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LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/FalseQuestion Balance sheet is a part of the ledger accounts maintained by the company.
Correct Answer False
Your Answer False
True/False
Question The actual hours taken by the labour are compared with the standard hoursallowed for output to find out the labour yield variance.
Correct Answer True
Your Answer True
Select The Blank
Question Preparation of direct material ________ budget is the responsibility of the
Purchase manager.
Correct Answer PurchaseYour Answer Purchase
Select The Blank
Question The principle of ________ is followed while preparing the financial
statements.Correct Answer Going concern
Your Answer Going concern
True/FalseQuestion Depreciation can be defined as a permanent, continuous and gradual reduction
in the book value of a fixed asset.Correct Answer TrueYour Answer True
True/FalseQuestion Accounting is an art of recording, classifying & summarizing in a significant
manner.
Correct Answer True
Your Answer True
Select The Blank
Question Interest receivable is a________ for the organisation.Correct Answer Current asset
Your Answer Current sset
Multiple Choice Single Answer
Question As a part of the data presented in support of a proposal to icnrease the
production of clock radios, the sales manager of Wittman Electronics reproted the total
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additional cost required for the proposed increased production level. The increase in total
cost is known as :
Correct Answer Incremental costYour Answer Incremental cost
True/FalseQuestion The role of the budget committee may be taken as an advisory role to the Chief
Executive.
Correct Answer TrueYour Answer True
True/False
Question Accounting refers to the process of analyzing & interpreting the informationalready recorded in the books of accounts.
Correct Answer True
Your Answer True
True/False
Question Profitability statement indicates the amount of assets & liabilities.Correct Answer False
Your Answer False
True/False
Question Uniform costing system is defined as a system using common concepts and
standard accounting practices by different entities in different industry to facilitate inter-
firm comparison.Correct Answer True
Your Answer True
Select The Blank
Question Budgeted profit and loss account and budgeted balance sheet are also known as
________.Correct Answer Master budget
Your Answer Master budget
True/FalseQuestion Balance sheet indicates the expenditure & income from the business.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question 200 units of material were purchased from X @ Rs.5/- per unit and 300 unitswere purchased from Y @ Rs.6/- per unit. The organisation follows FIFO system of pricing
of issues and the above purchases have been recorded in stores ledger. 120 units have
already been issued. 60 units received from X are defective and are therefore returned. Find
the value of the material returned to X.
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Correct Answer Rs.300/-
Your Answer Rs.300/-
Multiple Choice Single Answer
Question Which system can assist in fixing a common selling price for the industry as a
whole on the basis of cost of production of all units belonging to that industry ?Correct Answer Uniform costingYour Answer Uniform costing
Select The Blank
Question Marginal costing is also known as ________.
Correct Answer Variable costing
Your Answer Variable costing
Multiple Choice Multiple Answer
Question The disadvantages of time rate system are :
Correct Answer Ignores the efficiency of workers , Higher labour cost , Lack ofmotivation to increase productivity
Your Answer Ignores the efficiency of workers , Higher labour cost , Lack of motivationto increase productivity
Match The FollowingQuestion Correct Answer Your Answer
Open Tender Any supplier from the local market can fill the tender Any supplier from the
local market can fill the tender
Global Tender Any supplier from the global market can fill the tender Any supplier from
the global market can fill the tender
Single Tender Tender from only one supplier Tender from only one supplier
Limited Tender Tenders from reliable but few suppliers Tenders from reliable but few
suppliers
Multiple Choice Single Answer
Question The store-keeper should initiate action for the purchase of a material, when it
reaches its :Correct Answer Re-order level
Your Answer Re-order level
Select The Blank
Question An adjustment relating to outstanding expenses will ________ the net profit.
Correct Answer Decrease
Your Answer Decrease
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True/False
Question The process of accounting split into three steams i.e. financial, cost,management accounting.
Correct Answer True
Your Answer True
True/False
Question 1) Financial statements are basically in two forms i.e. profitability statementand balance sheet.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Items credited to Trading Account are
Correct Answer Sales , Goods lost by fire , Closing stock
Your Answer Sales , Goods lost by fire , Closing stock
True/FalseQuestion All personal expenses of the owner should be debited to the organisation's
profit and loss account.
Correct Answer FalseYour Answer True
True/False
Question A firm earns profit when contribution is equal to fixed costs under variablecosting.
Correct Answer False
Your Answer False
Select The Blank
Question ________ Accounting is the process of analysis and interpretation of financialdata collected with help of financial accounting & cost accounting
Correct Answer Management
Your Answer Management
Multiple Choice Multiple Answer
Question Contents of Uniform Cost Manual are
Correct Answer Organization , Cost Accounting system , Presentation of informationYour Answer Cost Accounting system , Presentation of information , Financial
accounting system
Multiple Choice Single Answer
Question Going concern concept is also known
Correct Answer Continuity concept
Your Answer Continuity concept
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Select The Blank
Question Education facility to workers and their children, pension, superannuation fundare examples of ________ incentives.
Correct Answer Non-monetary
Your Answer Non-monetary
Multiple Choice Multiple Answer
Question Management Accounting isCorrect Answer Designed particularly for internal use , Helpful in estimating the future
along with past period , Useful in furnishing the necessary information to the management
Your Answer Designed particularly for internal use , Helpful in estimating the future
along with past period , Useful in furnishing the necessary information to the management
Multiple Choice Multiple Answer
Question Ram and Laxman are partners of Kush & Bros. As on 1st April, 2003 Ram's
capital is Rs.50,000/- and Laxman's capital is Rs.80,000/-. If interest on capital is to beprovided @ 10% p.a., what will be amount of capital of each of the partners as on 31st
March, 2004, assuming there were no additions during this period? Also, state thetreatment of this item in the Profit and loss account.
Correct Answer Ram's capital Rs.55,000/- , Laxman's capital Rs.88,000/- , Interest on
capital should be debited to the Profit and loss accountYour Answer Ram's capital Rs.55,000/- , Laxman's capital Rs.88,000/- , Interest on
capital should be debited to the Profit and loss account
Multiple Choice Single AnswerQuestion The credit side of the sales book was overcast by Rs.2,000/-. As a result of this
rectification, what of the given impacts is likely to happen?
Correct Answer The liability side of the balance sheet will increase by Rs.2,000/-Your Answer The liability side of the balance sheet will increase by Rs.2,000/-
True/FalseQuestion A business is an activity carried out with the intention of earning the profit.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Double entry system of accounting follows the principle of :
Correct Answer Every debit has corresponding creditYour Answer Every debit has corresponding credit
Multiple Choice Multiple AnswerQuestion Identify the fixed expenses from the following.
Correct Answer Rent and taxes of the factory , Wages paid to indirect workers like
cleaners, helpers,etc. , Salary paid to factory supervisor
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Your Answer Rent and taxes of the factory , Wages paid to indirect workers like
cleaners, helpers,etc. , Salary paid to factory supervisor
Select The Blank
Question Depreciation charged on office furniture on straight line basis is an example of
________.Correct Answer Administration overheads
Your Answer Administration overheads
True/False
Question Balance sheet indicates the financial status of the business at given period.
Correct Answer True
Your Answer True
True/False
Question Long term loan borrowed from financial institution comes under the heading of
long term liabilities.Correct Answer True
Your Answer True
True/False
Question Under the Rowan plan bonus is a fixed percentage.Correct Answer False
Your Answer False
True/FalseQuestion The amount of income for the current period which is not received during the
current period, is called Accrued Income.
Correct Answer TrueYour Answer True
Match The FollowingQuestion Correct Answer Your Answer
Ledger Maintain all types of accounts Maintain all types of accounts
Audit Reviewing internal control system Reviewing internal control system
Accounting Process of analyzing & interpretation Process of analyzing & interpretation
Journal Book of original entry Book of original entry
Multiple Choice Multiple Answer
Question Management accounting is concerned with the following activities :
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Correct Answer Decision making , Safeguarding assets , Planning and controlling
activities
Your Answer Decision making , Safeguarding assets , Planning and controlling activities
Multiple Choice Single Answer
Question Quantify the increase in profit on account of following errors : (a) Repairs offurniture amounting to Rs.2,000/- were debited to furniture account. Furniture is
depreciated @10% p.a. (b) Interest received on bank deposits was credited to dividend
received account, Rs.1,550/- (c) A television purchased for the managing director's officefor Rs.45,000/- was debited to Interior decoration expenses.
