in relation to the level of activity attend.

Labour Overhead Cash Variable d

61 ______________ is a budget which is designed to remain unchanged irrespective of the level of activity actually attend.

Master budget Fixed budget Production budget

Variable Budget b

62 _________________ shows the revenues and expenses incurred during a specific period of time.

Balance sheet Budget Profit and loss Account c

63 ____________ is a financial statement that summarized a company’s assets, liabilities and shareholder equity at a specific point in time.

Balance sheet Budget Profit and loss Account a

64 ________ is a fee charged by a government on product, income or financial activity.

Account Ledger Tax Budget c

65 _____________ is a direct tax levied on the income earned by individual, corporation or on other forms of business entities.

Income tax Customs duty Sales tax Service tax a

66 _________________ is a types of indirect tax levied on goods imported in to India as well as on goods exported from India.

Income tax Customs duty Wealth tax Gift tax b

67 An indirect tax levied on those goods which are manufactured in India and are meant for home consumption is called _________________.

Income tax Customs duty Excise duty Gift tax c

68 A tax levied on services rendered by a person is called___ Income tax Service tax Wealth tax Gift tax b

69 ______________ is levied on the sale of a commodity, which is product or imported and sold for the first time.

Customs duty Sales tax Service tax Gift tax b

70 _____________________ is a multipoint destination based system of taxation, with tax being levied on value addition at each stage of transaction in the production or distribution chain.

Customs duty Sales tax Service tax VAT d

71 _________________________ includes the free reserves of the company which are built out of the genuine profits of the company.

Share capital Reserves and surplus

Other long-term liabilities

Long-term provisions

b

72 Bonds, debentures or term loans from banks are called ______________. share capital reserved and surplus

other long-term liabilities

long-term provisions

c



73 Land, buildings, plant and equipment, furniture and fixtures, vehicles and office equipment are called ___________________.

tangible assets intangible assets capital work in progress

inventory a

74 Goodwill, brands, trademarks, computer software, mining rights, copyrights and patents are known as _____________________.

tangible assets intangible assets capital work in progress

inventory b

75 Financial management aims at __________________________________________. financial control control of cash management of earnings

All of these d

76 What are the types of capital? Fixed and unfixed Favourable and workable

Small and big Fixed and working

d

77 Fixed capital is the capital invested in assets over _____________________. a short period one year period a long period None of these d

78 The capital invested in fixed assets which cannot be easily converted into money is called __________________.

fixed capital working capital equity capital None of these a

79 What is working capital? It is the capital invested in assets of durable nature

It is the amount of profit distributed to shareholders.

It is forecast of financial requirement of the business.

None of these d

80 Working capital is required to ___________________________________________.

finance operating losses particularly in the initial years of business.

pay wages and salaries to employs

establish good relations with existing financers.

decide basis for expenditure of capital

b

81 ___________________ is a factor influencing requirements of fixed capital? Capitalisation Nature of business

Higher operating efficiency

None of the above b

82 The amount to be collected by a company is divided in equal number of parts known as ____________________.

capitalisation business shares management c

83 Which one of the following is not a type of share? Cumulative share Fixed share Deferred share Preference share b

84 Which one of the following is a type of preference shares? Ordinary or shares

Deferred shares Equity shares Non-cumulative shares

d

85 The sum that every shareholder gets is known as ___________________. amount dividend shares capital b



86 Which one of these is an important feature of term loan?

The repayment of loan begins after pre-decided intervals

It is a short-term or medium-term means of finance

It represents the ownership of the assets of a business

The period of term loans is within 3 to 10 years.

d

87 What is an inter-company loan?

It is the loan and investment between two companies.

The money advances received by a company

The money advances received by a bank

It is the loan and investment between two persons.

a

88 ______________________________________ is a source of working capital. Loans from commercial banks

Public deposits Debentures Depreciation provision

a

89 __________________________ allows a business to draw money against its sales of goods before the customer has actually made the payments.

