Financial Questions and Answers

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General Knowledge Financial Questions with Answers test understanding of finance, banking, and the economy. Common in Banking, SSC, and MBA exams, these questions enhance knowledge about financial systems and markets

Financial

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81. The following figures are presented to you- Year Sales Profit/Loss 1999 Rs. 1,00,000 Rs. 10,000 (Loss) 2000 Rs. 2,50,000 Rs. 20,000 (Profit) Calculate Profit Volume Ratio.

  • 5%
  • 10%
  • 15%
  • 20%
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82. The following particulars relate to manufacturing factory for the month of March 2008. Variable cost per unit Rs. 11; Fixed factory overhead Rs. 5,40,000; Fixed selling overhead Rs. 2,52,000; Variable selling cost Rs. 3; Sales Price per unit Rs. 20. Find out the Break-Even Point in rupees-

  • Rs. 26,40,000
  • Rs. 30,80,000
  • Rs. 25,20,000
  • Rs. 27,40,000
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83. The following information is obtained from the records of K Co. Ltd.- Sales (1,00,000 units) Rs. 1,00,000 Variable cost Rs. 40,000 Fixed cost Rs. 30,000 Find out margin of safety.

  • Rs. 20,000
  • Rs. 25,000
  • Rs. 30,000
  • Rs. 50,000
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84. A manufacturer is operating at 50% of its capacity, due to competition. The following are the details. Raw materials Rs. 6 per unit, Direct Labour Rs. 4 per unit. variable overhead - Rs. 3 per unit, fixed overhead - Rs. 2 per unit, output 15,000 units, total cost Rs. 2,25,000, sales value Rs. 2,10,000, loss Rs. 15,000. A foreign customer wants to buy 6,000 units at Rs. 13•50 per unit and the company does not know whether to accept or not as it is suffering losses at the current level. Advise what he should do ?

  • Accept the offer
  • Reject the offer
  • Remains indifferent
  • None of the above
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85. I took the order for 5,000 units at Rs. 50 each because I got more than the cost incurred to produce them, said the Works Manager, and produced the following figures- Particulars    Before accepting the order     After accepting the order     Rs.     Rs. Variable costs    2,50,000    4,00,000 Fixed costs    7,50,000    8,51,000 Total costs    10,00,000     12,51,000 Cost/unit    40     41•70 Analyse the above figures and the decision taken. Acceptance of this offer has-

  • Lowered his profit by Rs. 500
  • Lowered his profit by Rs. 1,000
  • Lowered his profit by Rs. 1,500
  • Lowered his profit by Rs. 2,000
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86. The following data are provided to you. Fixed cost - Rs. 20,000; Selling price per unit - Rs. 25, Variable cost per unit - Rs. 20. Find out selling price per unit if B.E.P. is brought down to 2,000 units.

  • Rs. 30
  • Rs. 40
  • Rs. 50
  • Rs. 60
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87. Among the following which is not an error of commission ?

  • Wrong totalling
  • Recording with wrong amount
  • Wrong posting
  • Escape from posting
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88. Internal check means-

  • Checking of accounts by cashier
  • Checking of accounts by the Internal Auditor
  • Checking the work of one person by another automatically
  • Managerial control internally over the subordinates
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89. Verification includes-

  • Valuation
  • Existence
  • Ownership & Title
  • All of the above
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90. By whom from the following, auditor can be reappointed ?

  • Directors
  • Shareholders
  • Central Government
  • All of the above
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