MULTIPLE CHOICE QUESTIONS -ICWA FOUNDATION STUDENTS

MULTIPLE CHOICE QUESTIONS

( USEFUL TO ICWA- FOUNDATION STUDENTS)

QUESTIONS IN BLUE COLOUR ARE TAKEN FROM PAST ICWA QUESTION PAPERS.IAM REPRODUING THEM HERE ONLY FOR THE BENEFIT OF THE ICMA STUDENTS WITH SPECIAL THANKS TO THE INSTITUTE.

COST ACCOUNTING 

1.Labour Turnover by Separations Method is 5% and the average Number of Workers in the period is 2500.The number of separations during that period is :
a)125                               b)250                                   c)2500                d) None of these

2.Halsey-Weir Plan is not so popular among the workers because
a) Total wages is more when compared with Halsey Plan
b)Total wages is less when compared with Halsey Plan
c) Bonus is more but total wage is less when compared with Halsey Plan
d)None of the above

3.At the Break-Even Point (BEP) ,
a) There is neither Profit nor loss
b) There is profit but no loss
C)There is a loss
d)None of the above

4.Monthly cosumption of a material is 1000 Units.Ordering cost is Rs.30 per Order and Carrying cost is 2%.EOQ wii be
a)3000 Units
b)36000 units
c)6000 units
d)600 units

5.the under or overabsorbed overheads are disposed of by
a)by application of supplementary rates
b)by writing off costing P&L Acount
c)by carrying forward to the subsequent year
d) by any of the above methods

6.Overhead cost means
a) Indirect material cost
b) Indirect Labour cost
c) Indirect expenses
d) Sum of all the above

7.Selling Price of a product is Rs.80 per unit.If the Total sales is 1000 units and the variable cost is Rs.50000,then contribution is equal to

a) Rs.30000
b) Rs.49920
c) 5000
d)None of the above

 8.Sales is Rs2,00,000 Variable cost is Rs.1,20,000 and Fixed costs is Rs40,000.
P/V Ratio is
a) 40%
b)30%
c 25%
d) 40
9. Which Method of  costing is used for determination of  cost in printing industry?

(A)	Process Costing
(B)	Operating Costing
(C)	Batch Costing
	(D) Job Costing 10)Cost is determined beforehand in (a)Margimnal costing (b)Standard costing ©Absorption costing (d)None of the above The cost of one thing interms of the alternative given up is called  a) Real cost b)Opportunity cost c)Production cost d)Historical cost Overhead means a)Indirect material cost b)Indirect labour cost c)Indirect expenses d)All the above Selling price of one unit is Rs.10.Its variable cost is rs6.Then contribution is  a) Rs16 b) Rs 4 c) Rs -4 d) Cannot be found out

FINANCIAL ACCOUNTING 

1. Balance Sheet of a business entity is generally prepared by
a) Finance Manager
b) Cost accountant
c) Accounts Manager
d) None of the above

2.A Company can change its depreciation policy
a)  If it feels that Profit can be calculated more precisely using the new Method than the old method
b) When there is a statutory obligation
c) When there is a change in the Accounting Standards
d) All the above

(3) For a non-trading concern, subscription received in advance is —

(a) An income

(b) An expense

(c) An asset

(d) A liability.

(4) A  manager is entitled to a commission @ 5% on profits before deducting such commission.  In an accounting year, gross profit is  Rs.96,000 while selling and office expenses, other than commission to manager, totalled  Rs.12,000. Manager’s commission for the year will be —

(a) Rs 4,000

(b) Rs 4,200

(c) Rs 4,800

(d) Rs 4,562.

(5) Closing stock is shown in the trial balance. When preparing the final accounts of a business concern, the closing stock is shown —

(a) Only on the assets side of balance sheet

(b) Only on the credit side of trading account

(c) On the credit side of trading account as well as on the assets side of balance sheet

(d) Nowhere.

(6) The process of entering transactions in the ledger is called —

(a) Journalising

(b) Posting

(c) Summarising

(d) Balancing.

