LIST OF ATTEMPTED QUESTIONS AND ANSWERS
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 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 Profitability statement indicates the amount of assets & liabilities.
Correct Answer False
Your Answer False
True/False
Question Balance sheet indicates the expenditure & income from the business.
Correct Answer False
Your Answer False
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 Single Answer
Question __________ Accounting becomes a source of information for
Management Accounting.
Correct Answer Financial
Your Answer Cost
True/False
Question Patents and Trade Marks Account is a Real Account.
Correct Answer True
Your Answer False
Multiple Choice Multiple Answer
Question Money Measurement Concept__________________
Correct Answer Only those transactions and facts expressed in terms of money
, This Concept imposes severe restrictions on the kind of information available
from financial statements , Due to several restrictions it becomes drawback of
financial accounting
Your Answer Only those transactions and facts expressed in terms of money ,
This Concept imposes severe restrictions on the kind of information available
from financial statements , Due to several restrictions it becomes drawback of
financial accounting
Multiple Choice Multiple Answer
Question P/L A/C debit side includes
Correct Answer salary , discount allowed , postage & telegram
Your Answer salary , discount allowed , postage & telegram
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 A started business with cash 5000, building 5000, furniture 2000,
having depreciation of 10% on building. The total amount of capital comes to Rs.
__________
Correct Answer 11500
Your Answer 12000
Multiple Choice Single Answer
Question Goods distributed as free sample amounted to Rs. 10,000. Prepare
Neonboard Rs. 5000. The total amount transfer to advertisement account is
Rs.____
Correct Answer 15,000
Your Answer 15,000
Multiple Choice Single Answer
Question The periodical total of sales book was cash short by Rs. 5000 for
rectifying the same, which A/C to be debited
Correct Answer Suspense A/C
Your Answer Suspense A/C
Multiple Choice Multiple Answer
Question Following errors do not affect the trial balance
Correct Answer Error of Principle , Error of Omission , Error of Commission
Your Answer Error of Principle , Error of Omission , Error of Commission
Multiple Choice Multiple Answer
Question Following error 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
Your Answer Wrong totaling of subsidiary books
Match The Following
Question Correct Answer Your Answer
Error of Principle Trial Balance does not get affected Wrong Posting
Error of Omission The transaction is totally omitted The transaction is totally
omitted
Error of commission Wrong Posting Wrong classification
Compensating Error Wrong classification Trial Balance does not get affected
Difference in trial balance Transferred to suspense account Transferred to
suspense account
True/False
Question There is no need to open a suspense account if the trial balance does
not agree.
Correct Answer False
Your Answer False
True/False
Question A contractor’s bill for the extension of premises amounting to Rs.
2750 has been debited to building repair account
Correct Answer False
Your Answer False
Match The Following
Question Correct Answer Your Answer
Opportunity Cost Cost can be controlled Return or yield
Differential Cost Historical Cost Increase or Decrease in cost
Sunk Cost Cannot be controlled Historical Cost
Controllable Cost Increase or Decrease in cost Cost can be controlled
Uncontrollable Cost Return or yield Cannot be controlled
True/False
Question Indirect material cost assist the manufacturing process is an integral
part of finish goods.
Correct Answer False
Your Answer True
True/False
Question Dividend received is a Non-operating Income.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Company having opening stock of Rs. 1,80,000 purchase Rs.
