Select The Blank

Question
Furniture account will always have a ________ balance.
Correct Answer
Debit
Your Answer
Nil
Multiple Choice Multiple Answer
Question
Accounting is the art where transactions are
Correct Answer
Summarized , Classified , Recorded
Your Answer
Summarized , Classified , Recorded
True/False
Question
The phrase 'By Balance c/d.' written on the credit side of the rent account, indicates credit balance for
this account.
Correct Answer
False
Your Answer
False
Select The Blank
Question
The ________ variance is the difference between the actual variable overhead incurred and the
standard variable overhead charged to production.
Correct Answer
Total variable overhead
Your Answer
Total variable overhead
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
Select The Blank
Question
The selection of ________ may depend upon the various factors like characteristics of the business
organisation, tax considerations, statutory requirements etc.
Correct Answer
Accounting period
Your Answer
Accounting period

True/False
Question
Standard costs are used for external reporting.
Correct Answer
False
Your Answer
False
True/False
Question
It is said that the income statement represents wealth increase /decrease for the organisation.
Correct Answer
True
Your Answer
False
Multiple Choice Single Answer
Question
Mr. Oak, materials manager, spends 40% time in the factory and the remaining in office. If his annual
salary is Rs.500,000/-, what amount should be charged as office overheads ?
Correct Answer
Rs.300,000/Your Answer
Rs.200,000/Multiple Choice Multiple Answer
Question
The factors to be considered while preparing the direct materials budget are :
Correct Answer
Adequacy of material storing space , Availability of funds , Material in stores but reserved for specific
purposes
Your Answer
Adequacy of material storing space , Availability of funds , Material in stores but reserved for specific
purposes
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
Techniques of management accounting include:
Correct Answer
Marginal costing , Budgetary control , Standard costing

Your Answer
Marginal costing , Cost control , Budgetary control , Standard costing
Match The Following
Question
Correct Answer
Your Answer
Profit and loss account
Commission received
Dividend paid
Manufacturing account
Work in Progress
Land & Building
Balance Sheet
Land & Building
Closing stock of finished goods
Trading account
Closing stock of finished goods
Work in Progress
True/False
Question
While preparing the labour cost budget, factors such as overtime working or night shift working may
be ignored.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
Question
If the sales forecast is less than the past sales but the top management insists upon a certain amount
of additional profits, then following steps can be taken to achieve the target profit
Correct Answer
Increase the selling price , Reduce cost of sales , Increase the selling efforts
Your Answer
Increase the selling price , Increase the sales volume , Increase the selling efforts
Multiple Choice Multiple Answer
Question
From the following, select intangible assets:
Correct Answer
Goodwill , Patents , Trade Marks
Your Answer
Patents , Trade Marks , Investments
True/False
Question
Bank reconciliation statement must be prepared before the preparation of profit and loss account and
balance sheet.
Correct Answer

True
Your Answer
False
Multiple Choice Single Answer
Question
Find the budget which is inadequate as a cost control technique :
Correct Answer
Fixed budget
Your Answer
Fixed budget
True/False
Question
Predetermined rate of absorption of overheads helps in quick preparation of cost estimates and
quoting prices.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
Net sales Rs,7,50,000/-, opening stock Rs.1,14,375/-, purchases Rs.483,375/- and closing stock
Rs.1,47,750/-. Calculate the Gross Profit.
Correct Answer
Rs.3,00,000/Your Answer
Rs.3,00,000/Select The Blank
Question
________ is an example of intangible asset.
Correct Answer
Goodwill
Your Answer
Land
True/False
Question
Accounting is an art of recording, classifying & summarizing in a significant manner.
Correct Answer
True
Your Answer
True
True/False
Question
Goods sent to the customers on approval basis should be treated as sales.
Correct Answer
False

Your Answer
False
Multiple Choice Multiple Answer
Question
Features of Sunk cost are . . .
Correct Answer
Indicates historical cost , Not relevant in decision making process , Incurred in past
Your Answer
Indicates historical cost , Incurred in past , Relevant in decision making process
True/False
Question
Profitability statement indicates the amount of assets & liabilities.
Correct Answer
False
Your Answer
True
True/False
Question
A business is an activity carried out with the intention of earning the profit.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
Identify the steps involved in selecting the optimum product mix, when the limiting factor is number of
labour hours and sales demand.
Correct Answer
For each product find the contribution per unit and per labour hour , Award ranks to each of the
products based on contribution per limiting factor , Priority is given to fulfill the market demand of the
product which gives maximum contribution per labour hour.
Your Answer
For each product find the contribution per unit and per labour hour , Award ranks to each of the
products based on contribution per limiting factor , Priority is given to fulfill the market demand of the
product which gives maximum contribution per labour hour.
Multiple Choice Multiple Answer
Question
Techniques of management accounting include:
Correct Answer
Marginal costing , Budgetary control , Standard costing
Your Answer
Marginal costing , Cost control , Budgetary control
True/False
Question
The ideal budget period for a company engaged in generation and distribution of electricity is one year.

