Management Sciences MCQs
These Management Sciences MCQs are for public service commission exams and BBA, and MBA students to prepare for their examinations. All MCQs are prepared after having a look at past papers of public service commission examinations held from time to time. These Management Science questions are very important for all types of tests conducted by FPSC, NTS, KPPSC, PPSC, SPSC, BPSC, OTS, UTS, PTS, CTS, ATS, STS, ETEA, and other testing agencies of Pakistan.
Which of the following statements is true?
A: If a Trial Balance tallies, it always means that none of the transactions has been completely omitted
B: A Trial Balance will not tally if a transaction is omitted
C: A customer to whom goods have been sold on credit cannot avail himself of a cash discount
D: A credit balance in the Pass Book indicates excess of deposits over withdrawals
A credit balance in the Pass Book indicates excess of deposits over withdrawals
Which of the following assets is/are to be valued at the lower of cost and net realizable value?
A: Goodwill
B: Inventories
C: Investments
D: Both
E: and
Inventories
Which of the following methods is not a practical way of realizing revenue?
A: Delivery method
B: Percentage-of-completion method
C: Production method
D: Moving average method
Moving average method
The amount payable to a person as consideration for the use of rights vested in him is
A: Dividend
B: Royalty
C: Purchase consideration
D: Installment
Royalty
Buildings account is debited with an amount towards repairs. This is an example of?
A: Error of commission
B: Error of principle
C: Error of omission
D: Compensating error
Error of principle
The concept of conservatism will have the effect of______________?
A: Overstatement of Assets
B: Understatement of Assets
C: Overstatement of Liabilities
D: Understatement of Liabilities
Understatement of Assets
During the year 2011-2012, the value of closing inventory was overstated by 25,000. Which of the following is true?
A: The cost of goods sold was overstated during 2011-2012 and income will be understated during 2012-2013
B: The income was overstated during 2011-12 and closing inventory will be overstated during 2012-2013
C: The retained earnings was overstated during 2011-2012 and retained earnings will be understated during 2012-2013
D: The cost of goods sold was understated during 2011-2012 but retained earnings will not be affected during 2012-2013
The retained earnings was overstated during 2011-2012 and retained earnings will be understated during 2012-2013
Which of the following errors is an error of omission?
A: Sale of ` 100 was recorded in the Purchases Journal
B: Wages paid to Mohan have been debited to his account
C: The total of the sales journal has not been posted to the Sales Account
D: Repairs to buildings have been debited to buildings account
The total of the sales journal has not been posted to the Sales Account
Which of the following accounts will be credited if a company purchases building for cash?
A: Capital account
B: Fixed assets account
C: Building account
D: Cash account
Cash account
Discount for quick repayment of debt is normally referred as____________?
A: Trade discount
B: Prompt payment discount
C: Cash discount
D: Bulk discount
Cash discount