Cash credits Bill discounting Debentures Discounting b

90 _________ is a loan advance sanctioned by the bank for a longer period. Full advance Swift advance Clean advance None of these c

91 The suppliers of goods and services to the company provide various goods and services with an expectation of payment in future is called _____________________.

trade credit clean advance over draft export a

92 The utility of every machine or equipment decreases because of wear and tear during use, the reduction in value is called _____________.

debenture dividend dispatch depreciation d

93 For purchasing certain commodities, the customer has to make payments before he receives goods is called ____________________________.

clean advance swift advance customer advance None of these c

94 Which one of the following is a feature of long-term finance? Finance used for about 10 years

Finance used for about 1 year

Finance are more liquid in nature

None of these a

95 A plan for the coordination of resources and expenditure is called _______________________.

accounts finance ledger budget d

96 In the process of budget preparation, firstly, the _________________ budget is prepared.

sales production capital master d



97 __________________ budget provides projection about sales of various kinds of products in different regions.

Sales Master Materials Manufacturing a

98 A sales budget is the basis for preparation of a ________________________. master budget material budget cash budget None of these d

99 ______ Budget is the projection of cash inflow for a particular time period in future.

cash sales selling expenses capital expenditure

a

100 A planned capital investment in the business without disrupting the normal working of the company is _______________ budget.

materials administrative expenses

capital cash c

101 A budget which is designed to change in relation with the level of activity of the business is called _________________ budget.

capital expenditure

variable cash material b

102 A record of income and expenses is called _____________________. journal account ledger material budget b

103 A ____________ and _____________are the two major books used to maintain accounts.

journal and dairy dairy and maintenance book

journal and ledger ledger and maintenance book

c

104 Every business transaction is entered in a book known as a ________________________________.

journal maintenance book Dairy ledger a

105 Knowledge of ____________ and _____________ is sufficient to understand the size scale and financial position of a business.

total revenue, net profit

profit, loss account , revenue None of these a

106 A ______________________________ shows the income and expenses of a business during a specific period of time.

journal profit and loss account

an account balance sheet b

107 Cost of goods consumed is given by ____________________________________. opening stock + material – closing stock

Stock + purchase – closing stock

opening stock + purchase – closing stock

None of these c

108 Sales returns represent value of goods returned by the _____________. market customers salesmen financers b

109 Excise duty is the amount of duty paid on _______________ of goods. sales production excise trading c

110 __________________ refers to sparing of the replacement cost of tangible assets like building, machinery, etc.

Depreciation Amortisation Liability Inventories a

111 ____________________ refers to the sparing of the replacement cost of intangible assets like patents.

Depreciation Amortisation Expenses Inventories b



112 Tax includes the current tax as well as ___________________ tax. income expenses excise deferred d

113 The balance sheet shows liabilities and assets of the _________________. sales company production owner b

114 _____represents what the company has to pay others. liabilities assets reserves None of these a

115 According to which act, a business is required to prepare balance sheet?

companies act environmental act factory act None of these a

116 Which one of the following is not a current liability? short-term borrowings

trade payables short-term provisions

long-term borrowings

d

117 The term reserves are related to ______________________________. journal profit and loss account

ledger balance sheet d

118 ______________ are the resources of a company. Liabilities Taxes Trade payables Assets d

119 Which one of the following is a current asset? Fixed asset Trade receivable Deferred tax asset Tangible asset b

120 Taxes are classified as _____________________________________________. fixes and working regular and non-regular

direct and indirect None of these c

121 __________________ is a type of tax? regular tax fixed tax indirect tax None of these c

122 The tax that is charged on the personal or corporate income is called _________________.

indirect tax direct tax surcharge None of these b

123 Which one of these is not a tax charged by the central government? Income tax Customs duties Wealth tax Stamp duty d

124 Which one of the following taxes is not charged by the state government?

Income tax Land revenue Luxury tax Property tax a

125 Which one of these is a tax collected by local bodies? Tax on market Duty on entertainment

Excise tax None of these a

126 An indirect tax levied on all goods manufactured is called ____________. luxury tax VAT excise tax stamp duty c

127 ____________ tax is an annual direct tax. Income Excise Value Sales a

128 _______________ is a tax levied on goods imported into the country as well as on goods exported out of the country.