Correct Answer
False
Your Answer
False
Select The Blank
Question
The ________ adjustment is necessary to relfect the cost for the use of fixed asset during the year.
Correct Answer
Depreciation
Your Answer
Depreciation
True/False
Question
According to Reducing Balance Method, the depreciation is provided at a predetermined percentage on
the balance of cost of asset after deduction of the depreciation previously charged.
Correct Answer
True
Your Answer
True
Select The Blank
Question
Crane expenses should be apportioned on the basis of ________.
Correct Answer
Number of hours crane worked in the department
Your Answer
Number of hours crane worked in the department
Multiple Choice Multiple Answer
Question
Essentials for effective implementation of budgetary control system are
Correct Answer
Commitment of top management , Clearly defined objectives , Continous budget education
Your Answer
Commitment of top management , Clearly defined objectives , Continous budget education
Multiple Choice Single Answer
Question
Commission payable to General Manager is 10 % of the net profits. If the net profit before charging
commission is Rs.29,200/-, then what will be the amount of his net profit after commission?
Correct Answer
Rs.26,545.45
Your Answer
Rs.29,200/Select The Blank
Question
A forecast is mere estimate of what is likely to happen, but ________ is the action plan to be
followed.

Correct Answer
Budget
Your Answer
Budget
True/False
Question
A very wide scope of Management Accounting is the limitation by itself.
Correct Answer
True
Your Answer
True
Select The Blank
Question
The combination in which different products are sold by a company is known as ________.
Correct Answer
Sales mix
Your Answer
Sales mix
Multiple Choice Single Answer
Question
The reporting method used in the costing system should be based on the principle of
Correct Answer
Management by exception
Your Answer
Management by objectives
True/False
Question
Balance sheet indicates the financial status of the business at given period.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
The wages paid to maintenance department workers who do repair work principally for production
departments but also on the vehicles in the distribuiton department shoud be charged as:
Correct Answer
Service costs
Your Answer
Service costs
Multiple Choice Single Answer
Question
M/s Vivek Enterprises has paid rent relating to the residence of Mr. Vivek, proprietor of Vivek
Enterprises. This payment should be treated as
Correct Answer

Drawings
Your Answer
Capital
Select The Blank
Question
Measurement of ________ gives an idea of the degree of mobility of labour.
Correct Answer
Labour turnover
Your Answer
Labour turnover
Multiple Choice Single Answer
Question
Net profit for the year before charging commission to the manager, is Rs.111,775/-. The manager of
the company is entitled to commission @ 8% on net profits after charging commission. Find the
amount of commission due to the manager.
Correct Answer
Rs.8,279.63
Your Answer
Rs.8,942/Match The Following
Question
Correct Answer
Your Answer
Total cost
Cost of finished goods
Cost of finished goods
Non operating income
Profit on sale of investment
Profit on sale of investment
Selling and distribution overheads
Advertisement expenses
Advertisement expenses
Factory overheads
Repair for factory building
Repair for factory building
True/False
Question
Control on purchase of material is exercised by the storekeeper.
Correct Answer
False
Your Answer
True
Multiple Choice Single Answer
Question
A company wishes to earn a 15% profit margin on selling price when quoting for a job. Which of the
following is the profit margin of cost which will achieve the required profit margin ?

Correct Answer
0.1765
Your Answer
0.15
Select The Blank
Question
Economical use of labour, materials and facilities can achieved with the help of ________.
Correct Answer
Budgetary control
Your Answer
Cost control
True/False
Question
Credit balances in all the Personal & Real accounts appear on asset side.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
Question
Contents of Uniform Cost Manual are
Correct Answer
Organization ,
Your Answer

Cost Accounting system , Presentation of information

Organization ,

Cost Accounting system , Presentation of information

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
1) Financial statements are basically in two forms i.e. profitability statement and balance sheet.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
The process of accounting has three streams of accounting ---------------,--------and
----------------------.

Correct Answer

Financial Accounting , Cost Accounting , Management Accounting

Your Answer
Financial Accounting , Cost Accounting , Management Accounting
True/False
Question
Long term loan borrowed from financial institution comes under the heading of long term liabilities.
Correct Answer
True
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
Book-Keeping
Books of Accounts
Books of Accounts
Financial statement
Profitability statement & Balance-sheet
Profitability statement & Balance-sheet
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
Multiple Choice Single Answer
Question
Judge the statement according to the criteria given : ' The accounting period for XYZ Ltd. ends on 31st
December, 2003. It is noted that office rent for the month of December, 2003 is paid on 15th January,
2004. "According to concept of matching expenses with the revenues, this expenditure should be
recorded in the books of accounts in January,
Correct Answer
The statement and its reason are both incorrect
Your Answer
The statement is correct but its reason is incorrect
Multiple Choice Multiple Answer
Question
Features of money measurement concept are . . .
Correct Answer
Only those transactions and facts are included expressed in terms of money are considered , Imposes
severe restrictions on the kind of information available from financial statements , Works as a major
drawback of financial accounting