(7) Trading Account is a part of —

(a) Trial balance

(b) Cash book

(c) Final accounts

(d) Journal.

(8) Plant and machinery account is a —

(a) Personal account

(b) Tangible real account

(c) Intangible real account

(d) Nominal account.

9) Under the straight line method of depreciation, the amount of yearly

depreciation —

(a) Remains the same

(b) Fluctuates

(c) Increases year after year

(d) Decreases year after year.

(10) The value of a fixed asset after deducting depreciation is known as its —

(a) Book value

(b) Market value

(c) Face value

(d) Realisable value.

Fundamental Accounting Assumption(s)  is /are 

a)Consistency

b)Going concern

c)Accrual

d)All the above

MATHEMATICS

MENSURATION

1.The three sides of a Triangle are 3cm.,4cm and 5cm.The area of the triangle is
a) 6Sq.Cm
b) Sq.met
c) 6 cu.c.m
d) All the above

2.Volume of a Right Angled  cone is 3 cu.met.The volume of a cylinder having the same base radius and vertical height will be
a) 9Cu.met
b) Exactly half of the volume of the cone i.e 1.5 Cu.met
c) Cannot be calculated if the slant height of the cone is not given
d)None of the above

ANALYTICAL GEOMETRY

1.If three points are in a straight lie, then the area formed by the three points will be
a) 0
b) 1
c) 1 Sq.Unit
d) Both b and c are correct

4.If the eccentricity(e) of a conic is less than 1 then it is called
a)an Ellise
b)a Parabola
c) a hyperbola
d)a Rectangular Hyperbola

5.The double ordinate through a focus of a conic is called
a)Major Axis
b)Minor Axis
c)Latus rectum
d)Tangent

6.The length of a rectangle is increased by 60%.By what percent would the width has to be decreased so that the area remains the same?

a)40%
b)37.5%
c)12%
d)60%

7. The area of a right angled triangle is 40 times its base numerically.What is its height?

a)70
b)80 units
c)45 cm
d)23.5 m



8.If the ratio of areas of two circles is 4:9,then the ratio of their circumferences will be

a)2:3
b)3:2
c)4:9
d)9:4

9.If the radius of a circle is diminished by 10%, then its area will decrease by

a)10%
b)20%
c)19%
d)36%

10.If a right angle cone is cut by a plane parallel to the base then thhe resulting section will be
a) a circle
b) an ellipse
c) a hyperbola
d)a straight line

11.If the slopes of two straight lines are equal then they will be
a)Parallel to each other
b)Perpendicular to each other
c)they will pas through a same point
d)none of the above

12.Two lines are perpendicular to each other.If the slope of one line is m1,the sloe of the other line will be
a)-1/m1
b)m2
c)1/m
d0None of the above

13.If the discriminant b2-4ac is equal to zero in a quadratic equation, then the roots will be
a)Real and equal
b)Real and unequal
c)Imaginary
d) One is real and another is imaginary

14.In a quadratic equation, sum of the roots(i.e )is given by

a)-b/a

b c/a

c) -c/a

d) -a/b

PERMUTATION&COMBINATION

In how many ways the letters of the word"APPLE" can be arranged?
a)320       b)180    c)60    d)100

RATIOS AND PROPRTIONS

1.A Certain sum was divided between A and B in the ratio 4:3.If b's Share is Rs 4800, then the total sum will be
a) Rs11,200
b) Rs.6,400
c) Rs19,200
d) Rs.39,200

BANKERS DISCOUNT 

1.The true discount on a bill of Rs.540 is Rs.90.The banker's Discount is 

a) Rs60

b) Rs.108

c) Rs.110

d) Rs.112

STATISTICS 

In  case of a symmetrical distribution  —

(a) Mean = median = mode

(b) Mode = 3 median – 2 mean

(c) Mode/median = mean

(d) Mode – mean = median.

 The correlation co-efficient lies between —

(a) –1 and +1

(b) 0 and +1

(c) 0 and –1

(d) +1 and +2.

(ix) In  any pie-chart, the sum of central angle is ––

(a) 90 degree

(b) 180 degree

(c) 270 degree

(d) 360 degree.

