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
True
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
Cost Accounting restrict itself with historical transactions
Correct Answer False
Your Answer
True/False
True
Question
A very wide scope of Management Accounting is the limitation
by itself.
Correct Answer True
Your Answer
True
Multiple Choice Multiple Answer
Question
Financial Accounting ______________
Correct Answer Designed to supply information for internal/ external uses. ,
Deals with the transaction during specific period. , It is
compulsory
Your Answer
Designed to supply information for internal/ external uses. ,
Deals with the transaction during specific period.
Multiple Choice Multiple Answer
Question
Cost Accounting ______________.
Correct Answer Concerned with specific activities. , Classified according to their
nature. , It deals with both i.e. past & present.
Your Answer
Concerned with specific activities. , Classified according to their
nature. , It covers whole business
Match The Following
Question
Correct Answer
Your Answer
Accounting
Process of analyzing &
interpretation
Process of analyzing &
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 &
Balance-sheet
Profitability statement &
Balance-sheet
Multiple Choice Multiple Answer
Question
Features of double entry accounting system are . . .
Correct Answer Every business transaction has two elements , When business
receives something, it has to pay something , Every debit has a
corresponding credit
Your Answer
Every business transaction has two elements , When business
receives something, it has to pay something , Every debit has a
corresponding credit
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
True/False
Question
Penalty paid for delay in payment to creditors represents
uncontrollable cost.
Correct Answer False
Your Answer
True
Multiple Choice Multiple Answer
Question
Following are the examples of service cost centre
Correct Answer Stores department , Transport department , Accounting
department
Your Answer
Stores department , Transport department , Accounting
department
Match The Following
Question
Correct Answer
Your Answer
Cost Centre
Facilitate the fixation of
responsibility
Increase or Decrease in
cost
Cost Control
Process of controlling
costs of operations
Facilitate the fixation of
responsibility
Differential Cost
Increase or Decrease in
cost
Increase or Decrease in
cost
Sunk Cost
Historical Cost
Historical Cost
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 for the
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 for the ,
Helps the management in taking 'make' or 'buy' decision for the
Select The Blank
Question
________ Accounting assists the management in establishing
the plans to attain the economic objectives and take proper
decisions for the attainment of its objectives.
Correct Answer Management
Your Answer
Management
Select The Blank
Question
Depreciation charged on office furniture on straight line basis is
an example of ________.
Correct Answer Administration overheads
Your Answer
Administration overheads
True/False
Question
Linking overhead to a cost unit is known as overhead absorption.
Correct Answer True
Your Answer
True
True/False
Question
Manufacturing overheads represents all costs incurred in the
factory including direct material cost and direct labour cost.
Correct Answer False
Your Answer
False
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.
Your Answer
Single organization having number of branches. , Number of
companies in same industry , Similar Industries such as cotton,
jute etc.
True/False
Question
New companies can adopt Uniform costing system as a readymade system.
Correct Answer True
Your Answer
False
Multiple Choice Multiple Answer
Question
Purchased goods worth Rs.6,450/- on 10th March, 2004.
However the goods were delivered directly to the plant situated
at Nagar and hence this transaction was not recorded in the
purchase book, which is maintained at the corporate office.
Analyse the impact of this transaction.
Correct Answer The gross profit will increase by Rs.6,450/-
Your Answer
The purhases will increase by Rs.6,450/- , The closing stock will
increase by Rs.6,450/- , The gross profit will not be affected
Select The Blank
Question
In practical circumstances, the ________ are referred to as
application of funds.
Correct Answer Assets
Your Answer
Assets
Select The Blank
Question
If Rs.15,000/- has been paid to Kargil Relief Fund as the owner's
personal contribution, ________ account should be debited in
the books of accounts of the business.
Correct Answer Drawings
Your Answer
Donation
Multiple Choice Single Answer
Question
Included in the trial balance is the sales promotion suspense
account with a debit balance of Rs.6,300/-. It is given that this
balance should be written off. Calculate its impact on profit of the
company.
Correct Answer The net profit will decrease by Rs.6,300/Your Answer
The gross profit will decrease by Rs.6,300/-
Multiple Choice Single Answer
Question
A lathe machine was purhcased on 31st March, 2004 for
Rs.65,000/-, however it was installed only on 5th April, 2004.
