http:\/\/www.gmsisuccess.in<\/a><\/p>\n <\/p>\n
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\ud83d\udcd8 BASIC FINANCIAL ACCOUNTING (1\u201315)<\/p>\n
1. Which of the following best defines an asset?<\/p>\n
A. A future obligation<\/p>\n
B. A past expense<\/p>\n
C. A resource controlled by the entity expected to provide future economic benefit<\/p>\n
D. Owner\u2019s investment<\/p>\n
Answer: C<\/p>\n
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2. Revenue is recognized when:<\/p>\n
A. Cash is received<\/p>\n
B. Goods are produced<\/p>\n
C. Performance obligation is satisfied<\/p>\n
D. Invoice is raised<\/p>\n
Answer: C<\/p>\n
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3. Which of the following is NOT a liability?<\/p>\n
A. Accounts payable<\/p>\n
B. Unearned revenue<\/p>\n
C. Accrued expense<\/p>\n
D. Prepaid insurance<\/p>\n
Answer: D<\/p>\n
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4. Accrual accounting requires:<\/p>\n
A. Cash basis reporting<\/p>\n
B. Matching revenues with related expenses<\/p>\n
C. Ignoring outstanding expenses<\/p>\n
D. Recording only paid transactions<\/p>\n
Answer: B<\/p>\n
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5. Depreciation primarily represents:<\/p>\n
A. Market value decline<\/p>\n
B. Cash outflow<\/p>\n
C. Allocation of asset cost<\/p>\n
D. Replacement value<\/p>\n
Answer: C<\/p>\n
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6. Gross profit equals:<\/p>\n
A. Sales \u2013 Operating expenses<\/p>\n
B. Sales \u2013 Cost of goods sold<\/p>\n
C. Sales \u2013 Net income<\/p>\n
D. Sales \u2013 Taxes<\/p>\n
Answer: B<\/p>\n
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7. Which assumption states business will continue operating?<\/p>\n
A. Consistency<\/p>\n
B. Prudence<\/p>\n
C. Going concern<\/p>\n
D. Matching<\/p>\n
Answer: C<\/p>\n
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8. Which financial statement shows financial position at a point in time?<\/p>\n
A. Income Statement<\/p>\n
B. Cash Flow Statement<\/p>\n
C. Balance Sheet<\/p>\n
D. Statement of Changes in Equity<\/p>\n
Answer: C<\/p>\n
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9. Inventory is valued at:<\/p>\n
A. Market value only<\/p>\n
B. Cost or NRV whichever is lower<\/p>\n
C. Selling price<\/p>\n
D. Replacement cost<\/p>\n
Answer: B<\/p>\n
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10. Which is an example of accrued income?<\/p>\n
A. Rent received in advance<\/p>\n
B. Salary outstanding<\/p>\n
C. Interest earned but not received<\/p>\n
D. Prepaid expense<\/p>\n
Answer: C<\/p>\n
<\/p>\n
11. Which is NOT part of equity?<\/p>\n
A. Retained earnings<\/p>\n
B. Share capital<\/p>\n
C. Treasury stock (deduction)<\/p>\n
D. Accounts payable<\/p>\n
Answer: D<\/p>\n
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12. Trial balance ensures:<\/p>\n
A. No fraud exists<\/p>\n
B. All accounts are correct<\/p>\n
C. Debit equals credit<\/p>\n
D. Accurate financial reporting<\/p>\n
Answer: C<\/p>\n
<\/p>\n
13. The matching principle relates to:<\/p>\n
A. Asset valuation<\/p>\n
B. Revenue timing<\/p>\n
C. Expense recognition<\/p>\n
D. Cash management<\/p>\n
Answer: C<\/p>\n
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14. Contingent liability is recognized when:<\/p>\n
A. Possible only<\/p>\n
B. Remote<\/p>\n
C. Probable and measurable<\/p>\n
D. Never<\/p>\n
Answer: C<\/p>\n
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15. Which of the following affects working capital?<\/p>\n