ECONOMICS 

Demand-pull inflation occurs when there
a. is too much money chasing too few goods.
b. are excessive wage increases.
c. are rapid increases in raw materials prices.
d. are substantial changes in energy prices.

An economic system has to answer
a.What to produce
b. How to produce
c.For whom to produce
d.All the above

Indian Economy is
a) A Capitalist Economy
b) A Socialist Economy
c) A Mixed Economy
d) None of the above

GDP means
a) General Development Policy
b) Gross Domestic Product
c)Generally Designed Procedures
d) All of the above

 When demand and supply both increase in the same proportion —

(a) Equilibrium quantity remains unchanged

(b) Price increases

(c) Equilibrium price remains same

(d) Quantity decreases

Within a particular range of Production, when the output increases,the average fixed cost
a)First increases and then remains same
b)Decreases
c)Increases
d) Remains the same

If a Good is a luxury,its income elasticity of demand is:
a)Positive and greater than one
b)zero
c)Positive and less than one
d)Negative 

 Elasticity of demand for a necessity like salt is normally —

(a) Equal to 1

(b) Less than 1

(c) Greater than 1

(d) Infinite

The average revenue curve of a firm is also known as its —

(a) Profit curve

(b) Demand curve

(c) Income curve

(d) None of the above.

 Which one of the following is not a function of RBI —

(a) To issue currency notes

(b) To regulate supply of credit

(c) To act as banker to the government

(d) To regulate foreign trade.

If the demand curve is flat,it means
a)he demand for that good is more elastic
b)the demand for that good is more inelastic 
c)Nothing to do with demand
d)the demand for the good is unitary

Contraction of demand is the result of 
a)Increase in the prices of other goods
b)Decrease in the number of buyers
c)Increase in the price of the good concerned
d)Decrease in the income of Purchasers

Income earned is 
a) a means
b) an end
c)Both means and end
d)Neither means nor end

Find the correct statement
a)Economics is an exact science
b)Economics is a Social science
c)Economics is not a science
d)Economics is neither an Art nor a Science

Find the correct statement
a)Introduction of Mathematical tools makes Economics a more exact science
b)Economics is both normative and positive
c)Both A and B are correct
d)Neither A nor B is correct

FUNDAMENTALS OF ORGANISATION AND MANAGEMENT

1.A Private company shall have

1. Minimum 2 Members and maximum 100 members
2. Minimum 7 members and no limit for maximum
3. Minimum 2 members and Maximum 50 Members
4. None of the above

2.0When there is a conflict between MOU and AOA, 

1. MOU reigns supreme
2. AOA Reigns supreme
3. Both will be treated equally
4. None of the above

A Private company can start business immediately after geting the certificate of Registration but a PublicCopany can start business only after obtaining 

1. Certificate of Commencement of Business
2. Consent Letter from Directors
3. Consent letter from Auditors
4. Consent of the Members in an AGM

3.A Company can have

1. Only one Manager
2. Two managers
3. Not more than Three Managers
4. None of the above

4.A person can hold directorship in

1. 15 Companies
2. 20Companies
3. No limit
4. No limit if all are Private Compnies

5.A Chartered Accountant can be appointed as Auditor

1. 15 Companies
2. 20 Companies
3. No limit if all are Private Companies
4. None of the above is true

6.Who is called the Father of Scientific Management

1. Henry Foyal
2. F W Taylor
3. C.Prakaladha
4. Peter Drucker7.

8.CSR means

1. Corporate Social Responsinility
2. Costing Social Responsibility
3. Costing Socaial Reforms
4. None of the abve

9.SWOT can be expanded as

1. Strength, Weakness, Opportunity and Threat
2. Supervisor,Worker,Officer and Technocrat
3. Technician,Outsider,Worker and Staff
4. All the above

10.Statutory Meeting is conducted by a company

1. Every year
2. Alternative year
3. Only once in the life of a Company
4. None of the above

11.Public Sector Company and Public Company

1. Mean the same
2. No.They mean different entities
3. None of the above

1.