Correct Answer Rs.43,200/-
Your Answer Rs.43,200/-
Multiple Choice Single Answer
Question Trade Discount refers to the discount . . .
Correct Answer received on purchases
Your Answer received on purchases
Select The BlankQuestion If the total amount on the ________ side of commission account is more than
the total of its credit side, the commission account is said to have a Debit balance.
Correct Answer DebitYour Answer Debit
Multiple Choice Multiple Answer
Question Features of convention of materiality are . . .Correct Answer transactions having material impact on profitability should be
considered , Insignificant transactions will be ignored
Your Answer transactions having material impact on profitability should be considered ,Insignificant transactions will be ignored
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question Generally speaking income represents wealth increase and business success;
higher the income, lower will be the success of a business.Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Labour efficiency variance Rs.1,000/- (favourable); labour mix variance
Rs.260/- (adverse) and labour rate variance Rs.300/- (adverse). Compute labour costvariance and labour yield variance.
Correct Answer Labour cost variance -Rs.700/- (Favourable) , Labour yield variance
-Rs.1,260/- , Labour yield variance is favourable
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Your Answer Labour cost variance -Rs.700/- (Favourable) , Labour yield variance
-Rs.1,260/- , Labour yield variance is favourable
True/False
Question P&L statement which is a period statement & relates to a certain period tells
about results of operations.Correct Answer True
Your Answer True
Select The Blank
Question ________ system of wage payment is a combination of Halsey system and
Gantt system.
Correct Answer DiemerYour Answer Diemer
Select The Blank
Question A ________ can be defined as a part of the orgainsation for which separatebudget can be prepared and implemented.
Correct Answer Budget centreYour Answer Budget centre
Multiple Choice Single AnswerQuestion A factory has 8 hours a day and the standard daily wage is Rs.80/-. Standard
output per hour is 5 units. During a day worker P produced 30 units, Q produced 36 units
and S produced 42 units. Calculate wages payable to P,Q and S under Merrick Multiple
Piece Rate System.Correct Answer P - Rs.60/-; Q - Rs.79.20; S - Rs.100.80
Your Answer P - Rs.60/-; Q - Rs.79.20; S - Rs.100.80
True/False
Question Treating capital receipt as revenue income is an example of errors of
commission.Correct Answer False
Your Answer False
True/FalseQuestion Due to compensating errors the arithmetical accuracy of the trial balance is
affected.
Correct Answer FalseYour Answer True
True/FalseQuestion Cost Accounting is concerned with calculation of the profitability and state of
affairs of the organization as a whole.
Correct Answer False
Your Answer False
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Multiple Choice Single Answer
Question Two competing companies Hero Ltd. and Zero Ltd. sell the same type ofproduct in the market. Their forecasted profit and loss accounts for the year ending
December 2003 are as follows : Hero Ltd.: Sales Rs.500,000/-; Variable cost Rs.400,000/-;
fixed costs Rs.50,000/-. Zero Ltd.:Sales Rs.500,000/-; Variable cost Rs.300,000/-; fixedcosts Rs.150,000/-. You are
Correct Answer Hero Ltd.
Your Answer Hero Ltd.
Select The Blank
Question The combination in which different products are sold by a company is known
as ________.Correct Answer Sales mix
Your Answer Sales mix
Select The BlankQuestion The ________ adjustment is necessary to relfect the cost for the use of fixed
asset during the year.Correct Answer Depreciation
Your Answer Depreciation
True/False
Question Cheque received from a client on 28th September, 2004 must be entered in the
bank book only after it is credited in the pass book.
Correct Answer FalseYour Answer False
Multiple Choice Single AnswerQuestion Calculate the machine hour rate. The amount of overhead pertaining to June,
2004 to be apportioned is Rs.170,010/-. The machine cannot work without an operator.
During the month June, 2004 the machine operator has been paid for 5,670 hours.Correct Answer Rs.29.98
Your Answer Rs.29.98
Match The FollowingQuestion Correct Answer Your Answer
Profit and loss account Commission received Commission received
Manufacturing account Work in Progress Work in Progress
Balance Sheet Land & Building Land & Building
Trading account Closing stock of finished goods Closing stock of finished goods
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Select The Blank
Question While preparing trial balance, the balance as per ________ book is consideredas bank balance.
Correct Answer Bank
Your Answer Bank
True/False
Question Financial accounting may deal with the ascertainment of cost & calculation ofprofitability of the individual product.
Correct Answer False
Your Answer False
True/False
Question Debit all the expenses and credit all the income is the rule of the Real Account.
Correct Answer False
Your Answer False
True/FalseQuestion Management Accounting is the process of analysis and interpretation of
financial data collected with help of financial accounting and cost accounting
Correct Answer TrueYour Answer True
Multiple Choice Multiple Answer
Question The operating profit as per cost statement may differ from the profit as perProfit and Loss Account due to existence of
Correct Answer Depreciation on plant and machinery , Interest on loans taken from other
, Interest on loans granted to othersYour Answer Interest on loans granted to others , Depreciation on plant and machinery ,
Interest on loans taken from other
Multiple Choice Multiple Answer
Question These are the preventive costs of labour turnover.
Correct Answer Cost of maintaining good relations with the workers , Cost of medical
services , Cost of welfare facilitiesYour Answer Cost of maintaining good relations with the workers , Cost of medical
services , Cost of welfare facilities
True/False
Question Management Accounting aims at enabling the management to take the
decisions about the future. It may consider future data as well as non-financial factors.Correct Answer True
Your Answer True
True/False
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Question GAIL having monopoly in the CNG (Compressed Natural Gas) market can
implement the Uniform costing system.
Correct Answer FalseYour Answer False
True/FalseQuestion The amount of profit which is retained by the organisation is transferred to
'Reserves and Surplus' in the balance sheet.
Correct Answer TrueYour Answer True
Multiple Choice Multiple Answer
Question Uniform costing system can be successfully implemented in any industry onlywhen :
Correct Answer Information is freely supplied by all the units , Well organised sector is
ready to share the technological improvements , Information furnished by the units is
complete and correctYour Answer Information is freely supplied by all the units , Well organised sector is
ready to share the technological improvements , Information furnished by the units iscomplete and correct
Multiple Choice Single AnswerQuestion As cost centers facilitate the control function, in many cases, they are termed as
. . .
Correct Answer Responsibility centers
Your Answer Responsibility centers
Match The Following
Question Correct Answer Your Answer
Book-Keeping Books of Accounts Books of Accounts
Financial statement Profitability statement & Balance-sheet Profitability statement &
Balance-sheet
Accounting Process of analyzing & interpretation Process of analyzing & interpretation
Profitability statement Indicates the amount of profit earned Indicates the amount of profit
earned
Balance-sheet Financial status Financial status
Multiple Choice Single Answer
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Question Judge the sentence in italics according to criteria given below : " It is difficult
to adopt Uniform costing system when a product can be manufactured by employing more
than one method because the cost of production will vary according to the method used."Correct Answer The assertion and the reason are both correct
Your Answer The assertion and the reason are both correct
Select The Blank
Question The indirect material cost, indirect labour cost and indirect expenses cost,
collectively are termed as ________.Correct Answer Overhead
Your Answer Overhead
Multiple Choice Single AnswerQuestion Creditors as on 31st March, 2004 amount to Rs.15,225/-. Provision for
discount from creditors is to made @ 5%. Find the impact of this provision on the net
profit.
Correct Answer The net profit will increase by Rs.761.25Your Answer The net profit will increase by Rs.761.25
Multiple Choice Multiple Answer
Question The reasons and objectives of budgets may be stated as :
Correct Answer To aid the planning of annual operations , To communicate theorganisational plans to the different departments , To motivate the managers to strive for
attainment of the organisational goals
Your Answer To aid the planning of annual operations , To communicate the
organisational plans to the different departments , To motivate the managers to strive fortheir promotions
Multiple Choice Single AnswerQuestion Rent of Rs.7,500/- for the month of April was received in March. Which
account should be credited in the books of accounts for making an entry for receipt of the
said amount?Correct Answer Rent received in advance account
Your Answer Rent received in advance account
Select The BlankQuestion The assets which are suppoed to be used by the organisation to do business, are
known as ________assets.
