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 Balance sheet indicates the expenditure & income from the business. Correct Answer False Your Answer False True/False Question The process of accounting split into three steams i.e. financial, cost, management accounting. Correct Answer True Your Answer True Match The Following Question Correct Answer Your Answer Personal A/C Debit the receiver, Credit Debit the receiver, Credit the giver the giver Real A/C Debit what comes in, Credit what goes out Debit what comes in, Credit what goes out Nominal A/C Debit all the expenses, Credit all the incomes Debit all the expenses, Credit all the incomes Tangible assets Building, Machinery Building, Machinery In tangible assets Patents, Trade marks Patents, Trade marks Multiple Choice Multiple Answer Question Accounting period Concept________________ Correct Answer Longer life-span on business is divided into shorter segments , Each one being in the form of accounting period , Selection of accounting period may depend on various factors Your Answer Longer life-span on business is divided into shorter segments , Each one being in the form of accounting period , Selection of accounting period may depend on various factors Multiple Choice Multiple Answer Question Depreciation Correct Answer Amount charged on Fixed Assets. Your Answer Amount charged on Fixed Assets. , Amount charged on Current Assets. True/False Question Purchased computers of Rs. 50,000 come under the heading of fixed asset Correct Answer True Your Answer True True/False Question Amount with drawn for personal purpose drawing A/C to be debited. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Profit & Loss A/C credit side has Correct Answer Gross profit , Commission received , Interested received Your Answer Gross profit 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 Multiple Answer Question When bank balance as per pass book is considered then following to be deducted. 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 Multiple Choice Single Answer Question Rs. 2500 paid for the purchase of radio set for personal use of proprietor debited to general expenses account for rectifying the error, which A/C to be debited Correct Answer Drawing A/C Your Answer Purchase A/C Multiple Choice Single Answer Question Discount received from the Creditors has been entered in the Creditors A/C but discount amount has not been credited, for rectifying such error which account to be debited. Correct Answer Suspense A/C Your Answer Suspense A/C True/False Question Total of purchase register for the month of March is taken 50,000 instead of 55,000. Posting to individual A/C of supplier total to correct amount is 55,000 but purchase account is debited by Rs. 50,0 Correct Answer True Your Answer True Multiple Choice Single Answer Question This cost indicates increased or decreased cost due to the increased or decreased volume of operations. Correct Answer Differential cost Your Answer Differential cost Multiple Choice Multiple Answer Question Office & Administration overhead includes Correct Answer Salary , Rent & Taxes , Stationary & postage Your Answer True/False Question Salary , Rent & Taxes , Stationary & postage There is reverse relationship between the ordering cost and carrying cost Correct Answer True Your Answer True Multiple Choice Multiple Answer Question Store ledger Correct Answer Record of all receipts and issue transactions , Financial expressions of all transactions , Maintenance of Store ledges provides a second check Your Answer Record of all receipts and issue transactions , Maintained in Stores department , Maintenance of Store ledges provides a second check Multiple Choice Multiple Answer Question Following points are taking into consideration for evaluation of receipts Correct Answer The Price , The trade discount is to be deducted , Other amounts such as sales tax, excise duty, octroi duty Your Answer The Price , The trade discount is to be deducted , Advertisement cost Multiple Choice Multiple Answer Question In EOQ, to express carrying cost as a percentage of the unit cost of purchases this is used in the formula----------Correct Answer i Your Answer A,O,C Multiple Choice Single Answer Question Under the differential time rate method of wage payment between 90% to 100% of efficiency following rate is offered. Correct Answer Rs. 1.40 per hour Your Answer Rs. 1.40 per hour True/False Question Where overheads chargeable to the department are Rs. 5000/- , direct labour hours worked are 24000 then labour hour rate is Re. 0.2083 labour hour. Correct Answer True Your Answer True Multiple Choice Multiple Answer Question The selection of the base on which overheads should be apportioned depend on the following principles. Correct Answer service or use basis , survey basis , ability to pay basis Your Answer service or use basis , survey basis , ability to pay basis True/False Question The Budget key factor may be in the form of sales, raw material, labour etc. Correct Answer True Your Answer True Multiple Choice Single Answer Question For a material, if standard quantity is 500 kg and standard price is Rs.6/- per kg. Find out the Material Cost variance if actual quantity is 400 kg and actual price is Rs.6/- per kg. Correct Answer Rs.600/-( favorable ) Your Answer Rs.500/-( favorable ) Multiple Choice Single Answer Question Find out Labour Efficiency Variance, if Standard Rate is Rs.1.50/- per hour, Standard hours are 12,000 and Actual hours are 12,600. Correct Answer Rs.900/- ( Adverse ) Your Answer Rs.750/- ( Favorable ) 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 Labour Mix Variance, If revised standard hours are 16,500/-, Standard rate is Rs.3/- and Actual hours are 13, 500. Correct Answer Rs.9,000/- ( favourable ) Your Answer Rs.9,000/- ( unfavorable ) Multiple Choice Single Answer Question Standard costs are the targets to be attained by the actual performance. Correct Answer Minimum Your Answer Minimum 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 Multiple Answer Question The following factors affects the budgeted advertisement cost Correct Answer Percentage of profits , Availability of funds , Competitors policy Your Answer Percentage of profits , Availability of funds , Competitors policy Match The Following Question Correct Answer Your Answer Token or Disc Method Token number & identification number allotted to worker Token number & identification number allotted to worker Time Recording Clock Method Ticket number & clock card allotted to worker Ticket number & clock card allotted to worker Daily Time sheets Time spent by worker on job is recorded Attendance register Weekly Time sheets Record of time for all the jobs during the week is made Record of time for all the jobs during the week is made Hand Written method Attendance register Time spent by worker on job is recorded Select The Blank Question Accounting to the matching principles of accounting, the ________ incurred during an accounting period are required to be match with ________ during that period Correct Answer cost Your Answer liabilities Correct Answer revenues Your Answer revenues Select The Blank Question Management Accounting has a very ________ scope and it requires ________ organizational structure Correct Answer wide Your Answer wide Correct Answer elaborate Your Answer elaborate Select The Blank Question Along with financial accounting, ________ and ________ are the other streams of accounting Correct Answer Cost Accounting Your Answer Management Accounting Correct Answer Management Accounting Your Answer Cost Accounting Select The Blank Question The cost accountancy is defined as “ the application of costing principles,methods and techniques to the ________, art and practice of ________ ascertainment of the profitability and the presenta Correct Answer science Your Answer science Correct Answer cost control Your Answer cost control Select The Blank Question Preventive costs of labour turnover refers to all the costs which may be incurred by the organisation to keep workers happy and ________ them from ________ the job Correct Answer discourage Your Answer discourage Correct Answer leaving Your Answer leaving Select The Blank Question Replacement costs of labour turnover are ________ and ________ Correct Answer training Your Answer training Correct Answer breakages of machine Your Answer medical services Select The Blank Question Semi ________ overheads are neither ________ nor variable in nature. Correct Answer fixed Your Answer variable Correct Answer variable Your Answer fixed Select The Blank Question Break even point is a situation of no ________ no ________ Correct Answer profit Your Answer profit Correct Answer loss Your Answer loss 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 amount Correct Answer Loading Your Answer Select The Blank Question Rs.5000 paid as ________ to ________ should be debited to salary account Correct Answer Mahesh Your Answer salary Correct Answer salary Your Answer Mahesh