Cs Executive Cost And Management Accounting

100 Questions | Total Attempts: 37

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Accounting Quizzes & Trivia

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Questions and Answers
  • 1. 
    A master budget comprises :
    • A. 

      The budgeted profit and loss account

    • B. 

      The budgeted profit and loss account

    • C. 

      Budgeted cash flow

    • D. 

      Entire sets if budgeted prepared

  • 2. 
    Sales budget is a
    • A. 

      Expenditure budget

    • B. 

      Functional budget

    • C. 

      Master budget

    • D. 

      None of the above

  • 3. 
    Which of the following is required in order to calculate EOQ?
    • A. 

      Cost of equity (ke)

    • B. 

      Stock-out cost

    • C. 

      Opportunity cost

    • D. 

      All of the cost

  • 4. 
    Key factor is also known as
    • A. 

      Marginal factor

    • B. 

      Principal budget factor

    • C. 

      Limiting factor

    • D. 

      All of the above

  • 5. 
    Which of the following statement is true?
    • A. 

      Process costing is ordinarily applied where all the operations are performed in one department

    • B. 

      Equivalent unit or equivalent production comprises the units completed during the period together with equivalent completed units ,represented in the beginning and ending WIP inventories

    • C. 

      Job costing and process costing cannot be simultaneously used in the same industry

    • D. 

      The cost of abnormal process loss is not included in the cost of the process

  • 6. 
    Which of the following unavoidable loss?
    • A. 

      Standard loss

    • B. 

      Abnormal loss

    • C. 

      Actual loss

    • D. 

      Normal loss

  • 7. 
    The methods of treating cost of small tools in cost accounts include
    • A. 

      Charging of expenses

    • B. 

      Charging to stores

    • C. 

      Capitalizing in a small tools accounts

    • D. 

      All of the above

  • 8. 
    Standard costs may be used for
    • A. 

      Product costing

    • B. 

      Planning

    • C. 

      Controlling

    • D. 

      All of the above

  • 9. 
    Standard costs may be used by
    • A. 

      Universities

    • B. 

      Government agencies

    • C. 

      Charitable organization

    • D. 

      All of the above

  • 10. 
    Idle time variance is
    • A. 

      Idle time * actual

    • B. 

      Idle time * standard rate

    • C. 

      Idle time * budgeted labour rate

    • D. 

      Idle time * historical cost

  • 11. 
    Cost of abnormal wastage is
    • A. 

      Charged to the product cost

    • B. 

      Charged to the profit and loss account

    • C. 

      Charged partly to the product and partly profit and loss account

    • D. 

      Not charged at all.

  • 12. 
    Describe the method of the costing to be applied in case of nursing home
    • A. 

      Operating costing

    • B. 

      Process costing

    • C. 

      Contract costing

    • D. 

      Job costing

  • 13. 
    ABC analysis is an inventory control technique in which
    • A. 

      Inventory levels are maintained

    • B. 

      Inventory is classified into A, B and C category with A being the highest quantity , lowest value

    • C. 

      Inventory is classified into A, B and C category with A being the lowest quantity , highest value

    • D. 

      Either b or c

  • 14. 
    Which one out of the following is not an inventory valuation method?
    • A. 

      FIFO

    • B. 

      LIFO

    • C. 

      Weighted average

    • D. 

      EOQ

  • 15. 
    Labour turnover means
    • A. 

      Turnover generated by labour

    • B. 

      Rate of the change in composition of labour force during a specified period

    • C. 

      Either of the above

    • D. 

      Both of the above

  • 16. 
    Calculate re order level from the followingSafety stock : 1000 unitsConsumption per week : 500 unitsIt takes 12 weeks to reach material from the data of ordering
    • A. 

      1000 units

    • B. 

      6000 units

    • C. 

      3000 units

    • D. 

      7000 units

  • 17. 
    Overheads refers to
    • A. 

