67.

Equity shareholders are:

(a) creditors
(b) owners
(c) customers of the company
(d) All of the Above

View Answer

(b) owners
68. “Interest earned but not received” should be classified as:
(a) accrued asset
(b) accrued liability
(c) prepaid expense
(d) Unearned revenue

View Answer

(a) accrued asset

69. The amount of depreciation charged on machinery will be debited to:
(a) machinery
(b) depreciation
(c) cash account
(d) all of these

View Answer

(b) depreciation
70. Credit may signify:
(a) decrease in assets
(b) increase in liability
(c) increase in the capital account
(d) all of these

View Answer

(d) all of these

71. A balance sheet shows only:
(a) Personal accounts and nominal accounts
(b) Real accounts and nominal accounts
(c) Personal accounts and real accounts
(d) Personal, real and nominal accounts

View Answer

(c) Personal accounts and real accounts

72. Working capital is represented by_______________.
(a) Current liabilities
(b) Current Assets minus Current Liabilities
(c) Total Assets minus Current Liabilities
(d) Cash-in-hand and Stock-in-trade

View Answer
(b) Current Assets minus Current Liabilities
73. Credit may signify:
(a) Decrease in assets
(b) Increase in liability
(c) Increase in Capital
(d) All of these

View Answer

(d) All of these

74. Which of the following assets is usually assumed not to depreciate?
(a) Land
(b) Building
(c) Plant
(d) Furniture

View Answer

(a) Land
75. Assets very easily convertible into cash are_______________.
(a) Current Assets
(b) Fixed Assets
(c) Liquid Assets
(d) Floating assets

View Answer

(c) Liquid Assets

76. Outstanding wages is an item of:
(a) Current Assets
(b) Current Liabilities
(c) Non-Current Assets
(d) Non-Current Liability

View Answer

(b) Current Liability

77. When the sale is Rs. 480,000 gross loss is 25% on cost, the purchase is Rs. 350,000 and
closing stock is Rs. 60,000, the stock beginning will be:
(a) 70,000
(b) 94,000
(c) 134,000
(d) 350,000

View Answer

(d) 350,000
78. A transaction is possible, when there will be:
(a) One party
(b) Two Parties
(c) No Party
(d) None of the above
View Answer

(b) Two Parties

79. In the double-entry bookkeeping system every business transaction effects:
(a) Debit or Credit side of the same account
(b) Two Accounts
(c) The same side of the same account 
(d) None of the above

View Answer

(b) Two Accounts

80. Which of the following account is a real account?
(a) Rent Expense Account
(b) Rent Income Account
(c) Insurance Expanse Account
(d) Cash

View Answer

(d) Cash
81. Which of the following ratios are used to indicate firms financial leverage?
(a) Liquidity Ratios
(b) Asset Management Ratios
(c) Profitability Ratios
(d)Long-term Solvency Ratios

View Answer

(d) Long-term Solvency Ratios

82. Bank Overdraft is_______________.
(a) Current Assets
(b) Current Liability
(c) Expanse Account
(d) Capital Account

View Answer

(b) Current Liability

83. At the time of making a closing entry for the closing stock, we debit:
(a) Trading Account
(b) Purchase Account
(c) Opening Stock
(d) Closing Stock

View Answer

(d) Closing Stock

84. Income received in advance but not earned is called:
(a) Prepaid Revenue
(b) Outstanding Income 
(c) Accrued Income
(d) Unearned Revenue

View Answer

(d) Unearned Revenue

85. Sales are equal to_________________.
(a) Cost of Goods Sold + Profit
(b) Cost of Goods Sold + Gross Profit
(c) Cost of Goods Sold – Gross Profit
(d) Cost of Goods Sold – Gross Profit

View Answer

(b) Cost of Goods Sold + Gross Profit

86. Balance Sheet shows the financial position of a business entity:
(a) For a given period of time
(b) On a specific date
(c) Both (a) and (b)
(d) None of the Above

View Answer

(b) On a specific date

86. Balance Sheet shows the financial position of a business entity:
(a) For a given period of time
(b) On a specific date
(c) Both (a) and (b)
(d) None of the Above

View Answer

(b) On a specific date

87. The income statement normally includes________________________.
(a) Nominal Account
(b) Real Account
(c) Personal Account
(d) All of the Above

View Answer

(a) Nominal Accounts

87. The income statement normally includes________________________.
(a) Nominal Account
(b) Real Account
(c) Personal Account
(d) All of the Above

