GAT Subject.pdf

1Gat Subject (Management Sciences – Accounting-Management -Economics)

Made By Farhan Qadeer (M.Sc. Management and Finance, Birmingham City University, UK)Lecturer (University of The Lahore)Email: [email protected]: +92333-4881302

GAT

SUBJECT

MCQ’S(Management Sciences – Accounting-

Management -Economics)



Table of Content

ACCOUNTING.................... 3-100

Management………………… 101-200

Economics........................ 200-298



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Question: 924 direct wages should always be classified

1. as variable costs2. as fixed costs3. as semi-fixed4. according to their actual behavior 5.

Question: 928 The First in First out (FIFO) materials pricing system charges issues at

1. the price of the most recent batch in stock2. the price of the first component used in the period3. the average price of goods in stock4. the price of the oldest batch in stock5.

Question: 933 The Last in First out (LIFO) system will

1. value stocks at current values2. understate product in times of rising prices3. tend to produce realistic product costs4. make cost comparisons between jobs easier5.

Question: 940 When Activity Based Costing is used it is probable the

1. all products will cost more 2. high volume product will tend to be costed lower3. direct costs will be a smaller proportion of total costs4. more costs will be charghed to products which are produced for stock 5.

Question: 942 the use of backflush accounting means that

1. conversion costs cannot be carried forward in stock values2. stocks cannot occur3. raw material costs will be reduced4. costs are attributed to stock and cost of sales when the finished goods are made5.

Question: 943 Unit costs are extensively used in the public sector. This is because

1. they are a rough and ready guide to efficiency2. they are a good measure of the quality of service provided3. they allow for regional differences4. they enable public sector organizations to stay within the set cash limits5.



Question: 944 which of the following firms are most likely to use process costing

1. a car manufacturer2. a sugar refinery3. a builder4. a departmental store5.

Question: 946 Activity Based Costing absorbs overheads into products

1. by treating most of them as long-term variable costs2. by ignoring the volume of production3. according to the usage of support overheads4. by only producing on demand5.

Question: 948 Significant Digit Codes are

1. where some of the digits are part of the description2. only used for raw materials3. to enable a code to be self-checking4. a means of combing expenditure and location codes5.

Question: 952 Check digit variations is

1. the process of checking invoices for correct calculations 2. a method of making code numbers self checking 3. to enable codes to be self-indexing4. the encoding of invoices with internal codes5.

Question: 956 which of the following firms would be most likely to use job costing

1. a paint manufacturer2. a sugar refinery3. a firm of architects4. a car manufacturers5.

Following list gives the correct choice for the answer of the accounting mcqs.924. D 928 . D 933 . C 940 . B 942 . D 943 . A 944 . B 946 . C 948 . A 952 . B 956 .C

Question: 960 Labor turnovers can be expressed as a ratio as follows

1. Number of leavers 2. Number replaced



3. Numbers of employees at the end4. Number of leavers in a period5.

Question: 965 A cost drivers is

1. the amount of overhead caused by an activity2. a unit of activity which causes costs3. a long term variable costs4. equivalent to a cost centre 5.

Question: 969 Prime cost includes

1. Direct labour,direct materials and direct expenses2. All direct costs plus factory overheads3. Direct materials plus total overheads4. Direct labor plus factory overheads5.

Question: 974 A cost center is

1. A unit of production in relation to which costs are ascertained2. A location which is responsible for controlling direct costs3. Part of the overhead system by which costs are gathered together4. Any location or department which incurs cost 5.

Question: 981 Cost apportionments is carried out by

1. Charging each cost unit a realistic proportion of overheads 2. charging whole items of cost to centers3. Ensuring that each period carries its amount of cost by making accruals or prepayment s4. Dividing common costs among centers in proportion to the benefit received5.

Question: 990 Overhead absorption is done so that

1. common costs are shared among cost centres,in portion to the benefit received 2. The total amount of overheads for the firm can be calculated3. The total overheads for a cost centre can be calculated 4. Each unit of the product carries a share of overheads5.

Question: 998 Expenditure on steel used in the product would be classified into which of the following categories

1. Direct material/cost unit



2. direct material/production overheads3. in direct material/cost unit4. prime cost/production overhead5.

Question: 1005 A firms’ uses direct labor a basis for overhead absorption if large fluctuations in labor house are experiences

1. this is a reason to use predetermined overhead rate 2. this will mean that overheads will be under or over absorbed for the year3. different amounts of overhead will be charged to jobs with the same labor hours4. it will be better to use a machine hour rate5.

Question: 1039 A predetermined overhead rate using machine hours as a basis

1. is calculated by dividing actual overhead by budgeted machine hours2. results in the over absorption of overhead3. is inferior to a rate based on labor hours4. results in charging similar overheads to jobs with similar machine hours5.

Question: 1043 the costing associated with a typical site based contract

1. means that more costs can be identified as direct 2. requires some estimate to be made of interim profits3. means that the contract account will be credited with materials at the end of thee contract4. includes all of these5.

Answers to the questions of accounting on this page

Following list gives the correct choice for the answer of the accounting mcqs.952 . B 956 . C 960 . B 965 . B 969 . A 974 . C 981 . D 990 . D 998 . A 1005 . A 1039 . D 1043 . D

Question: 1046 Using process costing the amount of cost transferred to finished goods stock is the cost of

1. the equivalent production for the period2. the units completed during the period3. the units started and completed during the period4. the units in the opening Finished Goods stocks 5.

Question: 1054 Double loop feedback

1. is information designed to ensures that operations conform to plans2. is designed to assess how well the control system operates and how relevant current pains are



3. is information passed up two layers of the organization4. is information that is double checked for accuracy5.

Question: 1057 the distance A represents

1. contribution at activity level X2. profit at activity level X3. the amount of variable costs at activity level X4. the margin of safety5.

Question: 1061 the distance represents

1. contribution at activity level Y2. the amount of variable costs at activity level Y3. the level of sales at activity level Y4. the amount of variable costs at activity level Y5.

Question: 1069 which of the following are possible causes of the changes in the graph at activity level Z

1. an increase in sales value causing an increase in contribution2. a decrease in fixed costs causing an increase in variable costs3. an increase in total fixed costs and a decrease in variable costs per unit 4. an increase in total variable costs and a decrease in fixed costs per unit5.

Question: 1078 what do the lines C and D represent

1. Fixed costs and variable costs respectively 2. Total costs and variable costs respectively3. Variable cost and fixed costs respectively4. Sales revenue and total costs respectively5.

Question: 1081 if the total expenditure on cost type X was expressed as a cost per unit of the product X would be classified as variable if

1. the cost per unit changed with the level of activity 2. the cost per unit was affected by inflation 3. the cost per unit remained constant with changes in the level of activity4. the total expenditure on X remained the same5.

Question: 1085 the main purpose of cost accounting is to

1. maximize profits



2. help in inventory valuation3. provide information to management for decision-making4. aid in the fixation of selling prices5.

Question: 1086 one of the most important tools in cost planning is

1. direct cost 2. budget3. cost sheet 4. marginal costing5.

Question: 1088 the purpose of cost accounting is to provide information for

1. preparing costing P& L A/c2. cost control

3. locating factors leading to wastages and losses4. assessing the profitability and financial position of the firm5.


Following list gives the correct choice for the answer of the accounting mcqs.1039 . D 1043 . D 1046 . C 1054 . A 1057 . A 1061 . D 1069 . C 1078 . B 1081 . C 1085 .C 1086 . B 1088 . B

Question: 1089 Fixed cost per unit increases when

1. variable cost per unit increases2. variable cost per unit decreases3. Production volume increases4. production volume decreases5.

Question: 1091 Variable cost per unit

1. varies when output varies2. remains constant3. increases when output increases4. decreases when output decreases5.



Question: 1093 Increase in total variable cost is due to

1. increase in fixed cost2. increase in sales3. increase in production4. increase in total cost5.

Question: 1095 an example of variable cost is

1. property taxes2. interest on capital3. direct material cost4. depreciation of machinery5.

Question: 1100 an example of fixed cost is

1. direct material cost2. works managers salary3. depreciation of machinery4. chargeable expenses5.

Question: 1102 Cost accounting concepts include all of following except

1. Planning2. controlling3. profit sharing 4. product costing5.

Question: 1104 the three major elements of product costs are all but

1. direct materials 2. Factory overhead3. direct labor 4. indirect labor5.

Question: 1111 Cost of goods produced includes

1. production cost and finished goods inventory2. production cost and work-in-progress3. production cost, work-in-progress and finished goods inventory4.5.



Question: 1117 Cost of goods sold includes

1. cost of production and work-in-progress2. cost of production and finished goods inventory3. cost production, work-in-progress and finished goods inventory4.5.

Question: 1123 an overstatement of work-in-progress at the end of a period will

1. overstate cost of goods produced2. understate current assets3. understate gross profit4. overstate net profit5.


Following list gives the correct choice for the answer of the accounting mcqs.1086 . B 1088 . B 1089 . D 1091 . B 1093 . C 1095 . C 1100 . B 1102 . C 1104 . D 1111 .B 1117 . B 1123 . D





Question: 1126 Conversion cost is equal to the total of

1. material cost and indirect wages 2. material cost and indirect wages3. direct wages and factory overhead4. material cost and factory overhead5.



Question: 1127 multiple costing methods is used in

1. oil refinery2. car manufacturing company3. sugar mill4. multi-product company5.

Question: 1128 Toy manufacturing company should use

1. unit costing2. job costing3. batch costing4. multiple costing5.

Question: 1129 Electricity generating company should use

1. unit costing2. process costing3. batch costing4. multiple costing5.

Question: 1130 Job costing is used in

1. paper mills2. chemical works3. printing press4. textile mill 5.

Question: 1131 Output costing is employed in

1. mining quarries2. steel production3. brick kilns4. all of these5.

Question: 1132 Contract costing is used in

1. ship-building2. airplane industries3. automobile industries4. none of these5.