      Direct or prime cost

    • B. 

      All indirect costs

    • C. 

      Only factory indirect costs

    • D. 

      Only indirect expenses

  • 18. 
    • A. 

      Current ratio

    • B. 

      Quick ratio

    • C. 

      Liquid ratio

    • D. 

      Debt – equity ratio

  • 19. 
    • A. 

      20%

    • B. 

      30%

    • C. 

      25%

    • D. 

      40%

  • 20. 
    If credit sales for the year is Rs 5,40,000 and debtors at the end of the year is Rs 90,000 the average collection period will be
    • A. 

      30 days

    • B. 

      60 days

    • C. 

      90 days

    • D. 

      120 days

  • 21. 
    Statutory cost audit are applicable only to
    • A. 

      Firm

    • B. 

      Company

    • C. 

      Individual

    • D. 

      Society

  • 22. 
    Workers being paid a rate in excess of their wage rate for working additional hours are paid
    • A. 

      Overtime

    • B. 

      Price rate

    • C. 

      Commission

    • D. 

      Fees

  • 23. 
    The spilt – off point at which
    • A. 

      Output is first identifiable as individual products

    • B. 

      Joints costs are allocated to joint products

    • C. 

      Some costs are allocated to joint products

    • D. 

      All of the above

  • 24. 
    Trimming in timber industries should be treated as
    • A. 

      Waste

    • B. 

      Scrap

    • C. 

      By-product

    • D. 

      Joint product

  • 25. 
    Which of the following details are recorded in bin card?
    • A. 

      Date of order and suppliers name along with address

    • B. 

      Record of quantities only

    • C. 

      Record of both quantities and values

    • D. 

      All of the above

  • 26. 
    Out of the following, what is not the work of purchase department?
    • A. 

      Receiving purchase requisition

    • B. 

      Exploring the sources of material supply

    • C. 

      Preparation and execution of purchase orders

    • D. 

      Accounting for material received

  • 27. 
    (maximum usage – average usage ) * lead time=?
    • A. 

      Re-order point

    • B. 

      Danger level

    • C. 

      Safety stock level

    • D. 

      Reorder level

  • 28. 
    Under non integral system cost and financial accounts do not need to be reconciled
    • A. 

      True

    • B. 

      Partly true

    • C. 

      Partly correct

    • D. 

      False

  • 29. 
    In case of under absorption of overheads..
    • A. 

      Costing profit is understand

    • B. 

      Costing profit is over stated

    • C. 

      Financial profit is over stated

    • D. 

      There is no impact on costing profit

  • 30. 
    The term cash includes
    • A. 

      Cash and bank balances

    • B. 

      All the current assets

    • C. 

      All the current liabilities

    • D. 

      None of the them

  • 31. 
    Which of the following is feature of job costing?
    • A. 

      Single order

    • B. 

      Single Contract

    • C. 

      Every job is cost unit itself

    • D. 

      All of the above

  • 32. 
    Cost accounting……………
    • A. 

      Deals with historic data

    • B. 

      Has futuristic in approach

    • C. 

      Both (a) & (b)

    • D. 

      Neither (a) nor (b)

  • 33. 
    CIMA, London defines…………… as, “the establishment of budgets, standard costs and actual costs of operations, processes, activities or products; and the analysis of variances, profitability of the social use of funds”
    • A. 

      Management Accounting

    • B. 

      Standard Costing

    • C. 

      Budgetary Control

    • D. 

      Cost Accounting

  • 34. 
    One characteristic of products that are mass-produced in a continuous production process is that………….
    • A. 

      The products are identical or very similar in nature

    • B. 

      They are grouped in batches

    • C. 

      They are produced at the time an order is received

    • D. 

      Their costs are accumulated on job cost sheets

  • 35. 
    Under which of the following conditions will be first-in, first-out method of process costing yield the same equivalent unit costs as the weighted-average method?
    • A. 