Your Answer
Only those transactions and facts are included expressed in terms of money are considered , Imposes
severe restrictions on the kind of information available from financial statements , Works as a major
drawback of financial accounting
Multiple Choice Single Answer
Question
The installation and operation of ___________ accounting requires a very elaborate organizational
structure and large number of rules & regulations
Correct Answer
Management
Your Answer
Management
Select The Blank
Question
________account can be defined as the record of all the transactions pertaining to a person, asset,
liability income or expenditure which have taken place in a specified period.
Correct Answer
Ledger
Your Answer
Trading
Match The Following
Question
Correct Answer
Your Answer
Sunk Cost
Historical Cost
Historical Cost
Cost Centre
Facilitate the fixation of responsibility
Facilitate the fixation of responsibility
Cost Control
Process of controlling costs of operations
Process of controlling costs of operations
Differential Cost
Increase or Decrease in cost
Increase or Decrease in cost
Multiple Choice Multiple Answer
Question
Which of the following transactions should be excluded while preparing a cost sheet ?
Correct Answer
Interest on loan , Bad debts , Expenses on criminal law suit
Your Answer
Sale of scrap material , Interest on loan , Bad debts
True/False
Question
In a Balance-Sheet right hand side is referred as assets side and left hand side is referred as liabilities.

Correct Answer
True
Your Answer
True
True/False
Question
Credit note is an intimation send to person dealing with the business that his account being debited for
the purpose indicated therein.
Correct Answer
False
Your Answer
False
True/False
Question
Primary distribution is effected on the basis of service rendered to the service departments by the
production departments.
Correct Answer
False
Your Answer
True
Multiple Choice Multiple Answer
Question
Marginal costing is found to be unsuccessful in the following situations :Correct Answer
Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive
industries where fixed costs are very large and hence cannot be ignored , With respect to service
industries where employee costs are very large and almost fixed in nature
Your Answer
Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive
industries where fixed costs are very large and hence cannot be ignored , With respect to service
industries where employee costs are very large and almost fixed in nature
True/False
Question
Debit Note is an intimation sent to person dealing with the business that his account is being credited
for the purpose indicated therein.
Correct Answer
False
Your Answer
True
Multiple Choice Multiple Answer
Question
Labour efficiency variance arises due to:
Correct Answer
Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material
Your Answer
Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material

True/False
Question
Financial Accounting discloses the financial performance & financial statements of the business as a
whole.
Correct Answer
True
Your Answer
True
True/False
Question
Balance sheet indicates the expenditure & income from the business.
Correct Answer
False
Your Answer
True
Select The Blank
Question
The indirect material cost, indirect labour cost and indirect expenses cost, collectively are termed as
________.
Correct Answer
Overhead
Your Answer
Overhead
Select The Blank
Question
A person in charge of a ________ may be held responsible for its proper functioning and cost control.
Correct Answer
Cost centre
Your Answer
Cost centre
Multiple Choice Multiple Answer
Question
The organization chart shows the following aspects :
Correct Answer
Functional responsibility of different functional managers , Delegation of authority to various managers
, Inter-functional relationships of these managers
Your Answer
Functional responsibility of different functional managers , Delegation of authority to various managers
, Inter-functional relationships of these managers
True/False
Question
Uniform costing system is a pre-requisite to an inter-firm comparison of firms belonging to the
different industries.
Correct Answer
False

Your Answer
False
True/False
Question
P&L statement which is a period statement & relates to a certain period tells about results of
operations.
Correct Answer
True
Your Answer
False
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
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
Select The Blank
Question
Information as to the cost and profit / loss associated with the firm's operations is provided to the
________ by Management accounting.
Correct Answer
Management
Your Answer
Management
True/False
Question
Danger level for inventory of materials means the safety stock of inventory.
Correct Answer
False
Your Answer
True
True/False
Question
The role of the budget committee may be taken as an advisory role to the Chief Executive.
Correct Answer
True
Your Answer

True
Multiple Choice Multiple Answer
Question
The main advantages of profit sharing are :
Correct Answer
Employees try to increase productivity , Incentives are shared by all the employees , Augments
emplyees' efficiency
Your Answer
Employees try to increase productivity , Incentives are shared by all the employees , Augments
emplyees' efficiency
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
Multiple Choice Multiple Answer
Question
Which of the following is likely to be a contributory factor to the incidence of excess expenditure on
material cost?
Correct Answer
The level of control of the used of material in the production cycle , The incorrect choice of purchase
order quantity , Failure to control the issue of materials from stores
Your Answer
An increase in the maximum material inventory level , The incorrect choice of purchase order
quantity , Failure to control the issue of materials from stores
Multiple Choice Multiple Answer
Question
Management accounting is concerned with the following activities :
Correct Answer
Decision making , Safeguarding assets , Planning and controlling activities
Your Answer
Decision making , Safeguarding assets , Planning and controlling activities
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
Select The Blank

Question
Under Differential Time Rate method payment is made at Rs. 1.40 per hour when the level of
efficiency is between________.
Correct Answer
90% to 100%
Your Answer
90% to 100%
True/False
Question
Maintenance Department is a service cost centre.
Correct Answer
True
Your Answer
True
True/False
Question
The process of accounting split into three steams i.e. financial, cost, management accounting.
Correct Answer
True
Your Answer
True
Select The Blank
Question
The difference between sales and cost of sales is termed as ________.
Correct Answer
Net Profit
Your Answer
Net Profit
Select The Blank
Question
The final result disclosed by trading account is the ________profit earned by the organization.
Correct Answer
Gross
Your Answer
Gross
Multiple Choice Multiple Answer
Question
Select the accounts to be disclosed on the liability side of the Balance sheet.
Correct Answer
Loan , Outstanding expenses , Creditors
Your Answer
Loan , Outstanding expenses , Creditors
True/False
Question
Penalty paid for delay in payment to creditors represents uncontrollable cost.

