GURU GOBIND SINGH COLLEGE FOR MTMS

AL 7 Main Jail Road, Hari Nagar, New Delhi 110064

FINANCIAL & MANAGEMENT ACCOUNTING\ M.B.A 1ST SEM MODEL TEST PAPER

Q1. The liabilities of a firm are of Rs 3,000 capital of the proprietor is Rs 7,000 . The total assets are A) 7,000 B) 10,000 C) 4,000 D) 3,000 Q2. The assets of a business on 31 march 2006 are worth Rs 5,000 &its capital is Rs 35,000.Its liabilities on that date shall be. A) Rs 85,000 B) Rs 15,000 C) RS 35,000 D) Rs 5,000 Q3.In double entry system of book keeping every business tranction affects. a. Two accounts b. Two sides of the same account c. The same account on two different dates d. One account Q4.A sale of good to Ram for cash should be debited to a.Ram b. cash c. sale d. None of all Q5.A wihhdrawal of cash from business by the proprietor should be credited to a. Drawing b. Capital c. cash d. Profit & loss a/c Q6.cash account is a a. Personal a/c b. Real a/c

c. Nominal a/c

d. none

Q7.Goods worth Rs 1,000 taken by proprietor for personal use should be credited to a. sales a/c b. proprietors personal a/c c. purchase a/c d. expenses a/c Q8. Bad debts account is a A. personal a/c b.real a/c

c. nominal a/c

d.none

Q9.The profit & loss a/c shows a. The financial position of the concern b. Profit earned or loss suffered by the firm c. The capital invested in business d. The asset of business Q10.The cash book records a. All cash receipts b. All cash payments c. All cash receipts & payments d. cash & credit sales of goods

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GURU GOBIND SINGH COLLEGE FOR MTMS

AL 7 Main Jail Road, Hari Nagar, New Delhi 110064 Q11.The balance in the petty cash book is A. An expence b. A profit c.An asset d .none Q12. If Ram has sold books for cash the entry will be recorded a.In the cash book b.In the sales book c. In proper journal d.none Q13.In the purchase book the record is in respect of a.cash purchase of goods b. credit purchase of goods dealt in c.all purchase of goods d. none Q14.The sales return book records a. The return of goods purchased b. Return of anything purchased c. Retun of goods sold d. Return of anything sold Q15.The sales book is a. a part of journal b. a part of ledger c. a part of balance sheet d. a part of profit & loss a/c Q16.The weekly or monthly total of the purchase book is a. posted to the debit of the purchase a/c b. posted to the debit of the sales a/c c. posted to the credit of the purchase a/c d. none Q17.The total of sales book is posted to a. The credit of sales a/c b. credit of the purchase a/c c. credit of the capital a/c d. none

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GURU GOBIND SINGH COLLEGE FOR MTMS

AL 7 Main Jail Road, Hari Nagar, New Delhi 110064 Q18.Rs 2,000 paid as wages for erecting a machine should be debited to a. wages a/c b. machinery a/c c. capital a/c d.none Q19. On purchase of old furniture the amount of Rs 1,000 spent on its repair should be debited to a. Repair a/c b.furniture a/c c. cash a/c d.none Q20.Goods worth Rs 50 given as charity should be credited to a. charity a/c b. sales a/c c. purchase a/c d.none Q21.Goods worth Rs1,000 destroyed by fire should be credited to a. Goods lost by fire a/c b. purchase a/c c. sales a/c d. none Q22.Error of omission do not permit a. correct totalling of the balance sheet b.correct totaling of the trial balance c. The trial balance to agree d. none Q23 The prepration of a trial balance helps in a. correct totaling of the balance sheet b. correct totaling of the trial balance c.Locating errors of principles d. none Q24 Rs 200 received from smith whose account was previously written off as bad debt should be credited to a. The debt recovery account b. Smiths a/c c. cash a/c d.none

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GURU GOBIND SINGH COLLEGE FOR MTMS

AL 7 Main Jail Road, Hari Nagar, New Delhi 110064 Q25.Purchase of office furniture worth Rs 1200 has been debited to general expence a/c .It is a. A clearical error b.An error in principles c. An erropr in omission d. none Q26 Sale of office furniture should be credited to a. Sales a/c b. office furniture c. cash a/c d. none Q27 Sale of old news paper should be credited to a.Sales a/c b. cash a/c c.sale of old newspaper a/c d.none Q28 Fixed assets are a.kept in the business for use over a long time for earning income b. Meant of resale c. Meant for conversation into cash as quickly as possible d. none Q29 Good will is a a.Acurrent asset b. Tangible asset c. Intangible asset d.none Q30 Stock is a. included id fixed assets b. Part of current assets c. Intangible assets d.none Q31The trading a/c shows a. financial position of the concern b. The net profit earned c.The gross profit earned d. none

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GURU GOBIND SINGH COLLEGE FOR MTMS