      It there is o beginning inventory

    • B. 

      If units produced are homogeneous in nature

    • C. 

      If there is no ending inventory

    • D. 

      If beginning and ending inventories are each 50% completed

  • 36. 
    In two consecutive periods, sales and profit were Rs.1, 60,000 and Rs.8, 000 respectively in the first period and Rs.1, 80,000 and Rs.14, 000 respectively during the second period. If there is no change in fixed costs between the two periods then P/V ratio must be………..
    • A. 

      20%

    • B. 

      25%

    • C. 

      30%

    • D. 

      40%

  • 37. 
    A company has annual turnover of Rs.200 lakhs and an average P/v ratio of 40%. It makes 10% profit on sales before charging depreciation with interest which amount to Rs.10 lakhs and Rs. 15 lakhs respectively. The annual fixed cost of the company is………
    • A. 

      Rs.85lakhs

    • B. 

      Rs.75lakhs

    • C. 

      Rs.60lakhs

    • D. 

      Rs.55lakhs

  • 38. 
    Selling price per unit Rs.10; variable cost Rs.8 per unit; fixed cost Rs.20, 000; Break even production in units?
    • A. 

      10,000

    • B. 

      16,300

    • C. 

      2,000

    • D. 

      2,500

  • 39. 
    Sales Rs.25, 000; Variable Cost Rs.8, 000; Fixed Cost Rs.5, 000; Break-even sales in value?
    • A. 

      Rs.7, 936

    • B. 

      Rs.7, 353

    • C. 

      Rs.8, 333

    • D. 

      Rs.9, 090

  • 40. 
    Fixed Cost Rs.80, 000; variable cost Rs.2 per unit; selling price Rs.10 per unit; Turnover required for a profit target of Rs.60, 000?
    • A. 

      Rs.1, 75,000

    • B. 

      Rs.1, 17,400

    • C. 

      Rs.1, 57,000

    • D. 

      Rs.1, 86,667

  • 41. 
    Sales Rs.50, 000; variable cost Rs.30, 000; Net profit Rs.6, 000; Fixed Cost is……….
    • A. 

      Rs.10, 000

    • B. 

      Rs.14, 000

    • C. 

      Rs.12,000

    • D. 

      Rs.8,000

  • 42. 
    Actual sales Rs.4, 00,000; Break-even sales Rs.2, 50,000; Margin of safety in percentage is…………….
    • A. 

      66.67%

    • B. 

      33.33%

    • C. 

      37.50%

    • D. 

      76.33%

  • 43. 
    P/V ratio 50%; variable cost of the produce Rs.25; selling price is
    • A. 

      Rs.50

    • B. 

      Rs.40

    • C. 

      Rs.30

    • D. 

      Rs.55

  • 44. 
    A retail company sells computer parts, each of which is sold for Rs.250 and bought from the manufacturer for Rs.100. The retailer’s fixed costs are Rs.1, 50,000. Maximum possible sales are 3,000. How many computers must be sold to break-even?
    • A. 

      2,000

    • B. 

      1,000

    • C. 

      750

    • D. 

      3,000

  • 45. 
    Using the information in above question, how much profit or loss would be made if 2,700 computers were sold?
    • A. 

      Rs.2, 55,000 profit

    • B. 

      Rs.1, 50,000 loss

    • C. 

      Rs.4, 50,000 profit

    • D. 

      Rs.1, 62,000 profit

  • 46. 
    Using the information above question, how many computers would have to be sold for the company to earn a profit of Rs.1, 80,000?
    • A. 

      1,000

    • B. 

      720

    • C. 

      2,200

    • D. 

      2,000

  • 47. 
    Using the following data, determine the unit product cost under absorption costing. Unit produced 1,000 Direct Material Rs.6 Direct labour Rs.10 Fixed Overheads Rs.6, 000 Variable overheads Rs.6 Fixed selling & admin. Overheads Rs.2, 000 Variable selling & admin. Overheads Rs.2
    • A. 

