Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
True/False
Question The bin card and stores ledger, being independent records, compa
rison of these two records should be avoided.
Correct Answer False
Your Answer False
True/False
Question Error of commission refer to a situation where a transaction is
not recorded in the books of account.
Correct Answer False
Your Answer True
True/False
Question Factory overheads consist of all overhead costs incurred from th
e stage of procurement of material till the production of finished goods.
Correct Answer True
Your Answer True
True/False
Question Bank reconciliation statement must be prepared before the prepar
ation of profit and loss account and balance sheet.
Correct Answer True
Your Answer True
True/False
Question The variable costs are controllable at the lower lever.
Correct Answer True
Your Answer False
True/False
Question The purchase account should be debited when an order is placed w
ith the supplier of material.
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
Select The Blank
Question Interest receivable is a________ for the organisation.
Correct Answer Current sset
Your Answer Long term asset
True/False
Question The sum of indirect material cost, indirect labour cost and indi
rect expenses is termed as factory cost.
Correct Answer False
Your Answer True
True/False
Question A business is an activity carried out with the intention of earn
ing the profit.
Correct Answer True
Your Answer True
True/False
Question Linking overhead to a cost unit is known as overhead absorption.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The operating profit as per cost statement may differ from the p
rofit as per Profit 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 others
Your Answer Depreciation on plant and machinery , Interest on loans taken fr
om other
True/False
Question The best way to reduce labour cost is to recruit cheap labour.
Correct Answer False
Your Answer False
True/False
Question Balance sheet indicates the financial status of the business at
given period.
Correct Answer True
Your Answer True
True/False
Question A business is an activity carried out with the intention of earn
ing 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/False
Question Accounting refers to the process of analyzing & interpreting the
information already recorded in the books of accounts.
Correct Answer True
Your Answer False
True/False
Question Accounting is an art of recording, classifying & summarizing in
a significant manner.
Correct Answer True
Your Answer True
True/False
Question Financial accounting may deal with the ascertainment of cost & c
alculation of profitability of the individual product.
Correct Answer False
Your Answer False
True/False
Question The reports generated by financial accounting are meant for the
use by management for effective decisions.
Correct Answer True
Your Answer True
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question Under the accelerating premium system incentive increases at a f
ast rate with the decrease in output.
Correct Answer False
Your Answer False
True/False
Question If the physical stock is less than the stock as per the stores l
edger, such shortage should be treated as an issue of material.
Correct Answer True
Your Answer False
True/False
Question Predetermined rate of absorption of overheads helps in quick pre
paration of cost estimates and quoting prices.
Correct Answer True
Your Answer True
Select The Blank
Question If overhead absorbed i.e. overheads charged to units during the
period is more than the overhead incurred, it is said that the overheads are ___
_____.
Correct Answer Over-absorbed
Your Answer Under-absorbed
True/False
Question High time wages means necessarily high cost of production.
Correct Answer False
Your Answer False
True/False
Question Period cost is the cost assigned to the products.
Correct Answer False
Your Answer True
Multiple Choice Single Answer
Question A new computer worth Rs.35,000 was purchased on 18th June, 2003.
The company has 10 such computers costing Rs.20,000/- each. The depreciation is
charged @ 18% p.a. Find the depreciation on computers to be charged for the yea
r.
Correct Answer Rs.40,953.70
Your Answer Rs.40,953.70
True/False
Question New companies can adopt Uniform costing system as a ready-made s
ystem.
Correct Answer True
Your Answer True
True/False
Question Profitability statement is a period statement & provides informa
tion about the results of operations.
Correct Answer True
Your Answer True
True/False
Question Cheque received from a client on 28th September, 2004 must be en
tered in the bank book only after it is credited in the pass book.
Correct Answer False
Your Answer False
True/False
Question The purpose of the profit and loss account is to bring together
information which relates to gross profit and the expenses for running the busin
ess.
Correct Answer True
Your Answer True
True/False
Question For a manufacturing company, dividend received is a non-operatin
g income.
Correct Answer True
Your Answer False
Received sanction for a loan of Rs.10 lakhs Overdraft as per bank book = Overdra
ft as per pass book Overdraft as per bank book < Overdraft as per pass book
True/False
Question Credit balances in all the Personal & Real accounts appear on as
set side.
Correct Answer False
Your Answer False
True/False
Question Long term loan borrowed from financial institution comes under t
he 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 an
d 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 bus
iness 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 rendere
d 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 busi
ness 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 & finan
cial statements of the business as a whole.
Correct Answer True
Your Answer True
True/False
Question Balance sheet indicates the expenditure & income from the busine
ss.
Correct Answer False
Your Answer True
True/False
Question Uniform costing system is a pre-requisite to an inter-firm compa
rison 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 producti
on 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 o
f inventory.
Correct Answer False
Your Answer True
True/False
Question The role of the budget committee may be taken as an advisory rol
e to the Chief Executive.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The main advantages of profit sharing are :
Correct Answer Employees try to increase productivity , Incentives are
shared by all the employees , Augments emplyees' efficiency
Your Answer Employees try to increase productivity , Incentives are shared b
y all the employees , Augments emplyees' efficiency
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 uncont
rollable cost.