AL 7 Main Jail Road, Hari Nagar, New Delhi 110064 Q32The profit &loss a/c shows a. financial position of the concern b. The net profit earned c.The gross profit earned d.none Q33 closing stock is valued at a. cost b. Market value c.cost of market price which ever is lower d. none Q34 The drawing of a proprietor for the year 2002 are Rs 15,000.profit for the year Rs 25,000 & Capital at the end Rs 70,000.calculate the capital at the beginning a. Rs 60,000 b. Rs 70,000 c. Rs 80,000 d. Rs 55,000 Q35 outstanding rent is a. real a/c b. personal a/c c.personal a/c with out name d. an expense Q36 outstanding income is a. an asset b. a liability c. an expense d. none Q37 The manager is entitles to commission of 5% on profit before deductionthe commission .The profitis Rs 2100, therefore commission will be a. Rs 100 b. Rs105 c. Rs110.53 d. none Q38 prepaid rent is A. an asset b. a liabitity c. an expense d none

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GURU GOBIND SINGH COLLEGE FOR MTMS

AL 7 Main Jail Road, Hari Nagar, New Delhi 110064 Q40 Ideal current ratio is a. 1:1 b.1:2 c. 2:1 d 2:2 Q41.liquid asset do not include a. cash b. bank c. debtors d. stock Q42 stock turnover ratio is calculated by dividing cost of good sold by a. opening stock b. closing stock c. average stock d. none Q43when the equity capital exceed ib comparission with the debentures & preference share the capital structure the capital structure is refered to A. high geased b. low geased c. even geased d. none Q44Net profit ratio is the ratio of a. net operating profit to the net sales b.net profit after tax to net sales c. net profit before tax to net sales d. none Q45.average payment period 2 months hence creditor turnover will be a. 6 times b. 5 times c.3times d.none Q46. opening stock Rs 8000, closing stock Rs 1,00,000,cost of good sold Rs 3,60,000.hence stock tunnover ratio is a. 2times b. 4 times c. 4.5 times d. none

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GURU GOBIND SINGH COLLEGE FOR MTMS

AL 7 Main Jail Road, Hari Nagar, New Delhi 110064 Q47.period cost are A. variable cost b. fixed cost c. prime cost d. overhead cost Q48 when fixed cost is Rs 10,000 & p/v ratio is 20%.Break even point will be A.Rs 2000 b. Rs 5000 c. Rs 50,000 d.none Q49 when fixed cost is Rs 7000,profit is Rs3000,&sales Rs 5000, the p/v ratio a.14% b.6% c.20% d none Q50.Break even point is a. minimum profit b. minimum loss c. maximum profit d. neither profit nor loss Q51.what will be the effect of B.E.N. by the increase in fixed asset a. decrease b. increase c. no change d. none Q52.when p/v ratio is 25% &b.e.n. is 50,000 then the fixed cost will be a. Rs 10,000 b. 2,00,000 c. 12,500 d. 2000 Q53. A budget that gives a summary of all the functional budgets & projected profit &loss a/c is known as a. capital budget b. sales budget c. master budget d flexible budget

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GURU GOBIND SINGH COLLEGE FOR MTMS

AL 7 Main Jail Road, Hari Nagar, New Delhi 110064 Q54.The budget that is set 1st& all the other budgets are subordinate to it is a. cash budget b. master budget c. sales budget d. capital expenditure budget Q55.which of the following is not current liability a. mortigage loan b. bank over draft c out standing wages d. bills payable Q56 sales of machinery is A.use of fund b. source of fund c.no flow of fund d.none Q57.which of the following is not a cash inflow a.purchase of fixed assets b. sale of good c. Issue of debentures d. sale of fixed assets Q58.which of the following is not a cash outflow a. increase in prepaid expenses b. increase in stock c. increase in bills receivables d .increasing in outstanding expenses Q59. Which of the following is an example of non cash expeses a. depreciation b. wages & salaries c. telephone expenses d. none Q60. Total sales Rs 2,00,000, opening debtor Rs 15,000 ,debtors in ending Rs 28,000 cash sales a. Rs 1,87,000 b. 2,13,000 c. 2,15,000 d . none

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GURU GOBIND SINGH COLLEGE FOR MTMS

AL 7 Main Jail Road, Hari Nagar, New Delhi 110064 Q61.Net profit year for the year Rs 15,000.interest received in advance on 1 april 2006, Rs 2000 & 31.3.2007 Rs 3000. cash from operations will be a. Rs 10,000 b. 13,000 c. 16,000 d.none Q62. The difference between actual lost & standard cost is known as a. varience b. profit c. differential cost d. loss Q63.standard costing helps in a. measuring efficiency b. reducing loss c. controlling prices d. none. Q64.Standard quantity 250 units .actual unit 260 units.standard prices Rs 5 per unit .actual prices Rs 5.5 per unit .calculate material price per unit. a.130(a) b. 150 (a) c. 150(f) d 150 (f) Q65. The branch of accountring which primarily deal with processing & presenting accounting date for internal use in a concern is a. financial accounting b. lost account c. management accounting d. none Q66.Marginal costing includes which element a. ascertainment of marginal cost b. findind out effects on profit ,due to changes in volume or type of output. C. differentiating between fixed & variable costs d. all of the above. Q67.Variable cost is also known as a. marginal cost b. fixed cost c. none d all