Correct Answer FixedYour Answer Fixed
True/FalseQuestion Financial Accounting discloses the financial performance & financial
statements of the business as a whole.
Correct Answer True
Your Answer True
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True/False
Question The purpose of profit and loss account is to brign together information whichrelates to gross profit and the expenses for running the business.
Correct Answer True
Your Answer True
Select The Blank
Question Angle formed by the intersection of total cost line and sales line is called angleof ________.
Correct Answer Incidence
Your Answer Incidence
Multiple Choice Multiple Answer
Question The suspense account has a debit balance of Rs.40,000/-. Select the
transactions which are capable of nullifying this balance.
Correct Answer Conveyance expenses of Rs.25,000/- were posted on the wrong side ofthe account. , Purchased computer worth Rs.28,000/- was recorded in the ledger as , The
total of the purchase book was cast short by Rs.44,000/-Your Answer Conveyance expenses of Rs.25,000/- were posted on the wrong side of the
account. , Purchased computer worth Rs.28,000/- was recorded in the ledger as , The total
of the purchase book was cast short by Rs.44,000/-
Multiple Choice Multiple Answer
Question The objectives of Uniform costing system are as follows :
Correct Answer To fix a common selling price for the industry as a whole , To compareefficiency of each unit against industry's overall performance , To compile reliable cost
data for inter-firm comparison of costs
Your Answer To fix a common selling price for the industry as a whole , To compareefficiency of each unit against industry's overall performance , To compile reliable cost
data for inter-firm comparison of costs
Multiple Choice Multiple Answer
Question The key factor determines the :
Correct Answer Level of activity , Capacity utilization , Level of sales
Your Answer Level of activity , Capacity utilization , Level of sales
Multiple Choice Single Answer
Question Flood occurred on 18th March, 2004 and goods worth Rs.28,000/- weredestroyed. The insurance company accepted on 28th March, 2004 the claim for Rs.10,000/-
only. The claim amount was received on 2nd April, 2004. Find the impact of this
transaction on net profit for the year ending 31st March, 2004.Correct Answer The net profit will decrease by Rs.18,000/-
Your Answer The net profit will decrease by Rs.18,000/-
Multiple Choice Single Answer
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Correct Answer True
Your Answer True
True/FalseQuestion Balance sheet indicates the financial status of the business at given period.
Correct Answer True
Your Answer TrueTrue/False
Question Accounting refers to the process of analyzing & interpreting the information
already recorded in the books of accounts.Correct Answer True
Your Answer True
True/False
Question Accounting is an art of recording, classifying & summarizing in asignificant manner.
Correct Answer True
Your Answer True
True/FalseQuestion Profitability statement indicates the amount of assets & liabilities.
Correct Answer FalseYour Answer False
Match The Following
Question Correct Answer Your Answer
Accounting Process of analyzing & interpretation Process of analyzing & interpretation
Profitability statement Indicates the amount of profit earned Indicates the amount of profitearned
Balance-sheet Financial status Financial status
Book-Keeping Books of Accounts Books of Accounts
Financial statement Profitability statement & Balance-sheet Profitability statement
& Balance-sheet
Match The FollowingQuestion Correct Answer Your Answer
Bills Payable Amount payable to supplier Amount payable to supplier
Bills Receivable Amount received from the customer Amount received from the
customer
Trade Discount Not accounted for in the books of Accounts Not accounted for in
the books of Accounts
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Cash Discount Accounted for in the books of Accounts Accounted for in the books of
Accounts
Bad debts Amount not received from customer Amount not received from customer
True/FalseQuestion Real Accounts may also consist the accounts of some intangible assets like
Goodwill Account
Correct Answer TrueYour Answer True
True/False
Question The rate at which the depreciation is to be calculated are also specified in
the Income Tax Act 1961.Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Cash and---------------are the two systems of accounting.Correct Answer Mercantile
Your Answer MercantileMultiple Choice Multiple Answer
Question P/L A/C debit side includes
Correct Answer salary , discount allowed , postage & telegramYour Answer salary , postage & telegram
Multiple Choice Multiple Answer
Question Trading a/c credit side includes
Correct Answer sales , goods lost by fire , closing stockYour Answer sales , goods lost by fire , closing stock
Multiple Choice Single Answer
Question Amit sold Goods to Atul for Rs. 50,000 on cash & Rs. 50,000 on creditbasis & allowed 10% discount on on the spot transaction. Cash Account debited to Rs.
_____________
Correct Answer 45,000Your Answer 45,000
Multiple Choice Single Answer
Question A proprietor purchase goods worth Rs. 5500 & cash account credited to Rs.
5000 rectification of the suspense accounted debited to RsCorrect Answer 500
Your Answer 500
Multiple Choice Single AnswerQuestion Amit purchase of Rs. 6710 had been posted to the debit of the creditors A/C
as 6170 rectifying the transaction the creditor A/C is to be debited amount to Rs
Correct Answer 540Your Answer 540
Multiple Choice Multiple Answer
Question Following error affect the trial balance
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Correct Answer Wrong totaling of subsidiary books , Posting on the wrong side of
an account , Omission of posting an account in the ledger
Your Answer Wrong totaling of subsidiary books , Posting on the wrong side ofan account , Omission of posting an account in the ledger
Multiple Choice Multiple Answer
Question Following error affect the trial balanceCorrect Answer Wrong totaling of subsidiary books , Posting on the wrong side of
an account , Omission of posting an account in the ledger
Your Answer Wrong totaling of subsidiary books , Posting on the wrong side ofan account , Omission of posting an account in the ledger
True/False
Question A bill of Rs. 500 for old furniture sold to Raj, was entered in the sales day
bookCorrect Answer False
Your Answer True
True/False
Question Abnormal cost indicates that cost which is normally incurred at a certainlevel of output under normal circumstances.
Correct Answer FalseYour Answer False
Multiple Choice Single Answer
Question This cost indicates increased or decreased cost due to the increased ordecreased volume of operations.
Correct Answer Differential cost
Your Answer Opportunity Cost
True/False
Question Indirect material cost assist the manufacturing process is an integral part of
finish goods.Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question The prime cost is Rs. 10,00,000 the factory cost is Rs. 13,00,000, the total
administration overheads are 14,00,000 and having selling overhead of Rs. 86000. What is
the Total cost?Correct Answer 37,86,000
Your Answer 37,86,000
Multiple Choice Multiple Answer
Question Indirect Expenses includes
Correct Answer Rent , Telephone expenses , InsuranceYour Answer Rent , Telephone expenses , Insurance
True/False
Question Material cost is the first and probably the most important element of cost.
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Your Answer False
Multiple Choice Multiple AnswerQuestion Limitations of marginal costing are
Correct Answer difficult for classification as fixed cost and variable cost. , does not
provide any standard for the evaluation of performance. , it is useful technique only in theshort run.
Your Answer difficult for classification as fixed cost and variable cost. , does not
provide any standard for the evaluation of performance. , it is useful technique only in theshort run.
Multiple Choice Multiple Answer
Question Budgetory Control deals withCorrect Answer Establishment of budgets , Comparison of budgeted results with
actuals , Computation of variance.
Your Answer Establishment of budgets , Comparison of budgeted results with
actuals , Computation of variance.
True/FalseQuestion The analysis of overhead variances is different and the most complex task.
Correct Answer True
Your Answer True
True/False
Question Standard costing and Marginal Costing are the best possible tools available
to the management for cost controlCorrect Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Current standards includes
Correct Answer Expected standards , Normal standards , Ideal standardsYour Answer Expected standards , Normal standards , Ideal standards
Multiple Choice Single Answer
Question In case of industries where capital investment is very high, budget should beprepared for a
Correct Answer Longer period
Your Answer Longer period
Select The Blank
Question Financial Accounting protects the interest of outsiders . it considers________ transaction and it is a ________ requirement
Correct Answer historical
Your Answer historical
Correct Answer legal
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Your Answer vary
Correct Answer level of activity
Your Answer level of activitySelect The Blank
Question ________ and ________ are examples of semi- variable overheads.