      Rs.22

    • B. 

      Rs.24

    • C. 

      Rs.28

    • D. 

      Rs.30

  • 48. 
    Use the data of above question and determine the unit product cost under variable costing.
    • A. 

      Rs.22

    • B. 

      Rs.24

    • C. 

      Rs.28

    • D. 

      Rs.30

  • 49. 
    Dinesh Ltd has provided following information: Sales price : Rs.20 per unit Variable Cost : Rs.14 per unit Fixed Overheads : Rs.7, 92,000 per annum How many units must be sold to earn 10% on sales?
    • A. 

      1,98,000 units

    • B. 

      1,89,000 units

    • C. 

      1,88,000 units

    • D. 

      1,99,000 units

  • 50. 
    Horizon Ltd manufacturer product BM. Company maintains a margin of safety 37.5% with contribution to sales ratio of 40%. If the fixed cost is Rs.5lakh, the profit of the company……
    • A. 

      Rs.24.00lakhs

    • B. 

      Rs.12.50lakh

    • C. 

      Rs.3.00lakh

    • D. 

      None of the above

  • 51. 
    Tom Ltd has sales of Rs.2, 00,000 with variable expenses s.1, 50,000, fixed expenses Rs.60, 000 and an operating loss of rs.10, 000. How much would Tom Ltd have to increase its sales in order to achieve an operating loss of 10% of sales?
    • A. 

      Rs.4, 00,000

    • B. 

      Rs.2, 51,000

    • C. 

      Rs.2, 31,000

    • D. 

      Rs.2, 00,000

  • 52. 
    A company maintains a margin of safety of 25% on its current sales and earns a profit of Rs.30lakhs per annum, if the company has a profit volume (P/V) ratio of 40%, its current sales amount to………
    • A. 

      Rs.200lakhs

    • B. 

      Rs.300lakhs

    • C. 

      Rs.325lakhs

    • D. 

      None of the above

  • 53. 
    A company with a contribution/sales ratio of 33-1/3% and fixed cost of Rs.3lakhs per months should have a monthly sales of Rs……………..lakhs to maintain a margin of safety of 10%
    • A. 

      8

    • B. 

      10

    • C. 

      12

    • D. 

      9

  • 54. 
    Cost accounting…………….
    • A. 

      Present true & fair view of overall results of the transaction, and events

    • B. 

      Uses monetary information only

    • C. 

      Both (a) & (b)

    • D. 

      Neither (a) nor (b)

  • 55. 
    The total cost for producing 10 items is Rs.15 and that for producing 15 times is Rs.20. What is the fixed cost?
    • A. 

      Rs.10

    • B. 

      Rs.15

    • C. 

      Rs.5

    • D. 

      None of the above

  • 56. 
    Which of the following cannot be treated as are direct beneficiary of cost accounting?
    • A. 

      Management

    • B. 

      Debtors

    • C. 

      Employees

    • D. 

      Shareholders

  • 57. 
    A plan expressed in financial terms may also be known as a:……………
    • A. 

      Budget

    • B. 

      Forecast

    • C. 

      Balanced scorecard

    • D. 

      Final account

  • 58. 
    Which of the following would not lead to an increase in net cash flow?
    • A. 

      Larger sales volume

    • B. 

      Reduced materials costs

    • C. 

      Lower depreciation charge

    • D. 

      Higher selling price

  • 59. 
    • A. 

      Sales Quantity + Opening Stock + Closing Stock

    • B. 

      Sales Quantity – Opening Stock + Closing Stock

    • C. 

      Sales Quantity – Opening stock-Closing stock

    • D. 

      Sales Quantity + Opening Stock – Closing Stock

  • 60. 
    Cash from operations is equal to…………….
    • A. 

      Net profit plus non-cash item plus non-operating expenses.

    • B. 

