LIST OF ATTEMPTED QUESTIONS AND ANSWERS
True/False
Question Credit balances in all the Personal & Real accounts appear on asset side.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Contents of Uniform Cost Manual are
Correct Answer Organization , Cost Accounting system , Presentation of information
Your Answer Organization , Cost Accounting system , Presentation of information
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.
Your Answer Single organization having number of branches. , Number of companies in same industry , Similar Industries such as cotton, jute etc.
True/False
Question 1) Financial statements are basically in two forms i.e. profitability statement and balance sheet.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The process of accounting has three streams of accounting ---------------,--------and ----------------------.
Correct Answer Financial Accounting , Cost Accounting , Management Accounting
Your Answer Financial Accounting , Cost Accounting , Management Accounting
True/False
Question Long term loan borrowed from financial institution comes under the heading of long term liabilities.
Correct Answer True
Your Answer True
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
Question Judge the statement according to the criteria given : ' The accounting period for XYZ Ltd. ends on 31st December, 2003. It is noted that office rent for the month of December, 2003 is paid on 15th January, 2004. "According to concept of matching expenses with the revenues, this expenditure should be recorded in the books of accounts in January,
Correct Answer The statement and its reason are both incorrect
Your Answer The statement is correct but its reason is incorrect
Multiple Choice Multiple Answer
Question Features of money measurement concept are . . .
Correct Answer Only those transactions and facts are included expressed in terms of money are considered , Imposes severe restrictions on the kind of information available from financial statements , Works as a major drawback of financial accounting
Your Answer Only those transactions and facts are included expressed in terms of money are considered , Imposes severe restrictions on the kind of information available from financial statements , Works as a major drawback of financial accounting
Multiple Choice Single Answer
Question The installation and operation of ___________ accounting requires a very elaborate organizational structure and large number of rules & regulations
Correct Answer Management
Your Answer Management
Select The Blank
Question ________account can be defined as the record of all the transactions pertaining to a person, asset, liability income or expenditure which have taken place in a specified period.
Correct Answer Ledger
Your Answer Trading
Match The Following
Question Correct Answer Your Answer
Sunk Cost Historical Cost Historical Cost
Cost Centre Facilitate the fixation of responsibility Facilitate the fixation of responsibility
Cost Control Process of controlling costs of operations Process of controlling costs of operations
Differential Cost Increase or Decrease in cost Increase or Decrease in cost
Multiple Choice Multiple Answer
Question Which of the following transactions should be excluded while preparing a cost sheet ?
Correct Answer Interest on loan , Bad debts , Expenses on criminal law suit
Your Answer Sale of scrap material , Interest on loan , Bad debts
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
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
Your 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 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
Multiple Choice Multiple Answer
Question Labour efficiency variance arises due to:
Correct Answer Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material
Your Answer Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material
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
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
Select The Blank
Question A person in charge of a ________ may be held responsible for its proper functioning and cost control.
Correct Answer Cost centre
Your Answer Cost centre
Multiple Choice Multiple Answer
Question The organization chart shows the following aspects :
Correct Answer Functional responsibility of different functional managers , Delegation of authority to various managers , Inter-functional relationships of these managers
Your Answer Functional responsibility of different functional managers , Delegation of authority to various managers , Inter-functional relationships of these managers
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
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 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
Select The Blank
Question Information as to the cost and profit / loss associated with the firm'soperations is provided to the ________ by Management accounting.
Correct Answer Management
Your Answer Management
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
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 by all the employees , Augments emplyees' efficiency
Select The Blank
Question ________ Accounting assists the management in establishing the plans to attain the economic objectives and take proper decisions for the attainment of its objectives.
Correct Answer Management
Your Answer Management
Multiple Choice Multiple Answer
Question Which of the following is likely to be a contributory factor to the incidence of excess expenditure on material cost?
