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 difference between the cost
of goods destroyed and the amount of claim settled by the insurance company.
Correct Answer True

True/False
Question Penalty paid for delay in payment to creditors represents uncontrollable cost.
Correct Answer False

Multiple Choice Multiple Answer

Question 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

Multiple Choice Single Answer

Question The process of recording the costs in a formal and systematic manner with the intention of
preparing statistical data there from a ascertain the cost, is known as . . .
Correct Answer Cost accounting

Multiple Choice Multiple Answer

Question Uniform Costing Methods may be advantageously applied to . . .
Correct Answer Single organization having number of branches. , Number of companies in same industry,
Similar Industries such as cotton, jute etc.

Match The Following

Question - Correct Answer Your Answer
Real A/C-Debit what comes in, Credit what goes out
Trade Discount-Not accounted for in the books of Accounts
Cash Discount-Accounted for in the books of Accounts
Rs.1 Personal A/C-Debit the receiver, Credit the giver

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Select The Blank
Question If the profit volume ratio is 25%, then the variable cost is equal to ________ of sales value.
Correct Answer 0.75

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 facilities

Multiple Choice Multiple Answer

Question If the sales forecast is less than the past sales but the top management insists upon a certain
amount of additional profits, then following steps can be taken to achieve the target profit
Correct Answer Increase the selling price , Reduce cost of sales , Increase the selling efforts

Multiple Choice Single Answer

Question A company had incurred fixed expenses of Rs.225,000/- with sales of Rs.750,000/- and earned
a profit of Rs.150,000/- during the first month. In the second month, it suffered a loss of Rs.75,000/-. You
are required to calculate the margin of safety for the first month.
Correct Answer Rs.300,000/-

Select The Blank

Question In practical circumstances, the ________ are referred to as application of funds.
Correct Answer Assets

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/False
Question 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 Sales
Non-Operating income-Issue of shares
Plan of investment in fixed assets-Capital Expenditure Budget
Plan for surplus/shortage of cash-Cash Budget

Select The Blank

Question 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
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True/False
Question 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.
Correct Answer False

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

Select The Blank

Question The term ________ indicates expenditure incurred on or attributable to a given thing.
Correct Answer Cost

Multiple Choice Multiple Answer

Question Items credited to Profit & Loss Account are…
Correct Answer Gross profit , Commission received , Interested received

True/False
Question Yield variance equal to zero indicates that the standard yield and actual yield are the same.
Correct Answer True

Multiple Choice Single Answer

Question Balance sheet is statement of
Correct Answer All Assets and Properties

Select The Blank

Question 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 future along with past
period , Useful in furnishing the necessary information to the management

True/False
Question Error of commission refer to calculation errors, totaling errors, errors in carrying forward etc.
Correct Answer True

True/False
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Question A low inventory turnover ratio should always be preferred.
Correct Answer False

Multiple Choice Single Answer

Question The variance which measures the deviation of the rate actually paid to labour as from the
standard hourly rate is known as:
Correct Answer Labour rate variance

Multiple Choice Multiple Answer

Question Following errors affect the trial balance
Correct Answer Wrong totaling of subsidiary books , Posting on the wrong side of an account , Omission
of posting an account in the ledger

Select The Blank

Question ________ Accounting is the process of analysis and interpretation of financial data collected
with help of financial accounting & cost accounting
Correct Answer Management

Multiple Choice Multiple Answer

Question A materials requisition form normally contains the following aspects:
Correct Answer Quantity requisitioned , Per unit material cost , Job number

Select The Blank

Question Purchase day book for the month of April was under cast by Rs.1000/- which account should be
credited ? ________
Correct Answer Suspense Account

True/False
Question Deferred revenue expenditure written off account is a real account.
Correct Answer False

Select The Blank

Question If the customer is not likely to pay the amount receivable from him, this amount should to be
treated as ________.
Correct Answer Bad debts

True/False
Question Linking overhead to a cost unit is known as overhead absorption.
Correct Answer True

Multiple Choice Single Answer

Question A factory received a carton containing two materials X and Y. The invoice relating to the
materials discloses the following details : Material X - 400 kg @ Rs.10/- per kg. =Rs.4,000/-; Material Y -
600 kg @ Rs.15/- per kg.= Rs.9,000/-; Sales @ 5% =Rs.650/-; Insurance @ 1% =Rs.130/-; Freight and
handling charges = Rs.220/-.
Correct Answer Material X -Rs.11.10; Material Y -Rs.16.68

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