      Net profit plus increase in debtors

    • C. 

      Net profit plus increase in stock

    • D. 

      None of the above

  • 61. 
    Taxes on income should be classified as:
    • A. 

      Operating Activities

    • B. 

      Investing activities

    • C. 

      Financing activities

    • D. 

      Operating activities, unless they can be specifically identified with financial and investing activities

  • 62. 
    Holding all other things constant, which of the following represents a cash outflow?
    • A. 

      The company sales the machine

    • B. 

      The company sales the machine

    • C. 

      The company receives a bank loan

    • D. 

      The company receives a bank loan

  • 63. 
    If a company issue 1 million Rs.1 shares at Rs.1.30 per share, what will be the effect on the statement of cash flows?
    • A. 

      Cash flows from financing activities will increase by Rs.1.3 million

    • B. 

      Cash flow from investing activities will increase by Rs.1.3 million

    • C. 

      Cash flow from investing activities will increase by Rs.1.0 million

    • D. 

      Cash flow from financing activities will increase by Rs.1.0 million

  • 64. 
    Which of the following ledger is maintained in cost accounts?
    • A. 

      Work-in-progress Ledger

    • B. 

      Sundry Debtors Ledger

    • C. 

      Sundry Creditors Ledger

    • D. 

      All of the above

  • 65. 
    When costing profit is Rs.12, 500 and a charge in lieu of rent is Rs.1, 000, the financial profit should be……..
    • A. 

      Rs.11, 500

    • B. 

      Rs.12, 500

    • C. 

      Rs.13, 500

    • D. 

      None of the above

  • 66. 
    Profit as per cost accounts is Rs.45, 000. A comparison cost and financial accounts revealed the following: Transfer fees Rs.45, 000 Penalty due to late completion on contract Rs.45, 000 Profit as per financial accounts = ?
    • A. 

      Rs1., 35,000

    • B. 

      Rs.45, 000

    • C. 

      Loss Rs.45, 000

    • D. 

      Zero

  • 67. 
    Loss as per financial account R s.1, 532 Unit sold = 2,00,000 units Finished goods stock = 12,000 units Administration expenses RS.5, 20,000 Administrative overhead have been absorbed at a flat rate of Rs.3 per unit Selling expenses Rs.4, 80,000 Selling overhead has been absorbed at Rs.2.50 per unit Profit/Loss as per cost account = ?
    • A. 

      Profit Rs.97, 532

    • B. 

      Loss Rs.1, 37,532

    • C. 

      Profit Rs.1, 34,468

    • D. 

      Loss Rs.94, 468

  • 68. 
    Which of the following accounting treatment is correct in relation to “Spoilage”?
    • A. 

      Loss due to spoilage can be debited to the job/product/process in which it occurred.

    • B. 

      It may be charged to factory overheads so that the loss is borne by all products

    • C. 

      If spoilage occurs on a specific job/special order, it is charged to that job itself.

    • D. 

      All of the above

  • 69. 
    The average annual consumption of material is 20,000kg at a price of Rs.2 per kg. The storage cost is 16% on average inventory and the cost of placing one order is Rs.50. What is the time gap between two orders?
    • A. 

      7 orders in year

    • B. 

      8 orders in year

    • C. 

      9 orders in year

    • D. 

      6 orders in year

  • 70. 
    The average annual consumption of material is 20,000kg at a price of Rs.2 per kg. The storage cost is 16% on average inventory and the cost of placing one order is RS.50. How much is to be purchased at a time?
    • A. 

      2,500 kg

    • B. 

      2,000 kg

    • C. 

      2,532 kg

    • D. 

      2,352 kg

  • 71. 
    The annual consumption of material – 4,000 units, Ordering Cost – Rs.5, Cost per unit- Rs.2, Storage & Carrying cost – 8% per annum. The Economic Order Quantity for the item is………………
    • A. 

      500 units

    • B. 