Correct Answer False
Your Answer False
True/False
Question The phrase 'By Balance c/d.' written on the credit side of the rent acc
ount, indicates credit balance for this account.
Correct Answer False
Your Answer False
True/False
Question Accounting refers to the process of analyzing & interpreting the inform
ation 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 /decrea
se for the organisation.
Correct Answer True
Your Answer False
True/False
Question While preparing the labour cost budget, factors such as overtime workin
g or night shift working may be ignored.
Correct Answer False
Your Answer False
True/False
Question Predetermined rate of absorption of overheads helps in quick preparatio
n 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 signi
ficant manner.
Correct Answer True
Your Answer True
True/False
Question Goods sent to the customers on approval basis should be treated as sale
s.
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 distrib
ution 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 p
eriod.
Correct Answer True
Your Answer True
Factory overheads Repair for factory building Repair for factory building
True/False
Question Control on purchase of material is exercised by the storekeeper.
Correct Answer False
Your Answer True
True/False
Question 1) Financial statements are basically in two forms i.e. profitability s
tatement and balance sheet.
Correct Answer True
Your Answer True
True/False
Question Financial Accounting discloses the financial performance & financial st
atements of the business as a whole.
Correct Answer True
Your Answer True
True/False
Question Management Accounting is the process of analysis and interpretation of
financial data collected with help of financial accounting and cost accounting
Correct Answer True
Your Answer True
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
True/False
Question 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
True/False
Question Financial accounting may deal with the ascertainment of cost & calculat
ion of profitability of the individual product.
Correct Answer False
Your Answer False
True/False
Question Management Accounting aims at enabling the management to take the decis
ions about the future. It may consider future data as well as non-financial fact
ors.
Correct Answer True
Your Answer True
True/False
Question Financial Accounting primarily protects the interests of the outsiders
dealing with organization in various capacities.
Correct Answer True
Your Answer True
Match The Following
Question Correct Answer Your Answer
Financial Accounting Systematic recording of business transactions Systematic re
cording of business transactions
Cost Accounting Ascertainment of cost Ascertainment of cost
Management Accounting Analyzing & interpretation of financial data Analyzing & i
nterpretation of financial data
Accounting Art of interpreting & classifying business transaction Art of interpr
eting & classifying business transaction
Book Keeping Recording of business transactions Recording of business transactio
ns
Match The Following
Question 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 cust
omer
Trade Discount Not accounted for in the books of Accounts Not accounted for in t
he books of Accounts
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/False
Question Amount invested in purchasing Fixed Asset is a revenue expenditure.
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question Going Concern Concept __________________
Correct Answer Indefinite longer period , Not likely to close down in shorter pe
riod , This affects the values of asset and liabilities
Your Answer Indefinite longer period , Not likely to close down in shorter perio
d , This affects the values of asset and liabilities
Multiple Choice Multiple Answer
Question Cost of asset is 1,20,000, estimated scrap value 20,000, cost of assets
subjected to depreciation 2,00,000, rate of depreciation is 10%. Calculate depr
eciation for 3 yrs as per the reducing balance m
Correct Answer 20,000,18,000,16,200
Your Answer 20,000,18,000,16,200
Multiple Choice Multiple Answer
Question Profit & Loss A/C credit side has
Correct Answer Gross profit , Commission received , Interested received
Your Answer Gross profit , Commission received , Interested received
Multiple Choice Single Answer
Question Juhi started business with Rs borrowed capital of Rs. 1,00,000 with 10%
interest per year. What is the total amount of the capital
Correct Answer 1,10,000
Your Answer 90,000
True/False
Question Cheques issued but not yet presented â the balance as per the bank pass boo
k will be higher.
Correct Answer True
Your Answer False
Multiple Choice Single Answer
Question This cost indicates historical cost which is incurred in past.
Correct Answer Sunk cost
Your Answer Sunk cost
Multiple Choice Single Answer
Question Labour cost is the cost of __________ paid to employees of the organiza
tion.
Correct Answer Remuneration
Your Answer Remuneration
Multiple Choice Single Answer
Question Company having opening stock of Rs. 1,80,000 purchase Rs. 8,00,000. Fre
ight Inward Rs, 35000 & closing stock Rs. 2,00,000, having direct wages Rs. 2,35
,000. What will be prime cost.
Correct Answer 10,50,000
Your Answer 10,50,000
Multiple Choice Multiple Answer
Question For the proper interpretation and presentation of cost the overhead fur
ther classified as
Correct Answer Factory overheads , Office and administration overheads , Selling
& distribution overhead
Your Answer Factory overheads , Office and administration overheads , Selling &
distribution overhead
True/False
Question Valuation of returns indicates the material returned by store departmen
t to production department
Correct Answer False
Your Answer False
True/False
Question The wage payment system should take into consideration the external obl
igations such as the Minimum wages Act and the agreement entered into by the org
anization with the workers.