A. Purchase of machinery for cash<\/p>\n
B. Payment to creditors<\/p>\n
C. Issue of shares for cash<\/p>\n
D. Conversion of debt to equity<\/p>\n
Answer: B<\/p>\n
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\ud83d\udcd7 BASIC COST ACCOUNTING (16\u201330)<\/p>\n
16. Prime cost includes:<\/p>\n
A. Direct material + Direct labor<\/p>\n
B. Direct labor + Overhead<\/p>\n
C. Material + Overhead<\/p>\n
D. Fixed cost only<\/p>\n
Answer: A<\/p>\n
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17. Contribution margin equals:<\/p>\n
A. Sales \u2013 Fixed cost<\/p>\n
B. Sales \u2013 Variable cost<\/p>\n
C. Sales \u2013 Total cost<\/p>\n
D. Sales \u2013 Operating income<\/p>\n
Answer: B<\/p>\n
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18. Break-even point occurs when:<\/p>\n
A. Profit is maximum<\/p>\n
B. Contribution = Fixed cost<\/p>\n
C. Sales = Variable cost<\/p>\n
D. Net income = Sales<\/p>\n
Answer: B<\/p>\n
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19. Fixed cost per unit:<\/p>\n
A. Remains constant<\/p>\n
B. Decreases with increase in output<\/p>\n
C. Increases with volume<\/p>\n
D. Equals variable cost<\/p>\n
Answer: B<\/p>\n
<\/p>\n
20. Variable cost per unit:<\/p>\n
A. Changes with volume<\/p>\n
B. Remains constant<\/p>\n
C. Decreases at higher production<\/p>\n
D. Is discretionary<\/p>\n
Answer: B<\/p>\n
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21. Which is NOT a product cost?<\/p>\n
A. Direct labor<\/p>\n
B. Factory rent<\/p>\n
C. Administrative salary<\/p>\n
D. Direct material<\/p>\n
Answer: C<\/p>\n
<\/p>\n
22. Absorption costing includes:<\/p>\n
A. Variable manufacturing cost only<\/p>\n
B. Fixed manufacturing cost only<\/p>\n
C. Both variable and fixed manufacturing cost<\/p>\n
D. Selling cost<\/p>\n
Answer: C<\/p>\n
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23. Margin of safety measures:<\/p>\n
A. Risk of loss<\/p>\n
B. Profit margin<\/p>\n
C. Excess of actual sales over BE sales<\/p>\n
D. Fixed cost coverage<\/p>\n
Answer: C<\/p>\n
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24. Opportunity cost is:<\/p>\n
A. Historical cost<\/p>\n
B. Sunk cost<\/p>\n
C. Benefit foregone<\/p>\n
D. Explicit expense<\/p>\n
Answer: C<\/p>\n
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25. Relevant cost includes:<\/p>\n
A. Sunk cost<\/p>\n
B. Future avoidable cost<\/p>\n
C. Allocated overhead<\/p>\n
D. Book value<\/p>\n
Answer: B<\/p>\n
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26. Standard costing is used for:<\/p>\n
A. Historical reporting<\/p>\n
B. Cost control<\/p>\n
C. Tax planning<\/p>\n
D. Cash budgeting<\/p>\n
Answer: B<\/p>\n
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27. Under marginal costing, fixed cost is:<\/p>\n
A. Product cost<\/p>\n
B. Period cost<\/p>\n
C. Variable cost<\/p>\n
D. Inventoriable cost<\/p>\n
Answer: B<\/p>\n
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28. Cost driver is:<\/p>\n
A. Sales manager<\/p>\n
B. Activity causing cost<\/p>\n
C. Fixed expense<\/p>\n
D. Accounting policy<\/p>\n
Answer: B<\/p>\n
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29. High operating leverage indicates:<\/p>\n
A. Low fixed cost<\/p>\n
B. High variable cost<\/p>\n
C. High fixed cost proportion<\/p>\n
D. No risk<\/p>\n
Answer: C<\/p>\n
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30. Sunk cost is:<\/p>\n
A. Relevant<\/p>\n
B. Future cost<\/p>\n
C. Irrecoverable past cost<\/p>\n
D. Avoidable<\/p>\n
Answer: C<\/p>\n