Custom duty Duty on bounty Anti-dumping duty

Basic duty a

129 Which one of the following is not a type of custom duty? Protective duty Export duty Additional duty Dumping duty d

130 Service tax is applicable to the whole of India except the state. Goa Assam Jammu and kashmir

Punjab c



131 The current effective service tax rate is ____________. 10% 12% 12.36% 14% d

132 Protective duty is to protect the interest of Indian ________________. industry land revenue government roads a

133

Which is not an objective of budgetary control? 1. to decide long term plans of a business 2. to define the overall goals of a business 3. to coordinate resources and expenditure 4. to finance the business

1 2 3 4 d

134 Budgets are prepared for a ____________ period of time. definite long short-term provisions

fixed a

135 _________________ is the effective procurement of funds and their effective utilization.

Accounts Commerce Finance None of these c

136 ________________________ is the study of relationship between the raising of finance and deployment of finance.

Financial deficit Financial management

Financing Finance b

137 Fixed capital is also called as ______________________________. Blocking capital Tight capital Management capital

None of these a

138 Buildings come under ___________ capital. Fixed Working Circulating None of these a

139 Working capital is also called as _______________________________. Fixed capital Working capital Circulating capital None of these c

140 Working capital is required for _______________________________. Advertisement Salary Maintenance All of these d

141 Minimum capital required for day to day functional activities are called _____________________________.

Block capital Fixed capital Seasonal working capital

Permanent working capital

d

142 Share is included under ________________________ source of finance. Long term Short term Medium term None of these a

143 Debentures are included in ___________________ source of finance. Long term Short term Medium term None of these a

144 Which are long term source of finance? Share Loans Savings All of these d

145 Costumer’s advances are included ________________ source finance. Long term Short term Medium term None of these b

146 Hire purchase and equipment lease are included under ______________ source of finance.

Long term Short term Medium term None of these c

147 Depreciation provisions are _______________ source of finance. Internal External Both None of these a



148 Which are included in under financial institutions? Industrial development banks

Industrial finance corporation

Insurance company

All of these d

149 Statement 1- share form the part of the capital of company Statement -2 debenture is loan to company

Both 1 and 2 are wrong

1 is correct 2 is wrong

Both 1 and 2 are correct

1 is wrong 2 is correct

c

150 Statement 1 - shareholders are owner of the company Statement 2 – debenture holders are creditors of the company


1 is correct 2 is wrong


1 is wrong 2 is correct

c

151 Which is wrong statement? Debentures carry a fixed rate of interest

Interest is payable only when there is profit

Debenture Holders have no control on affairs of the company

All of these b

152 Budget is the financial plan for the ___________________. next year last year running year None of these a

153 About budget, which statement is wrong? It is not time bound

Quantity of money are the basis

It is defines policies

It is prepared before The period

a

154 Budgetary control is the important function of _________________________. Accounts Economics Financial management

None of these c

155 Production budget is based on ______________________. Flexibility function Mechanism None of these b

156 Labour budget is based on ____________________. Flexibility function Mechanism None of these b

157 Fixed budget is based on ____________________. Flexibility function Mechanism None of these a

158 Zero based budgeting is based on _____________________. Flexibility function Mechanism None of these c

159 Which statement is wrong? Zero difficult to implement

Consumes less time

Avoids wastages Is costly b

160 The deviation of the actual from the standard is ____________ in budgeting terms.

Variance Change Difference None a

161 For making labour budget, workers are classified into _______________. Skilled Semi-skilled Unskilled All of these d

162 The summarised budget of the entire enterprise is known as ____________ budget.

master template final enterprise a

163 The earning capacity and potential of a firm are reflected in _________________________.

balance sheet profit and loss account

trial balance None of these b

164 Profit and loss account is: Both 1 and 2 are Both 1 and 2 are 1 is correct, 2 is 1 is wrong, 2 is a



1. A flow statement 2. A measure of firm’s profitability

correct wrong wrong correct

165 _______________________ is the financial snapshot of the organization. Balance sheet Profit and loss account