Correct Answer Maintenance costYour Answer Maintenance cost
Correct Answer electricity
Your Answer electricitySelect The Blank
Question Rs.5000 paid as ________ to ________ should be debited to salary account
Correct Answer Mahesh
Your Answer MaheshCorrect Answer salary
Your Answer salary
Accts assgn :2:
Select The BlankQuestion If the profit volume ratio is 25%, then the variable cost is equal to ________ of
sales value.
Correct Answer 0.75
True/False
Question Under time rate system a worker is paid on the basis of production achieved by
him in a given time.Correct Answer False
Multiple Choice Multiple AnswerQuestion Direct Cost includes
Correct Answer Direct material , Direct labour , Direct expenses
Multiple Choice Single Answer
Question Which of the following costs is most likely to have a cost behaviour pattern
described as ..a fixed cost upto an activity level of 1,000 units, with a variable cost there
after which decreases from 10paise to 8 paise per unit at 2,000 units?
Correct Answer Wages payment which is fixed for a minimum output quantity after
which a bonus per unit is paid which reduces when activity level exceeds 1,000 units
True/False
Question The phrase 'By Balance c/d.' written on the credit side of the rent account,indicates credit balance for this account.
Correct Answer False
Select The Blank
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Multiple Choice Single Answer
Question Fixed deposit bearing interest @ 5.50%, for Rs.10,000/- was kept with Bank ofIndia on 1st June, 2003, for a period of one year. The type of the fixed deposit is
cumulative, i.e. interest shall be received only on maturity. What treatment should be given
in the books of accounts on 31st March, 2004, the year ending date?Correct Answer An entry for Rs.458.34, debiting interest accrued but not due account
should be passed
Multiple Choice Multiple Answer
Question If you are required to enforce uniform costing system in your industry, how
would you proceed ?
Correct Answer Collecting data from all units of your industry, Ensuring that the datacollected is complete and correct, Maintaining secrecy of the data collected
True/False
Question Uniform Costing simplifies the work of wage boards of fixing minimum wagesand fair wages.
Correct Answer True
Multiple Choice Multiple Answer
Question Marginal costing is found to be unsuccessful in the following situations :-Correct Answer Impossible to distinguish costs into fixed and variable component. , With
respect to capital intensive industries where fixed costs are very large and hence cannot be
ignored , With respect to
service industries where employee costs are very large and almost fixed in nature
True/False
Question Accounting refers to the process of analyzing & interpreting the informationalready recorded in the books of accounts.
Correct Answer True
Multiple Choice Multiple Answer
Question Master budget provides a basis for computing effect of changes in :
Correct Answer product mix of the company , sales volume , production facilities
True/False
Question Accounting is an art of recording, classifying & summarizing in a significant
manner.Correct Answer True
Accts assgn :3:
Select The Blank
Question Over absorption of overheads may take place due to the reasons like
________ overheads being less than the ________ overheads
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Select The Blank
Question Financial Accounting protects the interest of outsiders . it considers
________ transaction and it is a ________ requirementCorrect Answer historical
Your Answer historical
Correct Answer legalYour Answer legal
Select The BlankQuestion variable cost is the cost that tend to ________ in direct proportion with
________
Correct Answer vary
Your Answer varyCorrect Answer level of activity
Your Answer level of activity
Multiple Choice Multiple AnswerQuestion Office & Administration overhead includes
Correct Answer Salary , Rent & Taxes , Stationary & postageYour Answer Stationary & postage , Traveling Expenses
Multiple Choice Single AnswerQuestion Calculate Labour Efficiency Variance, If actual rate per hour is Rs.3.50/- ,
Standard rate is Rs.3/- per unit and standard hours are 15,000 and Actual hours are 13, 500.
Correct Answer Rs.4500/- ( Favorable )
Your Answer Rs.4500/- ( Favorable )
Multiple Choice Single Answer
Question Cost-sheet may be prepared separately for eachCorrect Answer Different Cost Centre
Your Answer Cost Centre
Multiple Choice Single Answer
Question The prime cost is Rs. 10,00,000 the factory cost is Rs. 13,00,000, the total
administration overheads are 14,00,000 and having selling overhead of Rs. 86000. What is
the Total cost?Correct Answer 37,86,000
Your Answer 37,00,000
Multiple Choice Multiple Answer
Question The cost of asset is Rs. 1,10,000, Estimated scrap value 10,000,estimated
life 10 yrs. Calculate the depreciation according to straight line methodCorrect Answer 10,000
Your Answer 10,000
Select The Blank
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Question To ascertain the ________ of all the transactions recorded in the ledger
account, the account is required to be ________
Correct Answer Net effectYour Answer Net effect
Correct Answer Balanced
Your Answer Balanced
Multiple Choice Multiple Answer
Question In fixed overhead variance, the volume variance is further analyzed asCorrect Answer Variance Efficiency Variance , Capacity Variance , Calendar
Variance
Your Answer Variance Efficiency Variance , Capacity Variance , Calendar
Variance
Multiple Choice Single Answer
Question For a unit, if opening stock of raw material is 10,000 units, closing stock of
raw material is 5,000 units and consumption is 3,20,000 units, what will be the quantum ofraw material to be purchased
Correct Answer 3,15,000Your Answer 3,15,000
Multiple Choice Multiple AnswerQuestion Accounts is a
Correct Answer Record of all transaction
Your Answer Record of all transaction
True/False
Question Whatever is to be sold need not be produced.
Correct Answer TrueYour Answer True
True/FalseQuestion Patents and Trade Marks Account is a Real Account.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Budget is prepared in terms of
Correct Answer Quantity and/or MoneyYour Answer Quantity and/or Money
True/FalseQuestion Favorable variances need on investigation
Correct Answer False
Your Answer False
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Multiple Choice Multiple Answer
Question Standard Costing may not be useful in
Correct Answer Small concerns , Industries having non-standardized products ,Contract jobs
Your Answer Small concerns , Industries having non-standardized products ,
Contract jobs
True/False
Question A business is an activity carried out with the intention of earning the profit.Correct Answer True
Your Answer True
Multiple Choice Single AnswerQuestion __________ Accounting becomes a source of information for Management
Accounting.
Correct Answer Financial
Your Answer Financial
Select The BlankQuestion The levels indicated on the Bin card enables the ________ department to
keep a watch on the balance and replace the material as soon as it reached at ________
level.Correct Answer Stores
Your Answer Stores
Correct Answer Re-order level
Your Answer Re-order level
Multiple Choice Single Answer
Question Standard costs are the targets to be attained by the actual performance.Correct Answer Minimum
Your Answer All the above
Multiple Choice Single Answer
Question During one week X makes 200 units. He receives wages for a guaranted
44hours per week at a rate of Rs. 1.50 per hour. Estimated time to produce one unit is 15
minutes. Time allowed is increased by 2Correct Answer Rs. 75
Your Answer Rs. 78
Accts assgn :4:
True/False
Question Balance sheet indicates the financial status of the business at given period.
Correct Answer True
Your Answer True
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Question When bank balance as per bank book is considered then following to be
added.
Correct Answer cheques issued but not presented , direct deposit by customer ,wrong credits given by bank
Your Answer cheques issued but not presented , direct deposit by customer ,
wrong credits given by bank
True/False
Question As soon as the suspense account balance is wiped out , it may be assumedthat all mistakes have been corrected.
Correct Answer False
Your Answer True
True/False
Question Credit sale of Rs. 5000 to Bobby should be entered in the purchase book.
Correct Answer False
Your Answer False
Multiple Choice Single AnswerQuestion This cost indicates historical cost which is incurred in past.
Correct Answer Sunk cost
Your Answer Sunk cost
Multiple Choice Multiple Answer
Question Manufacturing process involves study of
Correct Answer Designing the product , The quantity and quality , Material usedYour Answer Designing the product , The quantity and quality , Material used
Multiple Choice Multiple AnswerQuestion LAST IN FIRST OUT (LIFO)
Correct Answer The price of the latest available lot is considered first , If that lot is
exhausted, the price of the 10% prior to that is considered , Physical issue of the materialmay not be made out of the said lot
Your Answer The price of the latest available lot is considered first , Physical
issue of the material may not be made out of the said lot , Only a and c
Multiple Choice Multiple Answer
Question The Bin card and stores ledges do not match due to the following reasons:
Correct Answer Arithmetical errors in calculating , Non- posting a certaindocument , Posting a wrong Bin card
Your Answer Arithmetical errors in calculating , Non- posting a certain
document , Posting a wrong Bin card
True/False
Question Flux method is important method of wage payment.
