MCQ Based Question – Answers for UPES Solved Assignment [2025]
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Accounting for Managers
Question 1
The financial statement that reports the financial position of a company at a specific point in time is called:
Income Statement
Balance Sheet
Cashflow Statement
None of the above
Question 2
The matching principle in accounting states that expenses should be matched with:
Assets
Revenues
Liabilities
Equity
Question 3
The convention of consistency implies that:
Transactions should be recorded at their historical cost
Financial statements should be prepared using the same accounting methods over time
All expenses should be recognized immediately
Revenue should be recognized when cash is received
Question 4
Cost accounting places a strong emphasis on estimating and _______________. It is mostly focused on the price of manufacturing processes.
Managing Costs
Managing Funds
Releasing Funds
Arranging Debts
Question 5
Which of the following is an example of an external user of financial statements?
Manager
Shareholders
Employees
Supplier
Question 6
Depreciation is an accounting concept used to:
Determine the market value of an asset
Allocate the cost of an asset over its useful life
Record sales revenue
Determine the profitability of a company
Question 7
The book value of an asset is equal to its:
Historical cost
Accumulated depreciation
Fair value
Net realizable value
Question 8
Which of the following is not a primary function of accounting?
Recording
Classifying
Interpreting
Auditing
Question 9
What is the purpose of posting transactions to the ledger?
To keep a chronological record of all transactions
To determine the balance of each account
To prepare financial statements
To identify errors in the journal entries
Question 10
Posting refers to the process of:
Recording transactions in the ledger
Preparing financial statements
Calculating depreciation
Analyzing trial balance
Question 11
“””Cost accounting tracks a good, service, or activity’s cost, and considers both ____________costs. “””
Systematic and legal technique
Estimated and real
Legal and unpopular
Legal and popular
Question 12
Which of the following is a long-term liability?
Accounts payable
Debentures
O/s Expenses
None of the above
Question 13
Companies can utilize depreciation to spread out the cost of an asset over several years and match depreciation expenses to associated revenues in the same reporting year rather than realizing the complete cost of an asset in the___________________.
Last year of ownership
First year of ownership
Second year of Ownership
None of these
Question 14
The accounting equation can be expressed as:
Assets = Liabilities + Owner’s Equity
Liabilities = Assets – Owner’s Equity
Owner’s Equity = Assets – Liabilities
Owner’s Equity = Liabilities + Assets
Question 15
Which financial statement is directly affected by ledger posting?
Income statement
Balance sheet
Statement of cash flows
Statement of retained earnings
Question 16
Which of the following is an example of a current asset?
Land
Building
Prepaid Expenses
Provision for Expenses
Question 17
Which of the following is true about ledger posting?
Only the debit entries are posted to the ledger
Only the credit entries are posted to the ledger
Both debit and credit entries are posted to the ledger
None of the above
Question 18
Which book is used to record all the transactions in chronological order?
Journal
Ledger
Cashbook
None of the above
Question 19
What is ledger posting in accounting?
The process of recording transactions in the general journal
The process of transferring journal entries to the appropriate accounts in the ledger
The process of preparing financial statements
The process of reconciling bank statements
Question 20
Which of the following is an example of an intangible asset?
Building
Land
Plant
Goodwill
Question 21
_________ are interested to know the earning capacity of business which can be known through financial statements.They can also know the financial soundness of the business through financial statements.
Investors
Creditors
Government
None of the above
Question 22
Accounting is a transactional field that looks at vertical sales and _____________ and sums them up. It is a process that involves a lot of different parts and departments of a company.
Take or leave transaction
Buy and get free sales
Both 1 and 2
Make-or-buy activities
Question 23
The trial balance is prepared to:
Verify the accuracy of the ledger accounts
Determine the net income or loss
Determine the balance sheet equation
Prepare financial statements
Question 24
Which of the following is an example of an intangible asset?
Building
Land
Plant
Goodwill
Question 25
The book value of an asset is equal to its:
Historical cost
Accumulated depreciation
Fair value
Net realizable value
Question 26
Which technology allows accounting data to be accessed and processed in real-time from any location?
Blockchain
ERP
Cloud computing
Spreadsheet
Question 27
Robotic Process Automation (RPA) in accounting is primarily used for:
Data entry and repetitive tasks
Financial planning and strategy
Creative problem-solving
Generating business ideas
Question 28
What does Fintech primarily refer to?