Correct Answer
False
Your Answer
False
Multiple Choice Single Answer
Question
Which document facilitates estimating material cost of a particular job, before completion of that job?
Correct Answer
Bill of material
Your Answer
Material requisition note
Multiple Choice Single Answer
Question
Purchases returns of Rs.18,000/- were wrongly transferred to the sales returns account. Calculate its
impact on net profit.
Correct Answer
The net profit will not be affected
Your Answer
The net profit will not be affected
Multiple Choice Single Answer
Question
It is said that adoption of uniform costing creates customer confidence because . . .
Correct Answer
Prices are reliable
Your Answer
Prices are reliable
Multiple Choice Single Answer
Question
An order for goods worth Rs.18,000/- was placed on 25th March, 2004. The goods were received on
1st April, 2004. Calculate the impact of this transaction on the final statements of accounts for the
year ended 31st March, 2004.
Correct Answer
The net profit will not be affected
Your Answer
The net profit will not be affected
Select The Blank
Question
Furniture account will always have a ________ balance.
Correct Answer
Debit
Your Answer
Nil
Multiple Choice Multiple Answer
Question
Accounting is the art where transactions are
Correct Answer
Summarized , Classified , Recorded
Your Answer

Summarized , Classified , Recorded

True/False
Question
The phrase By Balance c/d. written on the credit side of the rent account, indicates credit balance for this account.
Correct Answer
False
Your Answer
False
Select The Blank
Question
The ________ variance is the difference between the actual variable overhead incurred and the standard variable
overhead charged to production.
Correct Answer
Total variable overhead
Your Answer
Total variable overhead
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
Select The Blank
Question
The selection of ________ may depend upon the various factors like characteristics of the business organisation, tax
considerations, statutory requirements etc.
Correct Answer
Accounting period
Your Answer
Accounting period
True/False
Question
Standard costs are used for external reporting.
Correct Answer
False
Your Answer
False
True/False
Question
It is said that the income statement represents wealth increase /decrease for the organisation.
Correct Answer
True
Your Answer
False
Multiple Choice Single Answer
Question
Mr. Oak, materials manager, spends 40% time in the factory and the remaining in office. If his annual salary is
Rs.500,000/-, what amount should be charged as office overheads ?
Correct Answer
Rs.300,000/Your Answer
Rs.200,000/-

Multiple Choice Multiple Answer

Question
The factors to be considered while preparing the direct materials budget are :
Correct Answer
Adequacy of material storing space , Availability of funds , Material in stores but reserved for specific purposes
Your Answer
Adequacy of material storing space , Availability of funds , Material in stores but reserved for specific purposes
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
Techniques of management accounting include:
Correct Answer
Marginal costing , Budgetary control , Standard costing
Your Answer
Marginal costing , Cost control , Budgetary control , Standard costing
Match The Following
Question
Correct Answer
Your Answer
Profit and loss account
Commission received
Dividend paid
Manufacturing account
Work in Progress
Land & Building
Balance Sheet
Land & Building
Closing stock of finished goods
Trading account
Closing stock of finished goods
Work in Progress
True/False
Question
While preparing the labour cost budget, factors such as overtime working or night shift working may be ignored.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
Question
If the sales forecast is less than the past sales but the top management insists upon a certain amount of additional
profits, then following steps can be taken to achieve the target profit
Correct Answer
Increase the selling price , Reduce cost of sales , Increase the selling efforts
Your Answer
Increase the selling price , Increase the sales volume , Increase the selling efforts
Multiple Choice Multiple Answer
Question
From the following, select intangible assets:
Correct Answer

Goodwill , Patents , Trade Marks

Your Answer
Patents , Trade Marks , Investments
True/False
Question
Bank reconciliation statement must be prepared before the preparation of profit and loss account and balance sheet.
Correct Answer
True
Your Answer
False
Multiple Choice Single Answer
Question
Find the budget which is inadequate as a cost control technique :
Correct Answer
Fixed budget
Your Answer
Fixed budget
True/False
Question
Predetermined rate of absorption of overheads helps in quick preparation of cost estimates and quoting prices.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
Net sales Rs,7,50,000/-, opening stock Rs.1,14,375/-, purchases Rs.483,375/- and closing stock Rs.1,47,750/-.
Calculate the Gross Profit.
Correct Answer
Rs.3,00,000/Your Answer
Rs.3,00,000/Select The Blank
Question
________ is an example of intangible asset.
Correct Answer
Goodwill
Your Answer
Land
True/False
Question
Accounting is an art of recording, classifying & summarizing in a significant manner.
Correct Answer
True
Your Answer
True
True/False
Question
Goods sent to the customers on approval basis should be treated as sales.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer

