LIST OF ATTEMPTED QUESTIONS AND ANSWERS
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
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 Multiple Answer
Question
Limitations of Management Accounting includes-----------------Correct Answer Its wide scope , Possibility of intuitive decision , Requires
elaborate organizational structure
Your Answer Its wide scope , Possibility of intuitive decision , Requires
elaborate organizational structure
Match The Following
Question
Correct Answer
Your Answer
Accounting
Process of analyzing &
Process of analyzing &
interpretation
interpretation
Profitability statement
Indicates the amount of
profit earned
Indicates the amount of
profit earned
Balance-sheet
Financial status
Financial status
Book-Keeping
Books of Accounts
Books of Accounts
Financial statement
Profitability statement & Profitability statement &
Balance-sheet
Balance-sheet
Multiple Choice Multiple Answer
Question
Business Entity Concept ______________.
Correct Answer Business is separated from the owner. , The accounting
process carried out for the business , Separate legal entity
Your Answer Business is separated from the owner. , The accounting
process carried out for the business
Multiple Choice Multiple Answer
Question
Double Entry Accounting System__________________
Correct Answer Every business transactions have two elements , When
business receives something, it has to pay something , Every
debit has a corresponding credit
Your Answer Every business transactions have two elements , When
business receives something, it has to pay something , Every
debit has a corresponding credit
True/False
Question
Sundry creditors transfer to asset side.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
Purchase Goods of Rs. 7500 on 10% cash discount. The
discount amount is _______
Correct Answer 750
Your Answer
750
Multiple Choice Single Answer
Question
The cost of fixed asset is Rs. 1,00,000. Rs. 17,000 deducted
as depreciation. Calculate the percentage
Correct Answer 17%
Your Answer
17%
Multiple Choice Single Answer
Question
Amit sold Goods to Atul for Rs. 50,000 on cash & Rs. 50,000
on credit basis & allowed 10% discount on on the spot
transaction. Cash Account debited to Rs. _____________
Correct Answer 45,000
Your Answer
45,000
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
True/False
Question
A bank reconciliation statement is prepared on a particular
date.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
When bank balance as per bank book is considered then
following to be added.
Correct Answer cheques issued but not presented , direct deposit by customer
, wrong credits given by bank
Your Answer cheques issued but not presented , direct deposit by customer
, wrong credits given by bank
True/False
Question
As soon as the suspense account balance is wiped out , it may
be assumed that all mistakes have been corrected.
Correct Answer False
Your Answer
True
True/False
Question
Credit sale of Rs. 5000 to Bobby should be entered in the
purchase book.
Correct Answer False
Your Answer
False
Multiple Choice Single Answer
Question
This cost indicates historical cost which is incurred in past.
Correct Answer Sunk cost
Your Answer
Sunk cost
Multiple Choice Multiple Answer
Question
Manufacturing process involves study of
Correct Answer Designing the product , The quantity and quality , Material
used
Your Answer Designing the product , The quantity and quality , Material
used
Multiple Choice Multiple Answer
Question
LAST IN FIRST OUT (LIFO)
Correct Answer The price of the latest available lot is considered first , If that
lot is exhausted, the price of the 10% prior to that is
considered , Physical issue of the material may not be made
out of the said lot
Your Answer The price of the latest available lot is considered first ,
Physical issue of the material may not be made out of the said
lot , Only a and c
Multiple Choice Multiple Answer
Question
The Bin card and stores ledges do not match due to the
following reasons:
Correct Answer Arithmetical errors in calculating , Non- posting a certain
document , Posting a wrong Bin card
Your Answer Arithmetical errors in calculating , Non- posting a certain
document , Posting a wrong Bin card
True/False
Question
Flux method is important method of wage payment.
Correct Answer False
Your Answer
False
Multiple Choice Multiple Answer
Question
The causes of idle time can be analysed as
Correct Answer Administrative causes , Productive causes , economic causes
Your Answer
Administrative causes , Productive causes , economic causes
Multiple Choice Single Answer
Question
If production overheads to be absorbed are Rs. 50000/- and
labour hours worked are 100000 then the labour hour rate
will be,
Correct Answer Re. 0.50 per labour hour.
Your Answer
Re. 0.50 per labour hour.
True/False
Question
Fixed cost tends to vary with time rather than with level of
activity.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
Limitations of marginal costing are
Correct Answer difficult for classification as fixed cost and variable cost. ,
does not provide any standard for the evaluation of
performance. , it is useful technique only in the short run.