Correct Answer False
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Select The BlankQuestion Generally accounts of the assets will have ________ balance and liabilities
will have ________ balance
Correct Answer debitsYour Answer debits
Correct Answer credits
Your Answer credits
Select The Blank
Question Interest on overdraft charged by the bank is ________ to the pass book and
________ to the cash bookCorrect Answer debited
Your Answer debited
Correct Answer credited
Your Answer credited
Select The BlankQuestion While selecting source of supply ________ epartment may call for the
________ from the prospective suppliers
Correct Answer purchaseYour Answer purchase
Correct Answer quotation
Your Answer quotation
Select The Blank
Question After material is received from the supplier, quantity actually received is
compared with quantity ________-and ________-if any, are taken up with the supplierCorrect Answer ordered
Your Answer ordered
Correct Answer variationYour Answer variation
Select The Blank
Question Labour Turnover indicates ________ in labour force showing a highlyincreasing trend or highly ________ trend
Correct Answer change
Your Answer changeCorrect Answer decreasing
Your Answer decreasing
Select The Blank
Question Administration overheads are ________ in nature and can be controlled
mainly at ________ level of the management
Correct Answer fixed
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Accts assgn :5:
True/FalseQuestion Profitability statement indicates the amount of assets & liabilities.
Correct Answer False
Your Answer False
Select The Blank
Question Advance received from customers is ________ for the organisation.Correct Answer A liability
Your Answer A liability
Multiple Choice Multiple AnswerQuestion The features of multiplicity of key factors are as follows :
Correct Answer More than one key factors , Refers to a complex situation , Can be
resolved by using linear programming technique
Your Answer More than one key factors , Refers to a complex situation , Can beresolved by using linear programming technique
True/False
Question Maintenance Department is a service cost centre.
Correct Answer TrueYour Answer True
Match The Following
Question Correct Answer Your Answer
Liabilities All the amount owed by the business All the properties owned by the
business
Drawing Withdrawn for personal use Withdrawn for personal use
JournalBook of original entry Book of original entry
Ledger Maintain all types of Accounts Maintain all types of Accounts
Assets All the properties owned by the business All the amount owed by the business
Select The Blank
Question The ________ adjustment is necessary to relfect the cost for the use of fixed
asset during the year.Correct Answer Depreciation
Your Answer Depreciation
Multiple Choice Multiple Answer
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Multiple Choice Single Answer
Question Basic objective of Uniform Costing is . . .
Correct Answer comparisonYour Answer comparison
Multiple Choice Multiple AnswerQuestion Identify the causes due to which the cost of labour may be high:
Correct Answer Excess staffing , Lack of experienced and efficient personnel , High
labour turnoverYour Answer Excess staffing , Lack of experienced and efficient personnel , High
labour turnover
Multiple Choice Single AnswerQuestion Two competing companies Hero Ltd. and Zero Ltd. sell the same type of
product in the market. Their forecasted profit and loss accounts for the year ending
December 2003 are as follows : Hero Ltd.: Sales Rs.500,000/-; Variable cost Rs.400,000/-;
fixed costs Rs.50,000/-. Zero Ltd.:Sales Rs.500,000/-; Variable cost Rs.300,000/-; fixedcosts Rs.150,000/-. You are
Correct Answer Hero Ltd.Your Answer Both will earn profits
Multiple Choice Multiple AnswerQuestion Features of Sunk cost are . . .
Correct Answer Indicates historical cost , Not relevant in decision making process ,
Incurred in past
Your Answer Indicates historical cost , Not relevant in decision making process ,Incurred in past
True/FalseQuestion For a manufacturing company, dividend received is a non-operating
income.
Correct Answer TrueYour Answer False
Multiple Choice Multiple Answer
Question Features of purchase requisition slip are :Correct Answer Raised when the stock of a raw material has fallen to the re-order
level. , Indicates the type, quantity and quality of material required , The information about
the price of material is excludedYour Answer Raised when the stock of a raw material has fallen to the re-order
level. , Raised to intimate the supplierteh quantity and quality of new material required. ,
Indicates the type, quantity and quality of material required
Multiple Choice Single Answer
Question Judge the sentence in italics according to criteria given below : " It is
difficult to adopt Uniform costing system when a product can be manufactured by
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employing more than one method because the cost of production will vary according to the
method used."
Correct Answer The assertion and the reason are both correctYour Answer The assertion and the reason are both correct
Select The BlankQuestion Crane expenses should be apportioned on the basis of ________.
Correct Answer Number of hours crane worked in the department
Your Answer Number of employees working on the crane
Select The Blank
Question Information as to the cost and profit / loss associated with the firm's
operations is provided to the ________ by Management accounting.Correct Answer Management
Your Answer Management
Multiple Choice Multiple AnswerQuestion Features of convention of consistency are . . .
Correct Answer The accounting policies and procedures should be followedconsistently , Facilitates the comparison of financial statements , It facilitates comparison
of financial statements on period-to-period basis
Your Answer The accounting policies and procedures should be followedconsistently , Facilitates the comparison of financial statements , It facilitates comparison
of financial statements on period-to-period basis
Select The BlankQuestion Uniform costing is not a separate method of ________.
Correct Answer cost accounting
Your Answer costing
True/False
Question Suspense account is closed automatically after rectification of all the errors.Correct Answer True
Your Answer False
True/FalseQuestion Manufacturing overheads represents all costs incurred in the factory
including direct material cost and direct labour cost.
Correct Answer FalseYour Answer True
Select The BlankQuestion Generally all the liabilities will have ________balance.
Correct Answer Credit
Your Answer Debit
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Correct Answer Rs.29.98
Your Answer Rs.29.98
True/False
Question Profitability statement indicates the amount of assets & liabilities.
Correct Answer FalseYour Answer True
Multiple Choice Multiple AnswerQuestion While preparing sales budget the following factors must be considered :
Correct Answer The number and types of products sold by the organisation ,
Whether the organisation's market share is increasing or decreasing? , Details of seasonal
fluctuations in salesYour Answer The number and types of products sold by the organisation ,
Whether the organisation's market share is increasing or decreasing? , Details of seasonal
fluctuations in sales
True/False
Question The sum of indirect material cost, indirect labour cost and indirect expensesis termed as Overheads.
Correct Answer True
Your Answer True
Select The Blank
Question Generally all the liabilities will have ________balance.
Correct Answer CreditYour Answer Credit
True/FalseQuestion Uniform costing system is a pre-requisite to an inter-firm comparison of
firms belonging to the different industries.
Correct Answer FalseYour Answer False
True/False
Question Error of commission refer to calculation errors, totaling errors, errors incarrying forward etc.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Techniques of management accounting include:Correct Answer Marginal costing , Budgetary control , Standard costing
Your Answer Marginal costing , Budgetary control , Standard costing
Multiple Choice Multiple Answer
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Your Answer Interest account should be debited with Rs.7,520.55 and outstanding
interest account should be credited with Rs.7,520.55
True/False
Question The labour cost which can be identified with the individual cost centre is
known as the Direct Labour Cost.Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
Ledger Maintain all types of accounts Maintain all types of accounts
Audit Reviewing internal control system Reviewing internal control system
Accounting Process of analyzing & interpretation Process of analyzing & interpretation
JournalBook of original entry Book of original entry
True/FalseQuestion A business is an activity carried out with the intention of earning the profit.
Correct Answer True
Your Answer True
Select The Blank
Question If the firm is operating with zero margin of safety, decline of even a single
unit in sales will result in ________.Correct Answer Loss
Your Answer Loss
Multiple Choice Multiple Answer
Question When bank balance as per bank book is considered for preparing bank
reconciliation statement, then following items need to be added :
Correct Answer Cheques issued but not presented , Direct deposit made bycustomer , Wrong credits given by bank
Your Answer Cheques issued but not presented , Direct deposit made by
customer , Wrong credits given by bank
Select The Blank
Question Uniform costing is not a separate method of ________.Correct Answer cost accounting
Your Answer cost accounting
Multiple Choice Multiple Answer
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Question If you are required to enforce uniform costing system in your industry, how
would you proceed ?