Question
Features of Sunk cost are . . .
Correct Answer
Indicates historical cost , Not relevant in decision making process , Incurred in past
Your Answer
Indicates historical cost , Incurred in past , Relevant in decision making process
True/False
Question
Profitability statement indicates the amount of assets & liabilities.
Correct Answer
False
Your Answer
True
True/False
Question
A business is an activity carried out with the intention of earning the profit.
Correct Answer
True
Your Answer
True
Multiple Choice Multiple Answer
Question
Identify the steps involved in selecting the optimum product mix, when the limiting factor is number of labour hours
and sales demand.
Correct Answer
For each product find the contribution per unit and per labour hour , Award ranks to each of the products based on
contribution per limiting factor , Priority is given to fulfill the market demand of the product which gives maximum
contribution per labour hour.
Your Answer
For each product find the contribution per unit and per labour hour , Award ranks to each of the products based on
contribution per limiting factor , Priority is given to fulfill the market demand of the product which gives maximum
contribution per labour hour.
Multiple Choice Multiple Answer
Question
Techniques of management accounting include:
Correct Answer
Marginal costing , Budgetary control , Standard costing
Your Answer
Marginal costing , Cost control , Budgetary control
True/False
Question
The ideal budget period for a company engaged in generation and distribution of electricity is one year.
Correct Answer
False
Your Answer
False
Select The Blank
Question
The ________ adjustment is necessary to relfect the cost for the use of fixed asset during the year.
Correct Answer
Depreciation
Your Answer
Depreciation
True/False
Question

According to Reducing Balance Method, the depreciation is provided at a predetermined percentage on the balance
of cost of asset after deduction of the depreciation previously charged.
Correct Answer
True
Your Answer
True
Select The Blank
Question
Crane expenses should be apportioned on the basis of ________.
Correct Answer
Number of hours crane worked in the department
Your Answer
Number of hours crane worked in the department
Multiple Choice Multiple Answer
Question
Essentials for effective implementation of budgetary control system are
Correct Answer
Commitment of top management , Clearly defined objectives , Continous budget education
Your Answer
Commitment of top management , Clearly defined objectives , Continous budget education
Multiple Choice Single Answer
Question
Commission payable to General Manager is 10 % of the net profits. If the net profit before charging commission is
Rs.29,200/-, then what will be the amount of his net profit after commission?
Correct Answer
Rs.26,545.45
Your Answer
Rs.29,200/Select The Blank
Question
A forecast is mere estimate of what is likely to happen, but ________ is the action plan to be followed.
Correct Answer
Budget
Your Answer
Budget
True/False
Question
A very wide scope of Management Accounting is the limitation by itself.
Correct Answer
True
Your Answer
True
Select The Blank
Question
The combination in which different products are sold by a company is known as ________.
Correct Answer
Sales mix
Your Answer
Sales mix
Multiple Choice Single Answer
Question
The reporting method used in the costing system should be based on the principle of
Correct Answer
Management by exception
Your Answer

Management by objectives
True/False
Question
Balance sheet indicates the financial status of the business at given period.
Correct Answer
True
Your Answer
True
Multiple Choice Single Answer
Question
The wages paid to maintenance department workers who do repair work principally for production departments but
also on the vehicles in the distribuiton department shoud be charged as:
Correct Answer
Service costs
Your Answer
Service costs
Multiple Choice Single Answer
Question
M/s Vivek Enterprises has paid rent relating to the residence of Mr. Vivek, proprietor of Vivek Enterprises. This
payment should be treated as
Correct Answer
Drawings
Your Answer
Capital
Select The Blank
Question
Measurement of ________ gives an idea of the degree of mobility of labour.
Correct Answer
Labour turnover
Your Answer
Labour turnover
Multiple Choice Single Answer
Question
Net profit for the year before charging commission to the manager, is Rs.111,775/-. The manager of the company is
entitled to commission @ 8% on net profits after charging commission. Find the amount of commission due to the
manager.
Correct Answer
Rs.8,279.63
Your Answer
Rs.8,942/Match The Following
Question
Correct Answer
Your Answer
Total cost
Cost of finished goods
Cost of finished goods
Non operating income
Profit on sale of investment
Profit on sale of investment
Selling and distribution overheads
Advertisement expenses
Advertisement expenses
Factory overheads
Repair for factory building
Repair for factory building

True/False
Question
Control on purchase of material is exercised by the storekeeper.
Correct Answer
False
Your Answer
True
Multiple Choice Single Answer
Question
A company wishes to earn a 15% profit margin on selling price when quoting for a job. Which of the following is the
profit margin of cost which will achieve the required profit margin ?
Correct Answer
0.1765
Your Answer
0.15
Select The Blank
Question
Economical use of labour, materials and facilities can achieved with the help of ________.
Correct Answer
Budgetary control
Your Answer
Cost control
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 Single Answer
Question Salary paid to employee amounted Rs. 10,000, transferred to Trading A/C is an example of_______
Correct Answer Error of Commission
Your Answer Error of Commission
Multiple Choice Single Answer
Question Labour cost indicates that labour cost which cannot be identified with the individual cost centre and is
incurred for those employees who are not engaged in the manufacturing process but only assist i
Correct Answer Remuneration
Your Answer Indirect
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
Select The Blank
Question Over absorption of overheads may take place due to the reasons like ________ overheads being less than
the ________ overheads
Correct Answer actual
Your Answer estimated
Correct Answer estimated
Your Answer actual
True/False

