📘 FULL MOCK TEST – FMT-2 (100 MCQs – Mixed Advanced)

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1. If contribution increases, BEP will:
   A. Increase
   B. Decrease
   C. Remain same
   D. Zero
   Answer: B
2. Minor Head represents:
   A. Object
   B. Sub-division of Major Head
   C. Scheme
   D. None
   Answer: B
3. Delegation without authority is:
   A. Valid
   B. Irregular
   C. Profit
   D. None
   Answer: B
4. Tender without EMD is:
   A. Valid
   B. Rejected
   C. Accepted
   D. None
   Answer: B
5. Internal check is primarily:
   A. Preventive
   B. Corrective
   C. Audit
   D. None
   Answer: A
6. Budget variance is:
   A. Profit
   B. Difference
   C. Loss
   D. None
   Answer: B
7. Contribution ratio is also called:
   A. Profit ratio
   B. P/V ratio
   C. Cost ratio
   D. None
   Answer: B
8. Capital expenditure results in:
   A. Expense
   B. Asset creation
   C. Liability
   D. None
   Answer: B
9. Revenue expenditure is:
   A. Non-recurring
   B. Recurring
   C. Capital
   D. None
   Answer: B
10. Object Head represents:
    A. Function
    B. Nature
    C. Scheme
    D. None
    Answer: B

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26. L1 bidder means:
    A. Highest
    B. Lowest
    C. Average
    D. None
    Answer: B
27. Performance guarantee ensures:
    A. Payment
    B. Completion
    C. Audit
    D. None
    Answer: B
28. Accrued income is:
    A. Asset
    B. Liability
    C. Expense
    D. None
    Answer: A
29. Outstanding expense is:
    A. Asset
    B. Liability
    C. Income
    D. None
    Answer: B
30. Prepaid expense is:
    A. Asset
    B. Liability
    C. Income
    D. None
    Answer: A
31. Budget is approved by:
    A. Officer
    B. Parliament
    C. Auditor
    D. None
    Answer: B
32. Re-appropriation requires:
    A. Approval
    B. Ignoring
    C. Audit only
    D. None
    Answer: A
33. Excess expenditure is:
    A. Valid
    B. Irregular
    C. Profit
    D. None
    Answer: B
34. Contract variation must be:
    A. Ignored
    B. Approved
    C. Deleted
    D. None
    Answer: B
35. Internal check requires:
    A. Segregation
    B. Control
    C. Monitoring
    D. All
    Answer: D

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51. SP ₹200, VC ₹120 → contribution =
    A. 80
    B. 120
    C. 200
    D. None
    Answer: A
52. FC ₹80,000, contribution ₹40 → BE units =
    A. 2,000
    B. 4,000
    C. 1,000
    D. None
    Answer: A
53. Budget ₹15L, actual ₹12L →
    A. Saving ₹3L
    B. Excess
    C. Profit
    D. None
    Answer: A
54. Contract ₹20L, completed ₹15L →
    A. ₹20L
    B. ₹15L
    C. ₹5L
    D. None
    Answer: B
55. Cash ₹1,00,000, found ₹1,10,000 →
    A. Shortage
    B. Excess ₹10,000
    C. Profit
    D. None
    Answer: B
56. 4 bids: ₹12L, ₹10L, ₹11L, ₹9L → L1 =
    A. ₹12L
    B. ₹10L
    C. ₹9L
    D. None
    Answer: C
57. Limit ₹15L, sanction ₹18L → excess =
    A. ₹3L
    B. ₹15L
    C. ₹18L
    D. None
    Answer: A
58. Margin of safety = ₹50,000 → indicates:
    A. Risk
    B. Safety
    C. Profit
    D. None
    Answer: B
59. VC increases → contribution:
    A. Increases
    B. Decreases
    C. Same
    D. None
    Answer: B
60. SP decreases → BEP:
    A. Decreases
    B. Increases
    C. Same
    D. None
    Answer: B

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76. Audit ensures:
    A. Profit
    B. Compliance
    C. Loss
    D. None
    Answer: B
77. Financial propriety requires:
    A. Waste
    B. Prudence
    C. Loss
    D. None
    Answer: B
78. Suspense account is:
    A. Final
    B. Temporary
    C. Capital
    D. None
    Answer: B
79. Deposit head is:
    A. Asset
    B. Liability
    C. Income
    D. None
    Answer: B
80. Contract must be:
    A. Written
    B. Oral
    C. Optional
    D. None
    Answer: A
81. Delegation ensures:
    A. Delay
    B. Efficiency
    C. Loss
    D. None
    Answer: B
82. Internal check ensures:
    A. Accuracy
    B. Control
    C. Both
    D. None
    Answer: C
83. Tender system ensures:
    A. Competition
    B. Bias
    C. Profit
    D. None
    Answer: A
84. Budget control ensures:
    A. Overspending
    B. Discipline
    C. Loss
    D. None
    Answer: B
85. Appropriation Accounts ensure:
    A. Control
    B. Profit
    C. Loss
    D. None
    Answer: A
86. Railway finance ensures:
    A. Transparency
    B. Accountability
    C. Control
    D. All
    Answer: D
87. Marginal costing focuses on:
    A. Fixed cost
    B. Variable cost
    C. Total cost
    D. None
    Answer: B
88. Contribution is:
    A. Sales – VC
    B. Sales – FC
    C. VC – FC
    D. None
    Answer: A
89. Financial rules ensure:
    A. Discipline
    B. Control
    C. Efficiency
    D. All
    Answer: D
90. Railway accounts depend on:
    A. Budget
    B. Audit
    C. Control
    D. All
    Answer: D
91. Correct classification ensures:
    A. True accounts
    B. Profit
    C. Loss
    D. None
    Answer: A
92. Internal check avoids:
    A. Fraud
    B. Error
    C. Both
    D. None
    Answer: C
93. Contract management ensures:
    A. Control
    B. Compliance
    C. Efficiency
    D. All
    Answer: D
94. Tender evaluation ensures:
    A. Best value
    B. Quality
    C. Price
    D. All
    Answer: D
95. Budget is tool of:
    A. Planning
    B. Control
    C. Both
    D. None
    Answer: C
96. Railway financial system ensures:
    A. Transparency
    B. Accountability
    C. Control
    D. All
    Answer: D
97. BEP is affected by:
    A. SP
    B. VC
    C. FC
    D. All
    Answer: D
98. Delegation ensures:
    A. Efficiency
    B. Control
    C. Accountability
    D. All
    Answer: D
99. Internal check is:
    A. Continuous
    B. One-time
    C. Optional
    D. None
    Answer: A
100. Financial discipline ensures:
     A. Control
     B. Efficiency
     C. Transparency
     D. All
     Answer: D