Question: 1167 Direct material is a

1. Fixed cost2. variable cost3. semi variable cost4.5.


1. manufacturing cost2. Administration 3. Selling and distribution cost4. Any of the above5.

Question: 1174 in manufacturing industries, the most important element of cost is

1. Material2. Labor3. Overheads4.5.


Following list gives the correct choice for the answer of the accounting mcqs.1117 . B 1123 . D 1126 . C 1127 . B 1128 . C 1129 . D 1130 . C 1131 . D 1132 . An 1167 . B 1172 . An 1174 . A

Question: 1176 which of the following is an accounting record

1. Bill of Material2. Bin card 3. stores ledger4. All of these5.

Question: 1180 which of the following documents is used for issuing materials to productions departments

1. purchase Requisition Note2. stores Requisition note3. Goods Received Note4. stores Credit Note5.



Question: 1183 which of following is considered to be a normal loss of materials

1. Loss due to accidents2. pilferage3. Loss due to breaking the bulk4. Loss due to careless handling of materials5. All of these

Question: 1186 According to which of the following methods of pricing, issues are close to current economic values

1. Last-in-first-out price2. First-in-first-out price3. Highest-in-first-out price4. Weighted average price5.

Question: 1187 in which of the following methods of pricing costs lag behind the current economic values

1. Last-in-first-out price.2. First-in -first-out price.3. Replacement price.4. Weighted average price.5.

Question: 1192 which of the following methods of stock control aims at concentrating efforts on selected items of materials

1. perpetual inventory system2. Materials turnover3. Maximum, minimum and re-order level setting4. ABC analysis5.

Question: 1193 in base stock method of pricing the material issues, the term base stock represents the

1. Quantity of stock being issued 2. stock in balance3. Minimum stock4. Maximum stock5.

Question: 1194 which of the following items of cost should NOT be treated as NOT be treated as direct material

1. Electricity representing 90% of the total cost2. Sand paper used in production3. Thread used in stitching garments4. All of the above



5.

Question: 1195 Continuous stock-taking is a part of

1. Annual stock-taking2. Perpetual inventory system 3. ABC analysis4. periodic inventory system5.

Question: 1197 the classification of items in ABC analysis is made on the basis of

1. Investment value of materials 2. Consumption value of materials3. Quantity of materials consumed4. All of these

Following list gives the correct choice for the answer of the accounting mcqs.1172 . An 1174 . An 1176 . C 1180 . B 1183 . C 1186 . An 1187 . B 1192 . D 1193 .C 1194 . D 1195 . B 1197 . D

Question: 1202 in which of the following methods, issues of materials are priced at a pre-determined rate

1. Inflated price method2. Standard price method 3. Replacement price method4. Specific price method5.

Question: 1204 in which of the following methods, materials are issued at the price prevailing at the time of issue

1. Inflated price method2. Standard price method3. Replacement price method 4. Specific price method5.

Question: 1205 the storekeeper should initiate a purchase requisition when stock reaches

1. Minimum leveled2. maximum level3. re-order level4. overage level5.



Question: 1207 which of the following material losses should be transferred to costing profit and loss account

1. Loss by evaporation2. Loss due to improper storage of materials3. Loss due to breaking the bulk4. All of these5.

Question: 1210 when material prices fluctuate widely, the method of pricing that gives absurd results is

1. Simple average price 2. Weighted average price3. Moving average price4. Inflated price5.

Question: 1212 when prices fluctuate widely, the method that will smooth out the effect of fluctuations is

1. simple average2. weighted average3. FIFO4. LIFO5.

Question: 1213 in which of the following methods, the charge to production is at actual cost

1. Weighted average price2. standard price3. Replacement price4. FIFO5.

Question: 1294 Expected annual usage of a particular raw material is 2,00,000 units and the economic order quantity is 10,000 units The invoice cost of each unit is RS.500 and the cost to place one order is RS.80. The average inventory is

1. 1,00,000 units2. 5,ooo units3. 10,000 units4. 7,500 units5.

Question: 1297 taking the data in Q.3.21 above, the estimated annual ordering cost is

1. RS.1,6002. RS.10,0003. RS.3,2004. RS.5,000



5.

Question: 1300 On the basis of data given in Q 3.21 above, number of orders to be placed in each year are

1. 102. 503. 204. 1005.


Following list gives the correct choice for the answer of the accounting mcqs.1195 . B 1197 . D 1202 . B 1204 . C 1205 . B 1207 . B 1210 . A 1212 . B 1213 . D 1294 .B 1297 . A 1300 . B


1. 102. 503. 204. 1005.

Question: 1304 when material prices are showing a rising trend, which method of pricing will show lower cost of production

1. FIFO2. LIFO3. Weighted average4. Replacement price5.

Question: 1307 in periods of rising prices, which method of pricing shows higher stock values


Question: 1309 in which method, prices charged to production are at the current prices prevailing in the market

1. FIFO2. LIFO3. Weighted average



4. Replacement price5.

Question: 1312 when prices are showing a falling tendency, which method of pricing of material issues will show higher closing stock value

1. FIFO2. LIFO3. Weighted average4. Specific price method5.

Question: 1313 When production is below standard specification or quality and cannot be rectified by incurring additional cost, it is called

1. Defectives2. Spoilage3. Waste4. Scrap5.

Question: 1315 Materials losses are due to some of the following reasons

1. Fore accident2. Theft3. Breaking the bulk4. Evaporation5. pilferage

Question: 1319 Documents used in a material control system include the following

1. Purchase Requisition Note2. Stores Requisition Note3. Bill of Materials4. Goods Received Note5. Purchase order

Question: 1321 at what amount materials issued on 8-1-1997 will be charged if FIFO method is used

1. RS.1,5502. RS.1,5753. RS1,7004. RS1,7505.

Question: 1323 at what amount materials issued will be charged igloo method is used

1. RS.1,550



2. RS.1,5753. RS.1,7004. RS.1,7505.

Question: 1325 at what amount materials issued will be charged if simple average price is used

1. RS.1,5502. RS1,5753. RS.1,6104. RS.1,7005.


Following list gives the correct choice for the answer of the accounting mcqs.1297 . A 1300 . B 1304 . A 1307 . A 1309 . D 1312 . B 1313 . B 1315 . A 1319 . D 1321 . B 1323 . C 1325 . B

Question: 1329 at what amount materials issued will be charged if weighted average price is used

1. RS.1,5752. RS.1,6103. RS.1,6254. None of these5.

Question: 1330 at what amount materials issued will be charged if replacement price method is used

1. RS.1,4002. RS.1,7003. RS.2,1004. RS. 1,7505.

Question: 1335 what will be the value of closing stock under FIFO method

1. RS 6002. RS 6753. RS 7004. None of these5.

Question: 1336 what will be the value of closing under LIFO method

1. RS.600



2. RS.6753. RS.6904. RS.7505.

Question: 1337 what will be the value of closing stock under simple average method

1. RS.6002. RS.6903. RS.7254. RS.7505.

Question: 1339 what will be the value of closing stock if weighted average method is applied

1. RS.6002. RS.6903. RS.7254. RS.7505.

Question: 1340 what will be the value of closing stock if replacement price method if used

1. RS.1002. RS.3003. RS.2004. None of these5.

Question: 1344 in which of following incentive plans of wages payment, wages on time basis are NOT guaranteed

1. Halsey plan2. Rowan plan3. Taylors differential piece rate system4. Gantt's task and bonus system5.

Question: 1427 in which of the following incentive plan of wages payment, wages on time basis are NOT guaranteed?

1. Halsey plan2. Rowan plan3. Taylor's differential piece rate system4. Gantt's task and bonus system5.



Question: 1429 which of the following methods of wage payment is most suitable where quality and accuracy of work is of primary importance?

1. piece rate system 2. differential piece work system 3. time rate system 4. Halsey premium system5.


Following list gives the correct choice for the answer of the accounting mcqs.1323 . C 1325 . B 1329 . B 1330 . C 1335 . D 1336 . A 1337 . C 1339 . B 1340 . B 1344 .C 1427 . C 1429 . B

Question: 1430 Cost of idle time arising due to non-availability of raw material is

1. charged to costing profit and loss A/C2. charged to factory overheads3. recovered by inflating the wage rate4. all of these 5.

Question: 1432 when overtime is required for meeting urgent orders, overtime premium should be

1. charged to costing profit and loss A/c2. charged to overhead costs 3. charged to respective jobs 4. all of these 5.

Question: 1433 Time and motion study is conducted by the

1. time keeping department 2. payroll department 3. personnel department 4. engineering department5.

Question: 1435 Labor productivity is measured by comparing

1. actual time with standard time 2. total output with total man hours3. added value for the product with total wage cost 4. none of the above 5.



Question: 1436 when standard outputs is 10 units per hour and actual output is 12 units per hour , the efficiency is

1. 80%2. 120%3. 100%4. none of these 5.

Question: 1438 Wages sheet is prepared by

1. time keeping department2. payroll department3. personnel department4. cost accounting department5.

Question: 1443 given that for a job, standard time is 8 hours, actual 6 hour and the time rate is Rs 2per hour what is the total wages under halsey premium plan

1. Rs 182. Rs 143. Rs 164. Rs125.

Question: 1449 using data as given in Q. 314 above, what will be the amount of wages under time rate system

1. RS. 122. RS.143. 164. 18.5.

Question: 1451 using data as given in Q. 314 above, what will be the amount of bonus under rowan plan

1.2. RS. 23. RS. 34. RS. 45. None of the above

Question: 1453 using data as given in Q 3.14 above, what is the amount of bonus under Halsey plan

1. RS. 22. RS.33. RS.44. Nil



5.