Correct Answer Collecting data from all units of your industry , Ensuring that thedata collected is complete and correct , Maintaining secrecy of the data collected
Your Answer Collecting data from all units of your industry , Ensuring that the
data collected is complete and correct , Allowing free access to all the units to the collecteddata
True/FalseQuestion Balance sheet indicates the financial status of the business at given period.
Correct Answer True
Your Answer True
Select The Blank
Question The indirect material cost, indirect labour cost and indirect expenses cost,
collectively are termed as ________.
Correct Answer OverheadYour Answer Overhead
True/False
Question Under time rate system a worker is paid on the basis of production achieved
by him in a given time.Correct Answer False
Your Answer False
Multiple Choice Single AnswerQuestion Basic objective of Uniform Costing is . . .
Correct Answer comparison
Your Answer comparison
True/False
Question Accounting refers to the process of analyzing & interpreting the informationalready recorded in the books of accounts.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Labour efficiency variance Rs.1,000/- (favourable); labour mix variance
Rs.260/- (adverse) and labour rate variance Rs.300/- (adverse). Compute labour costvariance and labour yield variance.
Correct Answer Labour cost variance -Rs.700/- (Favourable) , Labour yield variance
-Rs.1,260/- , Labour yield variance is favourableYour Answer Labour cost variance -Rs.700/- (Favourable) , Labour yield variance
-Rs.1,260/- , Labour yield variance is favourable
Select The Blank
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Multiple Choice Single Answer
Question The material physically received is compared with material ordered as per thethis order
Correct Answer Purchase order
Match The Following
Question Correct Answer
Straight Piece rate system-The rate of payment is fixed per pieceDiemer system-Halsey system & Gantt System
Time rate System-Worker is paid on the basis of time attended by him
Payment by Result-Workers are paid according to the production achieved by him
Differential Time rate-Different hourly rates are fixed for different levels of efficiency
Multiple Choice Multiple Answer
Question When bank balance as per pass book is considered then following to be added.
Correct Answer cheques deposited but not cleared , Interest debited by bank , bankcharges debited by bank
True/False
Question Accounting refers to the process of analyzing & interpreting the information
already recorded in the books of accounts.Correct Answer True
True/False
Question (No. of unit * Rate of depreciation per unit ) this formula is used for writtendown value method.
Correct Answer False
Multiple Choice Single Answer
Question Sold Goods of Amitabh worth Rs. 15,000 against 15% Trade discount. The
Goods worth appear on account ___________Correct Answer 12750
Multiple Choice Multiple Answer
Question Cash and---------------are the two systems of accounting.Correct Answer Mercantile
Multiple Choice Single AnswerQuestion This cost indicates increased or decreased cost due to the increased or decreased
volume of operations.
Correct Answer Differential costMatch The Following
Question Correct Answer
Fixed cost + variable cost=Total cost
Total cost fixed cost=variable cost
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Multiple Choice Multiple Answer
Question Convention of Materiality __________________
Correct Answer Only those transactions will be considered which have material impact onprofitability , Insignificant transaction will be ignored , The cost of non-used should not be
considered as the item of
cost
True/False
Question Amount with drawn for personal purpose drawing A/C to be debited.Correct Answer True
Select The Blank
Question Under the repeated distribution method the overheads of ________ departmentare distributed to other departments on agreed ________
Correct Answer service
Correct Answer percentage
True/False
Question Under time rate system a worker is paid on the basis of production achieved byhim.
Correct Answer False
Multiple Choice Single Answer
Question Calculate Labour Rate Variance, If actual rate per hour is Rs.3.50/- , Standard
rate is Rs.3/- per unit and actual hours are 13, 500.
Correct Answer Rs.6750/- ( Adverse )
Multiple Choice Multiple Answer
Question The causes of idle time can be analysed asCorrect Answer Administrative causes , Productive causes , economic causes
Multiple Choice Multiple AnswerQuestion Cost Accountancy is a science, art and practice of a cost Accountant.
Correct Answer Science indicates the possession and the application of relevant
systematic knowledge. , Art indicates the skill and ability. , Practice indicates continuous
effects on the part of costaccountant.
Accts assgn :8:
Multiple Choice Single Answer
Question Benefits available from revenue expenditure are received in the :Correct Answer Same year
Your Answer Same year
True/False
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Select The Blank
Question In calculation of total sales margin variance, the ________cost of sales is
deducted from the actual sales revenue.Correct Answer Standard
Your Answer Standard
True/False
Question The sales mix variance highlights the fact that the actual mix of sales has
been in the same ratio as budgeted.Correct Answer False
Your Answer False
Accts assgn :9:
True/False
Question A business is an activity carried out with the intention of earning the profit.Correct Answer True
Your Answer True
True/False
Question Balance sheet indicates the financial status of the business at given period.Correct Answer True
Your Answer True
True/FalseQuestion Balance sheet indicates the expenditure & income from the business.
Correct Answer False
Your Answer False
True/False
Question The process of accounting split into three steams i.e. financial, cost,management accounting.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
Personal A/C Debit the receiver, Credit the giver Debit the receiver, Credit the giver
Real A/C Debit what comes in, Credit what goes out Debit what comes in, Creditwhat goes out
Nominal A/C Debit all the expenses, Credit all the incomes Debit all the expenses, Credit
all the incomes
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Your Answer Record of all receipts and issue transactions , Maintained in Stores
department , Maintenance of Store ledges provides a second check
Multiple Choice Multiple Answer
Question Following points are taking into consideration for evaluation of receipts
Correct Answer The Price , The trade discount is to be deducted , Other amountssuch as sales tax, excise duty, octroi duty
Your Answer The Price , The trade discount is to be deducted , Advertisement
cost
Multiple Choice Multiple Answer
Question In EOQ, to express carrying cost as a percentage of the unit cost of
purchases this is used in the formula-----------Correct Answer i
Your Answer A , O , C
Multiple Choice Single AnswerQuestion Under the differential time rate method of wage payment between 90% to
100% of efficiency following rate is offered.Correct Answer Rs. 1.40 per hour
Your Answer Rs. 1.40 per hour
True/False
Question Where overheads chargeable to the department are Rs. 5000/- , direct labour
hours worked are 24000 then labour hour rate is Re. 0.2083 labour hour.
Correct Answer TrueYour Answer True
Multiple Choice Multiple AnswerQuestion The selection of the base on which overheads should be apportioned depend
on the following principles.
Correct Answer service or use basis , survey basis , ability to pay basisYour Answer service or use basis , survey basis , ability to pay basis
True/False
Question The Budget key factor may be in the form of sales, raw material, labour etc.Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question For a material, if standard quantity is 500 kg and standard price is Rs.6/- per
kg. Find out the Material Cost variance if actual quantity is 400 kg and actual price isRs.6/- per kg.
Correct Answer Rs.600/-( favorable )
Your Answer Rs.500/-( favorable )
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Multiple Choice Single Answer
Question Find out Labour Efficiency Variance, if Standard Rate is Rs.1.50/- per hour,
Standard hours are 12,000 and Actual hours are 12,600.Correct Answer Rs.900/- ( Adverse )
Your Answer Rs.750/- ( Favorable )
Multiple Choice Single Answer
Question Calculate Efficiency Variance, If actual production is 22,000 units, Standard
production in actual hours is 21,000 units and Standard rate per unit is Rs.1.5/-.Correct Answer Rs.1,500/-( Favorable )
Your Answer Rs.1,500/-( Favorable )
Multiple Choice Single AnswerQuestion Calculate Labour Mix Variance, If revised standard hours are 16,500/-,
Standard rate is Rs.3/- and Actual hours are 13, 500.
Correct Answer Rs.9,000/- ( favourable )
Your Answer Rs.9,000/- ( unfavorable )
Multiple Choice Single AnswerQuestion Standard costs are the targets to be attained by the actual performance.
