📘 FULL MOCK TEST – FMT- 5 (100 MCQs – Final Level)

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1. If contribution is zero, the firm is at:
   A. Profit
   B. Loss
   C. Break-even with zero fixed cost recovery
   D. None
   Answer: C
2. Major Head classification ensures:
   A. Object grouping
   B. Functional grouping
   C. Scheme grouping
   D. None
   Answer: B
3. Delegation exceeding authority results in:
   A. Valid sanction
   B. Irregular expenditure
   C. Profit
   D. None
   Answer: B
4. Acceptance of abnormally low tender without justification is:
   A. Valid
   B. Risky and irregular
   C. Mandatory
   D. None
   Answer: B
5. Internal check failure primarily leads to:
   A. Efficiency
   B. Fraud risk
   C. Profit
   D. None
   Answer: B
6. Contribution per unit = ₹0 implies:
   A. SP > VC
   B. SP < VC
   C. SP = VC
   D. None
   Answer: C
7. Budget is prepared before:
   A. Audit
   B. Execution period
   C. Accounting
   D. None
   Answer: B
8. Capital expenditure should not be:
   A. Asset creating
   B. Charged to revenue
   C. Non-recurring
   D. None
   Answer: B
9. Object Head answers:
   A. Why spent
   B. Where spent
   C. On what spent
   D. None
   Answer: C
10. Appropriation Accounts mainly detect:
    A. Profit
    B. Variances
    C. Assets
    D. None
    Answer: B

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26. Limited tender reduces:
    A. Competition
    B. Transparency
    C. Both
    D. None
    Answer: C
27. Performance guarantee is generally:
    A. Optional
    B. Mandatory for contracts
    C. Audit tool
    D. None
    Answer: B
28. Accrued income increases:
    A. Liability
    B. Asset
    C. Expense
    D. None
    Answer: B
29. Outstanding expenses increase:
    A. Asset
    B. Liability
    C. Income
    D. None
    Answer: B
30. Prepaid expenses decrease:
    A. Asset
    B. Liability
    C. Expense of current period
    D. None
    Answer: C
31. Re-appropriation without authority is:
    A. Valid
    B. Irregular
    C. Profit
    D. None
    Answer: B
32. Excess expenditure indicates:
    A. Efficient budgeting
    B. Lack of control
    C. Profit
    D. None
    Answer: B
33. Contract variation beyond limit requires:
    A. Ignoring
    B. Higher approval
    C. Audit only
    D. None
    Answer: B
34. Internal check fails when:
    A. Duties segregated
    B. Duties combined
    C. Supervision exists
    D. None
    Answer: B
35. Tender process without transparency leads to:
    A. Efficiency
    B. Bias
    C. Profit
    D. None
    Answer: B

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51. SP ₹300, VC ₹180 → contribution =
    A. 120
    B. 180
    C. 300
    D. None
    Answer: A
52. FC ₹1,20,000, contribution ₹60 → BE units =
    A. 2,000
    B. 3,000
    C. 1,000
    D. None
    Answer: A
53. Budget ₹50L, actual ₹65L →
    A. Saving
    B. Excess ₹15L
    C. Profit
    D. None
    Answer: B
54. Contract ₹60L, completed ₹45L →
    A. ₹60L
    B. ₹45L
    C. ₹15L
    D. None
    Answer: B
55. Cash ₹3,00,000, found ₹2,70,000 → shortage =
    A. ₹30,000
    B. ₹2,70,000
    C. ₹3,00,000
    D. None
    Answer: A
56. Bids ₹35L, ₹32L, ₹30L → L1 =
    A. ₹35L
    B. ₹32L
    C. ₹30L
    D. None
    Answer: C
57. Limit ₹1 Cr, sanction ₹1.2 Cr → excess =
    A. ₹20L
    B. ₹1 Cr
    C. ₹1.2 Cr
    D. None
    Answer: A
58. Margin of safety = 0 means:
    A. Profit
    B. Loss
    C. Break-even
    D. None
    Answer: C
59. If SP < VC → contribution:
    A. Positive
    B. Negative
    C. Zero
    D. None
    Answer: B
60. Contribution ₹50,000, FC ₹60,000 →
    A. Profit ₹10,000
    B. Loss ₹10,000
    C. BE
    D. None
    Answer: B

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76. Audit detects:
    A. Future risk
    B. Past errors
    C. Profit
    D. None
    Answer: B
77. Financial propriety prohibits:
    A. Necessary expenditure
    B. Excessive expenditure
    C. Budgeted expenditure
    D. None
    Answer: B
78. Suspense account must be:
    A. Permanent
    B. Cleared
    C. Ignored
    D. None
    Answer: B
79. Deposit head indicates:
    A. Govt income
    B. Liability
    C. Asset
    D. None
    Answer: B
80. Contract enforceability requires:
    A. Legal validity
    B. Profit
    C. Audit
    D. None
    Answer: A
81. Delegation improves:
    A. Centralization
    B. Decentralization
    C. Delay
    D. None
    Answer: B
82. Internal check is strongest when:
    A. Same person handles all
    B. Duties divided
    C. No supervision
    D. None
    Answer: B
83. Tender system ensures:
    A. Favoritism
    B. Competition
    C. Monopoly
    D. None
    Answer: B
84. Budget control failure leads to:
    A. Overspending
    B. Profit
    C. Accuracy
    D. None
    Answer: A
85. Appropriation Accounts ensure:
    A. Budget compliance
    B. Profit
    C. Asset valuation
    D. None
    Answer: A
86. Railway finance ensures:
    A. Transparency
    B. Accountability
    C. Control
    D. All
    Answer: D
87. Marginal costing ignores:
    A. Variable cost
    B. Fixed cost
    C. Total cost
    D. None
    Answer: B
88. Contribution is useful for:
    A. BEP
    B. Decision making
    C. Profit planning
    D. All
    Answer: D
89. Financial rules ensure:
    A. Discipline
    B. Control
    C. Efficiency
    D. All
    Answer: D
90. Railway accounts ensure:
    A. Accuracy
    B. Control
    C. Compliance
    D. All
    Answer: D
91. Misclassification leads to:
    A. Audit objection
    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 is influenced by:
    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