Correct Answer The level of control of the used of material in the production cycle , The incorrect choice of purchase order quantity , Failure to control the issue of materials from stores
Your Answer An increase in the maximum material inventory level , The incorrect choice of purchase order quantity , Failure to control the issue of materials from stores
Multiple Choice Multiple Answer
Question Management accounting is concerned with the following activities :
Correct Answer Decision making , Safeguarding assets , Planning and controlling activities
Your Answer Decision making , Safeguarding assets , Planning and controlling activities
Multiple Choice Multiple Answer
Question Features of double entry accounting system are . . .
Correct Answer Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit
Your Answer Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit
Select The Blank
Question Under Differential Time Rate method payment is made at Rs. 1.40 per hour when the level of efficiency is between________.
Correct Answer 90% to 100%
Your Answer 90% to 100%
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
Select The Blank
Question The difference between sales and cost of sales is termed as ________.
Correct Answer Net Profit
Your Answer Net Profit
Select The Blank
Question The final result disclosed by trading account is the ________profit earned by the organization.
Correct Answer Gross
Your Answer Gross
Multiple Choice Multiple Answer
Question Select the accounts to be disclosed on the liability side of the Balance sheet.
Correct Answer Loan , Outstanding expenses , Creditors
Your Answer Loan , Outstanding expenses , Creditors
True/False
Question Penalty paid for delay in payment to creditors represents uncontrollable cost.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Which document facilitates estimating material cost of a particular job, before completion of that job?
Correct Answer Bill of material
Your Answer Material requisition note
Multiple Choice Single Answer
Question Purchases returns of Rs.18,000/- were wrongly transferred to the sales returns account. Calculate its impact on net profit.
Correct Answer The net profit will not be affected
Your Answer The net profit will not be affected
Multiple Choice Single Answer
Question It is said that adoption of uniform costing creates customer confidence because . . .
Correct Answer Prices are reliable
Your Answer Prices are reliable
Multiple Choice Single Answer
Question An order for goods worth Rs.18,000/- was placed on 25th March, 2004. The goods were received on 1st April, 2004. Calculate the impact of this transaction on the final statements of accounts for the year ended 31st March, 2004.
Correct Answer The net profit will not be affected
Your Answer The net profit will not be affected
True/False
Question Credit balances in all the Personal & Real accounts appear on asset side.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Contents of Uniform Cost Manual are
Correct Answer Organization , Cost Accounting system , Presentation of information
Your Answer Organization , Cost Accounting system , Presentation of information
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.
Your Answer Single organization having number of branches. , Number of companies in same industry , Similar Industries such as cotton, jute etc.
True/False
Question 1) Financial statements are basically in two forms i.e. profitability statement and balance sheet.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question The process of accounting has three streams of accounting ---------------,--------and ----------------------.
Correct Answer Financial Accounting , Cost Accounting , Management Accounting
Your Answer Financial Accounting , Cost Accounting , Management Accounting
True/False
Question Long term loan borrowed from financial institution comes under the heading of long term liabilities.
Correct Answer True
Your Answer True
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
Question Judge the statement according to the criteria given : ' The accounting period for XYZ Ltd. ends on 31st December, 2003. It is noted that office rent for the month of December, 2003 is paid on 15th January, 2004. "According to concept of matching expenses with the revenues, this expenditure should be recorded in the books of accounts in January,
Correct Answer The statement and its reason are both incorrect
Your Answer The statement is correct but its reason is incorrect
Multiple Choice Multiple Answer
Question Features of money measurement concept are . . .
Correct Answer Only those transactions and facts are included expressed in terms of money are considered , Imposes severe restrictions on the kind of information available from financial statements , Works as a major drawback of financial accounting
Your Answer Only those transactions and facts are included expressed in terms of money are considered , Imposes severe restrictions on the kind of information available from financial statements , Works as a major drawback of financial accounting
Multiple Choice Single Answer
Question The installation and operation of ___________ accounting requires a very elaborate organizational structure and large number of rules & regulations
Correct Answer Management
Your Answer Management
Select The Blank
Question ________account can be defined as the record of all the transactions pertaining to a person, asset, liability income or expenditure which have taken place in a specified period.