Question Income received in advance transfer to current liabilities

Correct Answer True
Your Answer True
Select The Blank
Question Bank reconciliation statement is the statement prepared to explain the ________ as to why the bank
balance as per ________ and bank balance as per bank book does not match
Correct Answer reasons
Your Answer reasons
Correct Answer pass book
Your Answer pass book
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
True/False
Question A business is an activity carried out with the intention of earning the profit.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question If wages for the month of January, February and March are Rs.4,000, Rs.4,400 and Rs.4,600 respectively
and if delay in payment of wages is month , payment of wages for the month of February is
Correct Answer 4,200
Your Answer 4,000
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
True/False
Question Accounting is an art of recording, classifying & summarizing in a significant manner.
Correct Answer True
Your Answer True
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
Multiple Choice Multiple Answer
Question Important advantages of Uniform Costing can be said to be
Correct Answer It is a useful tool for management control , It avoids cut throat competition , Weaker units can take
advantage of settled systems of better managed units
Your Answer It is a useful tool for management control , It avoids cut throat competition , Weaker units can take
advantage of settled systems of better managed units
Multiple Choice Multiple Answer
Question P/L A/C debit side includes
Correct Answer salary , discount allowed , postage & telegram
Your Answer postage & telegram , salary , discount allowed
Multiple Choice Multiple Answer
Question Actual costs may be affected due to inefficient functioning such as

Correct Answer Abnormal expenses , In efficient use of labour , In efficient use of material
Your Answer Abnormal expenses , In efficient use of labour , In efficient use of material
Multiple Choice Single Answer
Question Calculate Labour Efficiency Variance, If actual rate per hour is Rs.3.50/- , Standard rate is Rs.3/- per unit
and standard hours are 15,000 and Actual hours are 13, 500.
Correct Answer Rs.4500/- ( Favorable )
Your Answer Rs.4500/- ( Favorable )
Multiple Choice Multiple Answer
Question Sales quantity may be forecasted after taking into consideration various factors such as
Correct Answer Analysis of past trends , Market research , Reports by salesmen
Your Answer Analysis of past trends , Market research , Reports by salesmen
True/False
Question For taking make or buy decision marginal costing technique provide useful assistance.
Correct Answer True
Your Answer True
True/False
Question Profitability statement indicates the amount of assets & liabilities.
Correct Answer False
Your Answer False
Multiple Choice Single Answer
Question It is an appropriate basis of apportionment of depreciation expenditure
Correct Answer value of assets
Your Answer value of assets
True/False
Question The variable costs are controllable at the lower level.
Correct Answer True
Your Answer True
True/False
Question Balance sheet indicates the expenditure & income from the business.
Correct Answer False
Your Answer False
Match The Following
Question Correct Answer Your Answer
Journal Book of original entry Book of original entry
Ledger Maintain all types of Accounts Maintain all types of Accounts
Assets All the properties owned by the business All the properties owned by the business
Liabilities All the amount owed by the business All the amount owed by the business
Drawing Withdrawn for personal use Withdrawn for personal use
Select The Blank
Question A budget manual is a document setting out the ________ of the persons and ________ required for the
budget control.
Correct Answer Responsibilities
Your Answer Responsibilities
Correct Answer Forms and procedures
Your Answer Forms and procedures
True/False
Question Credit balances in all the Personal & Real accounts appear on asset side.
Correct Answer False
Your Answer True
True/False
Question The process of accounting split into three steams i.e. financial, cost, management accounting.

Correct Answer True

Your Answer True
Multiple Choice Single Answer
Question Omission of posting an amount in the ledger
Correct Answer Error of Omission
Your Answer Error of Omission
True/False
Question Non-operating / financial expenses are added while calculating net profit.
Correct Answer False
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 A Budget Manual may contain the following particulars
Correct Answer Duties and responsibilities of various executives , Functions and duties of Budget Officer , Scope of
the Budget and area to be covered
Your Answer Duties and responsibilities of various executives , Functions and duties of Budget Officer , Scope of the
Budget and area to be covered
Select The Blank
Question Semi ________ overheads are neither ________ nor variable in nature.
Correct Answer fixed
Your Answer variable
Correct Answer variable
Your Answer fixed
True/False
Question Due to errors of principle the arithmetical accuracy of the trial balance does not get affected.
Correct Answer True
Your Answer True
Multiple Choice Multiple Answer
Question Direct Cost includes
Correct Answer Direct material , Direct labour , Direct expenses
Your Answer Direct material , Direct labour , Direct expenses
Select The Blank
Question Financial Accounting protects the interest of outsiders . it considers ________ transaction and it is a
________ requirement
Correct Answer historical
Your Answer historical
Correct Answer legal
Your Answer legal
True/False
Question Bin Card is having all the information of item received and issued.
Correct Answer False
Your Answer True
Select The Blank
Question Budgetary Control is useful for ________-and ________-as a powerful tool in the hands of management
Correct Answer Cost control
Your Answer Cost control
Correct Answer Maximization of profits
Your Answer Maximization of profits

