True/False Question
Indirect material cost is an integral part of finished goods.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer Question
Which of the following aspects are mainly responsible for difficulty in application of Uniform costing system?
Correct Answer
Capital investment , Plant size , Location
Your Answer
Plant size , Location , Capital investment
Multiple Choice Multiple Answer Question
While preparing sales budget the following factors must be considered :-
Correct Answer
The number and types of products sold by the organization , Whether the organization's market share is increasing or decreasing? , Details of seasonal fluctuations in sales
Your Answer
The number and types of products sold by the organization , Whether the organization's market share is increasing or decreasing? , Details of seasonal fluctuations in sales
True/False Question
Financial Accounting primarily protects the interests of the outsiders dealing with organization in various capacities.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer Question
The balance as per bank book as on 30th June, 2004 is Rs.10,298/- while the balance as per pass book as on the same date is Rs.10,123.60. Select the transactions representing the reasons for this difference :-
Correct Answer
Interest credited by bank, not entered in the bank book, Rs.125.60 , Cheques dishonoured not entered in the bank book Rs.200/- , Debit side of the cash book is overcast by Rs.100/-
Your Answer
Interest credited by bank, not entered in the bank book, Rs.125.60 , Cheques dishonoured not entered in the bank book Rs.200/- , Debit side of the cash book is overcast by Rs.100/-
True/False Question
The sales mix variance highlights the fact that the actual mix of sales has been in the same ratio as budgeted.
Correct Answer
False
Your Answer
True
Select The Blank Question
Non-trading income is disclosed on the credit side of ________ account.
Correct Answer
Profit and loss
Your Answer
Profit and loss
Select The Blank Question
________ is any documentary evidence to justify that a particular transaction has taken place.
Correct Answer
Voucher
Your Answer
Voucher
True/False Question
All the expenses are treated as losses of the business transferred to profit & loss A/C debit side.
Correct Answer
True
Your Answer
True
Select The Blank Question
The system which provides an opportunity to the small units to take advantage of the research work taken by the large scale units of the same industry is known as ________ system.
Correct Answer
Uniform costing
Your Answer
Uniform costing
True/False Question
New companies can adopt Uniform costing system as a ready-made system.
Correct Answer
True
Your Answer
True
True/False Question
Financial Statements which are generated as a result of the management accounting report & financial performance of the organization as a whole.
Correct Answer
False
Your Answer
False
True/False Question
According to revaluation method, the assets are revaluated periodically.
Correct Answer
True
Your Answer
True
True/False Question
Purchased goods by paying Rs.35,000/-: In this case, the cash account should be debited.
Correct Answer
True
Your Answer
True
True/False Question
Depreciation can be defined as a permanent, continuous and gradual reduction in the book value of a fixed asset.
Correct Answer
True
Your Answer
True
Select The Blank Question
The closing stocks should ________ the cost of the goods which sent on approval basis.
Correct Answer
Be increased by
Your Answer
Not get affected by
Select The Blank Question
The difference between sales and prime cost is known as ________.
Correct Answer
Gross Profit
Your Answer
Operating Margin
Multiple Choice Multiple Answer Question
The suspense account has a debit balance of Rs.40,000/-. Select the transactions which are capable of nullifying this balance.
Correct Answer
Conveyance expenses of Rs.25,000/- were posted on the wrong side of the account. , Purchased computer worth Rs.28,000/- was recorded in the ledger as , The total of the purchase book was cast short by Rs.44,000/-
Your Answer
Free samples worth Rs.40,000/- distributed during the year were credited to sales account , Conveyance expenses of Rs.25,000/- were posted on the wrong side of the account. , Purchased computer worth Rs.28,000/- was recorded in the ledger as
True/False Question
The bin card and stores ledger, being independent records, comparison of these two records should be avoided.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer Question
Select the entries which need to be rectified :-
Correct Answer
Purchase A/c ......... Dr. to Damodar's A/c (Being furniture purchased from Damodar) , Gopal's A/c ........... Dr. to cash A/c (Being entry for payment of railway freight for goods purchased) , Cash A/c ............Dr. to Suresh's A/c (Being cash received from Suresh for goods sold to him for)
Your Answer
Purchase A/c ......... Dr. to Damodar's A/c (Being furniture purchased from Damodar) , Gopal's A/c ........... Dr. to cash A/c (Being entry for payment of railway freight for goods purchased) , Joshi's A/c ........... Dr. to Bank A/c. (Being entry for dishonour of cheque which was originally issued by Joshi)
Multiple Choice Single Answer Question
Double entry system of accounting follows the principle of :-
Correct Answer
Every debit has corresponding credit
Your Answer
Every debit has corresponding credit
Multiple Choice Multiple Answer Question
Features of purchase requisition slip are :-
Correct Answer
Raised when the stock of a raw material has fallen to the re-order level. , Indicates the type, quantity and quality of material required , The information about the price of material is excluded
Your Answer
Match The Following Questio n Correct Answer Your Answer
Liabiliti es All the amount owed by the busines s All the amount owed by the busines s
Raised when the stock of a raw material has fallen to the re-order level. , Raised to intimate the supplier the quantity and quality of new material required. , Indicates the type, quantity and quality of material required
Drawin g Withdr awn for person al use Withdr awn for person al use
Journal Book of origina l entry Book of origina l entry
Ledger Mainta in all types of Accou nts Mainta in all types of Accou nts
Assets All the proper ties owned by the busine ss All the proper ties owned by the busine ss
Multiple Choice Multiple Answer Question
The features of multiplicity of key factors are as follows :-
Correct Answer
More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique
Your Answer
More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique
True/False Question
The labour cost which can be identified with the individual cost centre is known as the Direct Labour Cost.