      800 units

    • C. 

      300 units

    • D. 

      400 units

  • 72. 
    Sum received from time to time during the completion of the contract is known as……………..
    • A. 

      Progress payment

    • B. 

      Retention money

    • C. 

      Deferred profit

    • D. 

      Any of the above

  • 73. 
    How much profits should be considered if completion of contract is up to 25% oe more than 25% but less than 50%:…………..
    • A. 

      1/3rd of the notional profit, reduced in the ration of work certified to cash received, should be transferred to the P&L A/c

    • B. 

      2/3rd of the notional profit, reduced in the ratio of work certified to cash received should be transferred to the P&L A/c

    • C. 

      2/3rd of the notional profit, reduced in the ratio of cash received to work certified, should be transferred to the P&L A/c

    • D. 

      1/3rd of the notional profit, reduced in the ratio of cash received to work certified, should be transferred to the P&L A/c

  • 74. 
    Kunal construction signed a contract for the construction of a building at a contract price of RS.30lakhs. During the first year, the following amounts were spent against which Rs.11, 25,000 (Which is equal to 90% of the work certified) was received by the contractor: Rs. Material used 5,25,000 Wages paid 3,00,000 Overhead expenses 75,000 Profit to be considered in 1st Year = ?
    • A. 

      Rs.2, 45,000

    • B. 

      Rs.3, 50,000

    • C. 

      RS.2, 10,000

    • D. 

      Rs.1, 05,000

  • 75. 
    IN a contract which was completed more than 50% Rs.36, 978.50 profit was considered and transferred to profit & loss account. Work certified and cash received was Rs.10, 70,000 & RS.9, 90,000 respectively. Notional Profit = ?
    • A. 

      Rs.1, 19,900

    • B. 

      RS.59, 950

    • C. 

      Rs.1, 12,750

    • D. 

      Rs.60, 250

  • 76. 
    Rent free accommodation or accommodation provided at concessional rate should be classified as……………….
    • A. 

      Fringe Benefits

    • B. 

      Deferred Monetary Benefits

    • C. 

      Fixed standard Labour Cost

    • D. 

      Pecuniary Benefits

  • 77. 
    Under Halsey Plan………………………
    • A. 

      50% of the time taken is allowed as bonus

    • B. 

      50% of the standard time is allowed as bonus

    • C. 

      50% of the time saved is allowed as bonus

    • D. 

      50% of guaranteed time rate is allowed as bonus

  • 78. 
    A worker is allowed 60 hours to complete the job on a guaranteed wages of Rs.10 per hour. Under the Rowan Plan, he gets an hourly wages of Rs.12 per hour. For the same saying in time, how much he will get under the Halsey Plan per hour?
    • A. 

      Rs.48

    • B. 

      Rs.540

    • C. 

      Rs.11.25

    • D. 

      Rs.20

  • 79. 
    Standard time allowed = 10 hours, Actual time taken = 12 hours, Rate per hour = Rs.8. Effective earning per hour under Barth Plan =?
    • A. 

      Rs.71.55

    • B. 

      RS.87.64

    • C. 

      RS.8.00

    • D. 

      RS.7.30

  • 80. 
    Use following information to calculate net cash from investing activities: Sell of capital asset for Rs.10, 000 cash and a Rs.1, 000 gain; purchase a bond investment for Rs.16, 000; receive Rs.2, 000 interest payment from the bond investment; and pay off a Rs.3, 000 mortgage payable.
    • A. 

      Rs.5, 000 net cash outflows from investing activities

    • B. 

      Rs.4, 000 net cash outflows from investing activities

    • C. 

      Rs.6, 000 net cash outflow from investing activities

    • D. 

      RS.9, 000 net cash outflow from investing activities

  • 81. 
    The balance sheet reported a beginning balance of Rs.20, 000 in Accounts Receivables and an ending balance of Rs.15, 000. The income statement reported Sales Revenue of Rs.2, 00,000. Using this information. Compute cash collected from customer.
    • A. 

