Accts Assgn 12 Sejal

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 - 1 – accts assgn :12:

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 - 2 – accts assgn :12:

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 - 3 – accts assgn :12:

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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