Snap sheet Budget a

166 In balance sheet, we see, ___________ equal to the sources of the funds. Expenditure Assets Savings Liabilities b

167 Tax revenue comes from ______________________. Income Property Commodities All of these d

168 India’s Tax structure is _______________________ in nature. Progressive Aggressive Cumulative None of these a

169 Central government does not deals with - Income tax Excise Customs Sales tax d

170 Which is direct tax out of following? Income tax Corporation tax Gift tax Excise tax d

171 Which is not the direct tax? Income tax Corporation tax Gift tax Excise tax d

172 Which is indirect tax? Customs Excise Sales All of these d

173 Statement 1- Excise is a direct tax Statement 2- excise is a commodity tax


1 is wrong, 2 is correct

1 is correct, 2 is wrong


b

174 Which is the type of excise duty? Basic Special Additional All of these d

175 Statement 1- excise is levied directly on the goods Statement 2- excise tax is payable by the manufacturer





b

176 Statement 1- services tax is regressive Statement 2- service tax is bound to affect all sections of the society





a

177 Following service is not under service tax Courier Telephone Banking Export service d

178 Statement 1- income tax is levied by central government Statement 2- income tax is to be paid by all employees





c

179 Which source of income is specified under IT act, 1961 Salary Business profit Income from capital gains

All of these d

180 Statement 1- VAT is not simple and transparent Statement 2- VAT is progressive from of sales tax





d

181 Which business is liable for VAT? Importers Manufacturers Distributors All d

182 Statement 1- customs is related to import and export Statement 2- central government levies both the costumes duties





a



183 According to F. W. Paich ___________ is defined as “the provision of money at the time it is required”.

Finance Capital Budget VAT a

184 Objectives of financial management are ___________________________. To raise the funds To allocate funds properly

To reduce the misuse of Funds

All of these d

185 Objectives of financial management are ___________________________. To maximize the profit in long run

To maximize the wealth of company

To fulfil the society responsibility

All of these d

186 Functions of financial management are ________________________________.

Understanding and estimation of capital requirements

Determination of capital composition

Choosing sources of fund

All of these d

187 Functions of financial management are ________________________________. Allocation of funds

Investments of funds

Disposal of surplus

All of these d

188 __________________________ is the life-blood of a business enterprise and is a universal lubricant which keeps enterprises dynamic in nature.

Finance Capital Budget VAT b

189 ________________ can be defined as goods or cash invested to generate income from business or property.


190 ________________ develops products, keeps workers and machines at work, encourages management to make progress and create value.


191 _________________ can be defined as assent or capital investment that is needed to start up and run the business.

Gross working capital

Net working capital


Fixed capital d

192 The different types of working capital are ___________________________. Gross working capital

Net working capital


All of these d

193 ______________ capital is used for all the current assets. Gross working Net working Permanent working

Temporary working

a

194 ____________________ = Total current assent – Total current liabilities Gross working capital

Net working capital


Temporary working capital

b



195 _____________________ capital is that amount of capital which must be in cash or current assent for continuing the activities of business.

Gross working Net working Permanent working

Temporary working

c

196 Internal sources are ___________________________________________________. Retained earnings Depreciation provisions

Deferred taxation All of these d

197 __________________________ is the percentage of net earnings which is not paid out as dividends, but retained or kept by the company for reinvesting for core business or to pay debt.

Retained earnings Depreciation provisions

Deferred taxation All of these a

198 Retained earnings capitals are used to _________________________________. buy new machinery

doing research develop new product

All of these d

199 There are investment earnings like interest, dividend or capital gains etc. which are gathered tax free until the investor withdraws and takes position of it. These are known as ________________________________.


Deferred taxation All of these c

200 _______________________ is one more source of capital where the person uses their own funds from different source like savings, investment in share market, mutual fund, fixed deposit etc.


Deferred taxation Personal funds d

201 External source are classified as ________________________________________. Permanent or long term source of capital

Medium – terms source of capital

Short – terms of capital

All of these d

202 _____________________________ is a method of buying goods buy making instalment payments over the period of time.

Bank loans Hire purchase Sale and lease back

All of these b

203 ________________________ is an arrangement where one party sells it property to a buyer party an buyer immediately leases that property bank to the seller.

bank loans Hire purchase Sale and lease back

All of these c

204 The term ______________________ means a loan in which the lender buys and owns equipment and then rents those equipment into a business at some flat monthly rate for particular period.

bank loans Hire purchase Equipment leasing

All of these c



205 _______________ is an agreement in which customer can purchase goods on account that is without paying cash or paying the supplier at a letter date.