Correct Answer
True
Your Answer
True
True/False
Question
Budgetary control is one of the techniques of management accounting.
Correct Answer
True
Your Answer
True
True/False Question
The reports generated by financial accounting are meant for the use by management for effective decisions.
Correct Answer
True
Your Answer
False
Multiple Choice Single Answer Question
Advance tax account should appear in which of the final statement of accounts?
Correct Answer
Asset side of the balance sheet
Your Answer
Liability side of the balance sheet
Multiple Choice Multiple Answer Question
Accounting is the art where transactions are :-
Correct Answer
Summarized , Classified , Recorded
Your Answer
Summarized , Classified , Recorded
Select The Blank Question
Margin of safety indicates ________ of operations.
Correct Answer
Profitability
Your Answer
Profitability
Match The Following
Questio n Correct Answer Your Answer
Advantageou sly applicable in similar industries Scope of uniform costing Process of uniform costing
Spirit of mutual trust Requisite for uniform costing Requisite for uniform costing
Avoids cut throat competitio n Advantage of uniform costing Advantage of uniform costing
Treatment given to research and developmen t costs Fields covered by uniform costing Fields covered by uniform costing
Select The Blank Question
Category A items, as per ABC analysis, represent ________ % of the total number of items in inventory.
Correct Answer
Less than 10
Your Answer
Less than 10
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
Financial accounting may deal with the ascertainment of cost & calculation of profitability of the individual product.
Correct Answer
False
Your Answer
False
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
Your Answer
Cost of maintaining good relations with the workers , Cost of medical services , Cost of welfare facilities
Multiple Choice Single Answer Question
The integrated form of all functional budgets is known as :-
Correct Answer
Master budget
Your Answer
Master budget
Multiple Choice Multiple Answer Question
Features of a cost sheet are as follows :-
Correct Answer
Indicates the total cost of production during a given period , Indicates the unit cost of production during a given period , Helps the management in fixing the selling price to be quoted
Your Answer
Indicates the total cost of production during a given period , Indicates the unit cost of production during a given period , Helps the management in fixing the selling price to be quoted , Helps the management in taking 'make' or 'buy' decision
True/False Question
Amortization of goodwill should be considered while preparing cash budget.
Correct Answer
False
Your Answer
True
True/False Question
According to last-in-first-out method of material issue pricing, issues prices are close to current economic values.
Correct Answer
True
Your Answer
True
True/False Question
Management Accounting aims at enabling the management to take the decisions about the future. It may consider future data as well as non-financial factors.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer Question
The cost of fixed asset is Rs. 1,00,000. Rs. 17,000 is charged as depreciation. Calculate the rate of depreciation.
Correct Answer
0.17
Your Answer
0.17
Select The Blank Question
Generally all the liabilities will have ________ balance.
Correct Answer
Credit
Your Answer
Credit
Multiple Choice Multiple Answer Question
Identify the items which are correctly classified :-
Correct Answer
Carriage inward - Factory overheads , Carriage outward - Selling and distribution overheads , Sales research expenses -Selling and distribution overheads
Your Answer
Carriage inward - Factory overheads , Carriage outward - Selling and distribution overheads , Sales research expenses -Selling and distribution overheads
Multiple Choice Single Answer Question
Interest on bank loan, was paid till the quarter ending 30th September, 2003, Rs.36,000/-. Find the amount to be debited to the profit and loss account for the year ending on 31st March, 2004, assuming the loan is not yet repaid as on this date.
Correct Answer
Rs.72,000/-
Your Answer
Rs.72,000/-
True/False Question
Factory rent is a direct cost to the factory as a whole but indirect to the production departments.
Correct Answer
True
Your Answer
False
Multiple Choice Multiple Answer
Question
Master budget provides a basis for computing effect of changes in :-
Correct Answer
Product mix of the company , Sales volume , Production facilities
Your Answer
Product mix of the company , Sales volume , Production facilities