Following list gives the correct choice for the answer of the accounting mcqs.1427 . C 1429 . B 1430 . A 1432 . C 1433 . D 1435 . D 1436 . C 1438 . C 1443 . C 1449 .A 1451 . B 1453 . A

Question: 1457 Standard output is 100 units per day of 8 hours and the piece rates are 20 piece per unit under Taylor's differential piece rate system, what will be amount of wages if a worker produces 95 unit in a day

1. RS.14.002. RS.14.253. 18.504. 19.005.

Question: 1459 given the data in 3.19 above, what will be the amount of wages under Taylor's differential piece rate system, if a worker produces 101 units ohm a day

1. RS.15.152. RS.20.003. 20.154. 20.205.

Question: 1460 Comparing Rowan and Halsey premium plans, it is seen that when the time saved is less than 50% of the time saved,

1. Rowan plan allows more wages to a worker than Halsey plan2. Rowan plan allows less wages to a worker than Halsey plan3. Rowan and Halsey plan allow equal wages to a worker4.5.

Question: 1461 when time saved is 40% of the standard time, Halsey plan allows

1. more wages than Rowan plan 2. less wages than Rowan plan3. equal wages as compared to Rowan plan4.5.

Question: 1463 Standard time is 60 hours and guaranteed time rate is 30 paisa per hour what is the amount of wages if job is completed n 48 hours? Rowan plan is in use



1. RS.24.002. RS.26.803. RS.17.284. RS.20.405.

Question: 1464 which of the following a group incentive plans

1. priestman plan2. Badaux plan3. Halsey weir plan 4. All of these5.

Question: 1466 Packing cost is

1. production cost2. selling cost3. distribution cost4. It may be any of the above5.

Question: 1468 Directors' remuneration and expenses from a part of

1. production overhead2. selling overhead3. administration overhead 4. distribution overhead5.

Question: 1471 Salary of a foreman should be classified as a

1. fixed overhead2. variable overhead3. semi-fixed or semi-variable overhead4.5.

Question: 1472 Charging to a cost centre those overheads that result soleoy from existence of that cost centreis known as

1. allocation2. apportionment3. absorption4. allotment5.

Following list gives the correct choice for the answer of the accounting mcqs.



1451 . B 1453 . A 1457 . B 1459 . D 1460 . A 1461 . B 1463 . C 1464 . A 1466 . D 1468 .B 1471 . C 1472 . A

Question: 1476 Absorption means

1. charging of overheads to cost centers2. charging of overheads to cost units3. charging of overheads to cost centers or cost units 4.5.

Question: 1481 Administration overheads are recovered as a percentage of

1. direct materials2. direct wages3. prime cost4. works cost5.

Question: 1484 which of the following is NOT is selling overhead

1. Insurance to cover sold goods while in transit2. Royalty on sales3. Legal costs for debt realization4. Distribution of samples5.

Question: 1488 which method of absorption of factory overheads do you suggest in a concern which produced only one uniform type of product

1. percentage of direct wages basis2. Direct labor hour rate3. Machine hour rate4. A rate per unit of output5. Any of the above

Question: 1490 When the amount of under-or over-absorption is significant, it should be disposed of by

1. Transferring to Costing profit and Loss A/C.2. the use of supplementary rates3. carrying over as a deferred charge to the next accounting year4.5.

Question: 1493 idle capacity of a plant refers to the difference between

1. maximum capacity and practical capacity2. practical capacity and normal capacity



3. practical capacity and capacity based on sales expectancy4. maximum capacity and actual capacity5.

Question: 1496 Maximum possible productive capacity of a plant, when no operating time is lost, is its

1. practical capacity2. Theoretical capacity3. Normal capacity4. Capacity based on sales expectancy5.

Question: 1499 the capacity which is based on the long term average of the sales expectancy level is known as

1. practical capacity2. Actual capacity3. Normal capacity4. None of these5.

Question: 1502 when the amount of overhead absorbed is less than the amount of overhead incurred, it is called

1. under-absorption of overhead 2. over-absorption of overhead3. proper absorption of overhead4.5.

Question: 1506 Bad debt is an example of

1. production overhead2. Administration overhead3. selling overhead4. Distribution overhead

Following list gives the correct choice for the answer of the accounting mcqs.1471 . C 1472 . A 1476 . B 1481 . D 1484 . A 1488 . D 1490 . B 1493 . C 1496 . C 1499 .C 1502 . A 1506 . C

Question: 1508 Number of workers employed is used as a basis for the apportionment of

1. time office costs2. canteen expenses3. personnel department expenses4. any of these5.



Question: 1518 in which of the following methods of providing depreciation, the amount of depreciation goes on decreasing with the age of the asset

1. Reducing balance method2. sum of digits method 3. Annuity method 4. (a) and (b) above5.

Question: 1544 Selling and distribution overheads are absorbed on the basis of

1. Rate per unit2. percentage on selling price of each unit3. Any of these4.5.

Question: 1549 the difference over a period of time, between actual factory overhead and absorbed factory will usually be minimum when the predetermined overhead rate is based on

1. normal capacity2. maximum capacity3. direct labor hours4. machine hours 5. none of the above

Question: 1553 A monopolies will shut down its plant in the short run if

1. It is making a loss.2. Marginal revenue is less than marginal cost.3. Marginal revenue less than average variable cost at all levels of output.4. Average revenue is less than average variable cost at all levels of output.5. Average revenue is less than marginal cost at all levels of output.

Question: 1555 A company found that the differences in product costs resulting from the application of pre-determined overhead rates rather than actual overhead rates were immaterial even though actual production was substantially less than planned production the most likely explanation is that

1. factory overhead was mainly composed of variable costs2. several products were produced simultaneously3. fixed factory overhead was a significant cost4. costs of factory overhead items were substantially larger than anticipated5.

Question: 1560 Under-absorbed factory overhead costs are

1. excess variable factory overhead costs2. factory cost not allocated to units produced



3. fixed factory costs not allocated to unit produced4. cost that cannot be controlled5. None of the above

Question: 1567 if a per-determined factory overhead rate is not employed and the volume of production is reduced from the level planned, the cost per unit would be expected to

1. remain unchanged for fixed costs and increase for variable costs2. increase for fixed cost and remain unchanged for variable costs3. increase for fixed costs and decrease for variable costs4. decrease for fixed costs and decrease for variable costs5.

Question: 1569 the least suitable basis for applying overhead is

1. materials consumed2. direct labor cost3. direct labor hours 4. machine hours5.

Question: 1571 Excess plant capacity means

1. temporary idleness of plant2. greater production capacity than a company can use3. the difference between theoretical capacity and actual capacity4.

Following list gives the correct choice for the answer of the accounting mcqs.1508 . D 1518 . D 1544 . D 1549 . A 1553 . D 1555 . C 1560 . E 1567 . B 1569 . A 1571 .B


1. temporary idleness of plant2. greater production capacity than a company can use3. the difference between theoretical capacity and actual capacity4.5.

Question: 1573 the concept of ideal capacity of plant as used in cost accounting is its

1. theoretical maximum capacity2. Best capacity for normal production.3. Capacity used for standard setting.4. Capacity below which production should not fall.5.



Question: 1580 pre-determined overhead recovery rate is Rs 3 per hour and pre-determined hours are 50,000 Actual hours worked are 55,000 and actual overhead Rs 1,70,000. What is the amount of under or over-absorption of overhead

1. RS.20000 over-absorption2. RS. 20,000 over-absorption3. RS.5000 under-absorption4. RS.5,000 over-absorption5.

Question: 1583 in Q. 3.34, what is the amount of pre-determined overhead

1. RS.1,50,0002.3. rs.1,65,0004. cannot be computed5. None of these

Question: 1585 what is the amount of absorbed overhead in Q 3.34

1. RS. 1,50,0002. RS. 1,65,0003. RS. 15,0004. RS 20,0005.

Question: 1592 In Q 3,37, which method should be used to treat under/over absorbed amount in cost accounts

1. Tr. to costing P& L A/c2. Use of supplementary rate3. Carry over to next year4. Any of the above5.

Question: 1594 In Q 3.37, what is the predetermined number of machine hours

1. 16,0002. 12,0003. Cannot be known4. None of these5.

Question: 1599 A machine purchased for Rs 20,000 is discarded because of obsolescence and sold for Rs 5,000 after three years of service, resulting in a loss of Rs 3,000.This loss should be

1. treated as production cost2. transferred to costing P& L A/c in the year of sale3. spread over the years of the remaining expected life of the machine



4. Either(b)or(c)5.

Question: 1603 the principal factors to be considered on designing a cost system include

1. Manufacturing process2. desires of management3. nature of business4. company organization structure5. all of the above

Question: 1606 the most suitable cost system where the products differ in type of materials used and work performed is

1. job costing2. Batch costing3. operating costing4. None of these5.

Question: 1609 in shoe manufacture, the most suitable cost system is

1. job costing2. Batch costing3. Contract costing4. None of these5.


1573 . A 1580 . C 1583 . A 1585 . B 1592 . B 1594 . B 1599 . B 1603 . E 1606 . A 1609 .B




1. job costing2. Batch costing3. Contract costing4. None of these



5.

Question: 1611 job costing is used in

1. Repair shops2. printing presses3. Furniture making4. Automobile garages5. All of these

Question: 1613 Most of the expenses are direct in

1. job costing2. batch costing3. contract costing4. All of these5.

Question: 1616 when a contract is not completed at the end of the accounting year, profit on incomplete contract is

1. transferred to profit and loss Account2. transferred to reserve3. transferred profit to profit and loss Account and partly to reserve4.5.

Question: 1618 when a contract is not completed at the end of the year, loss on incomplete contract is

1. transferred to profit and loss Account2. transferred to work-in-progress3. transferred partly to profit and Loss Account and partly to work-in progress4.5.

Question: 1622 when contract id 40% complete, the amount of profit to be taken credit for is usually

1. the amount of profit estimated2. 40% the estimated profit3. 1/3of the estimate profit multiplied by cash ratio4.5.