View Answer

(a) Nominal Accounts

88. If the income statement shows excess of revenues over expenses, it is case
of___________________.
(a) Net Loss
(b) Net Profit
(c) Break-Even
(d) All of the Above

View Answer

(b) Net Profit

89. The valuation of closing stock is at:
(a) Market Price
(b) Cost Price
(c) Cost or Market Price whichever is lower
(d) Both on Cost and Market Price

View Answer

(c) Cost or Market Price whichever is lower

90. The assets which can not be seen or touched and they have no physical existence are called:
(a) Current Assets
(b) Fixed Assets
(c) Tangible Assets
(d) Intangible Assets

View Answer

(d) Intangible Assets

91. Bookkeeping is mainly concerned with________________.
(a) Recording of business transactions
(b) Classifying of business transactions
(c) Interpreting of business transactions in monetary terms
(d) None of the Above

View Answer

(a) Recording of business transactions

92. Credit signifies_______________.
(a) Increase in liability
(b) Increase in revenue
(c) Increase in Capital
(d) All of the Above

View Answer

(d) All of the Above

93. A ledger is a book in which____________are opened.
(a) Only personal and cash account
(b) Only real accounts
(c) Only nominal accounts
(d) All personal, nominal and real accounts
View Answer

(d) All personal, nominal and real accounts

94. A prospectus for shares can be issued only by________________.
(a) Private Company
(b) Public Company
(c) A firm
(d) A single-member company

View Answer

(b) Public company

95. Share capital in the balance sheet can be shown under_________________.
(a) Assets
(b) Liabilities 
(c) Income
(d) None of the Above

View Answer

(d) None of the Above

96. The expenses that are incurred but not paid  are called_________________.
(a) Prepaid Expenses
(b) Advance Expanses
(c) Accrued Expenses
(d) None of the Above

View Answer

(c) Accrued Expenses

97. If goods costing rupees 8000 sold for Rs. 12000 then the profit of Rs. 4000
will___________________.
(a) Increase Assets
(b) Increase Liability
(c) Decrease Owner’s Equity
(d) Increase Owner’s Equity

View Answer

(d) Increase Owner’s Equity

98. Assets, which have physical existence are called:
(a) Tangible Assets
(b) Intangible Assets
(c) Quick Assets
(d) All of the Above

View Answer

(a) Tangible Assets

99. The rights of outsiders, in the properties of the business, are called:
(a) Assets
(b) Incomes
(c) Liabilities
(d) Capital

View Answer

(c) Liabilities
100. Simply accounting is defined as___________________________.
(a) Performance of the Business
(b) Language of the Business
(c) Understanding of the Business
(d) All of the Above