      Rs.1, 95,000

    • B. 

      Rs.2, 05,000

    • C. 

      Rs.2, 00,000

    • D. 

      Rs.2, 15,000

  • 82. 
    Use following information to calculate net cash from financing activities: Issue of shares Rs.2, 00,000; repurchase a company’s own shares Rs.20, 000; pay mortgage payable principal Rs.1, 00,000; pay mortgage payable interest Rs.10, 000; a stock dividend is declared and distributed that reduces retained earnings by Rs.30, 000; and a cash dividend is declared and paid that reduces retained earnings by Rs.40, 000.
    • A. 

      Rs.40, 000 net cash inflow from financing activities

    • B. 

      Rs.10, 000 net cash inflow from financing activities

    • C. 

      Rs.30, 000 net cash inflow from financing activities

    • D. 

      Rs.60, 000 net cash inflow from financing activities

  • 83. 
    The balance sheet reported a beginning balance of Rs.2, 00,000 for the book value of equipment and an ending balance of Rs.1, 60,000. The income statement reported amortization expense of Rs.20, 000 and gain on the sale of equipment of Rs.10, 000. The cash flow statement reported acquisition of capital assets totaling Rs.30, 000. Using this information, compute cash received from the sale of equipment.
    • A. 

      Rs.40, 000

    • B. 

      Rs.20, 000

    • C. 

      Rs.50, 000

    • D. 

      Rs.60, 000

  • 84. 
    Discount and Finance House of India (DFHI) purchased commercial paper (CP) of Rs.100 Crores on 28.2.2015 for 89 days maturity. This is ready market for sale/purchase of commercial paper. While preparing cash flow for the financial year ended 31.3.2015, DHFI should show CP of Rs.100 Crores …………
    • A. 

      In investing activities

    • B. 

      In financing activities

    • C. 

      As Cash equivalents

    • D. 

      As a footnote to cash flow statement being contingent liability

  • 85. 
    E & Co. had operating cash flow equal to Rs.850 for 2014. If its earnings before interest and taxes was Rs.1, 000 while its tax bill was Rs.300, what was E & Co. depreciation expenses for the year?
    • A. 

      150

    • B. 

      550

    • C. 

      1,550

    • D. 

      Not enough information to calculate

  • 86. 
    NS Ltd had EBIT of Rs.5, 00,000 and had a depreciation expense of Rs.2, 00,000 this last year. If the firm was subject to an average tax rate of 30%, what was NS Ltd operating cash glow for the year? If you need to, assume that Interest expense was zero.
    • A. 

      3,05,000

    • B. 

      3,50,000

    • C. 

      4,50,000

    • D. 

      5,50,000

  • 87. 
    State Bank of India, received a gross Rs.1, 500 Crores demand deposits from the customer and customers withdraw Rs.1, 300 Crores of demand deposit during the financial year 2015-2016. How will you classify this amount in the cash flow statement of the firm?
    • A. 

      Operating activities Rs.1, 500 Crores as inflow financial activities Rs.1, 300 as outflow.

    • B. 

      Investing activities Rs.1, 500 Crores Crores as inflow financing activities Rs.1, 300 as outflow

    • C. 

      Financing activities, on net basis Rs.200 Crores as inflow

    • D. 

      Operating activities, on net basis Rs.200 Crores as inflow

    • E. 

      Operating Activities, on net basis Rs.200 Crores as inflow

  • 88. 
    In a given year a company decreased its inventory by Rs.2, 50,000 purchased Rs.3, 50,000 worth of fixed assets and took on a new Rs.5, 00,000 loan. What is the net change of the company’s cash as a result of these transactions?
    • A. 

      – 1,00,000

    • B. 

      Plus 1,00,000

    • C. 

      – 4,00,000

    • D. 