The depreciation is charged @ 15% p.a.. Find the amount of
depreciation charge for the said lathe machine for the year
ended 31st March, 2004.
Correct Answer Nil
Your Answer
Nil
True/False
Question
Malik started business by contributing cash Rs.50,000/- and his
personal car worth Rs.25,000/-; thus his capital account should
be credited with Rs.75,000/-.
Correct Answer True
Your Answer
True/False
Question
True
While passing the journal entry, it is of utmost importance to
ensure that the total of amount debited is equal to the total of the
amount credited.
Correct Answer True
Your Answer
True
Select The Blank
Question
Copy of a firm's account in the bank's ledger is known as
________.
Correct Answer Bank statement
Your Answer
Bank statement
Multiple Choice Single Answer
Question
A cheque of Rs.400/- received and deposited into bank on 26th
September, was credited in the pass book but was omitted to be
entered in the bank book: this error will result in :
Correct Answer Difference in the balance as per bank book and as per pass
book
Your Answer
Difference in the balance as per bank book and as per pass
book
Select The Blank
Question
The ________ is responsible for material losses while in storage.
Correct Answer Store-keeper
Your Answer
Store-keeper
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
True
Multiple Choice Single Answer
Question
The cost of idle time incurred by employees that is considered
normal for the production process should be charged to :
Correct Answer Factory overheads
Your Answer
True/False
Question
Direct labour
The cost of abnormal time may be recovered by inflating the
hourly labour rate.
Correct Answer True
Your Answer
True
Select The Blank
Question
The cost-volume-profit analysis basically highlights the effect of
changes in sales volume on the profit of the company, in the
________.
Correct Answer short run
Your Answer
short run
Select The Blank
Question
Contribution represents pool of resources available for meeting
all costs other than ________.
Correct Answer Variable costs
Your Answer
Variable costs
Multiple Choice Single Answer
Question
ABC Ltd. is planning to sell 200,000 units of product B. The fixed
costs are Rs.400,000/- and the variable costs are 60% of the
selling price. In order to realize a profit of Rs.100,000/-, the
selling price per unit would have to be :
Correct Answer Rs.6.25
Your Answer
Rs.4.17
Multiple Choice Single Answer
Question
The total production cost for making 20,000 units was
Rs.21,000/- and the total production cost for making 50,000 units
was Rs.34,000/-. Once production exceeds 25,000 units,
additional fixed costs of Rs.4,000/- are incurred. The full
production cost per unit of making 30,000 units is:
Correct Answer Re.0.98
Your Answer
Re.0.84
Multiple Choice Multiple Answer
Question
Which of the following budgets may be termed as a long term
budget?
Correct Answer Capital expenditure budget , Research and Development
expenditure budget , Budget of a transportation company
Your Answer
Capital expenditure budget , Research and Development
expenditure budget
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
In which of the following situations, the flexible budget should be
preferred?
Correct Answer Sales are too difficult to predict , Supply level of input cannot be
predicted , Varying levels of production activity
Your Answer
Sales are too difficult to predict , Supply level of input cannot be
predicted , Varying levels of production activity
Multiple Choice Multiple Answer
Question
Identify the budgets for which the production manager sould be
held responsible :
Correct Answer Production budget , Production overheads budget , Plant
utilisation budget
Your Answer
Production budget , Production overheads budget , Plant
utilisation budget
Select The Blank
Question
The budget that represents the funds investment for expansion,
diversification, etc. is known as ________.
Correct Answer Capital expenditure budget
Your Answer
Administrative expenses
True/False
Question
Amortisation of goodwill should be considered while preparing
cash budget.
Correct Answer False
Your Answer
True
Multiple Choice Multiple Answer
Question
Features of material usage variance are :
Correct Answer Measures the difference between the quantity of materials
actually used and that should have been used. , Considers
standard price X actual quantity , Considers standard price X
standard quantity
Your Answer
Measures the difference between the quantity of materials
actually used and that should have been used. , Considers
standard price X actual quantity , Considers standard price X
standard quantity
Select The Blank
Question
________ variance represents the over or under utilisation of
pland and machinery.
Correct Answer Capacity
Your Answer
Capacity