📘 FULL MOCK TEST – FMT- 4 (100 MCQs – Expert Level)

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1. If selling price per unit equals variable cost per unit, contribution will be:
   A. Positive
   B. Negative
   C. Zero
   D. Maximum
   Answer: C
2. Major Head classification is based on:
   A. Object
   B. Function
   C. Scheme
   D. Nature
   Answer: B
3. Delegation of financial powers must be:
   A. Oral
   B. Written
   C. Optional
   D. Informal
   Answer: B
4. Tender splitting to avoid sanction is:
   A. Allowed
   B. Encouraged
   C. Irregular
   D. Mandatory
   Answer: C
5. Internal check is strongest when:
   A. Duties are combined
   B. Duties are segregated
   C. No supervision
   D. No records
   Answer: B
6. Contribution per unit is:
   A. SP – FC
   B. SP – VC
   C. VC – FC
   D. None
   Answer: B
7. Budget is mainly a tool of:
   A. Recording
   B. Planning and control
   C. Audit
   D. Ledger
   Answer: B
8. Capital expenditure leads to:
   A. Expense only
   B. Asset creation
   C. Liability only
   D. None
   Answer: B
9. Object Head indicates:
   A. Function
   B. Nature of expense
   C. Scheme
   D. Department
   Answer: B
10. Appropriation Accounts are used for:
    A. Profit calculation
    B. Budget comparison
    C. Asset valuation
    D. None
    Answer: B

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26. Limited tender is appropriate when:
    A. Large competition needed
    B. Limited sources exist
    C. Public bidding required
    D. None
    Answer: B
27. Performance guarantee is meant for:
    A. Profit
    B. Work completion assurance
    C. Audit
    D. None
    Answer: B
28. Accrued income is recorded as:
    A. Liability
    B. Asset
    C. Expense
    D. None
    Answer: B
29. Outstanding expenses are:
    A. Assets
    B. Liabilities
    C. Income
    D. None
    Answer: B
30. Prepaid expenses are:
    A. Assets
    B. Liabilities
    C. Income
    D. None
    Answer: A
31. Re-appropriation is allowed:
    A. Between grants
    B. Within same grant
    C. Without approval
    D. None
    Answer: B
32. Excess expenditure requires:
    A. Ignoring
    B. Regularization
    C. Deletion
    D. None
    Answer: B
33. Contract variation must be:
    A. Ignored
    B. Approved
    C. Deleted
    D. None
    Answer: B
34. Internal check relies on:
    A. Segregation
    B. Supervision
    C. Verification
    D. All
    Answer: D
35. Tender committee ensures:
    A. Bias
    B. Fair evaluation
    C. Delay
    D. None
    Answer: B

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51. SP ₹250, VC ₹150 → contribution =
    A. 100
    B. 150
    C. 250
    D. None
    Answer: A
52. FC ₹1,00,000, contribution ₹50 → BE units =
    A. 2,000
    B. 1,000
    C. 500
    D. None
    Answer: A
53. Budget ₹30L, actual ₹25L →
    A. Saving ₹5L
    B. Excess
    C. Profit
    D. None
    Answer: A
54. Contract ₹40L, completed ₹30L → payment =
    A. ₹40L
    B. ₹30L
    C. ₹10L
    D. None
    Answer: B
55. Cash ₹2,00,000, found ₹1,80,000 → shortage =
    A. ₹20,000
    B. ₹1,80,000
    C. ₹2,00,000
    D. None
    Answer: A
56. Bids ₹25L, ₹20L, ₹22L → L1 =
    A. ₹25L
    B. ₹22L
    C. ₹20L
    D. None
    Answer: C
57. Limit ₹50L, sanction ₹60L → excess =
    A. ₹10L
    B. ₹50L
    C. ₹60L
    D. None
    Answer: A
58. Margin of safety increases when:
    A. Sales increase
    B. BE increases
    C. VC increases
    D. None
    Answer: A
59. If VC decreases → contribution:
    A. Increases
    B. Decreases
    C. Same
    D. None
    Answer: A
60. If contribution > FC →
    A. Loss
    B. Profit
    C. BE
    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. Excess
    D. None
    Answer: B
78. Suspense account is used for:
    A. Final classification
    B. Temporary booking
    C. Capital
    D. None
    Answer: B
79. Deposit head represents:
    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 improves:
    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 avoids:
    A. Competition
    B. Bias
    C. Profit
    D. None
    Answer: B
84. Budget control avoids:
    A. Overspending
    B. Profit
    C. Loss
    D. None
    Answer: A
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. Compliance
    B. Control
    C. Efficiency
    D. All
    Answer: D
94. Tender evaluation ensures:
    A. Value for money
    B. Quality
    C. Price
    D. All
    Answer: D
95. Budget is essential for:
    A. Planning
    B. Control
    C. Decision
    D. All
    Answer: D
96. Railway financial system ensures:
    A. Transparency
    B. Accountability
    C. Control
    D. All
    Answer: D
97. BEP depends on:
    A. SP
    B. VC
    C. FC
    D. All
    Answer: D
98. Delegation ensures:
    A. Efficiency
    B. Accountability
    C. Control
    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