      Plus 4,00,000

  • 89. 
    LK Ltd issued Rs.50, 000 of bonds, paid cash dividends of Rs.8, 000, sold long-term investments for Rs.12, 000 received Rs.5, 000 of dividend revenue purchased treasury stock for Rs.15, 000 and purchased new equipment for Rs.19, 000. What is the net cash flow from financing activities?
    • A. 

      Rs.70, 000 inflow

    • B. 

      Rs.27, 000 inflow

    • C. 

      Rs.80, 000 inflow

    • D. 

      Rs.42, 000 inflow

  • 90. 
    Reliance Capital, a financial service company made a loan of Rs.1 Crore during the financial year 2015-2016; it will be classified as………….
    • A. 

      Operating Activities

    • B. 

      Investing Activities

    • C. 

      Financing Activities

    • D. 

      Extraordinary Activities

  • 91. 
    P Ltd reported a net loss of Rs.10, 000 for the year ended 31.12.2007. During the year, accounts receivable decreased Rs.5, 000, inventory increased Rs.8, 000 accounts payable increased by Rs.10 000 and amortization expense of rs.5, 000 was recorded. During 2007, operating activities.
    • A. 

      Used net cash of Rs.2, 000

    • B. 

      Used net cash of Rs.8, 000

    • C. 

      Provided net cash of Rs.2, 000

    • D. 

      Provided net cash of Rs.8, 000

  • 92. 
    S Ltd had an increase in inventory of Rs.40, 000. The cost of goods sold was Rs.90, 000. There was a Rs.5, 000 decrease in accounts payable from the prior period. What were S Ltd cash payments to suppliers?
    • A. 

      Rs.1, 35,000

    • B. 

      Rs.85, 000

    • C. 

      Rs.1, 25,000

    • D. 

      Rs.95, 000

  • 93. 
    If a company issue 1 million Rs.1 shares at Rs.1.30 per share, what will be the effect on the statement of cash flows?
    • A. 

      Cash flows from financing activities will increase by Rs.1.3 million

    • B. 

      Cash flow from investing activities will increase by Rs.1.3 million

    • C. 

      Cash flow from investing activities will increase by Rs.1.0 million

    • D. 

      Cash flow from financing activities will increase by Rs.1.0 million

  • 94. 
    P Ltd prepares its statement of cash flow using the indirect method. Its unamortized bond discounts account decreased by Rs.25, 000 during the year. How should P Ltd report the change in unamortized bond discount in its statement of cash flows?
    • A. 

      As a financing cash inflow

    • B. 

      As a financing cash outflow

    • C. 

      As an addition to net income in the operating activities section

    • D. 

      As a subtraction from net income in the operating activities section.

  • 95. 
    Which of the following is not method of costing?
    • A. 

      Uniform Costing

    • B. 

      Operating Costing

    • C. 

      Operation Costing

    • D. 

      Contract Costing

  • 96. 
    If financial records can yield all the necessary costing information, it is not necessary to have a separate costing department.
    • A. 

      False

    • B. 

      True

    • C. 

      Partly correct

    • D. 

      Partly incorrect

  • 97. 
    A master budget comprises :
    • A. 

      The budgeted profit and loss account

    • B. 

      The budgeted profit and loss account

    • C. 

      Budgeted cash flow

    • D. 

      Entire sets if budgeted prepared

  • 98. 
    Sales budget is a
    • A. 

      Expenditure budget

    • B. 

      Functional budget

    • C. 

      Master budget

    • D. 

      None of the above

  • 99. 
    Which of the following is required in order to calculate EOQ?
    • A. 

      Cost of equity (ke)

    • B. 

      Stock-out cost

    • C. 

      Opportunity cost

    • D. 

      All of the cost

  • 100. 
    Key factor is also known as
    • A. 

      Marginal factor

    • B. 

      Principal budget factor

    • C. 

      Limiting factor

    • D. 

      All of the above