Correct Answer Minimum
Your Answer Minimum
Multiple Choice Single Answer
Question Calendar Variance arises only if there is abnormal increase or decrease in
Correct Answer Actual number of working daysYour Answer Actual number of working days
Multiple Choice Multiple AnswerQuestion The following factors affects the budgeted advertisement cost
Correct Answer Percentage of profits , Availability of funds , Competitors policy
Your Answer Percentage of profits , Availability of funds , Competitors policy
Match The Following
Question Correct Answer Your Answer
Token or Disc MethodToken number & identification number allotted to worker Token
number & identification number allotted to worker
Time Recording Clock Method Ticket number & clock card allotted to worker
Ticket number & clock card allotted to worker
Daily Time sheets Time spent by worker on job is recorded Attendance register
Weekly Time sheets Record of time for all the jobs during the week is made Record
of time for all the jobs during the week is made
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Correct Answer True
Your Answer True
True/False
Question There is no need to open a suspense account if the trial balance does not
agree.Correct Answer False
Your Answer False
Select The Blank
Question Interest on overdraft charged by the bank is ________ to the pass book and
________ to the cash book
Correct Answer debitedYour Answer credited
Correct Answer credited
Your Answer debited
Select The Blank
Question Bank reconciliation statement is the statement prepared to explain the________ as to why the bank balance as per ________ and bank balance as per bank book
does not match
Correct Answer reasonsYour Answer reasons
Correct Answer pass book
Your Answer pass book
Multiple Choice Single Answer
Question Old furniture sold for Rs. 5400 has been entered as Rs 4500 in the cash
book, for rectifying the same Suspense A/C credited to RsCorrect Answer 900
Your Answer 900
Multiple Choice Multiple Answer
Question Material Price Variance may occur due to
Correct Answer Change in price of material , Failure to take discounts , Weak
purchase organizationYour Answer Careless use of material , Change in price of material
Select The BlankQuestion In financial statements P& L Accounts relates to a specific duration whereas
________ is for a given point of time
Correct Answer P& L AccountsYour Answer Balance sheet
Correct Answer Balance sheet
Your Answer
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Multiple Choice Single Answer
Question Goods return by Pande worth Rs. 2000 should have appeared on the credit
side of Pandes account for rectifying the same. Following account to be creditedCorrect Answer Suspense A/C
Your Answer Suspense A/C
True/False
Question Accounting is an art of recording, classifying & summarizing in a
significant manner.Correct Answer True
Your Answer True
Select The BlankQuestion Bin Card is not an ________ record but only a ________ record.
Correct Answer Accounting
Your Answer Qualitative
Correct Answer QuantitativeYour Answer Quantitative
Multiple Choice Single Answer
Question Salary given in trial balance Rs. 5000/-, still 2000/- is to be paid . The
outstanding salary is debited to Profit &Loss A/C. The second effect is --Correct Answer Transfer to balance sheet liability side
Your Answer Transfer to balance sheet liability side
Select The BlankQuestion While selecting source of supply ________ epartment may call for the
________ from the prospective suppliers
Correct Answer purchaseYour Answer purchase
Correct Answer quotation
Your Answer quotation
True/False
Question Profitability statement indicates the amount of assets & liabilities.
Correct Answer FalseYour Answer True
Multiple Choice Single AnswerQuestion Calculate Sales Price Variance, If actual price is Rs.5.40/- per unit, Standard
price is Rs.5/- per unit and actual sales volume is 500 units.
Correct Answer Rs.200/- ( Favorable )Your Answer Rs.250/- ( Favorable )
True/False
Question Debit the receiver & credit the giver is a rule of Real a/c.
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Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question If at 50% capacity, total factory overheads are Rs.10,000/- (out of which
60% are fixed and 40 % are variable) then what will the amount of total factory overheadsat 60% capacity
Correct Answer Rs.10,800/-
Your Answer Rs.12,000/-
True/False
Question 1) Financial statements are basically in two forms i.e. profitability statement
and balance sheet.Correct Answer True
Your Answer True
Select The BlankQuestion Administration overheads are ________ in nature and can be controlled
mainly at ________ level of the managementCorrect Answer fixed
Your Answer variable
Correct Answer topYour Answer top
Match The Following
Question Correct Answer Your Answer
Advance Not related in current year Not related in current year
Application Increase in Assets Increase in Assets
Outstanding Amount still payable in current year Amount still payable in current year
PrepaidAmount paid for next year Amount paid for next year
Drawing Amount of personal use Amount of personal use
Multiple Choice Multiple AnswerQuestion These are the features of fixed overheads
Correct Answer total cost remains the same , per unit cost may vary , not dependent
on volume of outputYour Answer total cost remains the same , per unit cost may vary , not dependent
on volume of output , per unit cost remains the same.
Multiple Choice Single Answer
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Question If production overheads to be absorbed are Rs. 20000/- and machine hours
worked are 5000 then the machine hour rate will be,
Correct Answer Re. 4 per machine hour.Your Answer Rs. 5 per machine hour.
True/FalseQuestion Due to errors of principle the arithmetical accuracy of the trial balance get
affected.
Correct Answer FalseYour Answer True
Multiple Choice Multiple Answer
Question P/L A/C debit side includesCorrect Answer salary , discount allowed , postage & telegram
Your Answer discount allowed , interest received
Multiple Choice Multiple AnswerQuestion These are the methods of measuring labour turnover.
Correct Answer Replacement Method , Separation Method , Flux MethodYour Answer Replacement Method , Job card Method , Flux Method
Multiple Choice Multiple AnswerQuestion Trading a/c credit side includes
Correct Answer sales , goods lost by fire , closing stock
Your Answer sales , closing stock
Multiple Choice Multiple Answer
Question From the following data, workout the EOQ annual demand. 5000 units,
ordering cost Rs. 60 per unit, price per unit Rs. 100, inventory carrying cost15% onaverage inventory
Correct Answer 300
Your Answer 200
Select The Blank
Question Financial Accounting protects the interest of outsiders . it considers
________ transaction and it is a ________ requirementCorrect Answer historical
Your Answer Current
Correct Answer legalYour Answer legal
Multiple Choice Single AnswerQuestion Under the Emersons Efficiency Bonus System at following efficiency level
no bonus is payable.
Correct Answer Below 66.66%
Your Answer Below 66.66%
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Select The Blank
Question Standard Costing system facilitates ________ and ________ for eachindividual or department
Correct Answer Delegation of authority
Your Answer Fixation of responsibilityCorrect Answer Fixation of responsibility
Your Answer Delegation of authority
True/False
Question If actual cost is more than the standard cost then it is called favorable
variance.
Correct Answer FalseYour Answer True
True/False
Question Accounting refers to the process of analyzing & interpreting the informationalready recorded in the books of accounts.
Correct Answer TrueYour Answer True
True/FalseQuestion The aggregate of indirect material cost, indirect labour cost and indirect
expenses is termed as factory cost.
Correct Answer False
Your Answer True
Select The Blank
Question Fixed cost is the cost that tend to remain ________ irrespective of________
Correct Answer constant
Accts assgn :11: Parmeet
True/False
Question A business is an activity carried out with the intention of earning the profit.
Correct Answer TrueYour Answer True
True/False
Question Balance sheet indicates the financial status of the business at given period.Correct Answer True
Your Answer False
True/FalseQuestion Accounting refers to the process of analyzing & interpreting the information
already recorded in the books of accounts.
Correct Answer True
Your Answer True
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True/False
Question Accounting is an art of recording, classifying & summarizing in a
significant manner.Correct Answer True
Your Answer True
True/FalseQuestion Cost Accounting restrict itself with historical transactions
Correct Answer False
Your Answer FalseTrue/False
Question A very wide scope of Management Accounting is the limitation by itself.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Journal is popularly known as 'Book of . . .
Correct Answer Original EntryYour Answer Original Entry
True/FalseQuestion In a Balance-Sheet right hand side is referred as assets side and left hand
side is referred as liabilities.
Correct Answer TrueYour Answer False
Multiple Choice Multiple Answer
Question Locate the steps involved in rectifying the errors in the books of accounts
Correct Answer Find the wrong entry passed , Find the correct entry to be passed ,Find the entry that will resolve the mistake in the books
Your Answer Find the wrong entry passed , Find the correct entry to be passed ,
Find the entry that will resolve the mistake in the books
Multiple Choice Single Answer
Question The cost that indicates historical cost, which is incurred in past, is known asCorrect Answer Sunk cost
Your Answer Sunk cost
Multiple Choice Single AnswerQuestion Presentation of information to enable managerial decision making' is one of
the objects of which of the following
Correct Answer Cost AccountingYour Answer Cost Accounting
Multiple Choice Multiple AnswerQuestion The objects of cost accountancy are . .