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 Multiple Answer
Question The material Requisition note contains
Correct Answer Number and date , Department demanding the material , Signature of the authority approving the
demand
Your Answer Number and date , Department demanding the material , Signature of the authority approving the
demand
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 , Posting on the wrong side of an account , Omission of posting an
account in the ledger
Select The Blank
Question Fixed overheads normally arise as a result of policy and are largely ________ in nature at the ________
level of the management
Correct Answer uncontrollable
Your Answer controllable
Correct Answer lower
Your Answer top
True/False
Question Budget is prepared for a fixed period of time.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question Sold Goods of Amitabh worth Rs. 15,000 against 15% Trade discount. The Goods worth appear on account
___________
Correct Answer 12750
Your Answer 12750
Multiple Choice Single Answer
Question This is not the non monetary incentive.
Correct Answer Co-partnership
Your Answer Co-partnership
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
Select The Blank
Question Along with financial accounting, ________ and ________ are the other streams of accounting
Correct Answer Cost Accounting
Your Answer Cost Accounting
Correct Answer Management Accounting
Your Answer Management Accounting
True/False
Question A very wide scope of Management Accounting is the limitation by itself.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer

Question
The selection of the supplier may depend upon the following aspects:
Correct Answer
Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier
Your Answer
Geographical location of the supplier , Price quoted by the supplier , Goodwill of the supplier
Multiple Choice Single Answer
Question
Net book value of loose tools as on 1st April, 2003 was Rs.45,000/-. As on 31st March, 2004 the management felt
that the real worth of these loose tools is only Rs.30,000/-. What can be done to achieve the desired reduction in the
net book value of loose tools?
Correct Answer
By providing depreciation to the extent of Rs.15,000/Your Answer
By providing depreciation to the extent of Rs.15,000/True/False
Question
Overhead absorption rate will be different at different capacity levels.
Correct Answer
True
Your Answer
True
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
Capital expenditure budget
Select The Blank
Question
The ________ variance is the difference between the actual variable overhead incurred and the standard variable
overhead charged to production.
Correct Answer
Total variable overhead
Your Answer
Total variable overhead
Multiple Choice Single Answer
Question
The cost that indicates historical cost, which is incurred in past, is known as
Correct Answer
Sunk cost
Your Answer
Sunk cost
Select The Blank
Question
Information as to the cost and profit / loss associated with the firms operations is provided to the ________ by
Management accounting.
Correct Answer
Management
Your Answer
Management
Select The Blank

Question
Factory cost of a product is Rs.335,000/-, if the selling overheads are charged @25% of factory cost, then the
amount of selling overheads should be Rs.________/Correct Answer
83750
Your Answer
83750
Select The Blank
Question
Uniform costing is not a separate method of ________.
Correct Answer
cost accounting
Your Answer
cost accounting
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 Single Answer
Question
The following figures relate to a company manufacturing a varied range of products : Year 2003 Total sales
Rs.22,23,000/- and total cost Rs.19,83,600/-. Year 2004 : Total sales Rs.24,51,000/- and Total cost Rs.21,43,200/-.
Assuming stability in prices, calculate the profit volume ratio
Correct Answer
0.3
Your Answer
0.3
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
Direct labour
Select The Blank
Question
Creche expenses may be appropriately approtioned on the basis of ________.
Correct Answer
Number of female workers
Your Answer
Number of female workers
Multiple Choice Single Answer
Question
Opening stock of Rs.1,80,000/-, purchases Rs.8,00,000/-, freight inward Rs.35,000/-, closing stock Rs.2,00,000/-,
direct wages Rs.2,35,000/-. Calculate the prime cost.
Correct Answer
Rs.10,50,000/Your Answer
Rs.10,70,000/Multiple Choice Multiple Answer
Question

Limitations of Management Accounting includesCorrect 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
Select The Blank
Question
Indirect Cost is termed as ________.
Correct Answer
Overhead
Your Answer
Overhead
Multiple Choice Multiple Answer
Question
Features of Financial Accounting includes
Correct Answer
It is a legal requirement , It protects the interest of outsiders , It considers historical transactions
Your Answer
It is a legal requirement , It protects the interest of outsiders , It considers historical transactions
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
Multiple Choice Single Answer
Question
A group of 10 men and 20 women workers were expected to produce 400 units of a product in an 8 hour day. The
standard hourly rate was fixed at Rs.25/- and Rs.15/-, respectively.Actually, a group of 15 men and 10 women
workers was deployed and paid for 8 hours a day at an hourly rate of Rs.22/- and Rs.18/-, respectively. Two hours
were wasted for the entire group due to power failure and only 300 units were produced. Calculate labour rate
variance.
Correct Answer
Rs.120/- (Favourable)
Your Answer
Rs.150/- (Favourable)
Multiple Choice Multiple Answer
Question
Techniques of management accounting include:
Correct Answer
Marginal costing , Budgetary control , Standard costing
Your Answer
Cost control , Budgetary control , Standard costing
True/False
Question
A grinding machine is an example of impersonal cost centre
Correct Answer
True
Your Answer
True
True/False
Question
Profitability statement indicates the amount of assets & liabilities.
Correct Answer

