LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank
Question
Uniform costing is not a separate method of
________.
Correct Answer cost accounting
Your Answer
cost accounting
Select The Blank
Question
The sales forecast (quantity) should be
compared with the ________ to find out
whether it is possible for the firm to handle
this level of sales.
Correct Answer Production capacity
Your Answer
Production capacity
Multiple Choice Multiple Answer
Question
The key factor determines the :
Correct Answer Level of activity , Capacity utilization , Level
of sales
Your Answer
Level of activity , Capacity utilization , Level
of sales
Multiple Choice Multiple Answer
Question
A materials requisition form normally
contains the following aspects:
Correct Answer Quantity requisitioned , Per unit material
cost , Job number
Your Answer
Quantity requisitioned , Per unit material
cost , Job number
Select The Blank
Question
Discount received from the creditor has
been entered in the creditor's account but
discount has not been credited; what type
of error is this ________
Correct Answer Omission of posting an amount in the
ledger
Your Answer
errors of principle
True/False
Question
Under some circumstances, it may be
advisable to sell at prices equal to or below
the marginal cost ignoring fixed cost.
Correct Answer True
Your Answer
False
Multiple Choice Single Answer
Question
Which of the following operations would
normally be carried out first when preparing
a master budget?
Correct Answer Determining the budget period
Your Answer
Identifying the principal budget factor
Select The Blank
Question
Interest on capital is an allowable
expenditure for parntership firms, as per the
provisions of the ________ .
Correct Answer Income Tax Act, 1961
Your Answer
The Partnership Act, 1956
Match The Following
Question
Correct Answer
Book-Keeping
Your Answer
Books of Accounts Books of Accounts
Financial statement Profitability
statement &
Balance-sheet
Accounting
Process of
analyzing &
interpretation
Profitability
Indicates the
Profitability
statement &
Balance-sheet
Process of
analyzing &
interpretation
Indicates the
statement
Balance-sheet
amount of profit
earned
Financial status
amount of profit
earned
Financial status
Multiple Choice Single Answer
Question
Mixers Ltd. is engaged in producing a
standard mix using 60kg of chemical X and
40 kg of chemical Y. The standard loss of
production is 30%. The standard price of X
is Rs.5/- per kg.and of Y Rs.10/- per kg. The
actual mix and yield were as follows : X - 80
kg @ Rs.4.50 per kg; Y - 70 kg @ Rs.8/per kg. Actual yield - 115 kg.Compute
material yield variance.
Correct Answer Rs.100/- (Favourable)
Your Answer
Rs.50/- (Favourable)
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
Multiple Choice Multiple Answer
Question
Select the examples of functional budgets:
Correct Answer Sales budget , Production budget ,
Research and development budget
Your Answer
Sales budget , Production budget , Capital
expenditure budget
Multiple Choice Multiple Answer
Question
The net profit before certain adjustments
was Rs.95,040/-. After giving due effects to
the adjustments, the revised net profit (after
considering the adjustments) is Rs.78,560/-.
Select the adjustments which might brought
this change.
Correct Answer Accrued commission income of-Rs.32,960/was not entered in the books , Rent for the
month of March was payable and yet to be
recorded Rs.19,280/- , Repairs expenditure
to the extent of Rs.30,160/- was wrongly
transferred to Machinery account
Your Answer
Accrued commission income of-Rs.32,960/was not entered in the books , Rent for the
month of March was payable and yet to be
recorded Rs.19,280/- , Repairs expenditure
to the extent of Rs.30,160/- was wrongly
transferred to Machinery account
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 organisation , Whether the
organisation's market share is increasing or
decreasing? , Details of seasonal
fluctuations in sales
Your Answer
The number and types of products sold by
the organisation , Whether the
organisation's market share is increasing or
decreasing? , Details of seasonal
fluctuations in sales
Multiple Choice Single Answer
Question
Sita and Gita are partners of SGL & Co. As
on 1st August, 2003 Sita's capital stood as
Rs.10,000/- and Gita's capital as
Rs.18,000/-. If interest on capital is to be
provided @ 10% p.a., what should be the
treatment of this interest in the profitability
statement, assuming there were no
additions to capital during this period?
Correct Answer Profit and loss account should be debited
with Rs.1,866.67
Your Answer
Profit and loss account should be debited
with Rs.1,866.67
Multiple Choice Single Answer
Question
KDL Ltd. charges depreciation @ 20% on
written down value method. The net book
value of its machinery on 1st January, 2003
was Rs.125,000/-. What will be the net book
value of its machinery on year end, i.e.31st
December, 2003, assuming there were no
additions or disposals during the year?
Correct Answer Rs.100,000/Your Answer
Rs.100,000/-
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
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
True/False
Question
Profitability statement indicates the amount
of assets & liabilities.
Correct Answer False
Your Answer
False
True/False
Question
Standard costing is always accompanied by
a system of budgeting but budgetary control
may be operated in business where
standard costing is impracticable.