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\ud83d\udcd9 BASIC BUSINESS ACUMEN (31\u201340)<\/p>\n
31. Primary objective of business is:<\/p>\n
A. Revenue maximization<\/p>\n
B. Profit maximization (long-term value creation)<\/p>\n
C. Sales growth only<\/p>\n
D. Market share only<\/p>\n
Answer: B<\/p>\n
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32. Working capital management focuses on:<\/p>\n
A. Long-term assets<\/p>\n
B. Short-term assets & liabilities<\/p>\n
C. Equity financing<\/p>\n
D. Fixed assets<\/p>\n
Answer: B<\/p>\n
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33. ROI equals:<\/p>\n
A. Profit \/ Sales<\/p>\n
B. Profit \/ Investment<\/p>\n
C. Sales \/ Assets<\/p>\n
D. Assets \/ Profit<\/p>\n
Answer: B<\/p>\n
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34. Liquidity risk refers to inability to:<\/p>\n
A. Earn profit<\/p>\n
B. Pay short-term obligations<\/p>\n
C. Expand business<\/p>\n
D. Reduce costs<\/p>\n
Answer: B<\/p>\n
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35. Competitive advantage arises from:<\/p>\n
A. Higher cost<\/p>\n
B. Unique value proposition<\/p>\n
C. Large workforce<\/p>\n
D. Random pricing<\/p>\n
Answer: B<\/p>\n
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36. SWOT analysis evaluates:<\/p>\n
A. Profitability only<\/p>\n
B. Financial ratios<\/p>\n
C. Internal & external factors<\/p>\n
D. Only strengths<\/p>\n
Answer: C<\/p>\n
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37. High debt increases:<\/p>\n
A. Liquidity<\/p>\n
B. Financial leverage risk<\/p>\n
C. Equity<\/p>\n
D. Working capital<\/p>\n
Answer: B<\/p>\n
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38. Diversification strategy reduces:<\/p>\n
A. Risk concentration<\/p>\n
B. Market share<\/p>\n
C. Sales<\/p>\n
D. Assets<\/p>\n
Answer: A<\/p>\n
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39. Cash flow is more critical than profit because:<\/p>\n
A. Profit is illegal<\/p>\n
B. Cash pays obligations<\/p>\n
C. Profit equals cash<\/p>\n
D. Cash reduces revenue<\/p>\n
Answer: B<\/p>\n
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40. Cost leadership strategy focuses on:<\/p>\n
A. Premium pricing<\/p>\n
B. Lowest production cost<\/p>\n
C. Luxury branding<\/p>\n
D. Differentiation only<\/p>\n
Answer: B<\/p>\n
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\ud83d\udcd5 BASIC INTERNAL CONTROL (41\u201350)<\/p>\n
41. Internal control is designed to provide:<\/p>\n
A. Absolute assurance<\/p>\n
B. Reasonable assurance<\/p>\n
C. No assurance<\/p>\n
D. Legal immunity<\/p>\n
Answer: B<\/p>\n
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42. Segregation of duties prevents:<\/p>\n
A. Efficiency<\/p>\n
B. Fraud and errors<\/p>\n
C. Profit<\/p>\n
D. Documentation<\/p>\n
Answer: B<\/p>\n
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43. Authorization control ensures:<\/p>\n
A. Proper approval of transactions<\/p>\n
B. Fraud detection only<\/p>\n
C. Budget increase<\/p>\n
D. Accounting estimates<\/p>\n
Answer: A<\/p>\n
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44. Detective control example:<\/p>\n
A. Password access<\/p>\n
B. Bank reconciliation<\/p>\n
C. Segregation of duties<\/p>\n
D. Pre-approval<\/p>\n
Answer: B<\/p>\n
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45. Preventive control example:<\/p>\n
A. Internal audit<\/p>\n
B. Reconciliation<\/p>\n
C. Access restriction<\/p>\n
D. Variance analysis<\/p>\n
Answer: C<\/p>\n
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46. Control environment includes:<\/p>\n