Correct Answer Ledger
Your Answer Trading
Match The Following
Question Correct Answer Your Answer
Sunk Cost Historical Cost Historical Cost
Cost Centre Facilitate the fixation of responsibility Facilitate the fixation of responsibility
Cost Control Process of controlling costs of operations Process of controlling costs of operations
Differential Cost Increase or Decrease in cost Increase or Decrease in cost
Multiple Choice Multiple Answer
Question Which of the following transactions should be excluded while preparing a cost sheet ?
Correct Answer Interest on loan , Bad debts , Expenses on criminal law suit
Your Answer Sale of scrap material , Interest on loan , Bad debts
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
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
Your 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 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
Multiple Choice Multiple Answer
Question Labour efficiency variance arises due to:
Correct Answer Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material
Your Answer Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material
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
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
Select The Blank
Question A person in charge of a ________ may be held responsible for its proper functioning and cost control.
Correct Answer Cost centre
Your Answer Cost centre
Multiple Choice Multiple Answer
Question The organization chart shows the following aspects :
Correct Answer Functional responsibility of different functional managers , Delegation of authority to various managers , Inter-functional relationships of these managers
Your Answer Functional responsibility of different functional managers , Delegation of authority to various managers , Inter-functional relationships of these managers
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
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 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
Select The Blank
Question Information as to the cost and profit / loss associated with the firm'soperations is provided to the ________ by Management accounting.
Correct Answer Management
Your Answer Management
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
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 by all the employees , Augments emplyees' efficiency
Select The Blank
Question ________ Accounting assists the management in establishing the plans to attain the economic objectives and take proper decisions for the attainment of its objectives.
Correct Answer Management
Your Answer Management
Multiple Choice Multiple Answer
Question Which of the following is likely to be a contributory factor to the incidence of excess expenditure on material cost?
Correct Answer The level of control of the used of material in the production cycle , The incorrect choice of purchase order quantity , Failure to control the issue of materials from stores
Your Answer An increase in the maximum material inventory level , The incorrect choice of purchase order quantity , Failure to control the issue of materials from stores
Multiple Choice Multiple Answer
Question Management accounting is concerned with the following activities :
Correct Answer Decision making , Safeguarding assets , Planning and controlling activities
Your Answer Decision making , Safeguarding assets , Planning and controlling activities
Multiple Choice Multiple Answer
Question Features of double entry accounting system are . . .
Correct Answer Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit
Your Answer Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit
Select The Blank
Question Under Differential Time Rate method payment is made at Rs. 1.40 per hour when the level of efficiency is between________.
Correct Answer 90% to 100%
Your Answer 90% to 100%
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
Select The Blank
Question The difference between sales and cost of sales is termed as ________.
Correct Answer Net Profit
Your Answer Net Profit
Select The Blank
Question The final result disclosed by trading account is the ________profit earned by the organization.
Correct Answer Gross
Your Answer Gross
Multiple Choice Multiple Answer
Question Select the accounts to be disclosed on the liability side of the Balance sheet.
Correct Answer Loan , Outstanding expenses , Creditors
Your Answer Loan , Outstanding expenses , Creditors
True/False
Question Penalty paid for delay in payment to creditors represents uncontrollable cost.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question Which document facilitates estimating material cost of a particular job, before completion of that job?
Correct Answer Bill of material
Your Answer Material requisition note
Multiple Choice Single Answer
Question Purchases returns of Rs.18,000/- were wrongly transferred to the sales returns account. Calculate its impact on net profit.
Correct Answer The net profit will not be affected
Your Answer The net profit will not be affected
Multiple Choice Single Answer
Question It is said that adoption of uniform costing creates customer confidence because . . .
Correct Answer Prices are reliable
Your Answer Prices are reliable
Multiple Choice Single Answer
Question An order for goods worth Rs.18,000/- was placed on 25th March, 2004. The goods were received on 1st April, 2004. Calculate the impact of this transaction on the final statements of accounts for the year ended 31st March, 2004.
Correct Answer The net profit will not be affected
Your Answer The net profit will not be affected
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