View Answer

(b) Language of the Business

1. The principle that a subordinate should receive the order
and be responsible to the only boss is known
as_________________.
(a) Unity of Command
(b) Unity of Direction
(c) Span of Control
(d) All of the Above
View Answer
(a) Unity of Command
2. When management pays attention to more important
areas and when day to day routine problems are looked
after a lower level of management, this is known
as____________________.
(a) MBO
(b) Management by exception 
(c) Critical Path Method
(d) Span of Control
View Answer
(b) Management by Exception
3. Superior-Subordinate relationship on the basis of
personal likes, dislikes, attitudes and prejudices results
in__________________.
(a) Formal Organisation
(b) Informal Organisation
(c) No Organisation
(d) None of the Above
View Answer
(b) Informal Organisation
4. ‘No smoking in the factory’ is an example
of______________________.
(a) Policy
(b) Procedure
(c) Rule
(d) Strategy
View Answer
(c) Rule
5. Decentralisation________________________.
(a) increases the importance of superior
(b) decreases the importance of superior
(c) increases the importance of subordinates
(d) decrease the importance of subordinates
View Answer
(c) decreases the importance of subordinates
New Management MCQs added on  24-01-2020.
1. In Maslow’s Need Hierarchy, a healthy work environment
is an example of what type of need?
(a) Esteem
(b) Physiological
(c) Social
(d) Safety
View Answer
(d) Safety
2. Which of the following management tasks is most
important for a supervisory manager?
(a) Staffing
(b) Planning
(c) Organising
(d) Controlling
View Answer
(d) Controlling
3. All of the following are elements of planning EXCEPT:
(a) Developing Plans
(b) Monitoring Performance
(c) Establishing Strategies
(d) Coordinate Activities
View Answer
(b) Monitoring Performance
4. In order to communicate, motivate and delegate a
manager must have___________________.
(a) Interpersonal Skills
(b) Technical Skills
(c) Conceptual Skills
(d) Political Skills
View Answer
(a) Interpersonal Skills
5. In the pyramid level of management, the nom-managerial
staff is placed at/in________________.
(a) Bottom
(b) Top
(c) Middle
(d) None of the Above
View Answer
(a) Bottom
1. Which of the following management functions are
closely related? 
(a) Planning and Organizing
(b) Staffing and Control
(c) Planning and Control
(d) Planning and Staffing
View Answer
(c) Planning and Control
2. Planning function of management is performed
by________________________.
(a) Top Management
(b) Middle Management
(c) Lower Management
(d) All of the above
View Answer
(d) All of the above
3. The famous book ‘The Philosophy of Management is
written by________________.
(a) Oliver Sheldon
(b) Henry Fayol
(c) F.W. Taylor
(d) Urwick
View Answer
(a) Oliver Sheldon
4. Management is_________________.
(a) An art
(b) A science
(c) Both (a) and (b)
(d) Neither art nor science
View Answer
(c) Both (a) and (b)
5. To manage “is to forecast and plan, to organise, to
command, to coordinate and to control”. These are the
words of______________________. 
(a) Koontz and O’Donnel
(b) Henry Fayol
(c) F.W. Taylor
(d) Peter F. Drucker
View Answer
(b) Henry Fayol
6. The control function of management embraces:
(a) Cost Control
(b) Financial Control
(c) Budgetary Control
(d) All of the above
View Answer
(d) All of the above
7. The span of management means____________________.
(a) A good organisation should consist of departments
(b) Authority of each person must be clearly defined
(c) Each Subordinate should have one superior
(d) A manager can supervise a limited number of executives
View Answer
(d) A manager can supervise a limited number of executives
8. Functional type of organisation was first developed
by______________________.
(a) Military
(b) F.W. Taylor
(c) Henry Fayol
(d) Elton Mayo
View Answer
(d) F.W. Taylor
9. Staffing function of management needs to be
performed________________________.
(a) Only in new enterprises
(b) Only in going enterprises
(c) Both in new and going enterprises
(d) None of the above
View Answer
(c) Both in new and going enterprises
10. Delegation of authority results in_________________.
(a) Avoiding responsibility
(b) Centralization of power at the top level
(c) Costliness of decision
(d) Enabling the managers to distribute their workload.
View Answer
(d) Enabling the managers to distribute their workload
11. Communication can be_________________.
(a) Upward
(b) Downwards
(c) Sideward
(d) All of the above
View Answer
(d) All of the above
12. What is the main objective of the budgeting?
(a) Planning
(b) Co-Ordination
(c) Control
(d) All of the above
View Answer
(d) All of the above
13. In the Herzberg’s Hygiene theory of motivation, the
hygiene factors cause________________.
(a) Satisfaction of Employees
(b) Dissatisfaction of Employees
(c) No effect on the satisfaction of Employees
(d) All of the above
View Answer
(b) Dissatisfaction of Employees
14. Who gave the need hierarchy theory of motivation?
(a) Maslow
(b) Herzberg
(c) Vroom
(d) McGregor
View Answer
(a) Maslow
15. Delegation is more often________________.
(a) Upward
(b) Downward
(c) Sideward
(d) All of the Above
View Answer
(b) Downward
16. In the process of delegating authority, the manager’s
responsibility will_______________.
(a) Increase
(b) Decrease
(c) No effect on his responsibility
View Answer
(c) No effect on his responsibility
17. Marketing manager may be classified in the category