A. Management integrity<\/p>\n
B. Bank accounts<\/p>\n
C. Inventory records<\/p>\n
D. Cash book<\/p>\n
Answer: A<\/p>\n
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47. Risk assessment involves:<\/p>\n
A. Ignoring threats<\/p>\n
B. Identifying and analyzing risks<\/p>\n
C. Increasing cost<\/p>\n
D. Avoiding documentation<\/p>\n
Answer: B<\/p>\n
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48. Information & communication ensures:<\/p>\n
A. Gossip<\/p>\n
B. Accurate reporting flow<\/p>\n
C. Marketing<\/p>\n
D. Sales increase<\/p>\n
Answer: B<\/p>\n
<\/p>\n
49. Monitoring includes:<\/p>\n
A. One-time review only<\/p>\n
B. Continuous evaluation of controls<\/p>\n
C. Sales audit<\/p>\n
D. Advertising<\/p>\n
Answer: B<\/p>\n
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50. Which of the following is MOST appropriate to reduce payroll fraud?<\/p>\n
A. Same person prepares & approves payroll<\/p>\n
B. HR maintains employee records and Finance processes payment separately<\/p>\n
C. No approval needed<\/p>\n
D. Manual cash payment only<\/p>\n
Answer: B<\/p>\n
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www.gmsisuccess.in<\/p>\n
<\/p>\n
Here are One-Word \/ One-Term Answer Questions covering:<\/p>\n
\u2022 Basic Accounting<\/p>\n
\u2022 Economics<\/p>\n
\u2022 Business Acumen<\/p>\n
\u2022 Cost Accounting<\/p>\n
\u2022 Accounting Information Systems (AIS)<\/p>\n
\u2022 Internal Control<\/p>\n
\u2022 Statistics<\/p>\n
\u2022 Strategic Management<\/p>\n
\u2022 Technology & Data Analytics<\/p>\n
\u2022 Performance Measurement<\/p>\n
<\/p>\n
\ud83d\udcd8 BASIC ACCOUNTING CONCEPTS<\/p>\n
1. The accounting equation is based on which concept?<\/p>\n
Answer: Duality<\/p>\n
2. Recording expenses in the same period as related revenue follows which principle?<\/p>\n
Answer: Matching<\/p>\n
3. The assumption that business will continue indefinitely is called?<\/p>\n
Answer: Going concern<\/p>\n
4. Revenue is recorded when earned under which basis?<\/p>\n
Answer: Accrual<\/p>\n
5. Assets minus liabilities equals?<\/p>\n
Answer: Equity<\/p>\n
6. Allocation of cost of tangible asset over useful life is called?<\/p>\n
Answer: Depreciation<\/p>\n
7. An obligation arising from past events is called?<\/p>\n
Answer: Liability<\/p>\n
8. Recording transactions at original cost follows which concept?<\/p>\n
Answer: Historical cost<\/p>\n
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\ud83d\udcd7 ECONOMICS<\/p>\n
9. Demand decreases when price increases due to which law?<\/p>\n
Answer: Law of demand<\/p>\n
10. Cost of next best alternative is called?<\/p>\n
Answer: Opportunity cost<\/p>\n
11. Total market value of goods and services is?<\/p>\n
Answer: GDP<\/p>\n
12. Persistent increase in price level is?<\/p>\n
Answer: Inflation<\/p>\n
13. Market structure with single seller is?<\/p>\n
Answer: Monopoly<\/p>\n
14. Situation where quantity demanded equals supplied is?<\/p>\n
Answer: Equilibrium<\/p>\n
15. Additional satisfaction from one more unit is?<\/p>\n
Answer: Marginal utility<\/p>\n
<\/p>\n
\ud83d\udcd9 BUSINESS ACUMEN<\/p>\n
16. Profit divided by investment is?<\/p>\n
Answer: ROI<\/p>\n
17. Short-term financial strength is measured by?<\/p>\n
Answer: Liquidity<\/p>\n
18. Excess of current assets over current liabilities is?<\/p>\n
Answer: Working capital<\/p>\n
19. Analysis of strengths, weaknesses, opportunities, threats is?<\/p>\n
Answer: SWOT<\/p>\n
20. Risk of inability to meet short-term obligations is?<\/p>\n
Answer: Liquidity risk<\/p>\n
<\/p>\n
\ud83d\udcd5 COST ACCOUNTING<\/p>\n