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GURU GOBIND SINGH COLLEGE FOR MTMS

AL 7 Main Jail Road, Hari Nagar, New Delhi 110064 Q68. Variance analysis involves two elements a. measurement of individual variance b. identification of causes of each variance c. all d none Q69 .The standard of material include a. material quantity b. material price c. none d. all(a&B) Q70.Objectives of budgetary control are a. planning the policy b. coordinating activities c. controlling cost d. all Q71.work cost is also known as A. flat cost b. manufacturing cost c. total cost d. cost of production Q72. prime cost is also known as A. direct cost b. first cost c. flat cost d. all Q73. Total of work cost &office overhead are known as a. manufacturing cost b. direct cost c. cost of production d .none Q74.In a cost sheet stock of finished goods is adjusted at the stage of a. prime cost b. works cost c. cost of production d. none

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GURU GOBIND SINGH COLLEGE FOR MTMS

AL 7 Main Jail Road, Hari Nagar, New Delhi 110064 Q75. In cost sheet realisable value of scrap is deducted from a. direct cost b. works cost c. cost of production d. none Q76.In a cost sheet stock of work in progressis adjusted at the stage of a. direct cost b. works cost c. cost of production d. none Q77.If profit is 25% of cost ,it will be------% of sales a. 20% b 15% c 30% d. none Q78.If profit is 50% of cost ,it will be ____%of cost a. 100% b. 75% c. 60% d. none Q79.cost price Rs 18,000,33 .profit on selling price amount of profit will be a. Rs 6000 b. 9000 c. 4500 d none Q80.Total sales are Rs 5,00,000, 25%. Profit on cost .Total profit would be a. Rs 1,00,000 b. 1,25,000 c. 1,50,000 d. Rs 1,66,670 Q81. If prime cost Rs 16,000 factory overheads 25% of prime cost &office overheads 75% of factory overheads, office cost would be a. Rs 3000 b. 15,000 c. 23,000 d. none

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GURU GOBIND SINGH COLLEGE FOR MTMS

AL 7 Main Jail Road, Hari Nagar, New Delhi 110064 Q82. If prime cost Rs 24000, office cost,Rs 30,000,office overheads 50% of office overheads , factory cost would be a. Rs 3000 b. 27,000 c. 26,000 d. 28,000 Q83.If prime cost Rs 18,000 , factory cost Rs 21,600 , factory overhead 45%, of direct wages, the amount of direct material would be. a. Rs 8000 b. 4,800 c. 10,000 d. none Q84. If opening balance of material Rs 6000, closing balancers 45,0007 value of material used Rs 75,000, amount of material purchased would be a. Rs 60,000 b. 90,000 c.30,000 d.none Q85.If units produced during the month are 10,000 (out of which 2,000 units were un sold) cost of production is Rs 62,000 & selling expenses per unit is Rs 1.80 ,cost of sales would be a. Rs 64,000 b. 67,600 c.92,400 d. none Q86. cost accounting is a. part of managerial accounting b.part of financial accounting c. part of responsibility accounting d.none Q87.Ascertainment of cost with the help of actual expenses incurred in termed as a. Historical costing b. standard costing c. marginal costing d. absorption costing Q88.An examples of variable cost a. Rent,rates,& taxes b. Interest on capital c. Direct material cost d. Depreciation on machinery Ph. 9810455330, 25138338, 25138339

GURU GOBIND SINGH COLLEGE FOR MTMS

AL 7 Main Jail Road, Hari Nagar, New Delhi 110064 Q89.variable cost are such costs which a. per unit remains the fixed b. per unit does not remain constant c. Do not vary with variation in output d. none Q90.Which of the following is factory overheads a. salary b. drawing office expenses c. legal expenses d. none Q91.Which of the following items is not included in cost accounts a. Rent of warehouse b. share transport fee c. office rent d. depreciation on furniture Q92. Advantages of budgetary control a. ensure effective use of resources b. sets up standard costing c. Increase employee productivity d. all Q93. contribution can be represented as follows a. contribution=selling price-variable cost b. contribution = fixed cost + profit /loss c. contribution= p/v ratio*sales d. all Q94. Sub fields of accounts are a. book keeping &financial accounting b. cost &management accounting c. social responsibility accounting d. all Q95.It is arrived at by the deducting the direct cost of goods sold from sales proceeds a. gross profit b. net profit c. all d. none

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GURU GOBIND SINGH COLLEGE FOR MTMS

AL 7 Main Jail Road, Hari Nagar, New Delhi 110064 Q96.Example of current asset is a. building b. machinery c. stock d. creditors Q97.Wages paid for installitation of machinery is debited to wages a/c instead of machinery this is an erroe of a. principal b. omission c. commission d. compensation Q98.If the total of the debit side of an account is greater than credit side the balance of such a/c is a. Debit balance b. credit balance c. no balance d. none Q99.The valuation principle of assets & liabilities depend on a. matching concept b. realization concept c. cost concept d. going concern concept Q100.Capital is a ____________for business. a. assets b. liabilities c. expenses d. none.

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