Correct Answer True
Your Answer
False
Select The Blank
Question
An amount of Rs.200/- is received from P
and is credited to Q. The rectification entry
would affect ________
Correct Answer P's A/c and Q's A/c
Your Answer
P's A/c and Q's A/c
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
Multiple Choice Multiple Answer
Question
Causes for adverse material price variance
are:
Correct Answer Uneconomical size of purchase orders ,
Failure to avail discounts allowed by
suppliers. , Excessive freight charges
Your Answer
Uneconomical size of purchase orders ,
Failure to avail discounts allowed by
suppliers. , Excessive freight charges
Multiple Choice Multiple Answer
Question
Select the items which may be classified as
administration overheads.
Correct Answer Depreciation on office furniture , Director's
remuneration , Telephone expenses
Your Answer
Depreciation on office furniture , Director's
remuneration , Telephone expenses
Multiple Choice Single Answer
Question
Which of the following is the most efficient
use of the clock card?
Correct Answer To facilitate payment for time spend on the
work premises
Your Answer
To allow labour time to be charged to
individual jobs
True/False
Question
Budgetary control system provides a basis
for establishment of the incentive systems.
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
A fixed budget is useful only when the
actual level of activity corresponds to the
budgeted level of activity.
Correct Answer True
Your Answer
True
Select The Blank
Question
A low margin of safety indicates ________
fixed overheads.
Correct Answer higher
Your Answer
lower
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
70 to 100
Multiple Choice Single Answer
Question
The gross profit transferred from the trading
account is Rs.98,999/-. The expenses
debited to the profit and loss account are
salary Rs.12,000/-; advertisement expenses
Rs.18,000/-; printing and stationery
Rs.5,500/- and managing director's
incentive Rs.28,000/-. It was noted that no
entry was made for salary of one month
which was due but not yet paid. Find the net
profit of the company.
Correct Answer Rs.34,408.09
Your Answer
Rs.35,499/-
True/False
Question
Credit balances in all the Personal & Real
accounts appear on asset side.
Correct Answer False
Your Answer
False
Select The Blank
Question
A complete list of all material required, with
quantities, for a particular job is given in the
________.
Correct Answer Bill of material
Your Answer
Bill of material
True/False
Question
Variable cost + Profit = Sales
Correct Answer False
Your Answer
False
True/False
Question
Price based on Uniform Costing may be
taken to be reliable and representative of
the whole industry.
Correct Answer True
Your Answer
True
Select The Blank
Question
The term ________ indicates expenditure
incurred on or attributable to a given thing.
Correct Answer Cost
Your Answer
Expense
Multiple Choice Single Answer
Question
The budget manual must contain statement
regarding:
Correct Answer Objectives of the orgainsation
Your Answer
Working hours of the organisation
Multiple Choice Single Answer
Question
Annual subscription paid by bank to the
Chamber of Commerce on 31/03/04, as per
the standing instructions, and advise sent
thereafter, may lead to:
Correct Answer Balance as per bank book > Balance as per
pass book
Your Answer
Balance as per bank book < Balance as per
pass book
Select The Blank
Question
Entry for dishonour of cheque appears only
in the pass book, this entry should be
________ in the bank book.
Correct Answer Passed
Your Answer
Passed
Select The Blank
Question
Since the pass book and the bank book
record the ________ transactions, the bank
balance as per these books should be
equal.
Correct Answer Same
Your Answer
Same
True/False
Question
A pre-determined factory overhead rate
holds up product costing.
Correct Answer False
Your Answer
False
Multiple Choice Multiple Answer
Question
These are the replacement costs of labour
turnover.
Correct Answer Inefficiency of new workers , Cost of
selection and placement , Increased
spoilage and defectives
Your Answer
Cost of personnel administration ,
Inefficiency of new workers , Cost of
selection and placement
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
True
Multiple Choice Single Answer
Question
Rent of Rs.7,500/- for the month of April
was received in March. Which account
should be credited in the books of accounts
for making an entry for receipt of the said
amount?
Correct Answer Rent received in advance account
Your Answer
Rent received in advance account
True/False
Question
Bank reconciliation statement can be
prepared on weekly basis.
Correct Answer True
Your Answer
True
Multiple Choice Single Answer
Question
Amit sold Goods to Atul for Rs. 50,000/- on
cash & Rs. 50,000/- on credit basis. Amit
allowed 10% discount for on the spot
transaction. What is the amount that should
be debited to the cash account?
Correct Answer Rs.45,000/Your Answer
Rs.45,000/-
Match The Following
Question
Correct Answer
Liabilities
Drawing
Journal
Ledger
Assets
Your Answer
All the amount
All the amount owed
owed by the
by the business
business
Withdrawn for
Withdrawn for
personal use
personal use
Book of original
Book of original
entry
entry
Maintain all types of Maintain all types of
Accounts
Accounts
All the properties
All the properties
owned by the
owned by the
business
business