Financial companies operating traditionally
Financial services technology innovations
Technology used only in banks
Manual financial processes
Question 29
“Which technology is commonly associated with secure, decentralized financial transactions in Fintech?”
Blockchain
ERP
CRM
None of the above
Question 30
Which of the following Fintech innovations is primarily used for fraud detection and risk assessment?
Blockchain
Artificial Intelligence (AI)
Cloud computing
ERP systems
Question 31
“In the context of Fintech, “”peer-to-peer lending”” refers to:”
Banks lending to other banks
Individuals lending money directly to each other through online platforms
Stock exchanges connecting lenders and borrowers
Banks lending directly to individuals
Question 32
A share represents:
A loan to the company
A fixed-interest debt
Ownership in the company
An obligation to pay dividends
Question 33
Debenture holders are considered as:
Owners of the company
Creditors of the company
Partners in the company
Employees of the company
Question 34
Which of the following is typically paid as a return to shareholders?
Interest
Commission
Dividends
Rent
Question 35
Which of the following is a characteristic of preference shares?
Guaranteed voting rights
Fixed dividend payout before ordinary shareholders
Higher claim than debenture holders
No entitlement to dividends
Question 36
Accounting Standards are important because they help:
Reduce the cost of financial reporting
Ensure financial statements are comparable across different companies and regions
Prevent companies from earning profits
Eliminate the need for regulatory bodies
Question 37
“Which organization is responsible for issuing the International Financial Reporting Standards (IFRS), a widely adopted set of accounting standards?”
Financial Accounting Standards Board (FASB)
Securities and Exchange Board of India (SEBI)
International Accounting Standards Board (IASB)
Institute of Chartered Accountants of India (ICAI)
Question 38
The primary purpose of Accounting Standards is to:
Increase the complexity of financial statements
Ensure consistency and transparency in financial reporting
Maximize a company’s profits
Eliminate the need for financial audits
Question 39
“In marginal costing, if a company is operating below the break-even point, any increase in sales volume will result in:”
An increase in profit equal to the additional sales revenue
An increase in profit equal to the contribution margin per unit multiplied by the additional units sold
An increase in profit equal to total costs minus total fixed costs
“No change in profit, as fixed costs remain constant”
Question 40
“A company is considering accepting a special order that requires the production of an additional 1,000 units. The company has sufficient capacity to produce these units without incurring additional fixed costs. If the variable cost per unit is ₹50, the selling price per unit is ₹90, and fixed costs are ₹10,000, what is the minimum price per unit the company should charge to cover just the marginal costs?”
Rs. 10
Rs. 100
Rs. 90
Rs. 50
Question 41
“In marginal costing, which of the following decisions can be made using contribution margin?”
Deciding whether to discontinue a product
Calculating annual depreciation
Deciding on long-term investments
Selecting a financial audit plan
Question 42
The primary purpose of marginal costing is to help with:
Fixed asset management
Long-term investment decisions
Tax planning
Short-term decision-making
Question 43
“In marginal costing, contribution margin is calculated as:”
Selling Price per Unit – Total Cost per Unit
Selling Price per Unit – Fixed Cost per Unit
Selling Price per Unit – Variable Cost per Unit
Selling Price per Unit + Fixed Cost per Unit
Question 44
Marginal costing primarily focuses on which type of cost?
Fixed costs
Overhead costs
Variable costs
Total Costs
Question 45
A business with high fixed costs and low variable costs will have a:
Higher break-even point
Lower break-even point
Break-even point unaffected by costs
Break-even point equal to total sales
Question 46
“In BEP analysis, the contribution margin per unit is calculated as:”
Selling Price per Unit – Fixed Costs
Variable Cost per Unit – Fixed Costs
Selling Price per Unit – Variable Cost per Unit
Selling Price per Unit / Total Costs
Question 47
“If the selling price per unit increases, all else being equal, the break-even point will”
Increase
Decrease
Remains same
Eliminated
Question 48
“In BEP analysis, fixed costs are:”
Costs that vary directly with production
Costs that remain constant regardless of production levels
Costs that increase as sales increase
Costs that decrease as production increases
Question 49
The Break-Even Point (BEP) is defined as the point at which:
Total revenue equals total costs
Total costs exceed total revenue
Total revenue is double the total costs
Total variable costs equal fixed costs