Credit facilities Trade credit Shares Debentures b

206 A _____________ or static budget shows one plan, one volume of output of sales and the related fixed costs.

fixed variable functional detailed a

207 ____________ budget depends upon the ability to perfect income, sales or shipments with at least a no provision in made for any changes may occur during period-

Fixed Variable Functional Final a

208 ____________ budget serves a valuable purpose in the planning and control of certain fix types of expenditure, e.g. a research project, hospital, school and college, etc.

Fixed Variable Functional Final a

209

A ________________ or flexible budget recognized the unreliability of income or sales prediction and makes provision in advanced for variation in production and expenditure in accordance with variations in sales.

fixed variable functional final b

210 _____________________ takes in account only those cost, e.g. direct labour and material, which vary with output and over which the department has control.

Fixed budget Variable budget Functional budget All of these b

211 ________________ budget relates to any of the functions of undertaking. E.g. sales, production, cash, etc.

Fixed Variable Functional Final c

212 The frequently used functional budget are:

1. Sales budget 2. Production and

manufacturing budget

3. Capital expenditure budget

1. Material and purchase budget

2. Direct labour budgets

3. Selling and distribution budget

Only a Both a and b d

213 Important terminologies related to profit and loss account are: Opening stock Purchases Sales All of these d



214 Important terminologies related expenses in profit and loss account are:

Office & administrative expenses

Selling and distribution expenses

Financial expenses

All of these d

215 Important terminologies related to profit and loss account are: Desperation and maintenance charges

Abnormal losses Indirect incomes and gains

All of these d

216 The stock of goods in hand at the beginning of the year is called as _____________________________.

Opening stock Purchase stock Office expenses Administrative expenses

a

217 _______________________ are the term used to indicate purchases made during the year for the purpose of sale. When good purchased are returned is referred purchase as sales return.

Opening stock Purchases Sales Office administrative expenses

b

218 _______________ indicates the total sales in the year, when goods sold are returned referred sales return.


c

219 ________________________________ include maintenance of office, administration and management of the company or organization.


d

220 The office and administrative expenses are: Staff salary Telephone bills

Stationary Telegram charges

Printing Postage charge

All of the above d

221

_______________________________ includes expenses like commission to salesmen, advertisement, discount given, carriage outward, bad debts, cost of services after sales, rent of go down, expenses relates to delivery of material etc.


d

222 Interest paid on loans, interest on capital, discount on bills, bank charges, interests paid for bank overdraft are example of ______________.

Financial expenses

Purchases Sales Office administrative expenses

a

223 __________ may occur because losses on sale of asset , fire or theft etc. Financial expenses

Abnormal losses Sales losses Office administrative expenses

b



224 Incomes other than sales are called as ____________________________. Indirect incomes Purchases Sales Office administrative expenses

a

225 __________________ is treated as a loss and it includes the bad debt; an amount that cannot be recovered from the market.

S. B account R. D account F. D account Financial account b

226 _________ are defined as a resource with specific economic value that an individual, corporation or country owns or control.

Asset Liability Share Debenture a

227 ______________ is defined as a company’s legal debts or obligations which a rise during the business operation.

Asset Liability Share Debenture b

228 A ____________ is defined as a signal unit of ownership in a corporation, mutual fund, or any other type of organization.

Asset Liability Share Debenture c

229 __________________ can be defined as an unsecured loan certificate issued by a company which is backed by general credit instead by specified assets.

Asset Liability Share Debenture d

230 ___________________ is defined as an accounting book of final entry where transactions are listed in separate or different account.

Asset Liability Ledger Debenture c

231 ___________________ is direct tax which is paid by individual to the central government of India.

Direct tax Indirect tax Service tax Income tax d

232 ______________________ is a form of indirect tax imposed on specified services called “taxable services”.

Direct tax Indirect tax Service tax Income tax c

233 _________________ can be defined as a tax which is paid directly by an individual or organization to the imposing entity.

Direct tax Indirect tax Service tax Income tax a

234 ______________________ can be defined as the tax which increases the price of a good in such way that consumers are actually paying the tax by paying more the products they are buying.

Direct tax Indirect tax Service tax Income tax b



235 Main heads of income are: Salary House property Profit in business/ profession

All of these d

236 _________________ is a consumption tax which is levied at is stage as production based on the value added to the product at that stage.

