MEFA ONLINE EXAM BITS

A variable cost is a cost that ?  

A. varies per unit at every level of activity   
B. occurs at various times during the year
C. varies in total in proportion to changes in the level of activity      
D. may not be incurred, depending on management's discretion

ANSWER A

Demand is determined by?

A.Price of the product
B.Relative prices of other goods
C.Tastes and habits
D.All of the above

ANSWER D

Managerial economics generally refers to the integration of economic theory with business?

A.Ethics
B.Management
C.Practice
D.All of the above

ANSWER C

Given the price, if the cost of production increases because of higher price of raw materials, the supply?

A.Decreases
B.Increases
C.Remains same
D.Any of the above

ANSWER A

The cost recorded in the books of accounts are considered as?

A.Total cost
B.Marginal cost
C.Average cost
D.Explicit cost

ANSWER D

A Joint Stock Company is managed by the Board of Directors elected by?
A.Top management
B.Shareholders
C.Employees of company
D.None of the above

ANSWER B

Under ______, price is determined by the interaction of total demand and total supply in the market?

A.Perfect competition
B.Monopoly
C.Imperfect competition
D.All of the above

ANSWER A

The out of pocket costs are ?

A.Sunk costs
B.Marginal costs
C.Explicit costs
D.Social costs

ANSWER B

The short run Average Cost curve is __ shaped?

A.V
B.U
C.L
D.Any of the above

ANSWER B

Goods produced on small scale have?

A.Relatively inelastic supply
B.Highly elastic supply
C.Perfectly elastic supply
D.None of the above

ANSWER A

The Difference between total revenue and total cost is called?
A. Cost of production
B. Cost of capital
c.Profit           
D. Capital

ANSWER C

Under perfect competition, the price is equal to ?
A. AR = MR
B. AR > MR
C. MR > AR
D. MR not equal to AR

ANSWER A

Economics deals primarily with the concept of?    

A. Scarcity         
B. Poverty                 
c. Change          
D. Power

ANSWER A

Cost behavior analysis applies to?    

A. retailers   
B. wholesalers          
c. manufacturers       
D. all entities

ANSWER D

Accounting provides information on?

A. Cost and income for managers

B. Company’s tax liability for a particular year

C. Financial conditions of an institution

D. All of the above


ANSWER D

Patents, Copyrights and Trademarks are?

A. Current assets

B. Fixed assets

C. Intangible assets

D. Investments


ANSWER C

The following is not a type of liability?

(A) Short term

(B) Current

(C) Fixed

(D) Contingent

ANSWER A

Real accounts records?

A. Dealings with creditors or debtors

B. Dealings in commodities

C. Gains and losses

D. All of the above

ANSWER B

The accounts that records expenses, gains and losses are

A. Personal accounts

B. Real accounts

C. Nominal accounts

D. None of the above

ANSWER C


Any written evidence in support of a business transaction is called

A Journal

B Ledger

C Ledger posting

D Voucher

ANSWER D


The sales income (Credit and Cash) of a business during a given period is called

A. Transactions

B. Sales returns

C. Turnover

D. Purchase returns

ANSWER C


The debts, which are to be repaid within a short period (year or less) are known as

A. Current liabilities

B. Fixed liabilities

C. Contingent liabilities

D. All of the above


ANSWER A

When the concept of ratio is defined in respected to the items shown in the financial statements, it is termed as 

A. Accounting ratio
B. Financial ratio
C. Costing ratio
D. None of the above

ANSWER A


The relationship between two financial variables can be expressed in?

A. Pure ratio
B. Percentage
C. Rate or time
D. Either of the above

ANSWER D

Liquidity ratios are expressed in?

A. Pure ratio form
B. Percentage
C. Rate or time
D. None of the above

ANSWER A

Profit for the objective of calculating a ratio may be taken as

A. Profit before tax but after interest
B. Profit before interest and tax
C. Profit after interest and tax
D. All of the above


ANSWER D

The formula used to calculate current ratio is?

A.Current assets / Current liabilities
B.Current liabilities / Current assets
C.Inventory / Current liabilities
D.Current liabilities / Inventory

ANSWER A


a healthy business the current ratio lies between?

A.0 to 1.5
B.1.5 to 3
C.3 to 4.5
D.4.5 to 6

ANSWER B

In ABC analysis ‘A’ class consist of items having?

A.Accurate records
B.Good records
C.Minimal records
D.No records

ANSWER A

The symptom of large inventory accumulation in anticipation of price rise in future will be indicated by?

A.Asset turnover ratio
B.Working Capital turnover ratio
C.Inventory turnover ratio
D.All of the above

ANSWER C

An example of fixed asset is?

A.Live stock
B.Value stock
C.Income stock
D.All of the above

ANSWER A

Comments

Popular posts from this blog

MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS (2MARKS) B.TECH MEFA ALL 5 UNITS

MEFA 2 Marks Questions and Answers

PENCHALA KONA