Your Answer difficult for classification as fixed cost and variable cost. ,
does not provide any standard for the evaluation of
performance. , it is useful technique only in the short run.
True/False
Question
Flexible budget is an effective tool for evaluation of
performance.
Correct Answer True
Your Answer
True
True/False
Question
Material Mix Variance occurs where only one raw material is
required
Correct Answer False
Your Answer
False
Multiple Choice Multiple Answer
Question
In fixed overhead variance, the volume variance is further
analyzed as
Correct Answer Variance Efficiency Variance , Capacity Variance , Calendar
Variance
Your Answer Variance Efficiency Variance , Capacity Variance , Calendar
Variance
Multiple Choice Single Answer
Question
Calculate Efficiency Variance, If actual production is 22,000
units, Standard production in actual hours is 21,000 units and
Standard rate per unit is Rs.1.5/-.
Correct Answer Rs.1,500/-( Favorable )
Your Answer
Rs.1,500/-( Favorable )
Multiple Choice Single Answer
Question
Calculate Sales Price Variance, If actual price is Rs.5.40/- per
unit, Standard price is Rs.5/- per unit and actual sales volume
is 500 units.
Correct Answer Rs.200/- ( Favorable )
Your Answer
Rs.200/- ( Adverse )
Multiple Choice Single Answer
Question
Standard may not be necessarily useful for this purpose.
Correct Answer Forecasting
Your Answer
Forecasting
Multiple Choice Multiple Answer
Question
In Cash budget , Non operating cash inflow includes
Correct Answer Receipt of loan/borrowings , Issue of shares , Sale of fixed
assets
Your Answer Receipt of loan/borrowings , Issue of shares , Sale of fixed
assets
Multiple Choice Multiple Answer
Question
In Cash budget , Non-Operating cash outflow
includesVarious kinds of over heads
Correct Answer Loan instalments , Taxes , Purchase of fixed assets.
Your Answer
Loan instalments , Taxes , Purchase of fixed assets.
Multiple Choice Single Answer
Question
During a month opening stock is 5,000 kg, closing stock is
6,000 kg and production is 21,000 kg , what is the quantity of
sales
Correct Answer 20,000 kg
Your Answer
20,000 kg
Match The Following
Question
Correct Answer
Your Answer
Ordering cost
Associated with
administrative efforts
Associated with
administrative efforts
Carrying cost
Cost of holding the
inventory
Cost of holding the
inventory
Total cost
Ordering cost + carrying Ordering cost + carrying
cost
cost
Inventory control
Maintain the inventory of Maintain the inventory of
any kind
any kind
E.O.Q
Economic Ordering
Quantity
Economic Ordering
Quantity
Select The Blank
Question
Generally accounts of the assets will have ________ balance
and liabilities will have ________ balance
Correct Answer debits
Your Answer
debits
Correct Answer credits
Your Answer
credits
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
purchase
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
ordered
Correct Answer variation
Your Answer
variation
Select The Blank
Question
Labour Turnover indicates ________ in labour force showing
a highly increasing trend or highly ________ trend
Correct Answer change
Your Answer
change
Correct Answer decreasing
Your Answer
decreasing
Select The Blank
Question
Administration overheads are ________ in nature and can be
controlled mainly at ________ level of the management
Correct Answer fixed
Your Answer
variable
Correct Answer top
Your Answer
top
Select The Blank
Question
Planning lays down the course of action to be taken in future.
In case budgetary control, it is in the form of the ________
and in case of ________ costing, it is in the form of the
standard cost
Correct Answer budgets
Your Answer
budgets
Correct Answer standard
Your Answer
standard
Select The Blank
Question
Fixed cost is the cost that tend to remain ________
irrespective of ________
Correct Answer constant
Your Answer
constant
Correct Answer level of activity
Your Answer
level of activity
Select The Blank
Question
The process of Allocation & apportionment can followed to
decide the ________ of overheads to each budget center
Correct Answer Allocation & apportionment
Your Answer
Distribution
Correct Answer Loading
Your Answer
Select The Blank
Question
The ideal standards are generally ________ in nature and the
variances always shows ________ trends
Correct Answer theoretical
Your Answer
theoretical
Correct Answer unfavorable
Your Answer
unfavorable
Select The Blank
Question
Bin card is maintained by ________ department whereas
________ is maintained by costing department.
Correct Answer Stores
Your Answer
Stores
Correct Answer Store ledger
Your Answer
Store ledger