of____________________.
(a) Top-level management
(b) Middle-level management
(c) Lower-level management
(d) All of the Above
View Answer
(b) Middle-level management
18. Effective supervision is an activity
of__________________.
(a) Organising Function
(b) Planning Function
(c) Control Function
(d) Direction of Function
View Answer
(c) Direction Function
19. Which principle of management lays stress on
teamwork and unity among personnel?
(a) Equity
(b) Order
(c) Esprit de corps
(d) Unity of direction
View Answer
(c) Esprit de corps
20. A leader uses the following methods:
(a) Uses criticism 
(b) Encourages growth
(c) Sets objectives
(d) Gives orders and directions
View Answer
(c) Sets Objectives
21. Management by objectives
implies__________________________.
(a) First of all setting objectives at the top
(b) Simultaneously setting objectives at all levels
(c) Setting objectives to maximize profits
(d) All of the Above
View Answer
(a) First of all Setting Objectives at the top
22. A plan, when expressed in qualitative terms, is known
as________________________.
(a) Policy
(b) Procedure
(c) Objective
(d) Budget
View Answer
(d) Budget
23. Who wrote the famous book “General and Industrial
Management”.
(a) Henry Fayol
(b) Koontz and O’Donnel
(c) Mary Parker Follet
(d) Oliver Sheldon
View Answer
(a) Henry Fayol
24. Process of planning starts with clearly laying down
of_______________________.
(a) Policies
(b) Procedures
(c) Goals and Objectives
(d) All of the Above
View Answer
(c) Goals and Objectives
25. ‘Control’ function of management cannot be performed
without__________________.
(a) Planning
(b) Organising
(c) Staffing
(d) Motivation
View Answer
(a) Planning
26. Which of the following is the oldest type of
organisation?
(a) Functional organisation
(b) Line organisation
(c) Line and Staff organisation
(d) Committee organisation
View Answer
(b) Line organisation
27. The main advantage of line and staff organisation
is___________________.
(a) Simplicity
(b) Specialization
(c) Availability of expert advice
(d) Speedy of decision making
View Answer
(c) Availability of expert advice
28. Communication can be___________________.
(a) Oral only
(b) Written only 
(c) Oral as well as written
(d) All of the above
View Answer
(c) Oral as well as written
29. A positive leader is one who motivates people
by_______________________.
(a)  Creating fear
(b) Centralising authority
(c) Increasing their satisfaction
(d) Holding the threats of loss of job
View Answer
(c) Increasing their satisfaction
30. ‘Unity of Command’ principle of effective direction
means______________________.
(a)  Subordinates should be responsible to one superior
(b) There should be unity amongst the subordinates
(c) There should be unity amongst the superior
(d) A superior can supervise a limited number of  subordinates
View Answer
(a) Subordinates should be responsible to one superior 
31. Henry Fayol is famous for_________________.
(a)  Scientific Management
(b) Rationalization
(c) Industrial Psychology
(d) Principles of Management
View Answer
(d) Principles of Management
31. Henry Fayol is famous for_________________.
(a)  Scientific Management
(b) Rationalization
(c) Industrial Psychology
(d) Principles of Management
View Answer
(d) Principles of Management
32. Who is known as ‘the father of Scientific Management’?
(a)  Henry Fayol
(b) Elton Mayo
(c) Peter F. Drucker
(d) F.W. Taylor
View Answer
(d) F.W. Taylor
33. Who originated ‘Human Relationship Approach’ to the
management?
(a)  Henry Fayol
(b) Elton Mayo
(c) Peter F. Drucker
(d) F.W. Taylor
View Answer
(b) Elton Mayo
34. Policy making is an important part of the process
of____________________________. 
(a)  Planning
(b) Co-ordinating
(c) Motivating
(d) Organising
View Answer
(a) Planning
35. The main advantage of line organisation
is_________________________.
(a)  Well defined fixed responsibility
(b) Simplicity
(c) Expert Advice
(d) Specialisation
View Answer
(a) Well defined fixed responsibility
36. Which of the following is the most democratic form of
organisation?
(a)  Line
(b) Line and staff
(c) Functional
(d) Committee
View Answer
(d) Committee
37. Delegation of authority means________________.
(a) Delegation of the only authority
(b) Delegation of only responsibility
(c) Delegation of Both authority and responsibility
(d) None of the Above
View Answer
(a) Delegation of the only authority
38. “Theory X” and “Theory Y” is given
by________________________.
(a) Henry Fayol
(b) Maslow
(c) Herzberg
(d) McGregor
View Answer
(d) McGregor
39. Which of the following is motivating factor as per
Herzberg’s theory?
(a) Salary and allowances
(b) Job design
(c) Working Condition
(d) All of the Above
View Answer
(b) Job design
40. Delegation of authority results in__________________.
(a) Avoiding responsibility
(b) Centralisation of Power at the top level
(c) Costliness of decision
(d) Enabling the managers to distribute their work load
View Answer
(d) Enabling the managers to distribute their work load
41. Line Organisation is also known
as__________________.
(a) formal organisation

(b) informal organisation

(c) functional organisation

(d) military organisation

View Answer
(d) military organisation
42. Control function of management implies:
(a) to bring harmony in various activities

(b) to keep the workforce content

(c) taking up corrective course of action

(d) to provide sufficient finance

View Answer
(c) taking up corrective course of action