Question: 1627 in contract accounts, the amount of work-in-progress consists of

1. cost of work uncompleted2. cost of work uncompleted3. the amount of profit not transferred to profit and Loss Account



4. (a) and(B) above5. (a)(b) and(C)

Question: 1630 cost-plus contract is usually entered in to those where

1. cost can be easily estimated2. it is not possible to compute the cost in advance with a reasonable degree of accuracy3. contractor wants to earn a higher amount of profit4.5.

Question: 1631 Contract price is not fixed in case of

1. Cost-plus contracts 2. Escalation clause3. De-escalation clause4. All of the above5.


1. Cost-plus contracts2. Escalation clause3. De-escalation clause4. All of the above5.

Question: 1633 Cost plus contract is useful from the point view of

1. contractor2. contracted3. both contractor and contractee4.5.

Following list gives the correct choice for the answer of the accounting mcqs.1606 . A 1609 . B 1611 . E 1613 . C 1616 . C 1618 . A 1622 . C 1627 . E 1630 . B 1631 .D 1632 . D 1633 . C


1. contractor2. contractee3. both contractor and contractee4.5.

Question: 1634 In contract costing, contract account is prepared by the



1. contractor2. contractee3. both by contractor and contractee4.5.

Question: 1635 In a building contract of Rs. 2,40,000, at the end of the work certified is Rs. 1,60,000 and estimated profit is Rs. 15,000. what is the amount of profit to be credited to profit and LOSS Account assuming cash ratio is 80%

1. RS.15,0002. RS. 12,0003. RS. 8,0004.5.

Question: 1636 Economic batch quantity is that size of the batch of production where

1. average cost is minimum2. total cost is minimum3. set-up cost of machine is minimum4. carrying cost is minimum5.

Question: 1637 Production order means

1. an order received from a customer for the production of a specific item2. instructions to the shops to proceed with the production of the product3. an order to the store-keeper to issue necessary materials for production4.5.

Question: 1638 In contract costing, valuation of which of the following does not include an element of profit

1. work in progress certified2. work in progress uncertified3. Both(a) and(b)4. Neither(a)nor(b)5.

Question: 1641 A contract of RS.5,00,000 is 55% complete as certified it shows a notional loss of RS 20,000. Accounting treatment of this loss is

1. Transfer 2/3 of this loss to P&L A/c2. Transfer 2/3 X cash ratio of this loss to P&L A/c3. Transfer 55% of this loss to P&L A/c4. Transfer entire amount of loss to P&L A/c5.



Question: 1652 Direct cost chargeable to contract does not include

1. Materials2. Labor3. Supervision4. Storage lost5. both(c)and (d)

Question: 1655 Which of the following items is not written on the credit side of the contract account

1. work in progress-certified and uncertified2. Materials returned3. Cash received from contractee4. plant at site5.

Question: 1659 The type of process loss that should not affect the cost of inventories is

1. abnormal loss 2. normal loss3. seasonal loss4. standard loss5.

Question: 1663 During Jan. 1997, Marconi L.t.d. had total manufacturing cost of Rs.1,80,000. The business completed 14,000 units of product, of which 4,000 units were half completed in Dec 1996 and started production on an additional 6,000 units that production cost per unit was

1. RS.182. RS.16.363. RS.124. RS.9

Following list gives the correct choice for the answer of the accounting mcqs.1634 . A 1635 . C 1636 . B 1637 . B 1638 . B 1641 . D 1652 . D 1655 . C 1659 . A 1663

. C

Question: 1668 100 units are introduced in a process in which normal loss is 15 units If actual output is also 100 units, than there is

1. no abnormal loss or abnormal gain2. an abnormal loss3. an abnormal gain4.5.

Question: 1670 50 units are processed at a total cost of RS.80, normal loss being 10% Each unit carries a scrap value of 25 paisa. If output is 40 units, the value of abnormal loss will be



1. RS. 1.252. RS.8.003. RS.8.754. RS.8.88.5.

Question: 1676 Given the data in Q.3.5 above, the normal cost of unit is

1. RS.0.252. RS.1.603. RS.1.784. RS.1.755.

Question: 1678 A factories transferred out 8,800 completed and closing stock was 800 units 50% completed. Assuming FIFO method, the equivalent production during the period was

1. 8,900 units2. 9,100 units3. 9,300 units4. 9,500 units5.

Question: 1682 in a factory, the equivalent production (using FIFO method) was 7,500 units during a period which had 500 units 60% complete on hand at the start and 600 units 75% complete at the end of the period. How many units were introduced during the period

1. 6,7502. 6,8503. 7,0504. 7,1505.

Question: 1685 An under-statement of ending work-in-progress inventory will

1. understate cost of goods produced2. understate net profit3. overstate gross profit4. overstate current assets5.

Question: 1688 An over-statement of beginning work-in-progress inventory will

1. understate cost of goods sold2. understate the profit3. overstate net profit4. overstate gross profit5.



Question: 1689 When units are lost at end of the production process, the cost is charged to

1. factory overhead2. selling expense3. work-in-progress4. completed units5.

Question: 1691 The term Economic Batch Quantity is used in relation to

1. Operating costing2. Batch costing3. process costing4. Unit costing5.

Question: 1698 Input in a process is 4,000 units and normal loss is 20%. When finished output in the process is only 3240 units, there is an

1. abnormal loss of 40 units 2. abnormal gain of 40 units3. neither abnormal loss nor abnormal gain4.5.

Following list gives the correct choice for the answer of the accounting mcqs.1668 . C 1670 . C 1676 . D 1678 . A 1682 . B 1685 . B 1688 . B 1689 . D 1691 . B 1698 .B

Question: 1700 In Q.3.14 further assuming scrap value of loss is RS.5 per unit, the amount of sales from scrap is

1. RS.3,8002. RS. 4,0003. RS. 2004. None of these5.

Question: 1704 Further assuming (in Q. 3.14 and Q 3.15) the cost assigned to abnormal gain of 40 units is RS. 280, the amount to be transferred to costing profit and loss account

1. RS.2802. RS.2003. RS.804. RS.3605.



Question: 1705 Hopeless Company, which uses FIFO method in process costing, began the current year with 300 units 50% completed, transferred out 5,000 completed units during the year ended with 500 units 70% completed Equivalent production for the period was

1. 5,0002. 4,7003. 5,2004. 5,8005.

Question: 1706 Classification and accumulation of costs by fixed and variable costs is of special importance in

1. process costing2. unit costing3. operation costing4. operating costing5. none of these

Question: 1708 Joint product manufacturing is fundamental in

1. automobile industry2. oil refineries 3. engineering company4. All of the above5.

Question: 1709 Individual products, each of a significant sales value, produced simultaneously from the same raw material, should be known as

1. by-products2. main products3. joint products4. common products5.

Question: 1712 Total manufacturing costs are divided by the total number of units produced to obtain a cost per unit under the

1. average unit cost method 2. sales value method3. physical unit measurement method4.5.

Question: 1714 which of the following are virtually always subsequent costs

1. raw material costs 2. direct labor costs



3. selling and distribution cost4. None of these5.

Question: 1720 When by-products are of small total value, its accounting should by

1. apportioning a part of joint cost to by-products2. realizable value of by-products should be treated as miscellaneous income and transferred to P&L A/c3. realizable value of by-products should be apportioned over the main products4. Any of these5.

Question: 1723 Net realizable value of by-products at the split off point should be calculated by reverse cost method when

1. BY products are of small total value2. BY-products are of considerable sales value3. BY-products require further processing for their sale4.5.

Following list gives the correct choice for the answer of the accounting mcqs.1700 . A 1704 . C 1705 . C 1706 . D 1708 . B 1709 . C 1712 . A 1714 . C 1720 . B 1723 .C



Question: 1729 Cost per unit is the average cost is applicable in

1. Job costing 2. Operating costing3. Multiple costing4. Contract costing5.

Question: 1732 Trimmings in timber industry should be treated as a

1. waste2. scrap3. by-product4. joint product



5.

Question: 1735 Which of the following methods of accounting of by-products should be applied when the by-product is to be utilized in the undertaking itself as material for some other process

1. sales value method2. Other income method3. Opportunity cost method4.5. Reverse cost method

Question: 1737 Credit is given to the process account at a pre-determined value of the by-product under the

1. Standard cost method2. opportunity cost method3. Reserve cost method4. sales value method5.

Question: 1742 The primary purpose of apportioning joint costs of a processing centre to various products produced is to

1. develop accurate processing cost variances product-wise2. report more correct standard product costs for comparative analysis3. establish inventor cost assigned to unsold units4. record accurate cost of sales by product lines5. None of the above

Question: 1823 Given: input 1,000 units, Cost production RS 1,850 per Normal loss 10% of input, Actual loss 50 units, Scrap value Rs 0.50 per unit. What is the abnormal loss/gain

1. 50 units abnormal loss2. 50 units abnormal gain3. 100 units abnormal gain4. 100 units abnormal loss5.

Question: 1826 In Q3.35,what is the cost per unit

1. Rs. 2.182. Rs. 2.053. Rs. 24. RS. 1.895.

Question: 1828 Output of a process was 2,500 units, normal loss is 10% of input and abnormal loss 200 units. How many units were introduced in the process



1. 2,7002. 3,0003. 3,2004. 3,5005.

Question: 1842 In Q 3.37, What is the quantity of total loss

1.2. 2700 units3. 300 units4. 350 units5. 500 units

Question: 1843 when quantity sold is 18,000 units, opening stock 2,000 units and closing stock 3,000 units, what is the quantity produced


Following list gives the correct choice for the answer of the accounting mcqs.1729 . B 1732 . B 1735 . C 1737 . A 1742 . D 1823 . An 1826 . C 1828 . B 1842 . D 1843 . C

Question: 1845 A transport company is running 3 bases with 50 passengers each, covering a distance of 100 km daily. what is the number of passenger km. per day

1. 5,0002. 3003. 15,0004. 1505.