21. Direct material plus direct labor equals?<\/p>\n
Answer: Prime cost<\/p>\n
22. Sales minus variable cost equals?<\/p>\n
Answer: Contribution<\/p>\n
23. Level of sales where profit is zero is?<\/p>\n
Answer: Break-even<\/p>\n
24. Cost that does not change with volume is?<\/p>\n
Answer: Fixed cost<\/p>\n
25. Irrecoverable past cost is?<\/p>\n
Answer: Sunk cost<\/p>\n
26. Cost that changes per unit but constant in total is?<\/p>\n
Answer: Variable cost<\/p>\n
27. Future cost relevant for decision-making is?<\/p>\n
Answer: Relevant cost<\/p>\n
28. Cost system assigning overhead based on activities is?<\/p>\n
Answer: ABC<\/p>\n
<\/p>\n
\ud83d\udcbb ACCOUNTING INFORMATION SYSTEMS (AIS)<\/p>\n
29. Collection of interrelated components to process financial data is?<\/p>\n
Answer: AIS<\/p>\n
30. Input \u2192 Processing \u2192 Output represents?<\/p>\n
Answer: System cycle<\/p>\n
31. Preventing unauthorized system access is called?<\/p>\n
Answer: Access control<\/p>\n
32. Software managing database is?<\/p>\n
Answer: DBMS<\/p>\n
33. Document authorizing transaction processing is?<\/p>\n
Answer: Source document<\/p>\n
<\/p>\n
\ud83d\udd10 INTERNAL CONTROL<\/p>\n
34. Separation of authorization, custody, and recording is?<\/p>\n
Answer: Segregation of duties<\/p>\n
35. Control designed to stop errors before occurrence is?<\/p>\n
Answer: Preventive control<\/p>\n
36. Control identifying errors after occurrence is?<\/p>\n
Answer: Detective control<\/p>\n
37. Framework commonly used for internal control is?<\/p>\n
Answer: COSO<\/p>\n
38. Continuous evaluation of controls is?<\/p>\n
Answer: Monitoring<\/p>\n
<\/p>\n
\ud83d\udcca STATISTICS<\/p>\n
39. Average value is called?<\/p>\n
Answer: Mean<\/p>\n
40. Middle value of ordered data is?<\/p>\n
Answer: Median<\/p>\n
41. Measure of data dispersion is?<\/p>\n
Answer: Standard deviation<\/p>\n
42. Relationship between two variables is measured by?<\/p>\n
Answer: Correlation<\/p>\n
43. Bell-shaped distribution is called?<\/p>\n
Answer: Normal distribution<\/p>\n
<\/p>\n
\ud83d\udcc8 STRATEGIC MANAGEMENT<\/p>\n
44. Long-term direction of organization is?<\/p>\n
Answer: Strategy<\/p>\n
45. Strategy focused on lowest cost is?<\/p>\n
Answer: Cost leadership<\/p>\n
46. Unique product strategy is?<\/p>\n
Answer: Differentiation<\/p>\n
47. Analysis of industry competition is?<\/p>\n
Answer: Porter\u2019s Five Forces<\/p>\n
48. Tool comparing internal strengths and external environment is?<\/p>\n
Answer: SWOT<\/p>\n
<\/p>\n
\ud83e\udd16 TECHNOLOGY & DATA ANALYTICS<\/p>\n
49. Large complex datasets are referred to as?<\/p>\n
Answer: Big Data<\/p>\n
50. Process of extracting patterns from data is?<\/p>\n
Answer: Data mining<\/p>\n
51. Graphical representation of data is?<\/p>\n
Answer: Data visualization<\/p>\n
52. Algorithm learning from data without explicit programming is?<\/p>\n
Answer: Machine learning<\/p>\n
53. Central repository of integrated data is?<\/p>\n
Answer: Data warehouse<\/p>\n
<\/p>\n
\ud83d\udcca PERFORMANCE MEASUREMENT<\/p>\n
54. Measure of profitability after cost of capital is?<\/p>\n
Answer: EVA<\/p>\n
55. Non-financial performance framework balancing perspectives is?<\/p>\n
Answer: Balanced scorecard<\/p>\n
56. Profit before interest and tax is?<\/p>\n
Answer: EBIT<\/p>\n
57. Ratio measuring efficiency of asset use is?<\/p>\n
Answer: Asset turnover<\/p>\n
58. Measure of residual profit is?<\/p>\n
Answer: Residual income<\/p>\n
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www.gmsisuccess.in<\/p>\n