ExamVeda
Login
Home

Management Accounting MCQ Questions and Solutions with Explanations | Management

Management Accounting MCQ Questions and answers with easy and logical explanations. Management provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. Management MCQ is important for exams like MAT, CAT, CA, CS, CMA, CPA, CFA, UPSC, Banking and other Management department exam. Page-2 section-2

Each section contains 100 MCQs on Management Accounting .
11
If net initial investment is $6850000 and uniform increases yearly cash flows is $2050000, then payback period will be
Discuss
Answer & Solution
Answer: Option A
Solution:
Payback period = Net initial investment ÷ Uniform increases yearly cash flows
= $6850000 ÷ $2050000
= 3.34 years.
12
Net initial investment is divided by uniform increasing in future cash flows to calculate
Discuss
Answer & Solution
Answer: Option C
Solution:
Net initial investment is divided by uniform increasing in future cash flows to calculate payback period. The payback period refers to the amount of time it takes to recover the cost of an investment. Simply put, the payback period is the length of time an investment reaches a breakeven point. The desirability of an investment is directly related to its payback period.
13
If nominal rate is 26% and inflation rate is 12%, then real rate can be
Discuss
Answer & Solution
Answer: Option C
No explanation is given for this question. Let's Discuss on Board
14
A concept which explains a received money in present time, is more valuable than money received in future is called
Discuss
Answer & Solution
Answer: Option C
Solution:
A concept which explains a received money in present time, is more valuable than money received in future is called time value of money. The time value of money (TVM) is the concept that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.
15
If payback period is 4 years and uniform increases in cash flows per year is $2750000, then net initial investment can be
Discuss
Answer & Solution
Answer: Option D
No explanation is given for this question. Let's Discuss on Board
16
If real rate is 16% and an inflation rate is 8%, then nominal rate of return will be
Discuss
Answer & Solution
Answer: Option B
No explanation is given for this question. Let's Discuss on Board
17
Method, which calculates time to recoup initial investment of project in form of expected cash flows is known as
Discuss
Answer & Solution
Answer: Option B
Solution:
Method, which calculates time to recoup initial investment of project in form of expected cash flows is known as payback method. The payback period refers to the amount of time it takes to recover the cost of an investment. Simply put, the payback period is the length of time an investment reaches a breakeven point.
18
Vertically upward dimension of cost analysis is also called
Discuss
Answer & Solution
Answer: Option B
Solution:
Vertically upward dimension of cost analysis is also called accounting-period dimension. The Period dimension represents time periods, such as quarters and months. It contains time periods and frequencies by displaying the time periods in a hierarchy.
19
Rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as
Discuss
Answer & Solution
Answer: Option A
Solution:
Rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as nominal rate of return. The nominal rate of return is the amount of money generated by an investment before factoring in expenses such as taxes, investment fees, and inflation.
20
Process of making long term decisions, for capital investment in projects is called
Discuss
Answer & Solution
Answer: Option C
Solution:
Process of making long term decisions, for capital investment in projects is called capital budgeting. Capital budgeting is the process a business undertakes to evaluate potential major projects or investments.