Question: 1847 Cost and financial accounts are reconciled under

1. Integral system2. Non-integral system3. Under both (a)and (b)4. None of these5.

Question: 1852 Which of the following accounts make the cost ledger self-balancing

1. overhead adjustment account2. Costing P.& L. account



3. Cost Ledger control account4. None of the above5.

Question: 1855 Costing profit and Loss account does not record the

1. sales value of goods2. balance of overhead adjustment account3. balance of cost of sales account4. balance of stores ledger control account5.

Question: 1866 Purchases for special jobs is debited to

1. Work-in-progress ledger control account2. Cost ledger control account3. Stores ledger control4.5.

Question: 1871 Integral accounts eliminate the necessity of operating

1. Cost Ledger Control account2. stores ledger control account3. Overhead adjustment account4. All of these5.

Question: 1874 Which of the following items is not included in cost accounts

1. Interest received on bank deposits2. Dividend paid on share capital3. Damages payable at law4. Debenture interest5. all of these

Question: 1879 Which following items is included in cost accounts

1. Transfer to general reserve2. Notional rent3. Rent receivable4. None of the above5.

Question: 1885 When costing loss is RS. 5,600, administrative overhead under-absorbed being RS. 400, the loss as per financial accounts should be

1. RS. 5,600



2. RS.6,0003. RS. 5,2004.5.

Question: 1889 Depreciation charged in costing is RS.12,500 and in financial books is RS.11,200.What will be the financial profit when costing profit is RS.5,000

1. RS. 5,0002. RS. 3,7003. RS. 6,3004.5.

Following list gives the correct choice for the answer of the accounting mcqs.1845 . B 1847 . B 1852 . C 1855 . D 1866 . A 1871 . A 1874 . E 1879 . C 1885 . B 1889 .C

Question: 1891 Profit as per financial books is Rs. 72,000.What will be the profit as per costing books when selling and distribution expenses, actual as well as predetermined, are RS. 2,500

1. RS. 72,0002. RS.70,5003. RS. 69,5004.5.

Question: 1895 Which of the following items is not included in financial books

1. Heavy donations2. Loss on the sale of fixed assets3. Notional rent4. Interest on borrowed capital5. all of these

Question: 1897 Which of the following items shall be added to costing profit to arrive at financial profit

1. Under-absorption of words overhead2. Interest on debentures paid3. Rent receivable4. Income tax paid5. All of the above

Question: 1913 Which of the following account will always have debit balance

1. Overhead adjustment account2. work in progress ledger control account3. Cost ledger control account.



4. Factory overhead control account5.

Question: 1916 The amount of total direct labor cost that should have been charged to all the individual production orders worked on during January should be

1. RS. 40,0002. RS. 33,0003. RS. 41,0004. RS. 55,0005. RS. 30,000

Question: 1918 The January 31 balance of work in progress control account should be

1. RS. 36,0002. RS. 75,0003. RS.76,0004. RS. 77,0005. RS. 35,000

Question: 1919 The January 31 balance of finish Goods Control Account should be

1. RS. 25,0002. RS. 20,0003. RS. 5,0004. RS. 10,0005. RS. 30,000

Question: 1932 The cost of goods sold during January was

1. RS. 40,0002. RS. 10,0003. RS. 20,0004. RS. 30,0005. RS. 50,000

Question: 1943 The amount of under-applied or over-applied cost for January

1. Under-applied by RS. 1,0002. under-applied by rs. 2,0003. over-applied by RS. 1,0004. Over-applied by RS. 2,0005. Neither under-applied nor over-applied

Question: 1955 in flexible budgeting

1. statements included in the budget report vary from period to period2. budget standards may be adjusted at will



3. reporting dates vary according to the activity level reported upon 4. planned activity level is adjusted to the actual activity level before the budget comparison report is

prepared5.

Following list gives the correct choice for the answer of the accounting mcqs.1891 . A 1895 . C 1897 . C 1913 . B 1916 . B 1918 . A 1919 . E 1932 . C 1943 . B 1955 .D

Question: 1963 The fixed-variable cost classification has a special significance in the preparation of

1. Flexible budget 2. Master budget3. cash budget4. capital budget5.

Question: 1966 If a company wishes to establish a factory overhead budget system in levels, it should prepare a

1. Flexible budget2. Master budget3. cash budget4. Fixed budget5.

Question: 1968 Of little or no relevance in evaluating the performance of an activity would be

1. Flexible budget2. Flexed budget3. difference between planned and actual results4. planning and control of activities5.

Question: 1994 The budget for a specific activity level during a year was Rs. 50,000, while actual costs for the same period was Rs. 45,000. Considering these facts, it can be said that the plant manager has done a better than expected job in controlling the costs if

1. the cost is variable and actual production was 80% of budgeted production2. the cost is variable and actual production was 90% of budgeted production3. the cost is variable and actual production equaled budgeted production4.5.

Question: 1997 THE budget that is set first and all the other budgets are subordinate to it, is

1. Cash budget2. Master budget 3. capital expenditure budget



4. Budget for the key factor5. sales budget

Question: 1999 The success of a flexible budget depends upends upon careful study and classification of expenses into

1. historical and predetermined2. manufacturing, administrative and selling is3. fixed, variable and semi-variable4.5.

Question: 2000 one of the most important tools of cost planning is

1. cost sheet2. unit cost3. direct cost4. budget5.

Question: 2001 A is a prediction of what will happen as a result of a given set of circumstances

1. Forecast2. Budget3. Marginal cost4. None of these5.

Question: 2002 A budget which lays more stress on control aspect is a an

1. operating budget2. responsibility budget3. flexible budget4. financial budget5.

Question: 2003 which of the following is usually a long-term budget

1. Sales budget2. cash budget3. capital expenditure budget4. fixed budget

Following list gives the correct choice for the answer of the accounting mcqs.1963 . A 1966 . A 1968 . D 1994 . C 1997 . D 1999 . C 2000 . D 2001 . A 2002 . B 2003 . C

Question: 2004 A budget representing fixed assets expenditure during the budget period is



1. Fixed budget2. Capital expenditure budget3. Long term cash budget4. Master budget5.

Question: 2005 The budgeted fixed cost is

1. RS. 30,0002. RS. 40,0003. RS. 50,0004. RS. 80,0005.

Question: 2006 The standard volume per month on which the budgeted overhead rate is based is

1. 3,000 tons2. 5,000 tons3. RS. 5,500 tons4. 7,000 tons5.

Question: 2008 The budgeted fixed overhead cost per ton is

1. RS. 102. RS. 203. RS.21.364. RS. 17.145.

Question: 2009 The amount of overhead absorbed in March is

1. RS. 80,0002. RS. 1,20,0003. RS. 1,10,0004. RS. 1,17,5005.

Question: 2010 The expenditure variance in March is

1. RS. 7,500(A)2. RS.12,500(A)3. RS. 10,000(A)4. Nil5.

Question: 2011 Total overhead variance in March is



1. RS. 7,5002. RS. 12,5003. RS. 10,0004. RS. 20,0005.

Question: 2012 What is the raw material cost per unit at the actual production level

1. RS. 10.082. RS. 16.803. RS. 8.404. None of these5.

Question: 2013 What is the total cost of direct labor at actual production level

1. RS. 3,00.0002. RS. 2,40,0003. None of these4.5.

Question: 2014 What is the fixed works overhead total amount when output of 1,00,000 units

1. RS. 4,00,0002. RS. 2,40,0003. RS. 6,00,0004. None of these

Following list gives the correct choice for the answer of the accounting mcqs.2004 . B 2005 . C 2006 . B 2008 . A 2009 . C 2010 . B 2011 . A 2012 . A 2013 . C 2014 .B

Question: 2015 What is the fixed works overhead per unit when output is 60,000 units

1. RS. 62. RS. 73. RS. 84. None of these5.

Question: 2016 What is the variable works overhead per unit at actual production level

1. RS. 42. RS. 33. RS. 2



4. None of these5.

Question: 2017 what is the total administrative overhead per unit at actual production level

1. RS. 2.452. RS 1.903. RS. 1,604. None of these5.

Question: 2018 what is the total selling overhead per unit at 60,000 output

1. RS 0.802. RS 0.903. RS 1.074. None of these5.

Question: 2019 what is the prime cost at 60,000 output level

1. RS 13.582. RS 13.483. RS.18.004. None of these5.

Question: 2042 production required in the month of July 1996 is

1. 1,100 units2. 1,150 units3. 1,350 units4. None of the above5.

Question: 2045 production required in the month of August 1996 is

1. 1,100 units2. 1,150 units3. 1,350 units4. None of these5.

Question: 2048 production required in the month of September 1996 is

1. 1,400 units2. 1,150 units3. 1,850 units



4. None of these5.

Question: 2049 production required in the month of October 1996 is


Question: 2051 production required in the month of November 1996 is

1. 1,800 units2. 2,200 units3. 2,400 units4. None of these

Following list gives the correct choice for the answer of the accounting mcqs.2015 . D 2016 . A 2017 . A 2018 . C 2019 . B 2042 . A 2045 . D 2048 . B 2049 . C 2051

. C

Question: 2052 production required in the month of December 1996 is


Question: 2054 production required for the six months ending December 1996 is


Question: 2057 Closing stock at the end of December will be


Question: 2060 The cost of product as determined under standard cost system is



1. fixed cost2. historical cost3. direct cost4. pre-determined cost5.

Question: 2061 In evaluating deviations of actual from standard cost, the probable technique used is

1. variable regression2. variance analysis3. trend analysis4. linear progression5.

Question: 2063 The type of standard that is best suited from cost control point of views is

1. Theoretical standard2. Expected standard3. Normal standard4. Basic standard5.

Question: 2069 which of the following standards can be attained under the most favorable conditions possible


Question: 2071 one purpose of standard costs may be described as

1. promoting and measuring performance2. setting costs of manufacture3. controlling and reducing costs4. simplifying production operations5.

Question: 2072 A company using theoretical standard cost system should expect that

1. most variances will be strongly motivated to attain the standards2. employees will be strongly motivated to attain the standards3. a large incentive bonus will be paid4. costs will be controlled better if lower standards were used5.