Correct Answer To ascertain cost and profitability , Cost Control , Presentation of
Information
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Question In the adjustment entry passed for closing stock, the ________ account
should be credited.
Correct Answer TradingYour Answer Trading
Select The BlankQuestion An adjustment relating to outstanding expenses will ________ the net
profit.
Correct Answer DecreaseYour Answer Decrease
Select The Blank
Question Goods returned to the suppliers from whom it was ________d is recorded inthePurchasereturn register.
Correct Answer Purchase
Your Answer Purchase
Multiple Choice Single Answer
Question An advertisement contract was made with an artist which stated that theremuneration will be 12% of net sales. On an average the monthly sales were Rs.36,000/-,
however the average rate of sales return was 5% of that month's sale. Find the expenditure
on account of advertisement.Correct Answer Rs.49,248/-
Your Answer Rs.51,840/-
Multiple Choice Single AnswerQuestion Goods kept in the godown were destroyed by fire on 18th June, 2004. The
cost of such goods was Rs.18,950/-. The goods were not insured. Find the amont which
should be debited to the profitability statement.Correct Answer Rs.18,950/-
Your Answer Rs.18,950/-
True/False
Question Generally speaking income represents wealth increase and business success;
higher the income, lower will be the success of a business.
Correct Answer FalseYour Answer False
Multiple Choice Single AnswerQuestion While preparing the bank reconciliation statement as on 31st March, 2004
you find the following discrepancy : 'a cheque of Rs.3,700/- received and deposited in bank
on 27th March, 2004 was entered credited in the pass book on 3rd April, 2004.' In thisbackground, which of the following statement holds true as on 31st March, 2004?
Correct Answer Balance as per pass book < Balance as per bank book
Your Answer Balance as per pass book < Balance as per bank book
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True/False
Question Bank reconciliation statement is a systematic presentation of errors made by
the accountant.Correct Answer False
Your Answer False
Select The Blank
Question The stores department is a ________ department.
Correct Answer ServiceYour Answer Service
Select The Blank
Question The ________ is responsible for material losses while in storage.Correct Answer Store-keeper
Your Answer Store-keeper
Select The BlankQuestion The ________ is a perpetual inventory record.
Correct Answer Bin cardYour Answer Goods received note
Multiple Choice Single AnswerQuestion A written request sent to a supplier for specified goods at an agreed upon
price is often called as :
Correct Answer Purchase order
Your Answer Purchase order
Multiple Choice Single Answer
Question Selecting an appropriate method of valuation of inventory is importantbecause :
Correct Answer It influences the figure of gross profit
Your Answer It influences the figure of gross profit
True/False
Question Re-order level for materials is determined considering maximum
consumption and maximum delivery period.Correct Answer True
Your Answer True
True/False
Question Control on purchase of material is exercised by the storekeeper.
Correct Answer FalseYour Answer True
Multiple Choice Multiple Answer
Question The disadvantages of time rate system are :
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Correct Answer Ignores the efficiency of workers , Higher labour cost , Lack of
motivation to increase productivity
Your Answer Ignores the efficiency of workers , Lack of motivation to increaseproductivity
True/FalseQuestion The best way to reduce labour cost is to recruit cheap labour.
Correct Answer False
Your Answer False
True/False
Question Under some circumstances, it may be advisable to sell at prices equal to or
below the marginal cost ignoring fixed cost.Correct Answer True
Your Answer True
Match The FollowingQuestion Correct Answer Your Answer
Increase in fixed cost will lead to Increase in break even point Increase in break even
point
Decrease in variable cost will lead to Increase in profit volume ratioIncrease in profit
volume ratio
Decrease in selling price will lead to Decrease in contribution Decrease in loss
Increase in contribution will lead to Increase in profits Decrease in break even point
Select The Blank
Question Economical use of labour, materials and facilities can achieved with thehelp of ________.
Correct Answer Budgetary control
Your Answer Budgetary control
Multiple Choice Multiple Answer
Question Select the advantages of standard cost system.
Correct Answer Provides reliable basis for budgeting , Facilitates delegation ofauthority , Promotes economy and efficiency
Your Answer Provides reliable basis for budgeting , Facilitates delegation of
authority
Multiple Choice Single Answer
Question Which variance is used to analyse the effect of change in the quantity of
output from a given mix of inputs?
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Correct Answer Materials yield variance
Your Answer Materials mix variance
Accts assgn:12: Sejal
Multiple Choice Single Answer
Question Interest on drawings of partners should be credited to which account?
Correct Answer Profit and loss account
Select The Blank
Question The ________ adjustment is necessary to relfect the cost for the use of fixed
asset during the year.Correct Answer Depreciation
True/False
Question The actual loss incurred by a company, due to fire, is the extent of differencebetween the cost of goods destroyed and the amount of claim settled by the insurance
company.Correct Answer True
True/FalseQuestion Penalty paid for delay in payment to creditors represents uncontrollable cost.
Correct Answer False
Multiple Choice Multiple AnswerQuestion Subsidiary books include:
Correct Answer Cash Book , Purchase Register , Sales Register
True/False
Question Balance sheet is a part of the ledger accounts maintained by the company.
Correct Answer False
Select The Blank
Question Average stock = ________ + (Order size / 2)
Correct Answer Safety stock
Multiple Choice Single Answer
Question Based on the journal entry given, identify what transaction has taken place.Suresh Account.Dr. Rs.500 To Cash Account Rs.500 (Being paid to Kailash on
behalf of creditor Suresh)
Correct Answer Cash paid to Kailash should not be recovered from creditor Suresh
True/False
Question A business is an activity carried out with the intention of earning the profit.
Correct Answer True
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Multiple Choice Single Answer
Question Loss on account of goods lost due to earthquake should be debited to which
account?Correct Answer Profit and loss account
True/FalseQuestion A very wide scope of Management Accounting is the limitation by itself.
Correct Answer True
True/False
Question Accounting refers to the process of analyzing & interpreting the information
already recorded in the books of accounts.
Correct Answer True
Match The Following
Question - Correct Answer Your Answer
Operating income-Cash SalesNon-Operating income-Issue of shares
Plan of investment in fixed assets-Capital Expenditure BudgetPlan for surplus/shortage of cash-Cash Budget
Select The BlankQuestion Under the average cost method of valuing material issues, new issue price is
determined after ________ issue.
Correct Answer Each
True/False
Question Cost Accounting restrict itself with historical transactions
Correct Answer False
Multiple Choice Multiple Answer
Question Features of convention of consistency are . . .Correct Answer The accounting policies and procedures should be followed consistently ,
Facilitates the comparison of financial statements , It facilitates comparison of financial
statements on period-to-period basis
True/FalseQuestion Narration must be mentioned in the ledger.
Correct Answer False
True/False
Question Balance sheet indicates the financial status of the business at given period.
Correct Answer True
True/False
Question The sum of indirect material cost, indirect labour cost and indirect expenses is
termed as factory cost.
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Correct Answer False
Select The BlankQuestion Information as to the cost and profit / loss associated with the firm's operations
is provided to the ________ by Management accounting.
Correct Answer Management
Select The Blank
Question The term ________ indicates expenditure incurred on or attributable to a giventhing.
Correct Answer Cost
Multiple Choice Multiple AnswerQuestion Items credited to Profit & Loss Account are
Correct Answer Gross profit , Commission received , Interested received
True/FalseQuestion Yield variance equal to zero indicates that the standard yield and actual yield are
the same.Correct Answer True
Multiple Choice Single AnswerQuestion Balance sheet is statement of
Correct Answer All Assets and Properties
Select The BlankQuestion If the profit of Y Ltd. is Rs.10,000/- and its profit volume ratio is 10%, then its
margin of safety will be Rs.________.
Correct Answer 100,000/-
Multiple Choice Multiple Answer
Question Inventory holding cost comprises of :Correct Answer Cost of insurance , Rent of store house , Salary of store keeper
Multiple Choice Multiple Answer
Question Identify the steps involved in the process of decision making :Correct Answer Determination of the problem , Ascertainment of alternative courses of
action , Screening each alternative so as to select the best one
Multiple Choice Multiple Answer
Question Management Accounting is
Correct Answer Designed particularly for internal use , Helpful in estimating the futurealong with past period , Useful in furnishing the necessary information to the management
True/False
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