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

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

True/False Question

1) Financial statements are basically in two forms i.e. profitability statement and balance sheet. Correct Answer True Your Answer True

1. Sales quantity may be forecasted after taking into consideration various factors such as Analysis of past trends Market research Reports by salesmen 8. 1. Dividend Received 2. Interest 3. Discount 4. Provision 5. Commission Received 1. 2. 3. 4. Loss of Business Added in Capital Amount of Income Benefit

5. Amount kept outside from profit

14. Cost of machine is 10,00,000. To be depreciated on time basis over life of machine i.e. 10 yrs = 5,00,000. Estimated number of units to be produced 5,00,000. Calculate depreciation on time basis & on 1,50,000 1,20,000 1,00,000 2,00,000 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 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

Financial accounting may deal with the ascertainment of cost & calculation of profitability of the individual product. Correct Answer False Your Answer False

True/False Question

The reports generated by financial accounting are meant for the use by management for effective decisions. Correct Answer True Your Answer True

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 Multiple Choice Multiple Answer Question Management Accounting __________________. Correct Answer Designed particularly for internal use only. , Looks forward in estimating the future along with past period. , This furnishes the necessary information to management. Your Answer Designed particularly for internal use only. , Looks forward in estimating the future along with past period. , This furnishes the necessary information to management. , Only a, b, c. Multiple Choice Multiple Answer Question Accounting is the art of ______________,____________ and ____________ in a significant manner and in terms of money transactions and events which are of a financial character and interpreting the res Correct Answer Summarizing , Classifying , Recording Your Answer Summarizing , Classifying , Recording

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

Match The Following Question

Correct Answer

Your Answer

Personal A/C Real A/C Nominal A/C Tangible assets In tangible assets

Debit the receiver, Credit the giver Debit what comes in, Credit what goes out Debit all the expenses, Credit all the incomes Building, Machinery Patents, Trade marks

Debit the receiver, Credit the giver Debit what comes in, Credit what goes out Debit all the expenses, Credit all the incomes Building, Machinery Patents, Trade marks

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 True

True/False Question

Amount invested in purchasing Fixed Asset is a revenue expenditure.

Correct Answer False Your Answer False

True/False Question

As per double entry system o accounting , total of all debits should be equal to all credits. Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question Convention of Consistency Materiality ________________ Correct Answer The accounting policies & procedures should follow consistently on period to period , It facilitates the comparison of financial statements on period to period , If any change the fact should be disclosed with its effects on profitability Your Answer The accounting policies & procedures should follow consistently on period to period , It facilitates the comparison of financial statements on period to period , If any change the fact should be disclosed with its effects on profitability Multiple Choice Multiple Answer Question Cash and---------------are the two systems of accounting. Correct Answer Mercantile Your Answer Mercantile

Multiple Choice Single Answer Question The opening balance of cash account is Rs. 25,000, cash received from debtors Rs. 30,000, sold goods amounted to Rs. 50,000, paid to creditors Rs. 20,000, purchase furniture Rs. 5000. What is the clos

Correct Answer 80,000 Your Answer 80,000

Multiple Choice Single Answer Question Bank Reconciliation statement is required in case of Correct Answer difference between the bank balance as per the bank book and as per pass book Your Answer difference between the bank balance as per the bank book and as per pass book Match The Following Question Error of Principle Error of Omission Error of commission Compensating Error Difference in trial balance

Correct Answer Trial Balance does not get affected The transaction is totally omitted Wrong Posting Wrong classification Transferred to suspense account

Your Answer Wrong Posting The transaction is totally omitted Wrong classification Trial Balance does not get affected Transferred to suspense account

Multiple Choice Multiple Answer Question Direct Cost includes Correct Answer Direct material , Direct labour , Direct expenses Your Answer Direct material , Direct labour , Direct expenses

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

Multiple Choice Multiple Answer Question The Prime Cost includes the aggregate of Correct Answer Direct Material Cost , Direct Labour Cost , Direct Expenses Your Answer Direct Material Cost , Direct Labour Cost , Direct Expenses

Multiple Choice Multiple Answer Question From the following particulars what must appear in purchase requisition Correct Answer Material to be purchased should be cleanly specified , Material should purchase whenever the market for the same is favorable , Purchase requisition should state the quantity of material required.

Your Answer

Material to be purchased should be cleanly specified , Purchase requisition should state the quantity of material required.

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 , Other amounts such as sales tax, excise duty, octroi duty Multiple Choice Multiple Answer Question While fixing the maximum level following factors are considered Correct Answer Maximum usage , Storage facilities , Availability of funds Your Answer Maximum usage , Rate of consumption

True/False Question

Fixed cost tends to vary with time rather than with level of activity.

Correct Answer True Your Answer True/False Question True

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

Multiple Choice Single Answer Question Find out the break even point and profit if sales are Rs. 50,00,000 and P/V Ratio is 50% and margin of safety is 40% Correct Answer Rs.30,00,000 and Rs.10,00,000 Your Answer Rs.30,00,000 and Rs.10,00,000

True/False Question

For better control, variances of a period may be compare with the previous period. Correct Answer True Your Answer True

True/False Question

Expected standards are more realistic and useful for cost control.

Correct Answer True Your Answer True

True/False Question

The difference between standard cost and actual cost is termed as Variance.

Correct Answer True Your Answer True

Multiple Choice Multiple Answer Question For reporting of variance, following propositions should be considered Correct Answer Responsibility of each individual should be defined , Reporting should be simple, clear and quick , Analysis of variance should be accurate. Your Answer Responsibility of each individual should be defined , Reporting should be simple, clear and quick , Analysis of variance should be accurate. Multiple Choice Multiple Answer Question Basic three steps in Standard Costing are Correct Answer Setting standards , Comparing actuals with standards , Measurement of variance Your Answer Setting standards , Comparing actuals with standards , Measurement of variance 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.900/- ( Adverse )

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 Standard Costs are used as tool for Correct Answer Cost Control Your Answer Cost Control

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 cost

Correct Answer revenues

Your Answer

revenues

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 If the revenue expenditure is treated as ________ expenditure , it will not affect the agreement of ________ balance Correct Answer capital Your Answer capital

Correct Answer trial Your Answer trial

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 Under the daily ________ sheets method, each worker is provided with a daily time sheet on which time ________ by him on various jobs is expected to be mentioned Correct Answer time

Your Answer

work

Correct Answer spent Your Answer spent

Select The Blank Question 4.Under the differential time rate method the wages are paid at Rs. 1.50 per hour between ________ efficiency and Rs.1.25 per hour between ________ efficiency Correct Answer 101% to 125 % Your Answer 90-100

Correct Answer 80% to90% Your Answer 101% to 125 %

Select The Blank Question Under Gannt Task bonus system where the output is ________ payment is made as per minimum time rate, output is ________ payment is made as per time wages plus some increase in wage rates Correct Answer below standard Your Answer below standard

Correct Answer at standard Your Answer at standard

Select The Blank Question ________ and ________ are examples of element wise classification ofoverhead costs Correct Answer Idirect material Your Answer Idirect material

Correct Answer indirect labour Your Answer selling overheads

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