Question: 2077 A company controls its production costs by comparing its actual monthly production cost with the expected levels. Any significant deviations from these expected levels are investigated and evaluated as a basis for corrective action. The quantitative technique that is most probably being used is

1. time series or trend regression analysis2. differential calculus3. standard cost variance analysis4. correlation analysis

Following list gives the correct choice for the answer of the accounting mcqs.2052 . D 2054 . B 2057 . A 2060 . D 2061 . B 2063 . B 2069 . A 2071 . C 2072 . A 2077 .C


1. time series or trend regression analysis2. differential calculus3. standard cost variance analysis4. correlation analysis5.

Question: 2080 In standard costing system, labor rate variance is obtained by multiplying the

1. actual rate by the difference between actual hours and standard hours2. actual hours by the difference between actual rate and standard rate3. standard rate by the difference between standard hours and actual hours4.5.

Question: 2082 if standard hours are 400 @Re 1 per hour and actual hours are 380 @ Rs. 1.25 per hour, the labor rate variance is

1. Rs. 20(Favorable)2. RS.25(FAVOURABLE)3. RS. 100(Adverse)4. RS. 95 (Adverse)5. None of these

Question: 2084 Labor efficiency variance in the above Q.3.10 is

1. RS. 20(Favorable)2. RS. 25(Favorable)3. RS. 100 (unfavorable)4. RS. 95 (unfavorable)5. None of these



Question: 2092 in standard costing, the material price variance is obtained by multiplying the

1. actual price by the difference between actual quantity purchased and standard quantity allowed2. actual quantity consumed by the difference between actual price and standard price3. standard price by the difference between standard quantity purchased and standard quantity allowed4. standard quantity by the difference between actual price and standard price5.

Question: 2101 if actual material cost is 900 units at Rs. 8 per unit and standard material cost in 1,000 units at RS. 6 per unit, the material cost variance is

1. RS. 2,400 (Favorable)2. RS. 2,400(Adverse)3. R.s. 1,200 (Favorable)4. RS. 1,200 (Adverse)5.

Question: 2102 The material price variance in the above Q. 3.13 is

1. RS. 600(Favorable)2. RS. 1,200(Adverse)3. RS. 1,800(Adverse)4. RS. 2,400(Favorable)5.

Question: 2103 Material usage variance in the above Q. 3.13 is

1. RS.600(Favorable)2. Rs. 1,000(Adverse)3. RS. 1,800(Adverse)4. R.s. 2,400(Favorable)5.

Question: 2106 standard costing will produce the same financial statement results as actual or conventional costing when standard cost variances are distributed to

1. cost of goods sold2. income or Expense account3. cost of goods sold and inventory4. a balance sheet account5.

Question: 2107 Material mix variance is a sun-variance of

1. Material cost variance 2. Material price variance3. Material quantity variance4. Material yield variance



5.

Question: 2109 Material cost variance is RS. 550(A) and material price variance RS. 150(F), the material usage variance should be

1. RS. 400(A)2. RS. 700(A)3. RS. 400(F)4. RS. 700(F)

Following list gives the correct choice for the answer of the accounting mcqs.2072 . A 2077 . C 2080 . B 2082 . D 2084 . A 2092 . B 2101 . D 2102 . C 2103 . A 2106 .C 2107 . C 2109 . B

Question: 2110 Overhead Budget variance is a sub-variance of

1. overhead volume variance2. overhead efficiency variance3. overhead cost variance4. None of these5.

Question: 2111 idle time a variance is a sub-variance of

1. overhead efficiency variance2. Labor cost variance3. Labor time variance4. Labor efficiency variance5.

Question: 2112 Material price variance is Rs. 300(A), material mix variance RS. 150(A) and material sub-usage variance is RS. 50(A). The material cost variance is

1. RS. 400(A)2. RS. 450(A)3. RS. 500(A)4. cannot be computed5.

Question: 2113 in Q.322 above, the material quantity variance is

1. RS. 50(A)2. RS. 100(A)3. RS. 300(A)4. RS. 250(A)5.



Question: 2114 Overhead budget variance is RS. 700(A), overhead efficiency variance is RS. 300(F).what is the amount of variable overhead cost variance

1. RS. 1,000(F)2. RS. 400(A)3. RS. 400(F)4. RS. 1,000(A)5.

Question: 2115 The type of variance not computed for factory overhead is

1. controllable2. volume3. equivalent production4. idle capacity5.

Question: 2116 standard costing can be used along with

1. Marginal costing 2. Absorption costing3. job and process costing4. All of the above5.

Question: 2117 standard cost are useful in all of the following except

1. reducing costs2. speeding up preparation of operating reports3. establishing records4. costing inventories5.

Question: 2118 At the end of a financial year Hot shot company had several substantial variances from standard variable manufacturing costs the one for which there is the strongest justification for allocation between inventories and cost of goods sold is the one attributable to

1. additional costs of raw materials acquired under a speculative purchase contract2. a breakdown of equipment3. increased labor rates won by the union as a result of strike during the year4. overestimates of production activity for the period resulting from failure to predict an unusual decline

in the market for the company' s product5.

Question: 2119 controllable variances are best disposed of by transferring to

1. cost of goods sold2. inventories of work-in progress and finished goods



3. cost of goods sold and inventories4. costing profit and Loss A/c

Following list gives the correct choice for the answer of the accounting mcqs.2107 . C 2109 . B 2110 . C 2111 . D 2112 . A 2113 . B 2114 . B 2115 . C 2116 . D 2117 .C 2118 . C 2119 . D

Question: 2120 Uncontrollable variances are best disposed of by transferring to

1. cost of goods sold2. inventories of work-in -progress and finished goods3. cost of goods sold and inventories4. costing profit and Loss A/c5.

Question: 2126 overhead cost variance may be analyzed into

1. two variances2. three variances3. four three variances4. any of the above5.

Question: 2127 Which of the following statement best explains the difference between standard costing and budgetary controls

1. Budget is a projection of financial accounts whereas standard cost is a projection of cost accounts2. variances are analyzed under standard costing but not under budgetary control3. The budget, as a statement of expected costs, is used for forecasting of finance, if certain performances

are achieved4. Budgetary control is more intensive than standard costing5.

Question: 2128 Fixed overhead expenditure variance is the difference between

1. Budgeted overhead and actual overhead2. Standard overhead and actual overhead3. Absorbed overhead and budgeted overhead4. Absorbed overhead and standard overhead5.

Question: 2129 Variable overhead expenditure variance is the difference between

1. Budgeted overhead and actual overhead2. Standard overhead and actual overhead3. Absorbed overhead and budgeted overhead



4. Absorbed overhead and standard overhead5.

Question: 2130 Calendar variance is a sub-variance of

1. Expenditure variance2. Efficiency variance3. variable overhead cost variance4. volume variance5.

Question: 2131 Total sales margin variance is the difference between

1. Actual profit and standard profit2. Actual profit and budgeted profit3. Actual sales and budgeted sales4. None of these5.

Question: 2132 which of the following variance id always adverse

1. sales margin mix variance2. Fixed overhead capacity3. idle time variance4. None of these5.

Question: 2133 which of the following variances is always favorable

1. overhead volume variance 2. sales value mix variance3. calendar variance4. None of these5.

Question: 2134 sales volume variance is RS 9,000(F)and sales value variance is RS 5,000(F). what are the sales price variance RS 5,000(F)what is the sales price variance

1. RS. 14,000(F)2. RS. 4,000(A)3. RS. 4,000(F)4. None of these5.

Following list gives the correct choice for the answer of the accounting mcqs.2120 . C 2126 . D 2127 . C 2128 . A 2129 . B 2130 . D 2131 . B 2132 . D 2133 . D 2134 .B



Question: 2135 Fixed overhead cost variance is expenditure variance is RS 200(A), calendar variance RS 500(F).what is the volume variance

1. RS. 2,700(A) 2. RS. 1,900(A)3. Rs. 2,200(A),4. Rs. 2,500(f)5.

Question: 2136 what is the material price variance as per Q. 3.41

1. RS 400(F)2. RS 400(A)3. RS 440(F)4. RS 440(A)5.

Question: 2137 What is the material quantity variance in Q 3.41

1. RS 960(A)2. RS 960(f)3. RS 1,000(A)4. RS 1,000(F)5.

Question: 2138 The material price variance in Q 3.46 is

1. RS. 100(Adverse)2. RS. 100(Favorable)3. RS. 110(Adverse)4. RS. 110(Favorable)5. None of the preceding responses is correct

Question: 2139 Material mixture variance in Q 3,46 is

1. Rs 110(Adverse)2. RS. 100 (Favorable)3. RS. 210(Adverse)4. Rs. 408 (FAVOURABLE)5. cannot be computed from the given data

Question: 2140 Labor efficiency variance in Q 3,46 is

1. ES. 152(Adverse)2. RS. 560(Favorable)3. RS. 560(Adverse)4. RS 480(Favorable)5.



Question: 2141 Labor rate variance in Q3.46 is

1. RS. 152(Adverse)2. Rs. 560(Favorable)3. RS. 560(Adverse)4. RS. 480(Favorable)5.

Question: 2142 Labor cost variance in Q 3.46 is

1. RS. 560(Favorable)2. RS. 560(Adverse)3. RS. 152(Adverse)4. RS. 408(Adverse)5. none of the preceding responses is correct

Question: 2143 in Q 3.53, what is the expenditure variance

1. RS. 2,000(A)2. RS 4,000(A)3. RS 2,000(F)4. RS 4,000(F)5.

Question: 2144 In Q 3.53, what is the volume variance

1. RS 2,000(A)2. RS 4,000(A)3. RS6,000(A)4. RS 8,000(A)

Following list gives the correct choice for the answer of the accounting mcqs.2135 . C 2136 . C 2137 . C 2138 . E 2139 . E 2140 . B 2141 . A 2142 . E 2143 . A 2144 .C

Question: 2145 Contribution margin is also known as

1. marginal income 2. gross profit 3. net income 4. new profit 5.