8,00,000. Freight 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 Single Answer
Question A Co. having factory cost of Rs. 13,10,800. The administrative
overheads are salaries 40,000, rent & rates 6400, Traveling expenses 12,400,
Depreciation 2400, Directors fees 24,000, General Charges 2
Correct Answer 14,59,200
Your Answer none of above
Multiple Choice Multiple Answer
Question Indirect Labour Cost
Correct Answer Wages paid to storekeeper , Salary of works manager , Wages
paid to gatekeeper
Your Answer Wages paid to storekeeper , Salary of works manager , Wages
paid to gatekeeper
Multiple Choice Multiple Answer
Question Factory overheads are termed as
Correct Answer Production overheads , Works overheads , Manufacturing
overheads
Your Answer Works overheads
Multiple Choice Multiple Answer
Question Selling and distribution overheads includes
Correct Answer Indirect Material such as packing material, samples etc., ,
Indirect labour like salaries to sales personnel manager , Indirect expenses like
warehouse charges, advertisement
Your Answer Indirect expenses like warehouse charges, advertisement
Multiple Choice Multiple Answer
Question The aims of perpetual inventory system are as follows
Correct Answer Maintaining Bin cards , Maintaining store ledger , Continuous
verification of physical stock
Your Answer Maintaining Bin cards , Maintaining store ledger , Continuous
verification of physical stock
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 medical services , training costs , cost of welfare facilities
Multiple Choice Multiple Answer
Question These are the features of variable overheads
Correct Answer vary directly in proportion to volume of output. , per unit cost
remains the same , total overheads may increase or decrease as per volume of
output.
Your Answer vary directly in proportion to volume of output. , per unit cost
remains the same , total overheads may increase or decrease as per volume of
output.
True/False
Question To take make or buy decision under the marginal costing , if purchase
price of the product is less than its variable cost it is advisable to go for
manufacturing proposition.
Correct Answer False
Your Answer False
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
True/False
Question The ultimate incorporation of all functional budgets takes the form of
budgeted Profit & Loss Account and Balance Sheet.
Correct Answer True
Your Answer True
True/False
Question Flexible budget is an effective tool for evaluation of performance.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Calendar Variance arises only if there is abnormal increase or
decrease in
Correct Answer Actual number of working days
Your Answer Actual number of working days
Multiple Choice Single Answer
Question Standard may not be necessarily useful for this purpose.
Correct Answer Forecasting
Your Answer Coordinating
Multiple Choice Single Answer
Question If during a month anticipated sales are 5,000 kg, opening stock is
1,000 kg and closing stock is 500 kg then what will be the quantity of production
Correct Answer 4,500 kg
Your Answer 4,500 kg
Multiple Choice Single Answer
Question For a unit, if opening stock of raw material is 10,000 units, closing
stock of raw material is 5,000 units and consumption is 3,20,000 units, what will
be the quantum of raw material to be purchased
Correct Answer 3,15,000
Your Answer 3,15,000
Select The Blank
Question Interest on overdraft charged by the bank is ________ to the pass
book and ________ to the cash book
Correct Answer debited
Your Answer debited
Correct Answer credited
Your Answer credited
Select The Blank
Question While selecting source of supply ________ epartment may call for the
________ from the prospective suppliers
Correct Answer purchase
Your Answer production
Correct Answer quotation
Your Answer quotation
Select The Blank
Question After material is received from the supplier, quantity actually received
is compared with quantity ________-and ________-if any, are taken up with the
supplier
Correct Answer ordered
Your Answer variation
Correct Answer variation
Your Answer ordered
Select The Blank
Question ________ and ________ are non monetary incentives
Correct Answer Safety services
Your Answer Safety services
Correct Answer education facility
Your Answer education facility
Select The Blank
Question Under the repeated distribution method the overheads of ________
department are distributed to other departments on agreed ________
Correct Answer service
Your Answer production
Correct Answer percentage
Your Answer percentage
Select The Blank
Question variable cost is the cost that tend to ________ in direct proportion
with ________
Correct Answer vary
Your Answer vary
Correct Answer level of activity
Your Answer level of activity
Select The Blank
Question Variable costs are the controllable costs at the ________ level of the
management whereas fixed costs can be controlled only on the ________ level
of the management
Correct Answer Lower
Your Answer Lower
Correct Answer Top
Your Answer Top
Select The Blank
Question ________ Legal charges and ________ are the accounts which are
shown on the debit side of Profit & Loss Account
Correct Answer Like office rent,
Your Answer Audit fees
Correct Answer Audit fees
Your Answer Depreciation on Machinery