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True/False
Question To take make or buy decision under the marginal costing , if purchase
price of the product is less than its variable cost it is advisable to go for
manufacturing proposition.
Correct Answer False
Your Answer False
True/False
Question Income received in advance transfer to current liabilities
Correct Answer True
Your Answer True
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 Accounting is an art of recording, classifying & summarizing in a
significant manner.
Correct Answer True
Your Answer True
True/False
Question For taking make or buy decision marginal costing technique provide useful
assistance.
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 The variable costs are controllable at the lower level.
Correct Answer True
Your Answer True
True/False
Question Balance sheet indicates the expenditure & income from the business.
Correct Answer False
Your Answer False
True/False
Question Credit balances in all the Personal & Real accounts appear on asset side.
Correct Answer False
Your Answer True
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 Non-operating / financial expenses are added while calculating net
profit.
Correct Answer False
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/False
Question Due to errors of principle the arithmetical accuracy of the trial balance
does not get affected.
Correct Answer True
Your Answer True
True/False
Question Bin Card is having all the information of item received and issued.
Correct Answer False
Your 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
Your Answer True
True/False
Question Budget is prepared for a fixed period of time.
Correct Answer True
Your Answer True
True/False
Question A very wide scope of Management Accounting is the limitation by itself.
Correct Answer True
Your Answer True
Posted by MindGrill at 6:44 AM 0 comments Links to this post
Labels: Management Accounting
True/False
Question
Credit balances in all the Personal & Real accounts appear on asset side.
Correct Answer
False
Your Answer
False
True/False
Question
1) Financial statements are basically in two forms i.e. profitability statement
and balance sheet.
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
In a Balance-Sheet right hand side is referred as assets side and left hand side
is referred as liabilities.
Correct Answer
True
Your Answer
True
True/False
Question
Credit note is an intimation send to person dealing with the business that his
account being debited for the purpose indicated therein.
Correct Answer
False
Your Answer
False
True/False
Question
Primary distribution is effected on the basis of service rendered to the service
departments by the production departments.
Correct Answer
False
Your Answer
True
True/False
Question
Debit Note is an intimation sent to person dealing with the business that his
account is being credited for the purpose indicated therein.
Correct Answer
False
Your Answer
True
True/False
Question
Financial Accounting discloses the financial performance & financial statements of
the business as a whole.
Correct Answer
True
Your Answer
True
True/False
Question
Balance sheet indicates the expenditure & income from the business.
Correct Answer
False
Your Answer
True
True/False
Question
Uniform costing system is a pre-requisite to an inter-firm comparison of firms
belonging to the different industries.
Correct Answer
False
Your Answer
False
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
False
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
True/False
Question
Danger level for inventory of materials means the safety stock of inventory.
Correct Answer
False
Your Answer
True
True/False
Question
The role of the budget committee may be taken as an advisory role to the Chief
Executive.
Correct Answer
True
Your Answer
True
True/False
Question
Maintenance Department is a service cost centre.
Correct Answer
True
Your Answer
True
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
Penalty paid for delay in payment to creditors represents uncontrollable cost.
Correct Answer
False
Your Answer
False
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
Your Answer
False
True/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
Standard costs are used for external reporting.
Correct Answer
False
Your Answer
False
True/False
Question
It is said that the income statement represents wealth increase /decrease for the
organisation.
Correct Answer
True
Your Answer
False
True/False
Question
While preparing the labour cost budget, factors such as overtime working or night
shift working may be ignored.
Correct Answer
False
Your Answer
False
True/False
Question
Bank reconciliation statement must be prepared before the preparation of profit
and loss account and balance sheet.
Correct Answer
True
Your Answer
False
Multiple Choice Single Answer
Question
Find the budget which is inadequate as a cost control technique :
Correct Answer
Fixed budget
Your Answer
Fixed budget
True/False
Question
Predetermined rate of absorption of overheads helps in quick preparation of cost
estimates and quoting prices.
Correct Answer
True
Your Answer
True
True/False
Question
Accounting is an art of recording, classifying & summarizing in a significant
manner.
Correct Answer
True
Your Answer
True
True/False
Question
Goods sent to the customers on approval basis should be treated as sales.
Correct Answer
False
Your Answer
False
True/False
Question
Profitability statement indicates the amount of assets & liabilities.
Correct Answer
False
Your Answer
True
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
The ideal budget period for a company engaged in generation and distribution of
electricity is one year.
Correct Answer
False
Your Answer
False
True/False
Question
According to Reducing Balance Method, the depreciation is provided at a
predetermined percentage on the balance of cost of asset after deduction of the
depreciation previously charged.
Correct Answer
True
Your Answer
True
True/False
Question
A very wide scope of Management Accounting is the limitation by itself.
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/False
Question
Control on purchase of material is exercised by the storekeeper.
Correct Answer
False
Your Answer
True