Question: 2146 product costs under marginal costing include

1. prime costs only 2. prime costs and variable overhead 3. prime costs and fixed overhead



4. material cost and variable overhead5.

Question: 2147 Period costs are

1. variable costs 2. fixed costs 3. prime cost 4. overhead costs 5.

Question: 2148 One of the primary differences between marginal costing absorption costing is regarding the treatment of

1. direct materials 2. variable overheads 3. fixed overheads 4. prime cost5.

Question: 2149 A costing method in which the fixed factory overheads are added to inventory valuation is

1. direct costing 2. marginal costing 3. absorption costing 4. none of these 5.

Question: 2150 Profit shown by absorption costing will tend to exceed profit shown by marginal costing method if

1. units produced exceed units sold 2. variable manufacturing costs decreases 3. units sold exceeds units produced 4. fixed manufacturing costs decrease5.

Question: 2151 Absorption costing differs from marginal costing in the

1. fact that standard costs can be used with absorption costing but not with marginal costing 2. amount of fixed costs that will be incurred 3. kinds of activities for which each can be used 4. amount of costs assigned to individual units of products5.

Question: 2152 Under the marginal costing concept, unit product cost would most likely be increased by

1. a decrease in the number of units produced



2. an increase in the number of units produced 3. an increase in the commission paid to salesman for each unit sold 4. an increase in the remaining useful life of factory machinery depreciated on written down value

method 5.

Question: 2153 Contribution margin is equal to

1. sales - fixed cost - profit 2. profit + variable cost 3. fixed cost - loss 4. none of the above 5.

Question: 2154 Reporting under marginal costing is accomplished by

1. eliminating the work in progress inventory account 2. including only variable costs in income statement 3. matching variable costs against revenue and treating fixed costs as period costs 4. treating all costs as period costs 5.

Following list gives the correct choice for the answer of the accounting mcqs.C 2145 . A 2146 . B 2147 . B 2148 . C 2149 . C 2150 . A 2151 . D 2152 . C 2153 .C 2154 . C

Question: 2155 Profit / Volume ratio is an indicator of

1. the volume of sales 2. the volume of profit3. the rate at which goods are sold 4. the of profit 5. all of these

Question: 2156 There will be no difference in profit as shown by marginal costing and that of absorption costing when

1. opening and closing stock of finished goods remain constant 2. closing stock of finished goods is more than it s opening stock 3. opening stock of finished goods is more than its closing stock 4. none of the above5.

Question: 2157 when fixed cost id Rs. 3,000 and sales RS.50,000, the P/V ratio will be

1. 14%2. 20%3. 25%



4. p/v ratio cannot be computed from the data given5.

Question: 2158 when p/v ratio is 40% and sales value RS 10,000 the variable cost will be

1. RS. 4,0002. RS. 60003. RS. 10,0004. variable cost cannot be calculated from the data given5.

Question: 2159 if net profit is 10% and p/v ratio is 50%, the margin of safety will be

1. 10%2. 20%3. 50%4. margin of safety cannot be computed5.

Question: 2160 The margin of safety may be improved by

1. increasing sales volume2. increasing selling price3. lowering variable cost4. lowering fixed costs5. All of these

Question: 2161 an item whose entire amount is usually a differential cost is

1. factory overhead2. period cost3. direct cost4. conversion cost5.

Question: 2162 As part of the data presented on support of a proposal to increase the production of car radios, the sales manager of XYZ Electronics reported the total additional cost required for the proposed increased level of production the increase in total cost is known as

1. opportunity2. out-of-pocket cost3. controllable cost4. differential cost5.

Question: 2163 Alto palo company has temporary unused production capacity. the idle plant facilities can be used to manufacture a low margin item. the low margin item should be produced, if it can sold for more than it’s



1. fixed costs2. variable costs3. prime costs4. indirect costs5.

Question: 2164 Cost-volume-profit analysis is most important for the determination of the

1. volume of operations necessary to break even 2. variable revenues necessary to equal fixed costs 3. relationship between revenues and costs at various level of operations 4. sales revenue necessary to equal fixed costs 5.

Following list gives the correct choice for the answer of the accounting mcqs.2155 . D 2156 . A 2157 . B 2158 . B 2159 . B 2160 . E 2161 . C 2162 . D 2163 . B 2164 .C

question: 2165 if net profit is 10% and p/v ratio is 50%, the margin of safety will be


Question: 2166 The alternative that would decrease the contribution margin per unit t he most is a 20%

1. decrease in selling price 2. increase in selling price 3. increase in variable costs 4. decrease in variable cost 5.

Question: 2167 when referring to margin of safety, one has the following in mind

1. the excess of budgeted or actual sales over fixed costs2. the excess of actual sales over break-even sales3. the excess of actual sales over budgeted sales4. the excess of sales revenue over variable cost5.

Question: 2168 The conventional break-even analysis does not assume that

1. selling price per unit will remain fixed2. total fixed costs remain the same3. variable cost per unit will vary4. productivity per worker will remain unchanged



5.

Question: 2169 if fixed costs decrease while variable cost per unit remain constant, the new break-even point on relation to the old break-even point will be

1. indeterminate2. unchanged3. higher4. lower5.

Question: 2170 if fixed costs decrease while the variable cost per unit remain constant, the new contribution margin in relation to old contribution margin will be


Question: 2171 when margin of safety is 20% and contribution sales ratio is 60% the profit will be

1. 30%2. 33% 1/3%3. 12%4. cannot be computed5.

Question: 2172 when fixed cost is RS. 20,000 and margin of safety is RS.10,000, the p/v ratio will be

1. 200%2. 50%3. 33%4. cannot be computed5.

Question: 2173 when sales jumped from RS. 4,00,000 and profit increased by Rs. 40,000, the p/v ratio is

1. 7.5%2. 10%3. 40%4. cannot be computed5.

Question: 2174 when total fixed cost is RS. 50,000 and variable cost to sales is 75%, the break-even point id

1. RS. 37,5002. RS. 12,500



3. RS. 2,00,0004. cannot be determined5.

Following list gives the correct choice for the answer of the accounting mcqs.2165 . B 2166 . A 2167 . B 2168 . C 2169 . D 2170 . B 2171 . C 2172 . D 2173 . C 2174 .C

Question: 2175 on sales of RS.2,00,000. fixed cost is RS. 30,000 and p/v ratio is 40% what is the profit

1. RS50,0002. RS. 80,0003. RS. 120004. None of these5.

Question: 2176 In the chart given in 3.32 above, the horizontal line OL represents

1. sales2. fixed cost3. total cost4. profit5.

Question: 2177 In break-even chart, x-axis represents

1. value of sales in rupee value2. volume of sales in units3. volume of production in units4. production capacity in percentage5. Any of these

Question: 2182 In break-even chart, Y-axis represents

1. volume of sales in units2. volume of sales in rupees 3. cost and sales in rupees4. value of production in rupees5. Any of these

Question: 2187 when it is desired to read contribution margin in break-even chart, than

1. variable cost should be first plotted and fixed cost should be superimposed thereon2. fixed cost should not be first plotted and variable cost should be superimposed thereon3. fixed cost should not be plotted at all in the chart4.5.



Question: 2206 when sales are RS. 8000 and P/V is 80% the amount of variable cost is

1. RS. 64,0002. RS. 16,0003. Rs. 48,0004. cannot be known5.

Question: 2210 In order to earn a profit of RS. 10,000, when fixed cost is RS. 20,000 and P/v ratio 20% the amount of sales should be

1. RS. 40,0002. RS. 30,0003. RS. 1,00,0004. RS. 1,50,0005.

Question: 2212 WHEN PROFIT CHANGES BY R.s. 20,000, The sales changes by RS. 25,000, the P/V ratio is

1. 20%2. 80%3. 25%4. cannot be calculated5.

Question: 2213 when sales volume increases

1. break-even point increases2. total profit will increase3. total loss will increase4. All of the above5.

Question: 2216 which of the following would cause the greatest increase in the unit contribution margin

1. 20% decrease in fixed cost2. 20% increase in selling price3. 20% decrease in variable cost4.5.


2175 . A 2176 . A 2177 . E 2182 . C 2187 . A 2206 . C 2210 . D 2212 . B 2213 . B 2216 . B

Question: 2217 what does area ALO represent in diagram in Q. 3.43



1. profit2. Fixed cost3. variable cost4. contribution5.


1. profit 2. Loss3. contribution4.5.

Question: 2224 what is represented by CD in diagram in Q. 3.43

1. key factors2. variable cost3. Contribution4. Margin of safety5.

Question: 2228 which of the following is NOT an assumption of break-even chart

1. Fixed cost does not change in total amount2. variable cost does not change in total amount3. selling price does not change per unit4. company has no stocks5.

Question: 2233 In calculating cash break-even point, which costs are taken into account

1. Fixed cost requiring cash2. variable costs requiring cash3. Both fixed and variable costs requiring cash4. cash fixed cost and all variable costs including credit5.

Question: 2237 which of the following is not depicted on a break-even chart

1. profit/Loss at different level of output2. sales to earn given profit3. contribution4. P/V ratio5.

Question: 2239 In a break-even chart, angle of incidence is formed by the inter-section of



1. sale line and variable cost line2. sale line and total cost line 3. variable costs and fixed cost lines4. variable cost and total cost lines5.

Question: 2271 who has the authority to investigate and regulate all matters of account connected with the police, and all persons concerned shall be bound to give reasonable aid and facilities to conducting such investigations and to confirm to his orders consequent thereto

1. provincial police officer2. capital city police officer3. city police officer4. All of these5.

Question: 2544 A harmonium enclosed in a sheath is called

1. hormocyst2. hormogonium 3. trichome4. trichogyne5.

Question: 3807 A debit balance on Amitie's account in your sales ledger means that

1. Amitabh owes you the money2. you owe Amitabh the money3. Amitabh has just paid you that amount of money4. Amitabh has returned that amount of goods to you5.