False
Your Answer
False
Multiple Choice Single Answer
Question
Uniform costing system is useful in the following areas
Correct Answer
Classification of cost accounts
Your Answer
Preparing financial statements
Multiple Choice Multiple Answer
Question
The features of multiplicity of key factors are as follows :
Correct Answer
More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique
Your Answer
More than one key factors , Refers to a complex situation , Can be resolved by using linear programming technique
True/False
Question
Balance sheet indicates the expenditure & income from the business.
Correct Answer
False
Your Answer
False
True/False
Question
Interim dividend paid by the company should be debited to the profit and loss appropriation account.
Correct Answer
True
Your Answer
True
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 , Job number
Multiple Choice Multiple Answer
Question
The production budget may be prepared in terms of :
Correct Answer
Units produced , Production cost , Material cost, labour cost and overheads
Your Answer
Units produced , Production cost , Material cost, labour cost and overheads
Multiple Choice Single Answer
Question
Panna Ltd. temporarily has excess production capacity. The idle plant facilties can be used to manufacture a lowmargin item. The low-margin item should be produced if it can be sold for more than its:
Correct Answer
Variable costs
Your Answer
Variable costs
Multiple Choice Multiple Answer

Question
If the sales forecast is less than the past sales but the top management insists upon a certain amount of additional
profits, then following steps can be taken to achieve the target profit
Correct Answer
Increase the selling price , Reduce cost of sales , Increase the selling efforts
Your Answer
Increase the selling price , Increase the sales volume , Reduce cost of sales
True/False
Question
Receipts and payments method of cash budget is useful for preparing long term estimates.
Correct Answer
False
Your Answer
False
Multiple Choice Multiple Answer
Question
Select the advantages of standard cost system.
Correct Answer
Provides reliable basis for budgeting , Facilitates delegation of authority , Promotes economy and efficiency
Your Answer
Provides reliable basis for budgeting , Facilitates delegation of authority
True/False
Question
The sales mix variance highlights the fact that the actual mix of sales has been in the same ratio as budgeted.
Correct Answer
False
Your Answer
False
Select The Blank
Question
In case of seasonal industry, the budget period may be taken as ________.
Correct Answer
One season
Your Answer
One season
True/False
Question
Lack of efficient control on various aspects related to raw-material increases the material cost component of the
finished product.
Correct Answer
True
Your Answer
True
True/False
Question
Due to compensating errors the arithmetical accuracy of the trial balance is affected.
Correct Answer
False
Your Answer
False
Multiple Choice Single Answer
Question
Material price variance for a job is Rs.800/- (Favourable). Actual quantity of material used is 100 kg whereasthe
standard quantity of material is 120% of actual quantity. Actual price paid for the material is 80% of the standard
price. Calculate material cost variance.

Correct Answer
Rs.1,600/- (Favourable)
Your Answer
Rs.800/- (Favourable)
Select The Blank
Question
The process of recording the business transactions in a defined set of records is referred to as ________.
Correct Answer
Balance sheet
Your Answer
Profit and Loss Account
Match The Following
Question
Correct Answer
Your Answer
Daily Time sheets
Time spent by worker on job is recorded
Time spent by worker on job is recorded
Time Keeping Department
Recording of workers time
Recording of workers time
Time booking department
Jobwise booking of time.
Jobwise booking of time.
Time Recording Clock Method
Ticket number & clock card allotted to worker
Ticket number & clock card allotted to worker
True/False
Question
Purchased goods by paying Rs.35,000/-: In this case, the cash account should be debited.
Correct Answer
True
Your Answer
True
Select The Blank
Question
If the customer is not likely to pay the amount receivable from him, this amount should to be treated as ________.
Correct Answer
Bad debts
Your Answer
Bad debts
True/False
Question
Accounting is an art of recording, classifying & summarizing in a significant manner.
Correct Answer
True
Your Answer
True
Match The Following
Question
Correct Answer
Your Answer
Book-Keeping
Books of Accounts
Books of Accounts
Financial statement

Profitability statement & Balance-sheet

Profitability statement & Balance-sheet
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
True/False
Question
The problem of multiple key factors can be solved with the help of techniques like linear programming, operations
research, etc.
Correct Answer
True
Your Answer
True
Select The Blank
Question
The ________ books are preferred when the volume of transactions is very large.
Correct Answer
Subsidiary
Your Answer
Journal
Multiple Choice Multiple Answer
Question
If you are required to enforce uniform costing system in your industry, how would you proceed ?
Correct Answer
Collecting data from all units of your industry , Ensuring that the data collected is complete and correct , Maintaining
secrecy of the data collected
Your Answer
Collecting data from all units of your industry , Ensuring that the data collected is complete and correct , Allowing free
access to all the units to the collected data
True/False
Question
All costs are controllable.
Correct Answer
False
Your Answer
False