Correct Answer True
Your Answer True
True/False
Question A good wage payment system will punish the workers for the matters beyo
nd the control of the workers.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question These are the features of fixed overheads
Correct Answer total cost remains the same , per unit cost may vary , not depend
ent on volume of output
Your Answer total cost remains the same , per unit cost may vary , not dependent
on volume of output
True/False
Question Under marginal costing technique only fixed costs are considered as rel
evant for decision making.
Correct Answer False
Your Answer False
True/False
Question Product mix refers to the proportion in which various products of a com
pany can be sold.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question The cost that varies in direct proportion with the level of activity is
called
Correct Answer variable cost
Your Answer variable cost
Multiple Choice Multiple Answer
Question Basic assumptions made by marginal costing are
Correct Answer per unit selling price remains constant at all the levels of acti
vities. , whatever is produced by the organisation is sold off. , per unit varia
ble cost remain constant.
Your Answer per unit selling price remains constant at all the levels of activit
ies. , whatever is produced by the organisation is sold off. , per unit variable
cost remain constant.
Multiple Choice Single Answer
Question Calculate Volume Variance, If budgeted production is 20,000 units, actu
al production is 22,000 units and Standard rate per unit is Rs.1.5/-.
Correct Answer Rs.3,000/- ( Favorable )
Your Answer Rs.3,000/- ( Favorable )
Multiple Choice Single Answer
Question 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.200/- ( Favorable )
Multiple Choice Single Answer
Question Standard Costs are used as tool for
Correct Answer Cost Control
Your Answer Price fixation
Multiple Choice Single Answer
Question Standard Costing specifically relates to the function of
Correct Answer Production
Your Answer Production
True/False
Question Uniform Costing disturbs the healthy competition in the industry
Correct Answer False
Your Answer True
Multiple Choice Multiple Answer
Question Uniform Costing Methods may be advantageously applied
Correct Answer In single organization having number of branches. , Number of com
panies in same industry. , Similar Industries such as cotton, jute etc.
Your Answer In single organization having number of branches. , Number of compan
ies in same industry. , Similar Industries such as cotton, jute etc.
Multiple Choice Multiple Answer
Question The following factors affects the budgeted advertisement cost
Correct Answer Percentage of profits , Availability of funds , Competitors polic
y
Your Answer Percentage of profits , Availability of funds , Competitors policy
Multiple Choice Multiple Answer
Question In Cash budget , Operating cash outflow includes
Correct Answer Payment to Creditors , Cash purchases of raw material , Wages/sal
aries
Your Answer Payment to Creditors , Cash purchases of raw material , Wages/salari
es
Multiple Choice Multiple Answer
Question Characteristics of budget can be said to be
Correct Answer It may be prepared in terms of quantity or money or both , It is
prepared for a fixed period of time , It spells out objectives to be attained
Your Answer It may be prepared in terms of quantity or money or both , It is pre
pared for a fixed period of time , It spells out objectives to be attained
Select The Blank
Question Like initial formation expenses, ________ and R & D are the examples of
Deferred Revenue Expenditure
Correct Answer Initial Advertisement
Your Answer Purchase of an asset
Correct Answer R & D
Your Answer
Select The Blank
Question If ________ is not provided, the asset may appear in the Balance Sheet
at an ________ amount
Correct Answer depreciation
Your Answer depreciation
Correct Answer overstated
Your Answer overstated
Select The Blank
Question If ________ books are the books which record the transactions in the ch
ronological order, ________ is the book where transactions of a similar nature a
re pooled together
Correct Answer subsidiary
Your Answer jornal
Correct Answer ledger
Your Answer ledger
Select The Blank
Question While selecting source of supply ________ epartment may call for the __
______ from the prospective suppliers
Correct Answer purchase
Your Answer purchase
Correct Answer quotation
Your Answer quotation
Select The Blank
Question Preventive costs of labour turnover refers to all the costs which may b
e incurred by the organisation to keep workers happy and ________ them from ____
____ the job
Correct Answer discourage
Your Answer discourage
Correct Answer leaving
Your Answer leaving
Select The Blank
Question 4.Under the differential time rate method the wages are paid at Rs. 1.5
0 per hour between ________ efficiency and Rs.1.25 per hour between ________ eff
iciency
Correct Answer 101% to 125 %
Your Answer 101% to 125 %
Correct Answer 80% to90%
Your Answer 80% to90%
Select The Blank
Question Expenditure like general lighting are apportioned considering ________
as a base and expenditure like depreciation are apportioned considering ________
as a base.
Correct Answer number of light points
Your Answer number of light points
Correct Answer value of assets
Your Answer value of assets
Select The Blank
Question ________ and ________ are examples of element wise classification ofove
rhead costs
Correct Answer Idirect material
Your Answer Idirect material
Correct Answer indirect labour
Your Answer indirect labour
Select The Blank
Question Break even point is a situation of no ________ no ________
Correct Answer profit
Your Answer profit
Correct Answer loss
Your Answer loss
Select The Blank
Question A key factor is defined as the factor which, at a particular point of t
ime or over a period will ________ the volume of ________
Correct Answer limit
Your Answer limit
Correct Answer output
Your Answer output
LIST OF ATTEMPTED QUESTIONS AND ANSWERS