Finance Capital budget VAT d

237

Select an appropriate response from the options that fits in the blank space provided in the budget chart:

Short term budget, Long term budget

Fixed budget, Flexible budget

Functional budget, Master budget

Nominal budget, Precise budget

c

238

ABC Company is basically a manufacturing unit which produces an array of SIM cards during the coming budget year, 2014. The quarterly need of manufacturing unit is outline below in form of proposed budget with the variance. Can you identify which type of budget is this?

Production budget

Manufacturing budget

Sales budget Master budget a



239

ABC Company is basically a manufacturing unit which produces plastic chair during the budget period. The quarterly need of manufacturing unit is outline below in form of proposed budget. Can you identify which type of budget is this?

Production budget

Manufacturing budget

Sales budget Labour budget d

240 Divyanshu Plastics Ltd is basically a manufacturing unit which produces plastic chair during the budget period year 2015. The quarterly need of manufacturing unit is outline below in form of

₹ 143750 ₹ 134250 ₹ 143705 ₹ 143570 a



proposed Labour budget. What is total labour budget required for the year 2015?

241

From the Trial balance of Engineering Company, Profit and Loss accounts for the year ended 31st March 2015 is prepared by considering the value of the closing stock to be ₹ 80,000/-. From the Profit and Loss account statement what is the amount of net profit generated?

₹ 22,290 ₹ 57,050 ₹ 4,27,650 ₹ 80,000 a



242

From the Trial balance of Engineering Company, Profit and Loss accounts for the year ended 31st March 2015 is prepared by considering the value of the closing stock to be ₹ 80,000/-. From the Profit and Loss account statement what is the total amount of Debit side?

₹ 22,290 ₹ 57,050 ₹ 4,27,650 ₹ 80,000 b



243

From the Trial balance of Engineering Company, Profit and Loss accounts for the year ended 31st March 2015 is prepared by considering the value of the closing stock to be ₹ 80,000/-. From the Profit and Loss account statement what is the total amount of Credit side?

₹ 22,290 ₹ 57,050 ₹ 4,27,650 ₹ 80,000 b



244 In Profit and Loss accounts statement, what is the meaning of c/d? carried down brought down credit down brought debit a

245 In Profit and Loss accounts statement, what is the meaning of b/d? carried down brought down credit down brought debit b

246 In Profit and Loss accounts statement, Debit side indicates? All indirect and direct expenses

All indirect and direct income

All direct expenses

All direct income a

247 In Profit and Loss accounts statement, Credit side indicates? All indirect and direct expenses

All indirect and direct income

All direct expenses

All direct income b

248

The sheet shows the positional statement showing the financial status of a business, as on a given date in the form of assets and liabilities. This specimen statement is which type of sheet in Accounting?

Trial balance account statement

Profit and Loss account statement

Balance Sheet statement

Petty Cash account statement

c



249 What will be the net result from the sample Balance Sheet statement?

Total liabilities = Total assets

Fixed liabilities = Fixed assets

Current liabilities = Current assets

Contingent liabilities = Fictitious assets

a



250

What is the amount of net profit from the given balance sheet?

₹ 22,290 ₹ 1,20,140 ₹ 2,25,770 Nil b

251 What is the total amount of liabilities from the given balance sheet? ₹ 22,290 ₹ 1,20,140 ₹ 2,25,770 Nil c



252

What is the total amount of assets from the given balance sheet?

₹ 22,290 ₹ 1,20,140 ₹ 2,25,770 Nil c

253

This account is called Balance Sheet as ___________________________

Total liabilities = Total assets

Fixed liabilities = Fixed assets

Current liabilities = Current assets

Contingent liabilities = Fictitious assets

a

254 The table shows the income tax rates for an individual – Below 60 years Between 60 years to 80 years

Above 80 years For all ages a



255

Identify the types of sources from the given options:

1-internal source, 2-external source

1-external source, 2-internal source

1-primary source, 2-secondary source

1-secondary source, 2-primary source

a

256 In the table below what does VAT and CST stands for:

VAT- Value Added Tax, CST – Central Sales Tax

VAT- Valued Add Tax, CST – Central Selling Tax

VAT- Valued Added Tax, CST – Centre Sales Tax

VAT- Value Addition Tax, CST – Centralized Sales Tax

a



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