03 Entrepreneurship Development MCQs

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Unit-03 Entrepreneurship Development MCQs

********** Unit: 3 **********

Q1. Which of the following is not an inventory?
(A). Machines
(B). Raw material
(C). Finished products
(D). Consumable tools
Answer: (A)

Q2. The time period between placing an order its receipt in stock is known as:
(A). Lead time
(B). Carrying time
(C). Shortage time
(D). Over time
Answer: (A)

Q3. The accounts payable, accruals and notes payables are listed on balance sheet as
(A). Accrued liabilities
(B). Current liabilities
(C). Accumulated liabilities
(D). Non-current liabilities
Answer: (B)

Q4. The cash and equivalents, inventories and accounts receivables are classified as
(A). Assets on balance sheet
(B). Liabilities on balance sheet
(C). Earnings on income statement
(D). Payments on income statement
Answer: (A)

Q5. In the situation of bankruptcy, the stock which is recorded above common stock and below debt account is:
(A). debt liabilities
(B). preferred stock
(C). hybrid stock
(D). common liabilities
Answer: (B)

Q6. According to accounting equation assets are equal to?
(A). Liabilities
(B). Liabilities and equities
(C). Equities
(D). None of these
Answer: (B)

Q7. The results of business activities are reflected in
(A). profit and loss account
(B). profit and loss appropriation account
(C). balance sheet
(D). none of these
Answer: (C)

Q8. Balance sheet is a statement which discloses an organization’s
(A). assets
(B). liabilities
(C). owner’s equity
(D). all of these
Answer: (D)

Q9. Current liabilities need to be paid
(A). within one accounting cycle
(B). beyond one accounting cycle
(C). within 3 years
(D). within 6 months
Answer: (A)

Q10. Which of the following is a financial asset?
(A). Inventories
(B). Equipment
(C). Loan to an associate
(D). Accounts receivable
Answer: (D)

Q11. The cash flow statement consists of which of the following sections?
(A). Operating and non-operating
(B). current and non-current
(C). operating, investing and financing
(D). trading and financial
Answer: (C)

Q12. When does an accountant record a transaction?
(A). If it is materialized by a concrete document
(B). if it has a tax implication
(C). on Manager’s demand
(D). None of these
Answer: (A)

Q13. Which of the following describes a record of the transactions?
(A). General ledger
(B). Income statement
(C). Balance sheet
(D). Journal
Answer: (D)

Q14. Earnings are the result of the difference between
(A). revenue and assets
(B). revenue and liabilities
(C). liabilities and expenses
(D). revenue and expenses
Answer: (D)

Q15. Which of the following equations represents the balance sheet?
(A). Assets + Liabilities = Shareholders’ equity
(B). Assets = Liabilities = shareholders’ equity
(C). Assets = Liabilities – Shareholders’ equity
(D). Assets = Liabilities + Shareholders’ equity
Answer: (D)

Q16. Financially, shareholders are rewarded by
(A). interest
(B). profits
(C). dividends
(D). none of these
Answer: (C)

Q17. Process control is carried out:
(A). Before production
(B). During production
(C). After production control
(D). All of the above
Answer: (B)

Q18. Low cost, higher volume items requires:
(A). No inspection
(B). Little inspection
(C). Intensive inspection
(D). 100% inspection
Answer: (B)

Q19. High cost, low volume items requires:
(A). No inspection
(B). Little inspection
(C). Intensive inspection
(D). 100% inspection
Answer: (C)

Q20. A six sigma process has defect level below ______ defects per million opportunities.
(A). 3.4
(B). 4.5
(C). 5.6
(D). 6.7
Answer: (A)

Q21. The objective of ISO-9000 family of Quality management is:
(A). Customer satisfaction
(B). Employee satisfaction
(C). Skill enhancement
(D). Environmental issues
Answer: (A)

Q21. The following is (are) the machine down time.
(A). Waste
(B). No material
(C). Breakdown
(D). All of the above
Answer: (D)

Q22. _______ helps organization reduce employee turnover and absenteeism.
(A). Job design
(B). Training & development
(C). Wage revision
(D). All of the above
Answer: (B)

Q23. Inspection assures that:
(A). The process is in control
(A). Workers are motivated
(A). Product meets specification
(A). Quality problems are solved
(A). Supplier quality is acceptable
Answer: (C)

Q24. Procurement cycle time is time consumed for
(A). Receiving of raw material
(B). Inspection of various raw materials
(C). Inspection of purchased components parts
(D). All of the above
Answer: (D)

Q25. Centralized and decentralized are the types of:
(A). Routing
(B). Dispatching
(C). Scheduling
(D). Follow up
Answer: (B)