Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2007 M.B.A Finance FA - Financial Accounting and Management - Question Paper

c. Fixed cost d. Variable cost

52. Under marginal costing only _________ are charged to operators, processes or product.
a. Fixed cost b. Marginal cost
c. Variable cost d. Absorption

53. The difference ranging from selling price and marginal cost is called __________.
a. Profit quantity ratio b. Break even point
c. Margin of sales d. Contribution

54. Break-even analysis is also known as cost-volume analysis.
a. True b. False

55. The standards for materials include materials, quantity, standard and _________.
a. Material standard b. Material price
c. Cost standard d. Material performance

56. MCV = MUV + MPV
a. True b. False

57. When true cost is less than the standard cost it is known as _________ variance.
a. Debit variance b. ‘F’ Variance
c. Favorable variance d. All of above

58. MCV = Standard cost of material _______.
a. Standard usage of material b. Standard price of material
c. true cost of material d. All of above

59. MUV = MCV = MPV
a. actual b. False

60. The subsequent info is given:
Standard volume - 250Units
true volume - 260Units
Standard price - Rs. 5/Unit
true price - Rs. 5.5/Unit

The MCV is
a. Rs. 150 b. Rs. 30
c. Rs. 180 d. Rs. 280

61. MPV is:
a. 150 b. 130
c. 50 d. 180

62. MUV is:
a. 160 b. 180
c. 130 d. 50

63. ________ are 3 important financial characteristics of a business entity.
a. Liquidity b. Solvency
c. Profitability d. All of the above

64. Indirect expenses are technically called________.
a. Cost b. Overheads
c. Expenditure d. All of above

65. Management decision is based on ________ cost.
a. Irrelevant b. Relevant
c. Sunk d. Swim

66. The function of management is:
a. Formulating a business plan.
b. Fixing of responsibility at different levels in the implementation of the plan.
c. Both a & b.

67. Cost incurred in the past is __________.
a. Relevant cost b. Sunk cost
c. Differential cost d. None of above

68. Management accounting is also called internal accounting.
a. True b. False

69. __________ is the relationship ranging from 2 or more variable expressed in percentage, Rate and proportion.
a. Cost b. Ratio
c. Ratio analysis d. Cost analysis

70. Acid test ratio = Liquid Ratio
a. actual b. False

71. __________ is a measure of company’s liquidity position.
a. Net working capital ratio. b. Net profit ratio
c. Debt-equity ratio. d. None of above.

72. Earning per share = _______________.
a. Total equity b. Dividend paid
c. Total shares d. Interest paid.

73. Higher liquid ratio indicate ___________ financial position.
a. Higher b. Sound
c. Lower d. Bad

74. Operating expense include:
a. Administrative expenses b. Financial expenses
c. Selling expenses d. All of above

75. Which ratio is known as ‘Du-point control’.
a. Net profit ratio b. Debt-equity ratio
c. Operating ratio d. Return on capital employed

76. Operating ratio is the ratio of total shareholders fund to the total assets employed in the business.
a. True b. False

77. Goodwill appears in the balance sheet only when a company has paid for it.
a. True b. False

78. If COGS = Rs. 3,00,000 , Purchases = 3,30,000 , opening stock = 60,000 , stock turnover = ?
a. three times b. four times
c. 2.5 times d. five times

79. If: share – capital – 1,60,000
general reserves – 60,000
profit & loss A/c – 1,00,000
loan @ 15% int – 2,00,000
sales for the yr. – 5,60,000
tax paid - 40,000
Profit for the current year after Interest & tax – 80,000

Debt – Equity ratio is:
a. 3,20,000 b. 2,20,000
c. 1,80,000 d. 2,60,000

80. Interest coverage ratio is:
a. four times b. five times
c. six times d. three times

81. Return coverage ratio is:
a. 28.9% b. five times
c. six times d. three times

82. Capital turnover ratio is:
a. 1.50 times b. 1.08 times
c. 1.80 times d. 2.02 times

83. Fund may be interpreted in which ways:
a. Cash b. Total Current assets
c. Net working capital d. All of above

84. Fund flow statement is also known as:
a. Fund statement b. Statement of source & tree of fund
c. Inflow & outflow of fund d. All of above

85. The turn fund means.
a. Gross working capital b. Net working capital
c. Net working capital d. All of above

86. According to _________, the FFS define the sources from which additional funds were derived and the uses to which these funds are put.
a. Robert Anthony b. None of above
c. ICAI, India d. None of above

87. Fund flow statement reveals the inflow and outflow of cash during a particular period.
a. True b. False

88. Which of the subsequent is the use of CFS.
a. It helps in short term financial decision relating to liquidity.
b. It discuss the reasons for low cash balances.
c. It indicates source & uses of cash.
d. All of above.

89. Cash flow is also prepared in statement form.
a. True b. False

90. Fund flow statement is prepared to discuss the reasons for low cash balance.
a. True b. False

91. CFO = Increase in C.A + Increase in C.L.
a. actual b. False

92. To compute cash flow operation, which of these 2 cases will used in Net profit.
a. Add b. Subtract

93. Match the following: II
(i) computed by true receipt and payment. (i) CFO
(ii) computed by Adjusted P & C A/c. (ii) FFO


94. The subsequent details are available for a company prepare CFS.
Assets previous year Current year
Cash 9,000 7,800
Debtors 14,900 17,700
Stock 49,200 42,700
Land 20,000 30,000
Goodwill 10,000 5,000
1,03,100 1,03,100

Liabilities Previous year Current year
Share optical 70,000 74,000
Debentures 12,000 6,000
Reserve for Bad & Doubtful debt 700 800
Trade creditors 10,360 11,840
P & L A/c 10,040 10,560
1,03,100 1,03,100

Additional info:
1. Dividend paid Rs 3500.
2. Debentures paid off Rs 6,000.
3. Land was purchased for Rs. 10,000.
4. Goodwill written off Rs. 5,000.

obtain out Inflow of cash in CFS.
a. 4,300 b. 4,000
c. 3,300 d. 3,400

95. Debtors would be treated in:
a. Increase inflow b. reduce inflow

96. Cash flow operation is:
a. 4000 b. 12,400
c. 12,000 d. None of above

97. Net loss is:
a. 12,400 b. 4000
c. 12,000 d. None of above

98. Depreciation would affect:
a. CFO b. CFS
c. FFO d. None of above

99. A/c payable would affect on which area
a. Inflow side of CFS b. outflow side of CFS
c. Dr side of P & C A/c d. Dr side of P& A/c

100. From the above choices ‘stock’ would affect which area:
a. Inflow side of CFS b. outflow side of CFS
c. Dr side of P & C A/c d. Dr side of P& A/c

101. From the above choice ‘Fixed’ ‘Assets’ would write in:
a. Inflow side of CFS b. outflow side of CFS
c. Dr side of P & C A/c d. Dr side of P& A/c



Answers

1. b 2. a 3. b 4. c 5. b 6. a 7. a 8. c

9 (i)-(i), (ii)-(iv), (iii)-(ii), (iv)-(iii) 10. a 11. (i)-(ii), (ii)-(iii), (iii)-(iv), (iv)-(i)
12. b 13. (b), (a), (d), (c) 14. a 15. c 16. a 17. d

18. b 19. a 20. d 21. b 24. a 25. d 26. b

27. d 28. a 29. d 30. a 31. c 32. b 33. c

34. c 35. a 36. a 37. c 39. (i)-(iii), (ii)-(i), (iii)-(i) 40. b

41. d 42. b 43. c 44. d 45. a 46. a 48. a

49. c 50. d 51. a 52. c 53. d 54. a 55. b

56. a 57. d 58. c 59. b 60. c 61. b 62. d

63. d 64. b 65. b 66. c 67. b 68. a 69. b

70. a 71. a 72. b 73. b 74. d 75. d 76. b

77. a 78. b 79. a 80. b 81. a 82. b 83. d

84. d 85. c 86. a 87. b 88. d 89. b 90. a

91. b 92. b 93. (i)-(i), (ii)-(ii) 94. a 95. b 96. d

97. a 98. a 99. b 100. b 101. c

Earning:   Approval pending.