Following list gives the correct choice for the answer of the accounting mcqs.2217 . A 2220 . B 2224 . D 2228 . B 2233 . C 2237 . D 2239 . B 2271 . D 2544 . A 3807 .A

Question: 3811 A debit balance on the rates account after the yearly transfer to the profit and loss account indicates

1. an asset and an accrual2. an asset and a prepayment3. a liability and an accrual4. a liability and a prepayment5.

Question: 3820 which one of the following normally has a debit balance?

1. The capital account



2. A creditor's account3. The motor vehicles account4. A loan account5.


1. The capital account2. A creditor's account3. The motor vehicles account4. A loan account5.

Question: 3823 Which of the following normally has a credit balance?

1. The machinery account2. The purchases account 3. The stock account4. The sales account5.

Question: 3830 which one of the following statement is correct?

1. A proprietor's will remain constant if he only withdraws this Net profit each year and does not introduce any new capital.

2. A proprietor's capital will increase if his drawings are higher than his Net profit and he does not introduce any new capital.

3. A proprietor's capital will decrease if his Net profit is greater than his drawings and does not introduce any new capital

4. A proprietor's capital will remain constant if he only withdraws his Net profit each year, but also introduces new capital.

5.

Question: 3832 Gross profit equals

1. sales minus closing stock2. purchases minus closing stock3. nit profit minus expenses4. sales minus cost of goods sold5.

Question: 3835 Cost of sales equals

1. sales minus purchases2. purchases minus returns out plus closing stock3. sales plus opening stock minus (purchases plus closing stock)4. opening stock minus closing stock minus returns out5.



Question: 3836 Net profit equals

1. gross profit minus expenses2. sales minus cost of sales3. sales minus expenses4. capital minus expenses5.

Question: 3837 A man buys Rs. 40,000 worth of goods and sells of them for R.s. 50,000. His gross profit is

1. Rs. 10,0002. Rs. 20,0003. Rs. 30,0004. Rs. 40,0005.

Question: 3839 If sales are Rs. 10,000, expenses Rs. 2,000 and net profit is 10% of sales, the gross profit is

1. Rs. 3,0002. Rs. 9,0003. Rs. 10,1004. Rs. 11,0005.

Following list gives the correct choice for the answer of the accounting mcqs.3811 . B 3820 . C 3822 . C 3823 . D 3830 . A 3832 . D 3835 . D 3836 . A 3837 . B 3839 .A

Question: 3840 If the gross profit is Rs. 5000 and the net profit is 25% of the gross profit ,the expenses must be

1. Rs. 1,2502. Rs. 3,7503. Rs. 4,1504. Rs. 6,2505.

Question: 3841 If sales are Rs. 6,000, gross profit is 20% of sales and net profit is 10% of sales the expenses are

1. Rs. 6002. Rs. 1,2003. Rs. 2,4004. Rs. 4,8005.

Question: 3842 An operating statement is similar to a

1. trial balance2. balance sheet



3. trading profit and loss account4. bank reconciliation statement5.

Question: 3843 Net sales equals’ sales minus

1. returns outwards2. cost of goods sold3. returns inwards4. carriage on sales5.

Question: 3844 The turnover is

1. Rs. 99,0002. Rs. 99,5003. Rs. 1,00.5004. Rs. 1,01,0005.

Question: 3845 The gross profit as a percentage of net sales is approximately

1. 10%2. 20%3. 30%4. 40%5.

Question: 3846 The net cost of purchases for the year was

1. Rs. 69,0002. Rs. 70.0003. Rs.71,0004. Rs.73,0005.

Question: 3847 Returns outwards amounted to

1. Rs. 5002. Rs. 1,0003. Rs. 1,5004. Rs. 2,0005.

Question: 3848 If the purchases had been under cast by Rs. 10,000 the gross profit would be

1. Rs. 31,5002. Rs. 41,500



3. Rs. 51,500 4. Rs. 61,5005.

Question: 3849 The cost of goods sold is

1. Rs. 59,0002. Rs. 69,0003. Rs. 71,0004. Rs. 89,0005.

Following list gives the correct choice for the answer of the accounting mcqs.3840 . B 3841 . A 3842 . C 3843 . C 3844 . C 3845 . D 3846 . A 3847 . D 3848 . A 3849 .A

Question: 3850 Net profit as a percentage of net sales is approximately

1. 5%2. 10%3. 15%4. 20%5.

Question: 3851 Expenses for the year total

1. Rs. 29,0002. Rs. 30,0003. Rs. 31,0004. Rs. 32,0005.

Question: 3852 A balance sheet is a

1. statement of debtors and creditors2. statement of income and expenditure the year3. statement of cash received and paid throughout the year4. Financial statement of a business' wealth on a particular scale5.

Question: 3853 which one of the following is fixed asset for a builder's merchant?

1. Cash2. Stock3. Debtors4. Type wirer5.



Question: 3854 Which one of the following is garage's current asset?

1. A breakdown van2. The managing director's private car3. The condense in the saleroom4. A customer's car in for repair5.

Question: 3855 Net current assets are the same as

1. working capital2. total assets minus current liabilities3. fixed assets minus current liabilities4. capital minus current liabilities5.

Question: 3856 A proprietor's capital of

1. opening capital plus drawing minus net profit2. total assets minus external liabilities3. current assets minus working capital4. opening capital plus net profit plus creditors5.

Question: 3857 which one of the following is usually a current liability?

1. Mortgage2. Bank loan3. Bank over drat4. Rent Paid in advance5.

Question: 3858 The percentage return on the owner's opening capital for the past year was

1. 15%2. 20%3. 25%4. 30%5.

Question: 3859 The working capital is

1. Rs. 20,0002. Rs. 30,0003. Rs. 50,0004. Rs. 1,70,0005.



Following list gives the correct choice for the answer of the accounting mcqs.3850 . B 3851 . D 3852 . D 3853 . D 3854 . C 3855 . A 3856 . B 3857 . C 3858 . C 3859 .A

Question: 3860 The owner's capital employed in the business at the date of the balance sheet is

1. Rs. 1,20,0002. Rs. 1,40,0003. RS. 1,90,0004. Rs. 2,13,5005.

Question: 3861 The business' external liabilities are

1. Rs. 50,0002. Rs. 73,5003. Rs. 1,20,0004. Rs. 1,40,0005.

Question: 3862 The interest on the loan paid during the year was

1. Rs. 2,5002. RS. 5,0003. Rs. 7,5004. Rs. 10,0005.

Question: 3863 The book value of the fixed assets is

1. RS. 50,0002. RS. 1,70,0003. RS. 2,20,0004. RS. 2,70,0005.

Question: 3864 The net assets figure is

1. RS. 73,5002. RS. 1,40,0003. RS, 1,90,0004. RS. 2,13,5005.

Question: 3865 The years' rent for the business is

1. RS. 10002. RS. 2000



3. RS. 30004. RS. 40005.

Question: 3887 The percentage return on total assets employed was approximately

1. 9%2. 14%3. 20%4. 25%5.

Question: 3888 select your answer by means of the following code

1. if 1, 2 and 3 are correct2. if 1 and 2 only are correct3. if only 1 is correct4. if only 3 is correct5.

Question: 3890 In a balance sheet the balance of the fixed assets accounts are usually included at

1. cost2. book value3. scarp value 4. replacement value5.

Question: 3892 which one of the following would usually be regarded as a current liability?

1. A liability due for payment within 12 months2. A liability due for payment within 24 months3. A liability due for payment within 36 months4. A liability due for payment within 48 months

Following list gives the correct choice for the answer of the accounting mcqs.3860 . B 3861 . B 3862 . B 3863 . B 3864 . C 3865 . D 3887 . B 3888 . D 3890 . B 3892 .A

Question: 3894 Net assets equals

1. current assets minus current liabilities2. fixed assets minus current liabilities3. total assets minus current liabilities4. fictitious assets minus current liabilities5.

Question: 3903 which one of the following not a book of original entry



1. The cash book2. The journal3. The ledger4. The sales day of book5.

Question: 3904 Day books are used

1. because of the requirements of the law2. to avoid numerous entries in the general ledger3. because the double entry system would not work with- out you must4. because the Institute of Charters Account states that you must5.

Question: 3905 which one of the following is book of original entry and is also part of the ledger?

1. The cash book 2. The journal3. The sales day book4. The purchase day book5.

Question: 3906 The main source of information for the sales day book is obtained from

1. invoices received2. credit notes sent out 3. invoices sent out4. credit notes sent5. the till roll

Question: 3907 The main source of information for the purchase day book is obtained from

1. invoice received2. invoices sent out 3. credit notes received4. debit notes sent out5.

Question: 3908 The main source of information for the sales returns day book is obtained from

1. invoices received2. invoices sent out3. credit notes received4. debit notes received5.

Question: 3910 The main source of information for the purchase returns day book is obtained from



1. invoices received2. invoices sent3. credit notes received4. debit notes sent out5.

Question: 3912 The totals of the sales day book are transferred to the

1. debit side of the sales account2. credit side of the sales account3. debit side of the sales control account 4. journal proper5.

Question: 3914 The totals of the purchase returns day books are transferred to the

1. debit side of the returns inwards account2. debit side of the returns out wards account3. credit side of the returns inwards account4. credit side of the returns outwards account5.

Following list gives the correct choice for the answer of the accounting mcqs.3894 . C 3903 . C 3904 . B 3905 . A 3906 . B 3907 . A 3908 . C 3910 . C 3912 . B 3914 .D

Question: 3916 which one of the following is centered in the journal proper?

1. purchases and returns of stock2. sales and returns of stock3. cash transactions4. opening entries of a new business5.

Question: 4032 which one of the following is entered in the journal proper?

1. purchase of fixed assets for cash2. purchase of fixed assets on credit3. purchase of stock on credit4. purchase of stock for cash5.


1. The sale of an asset for cash2. The withdrawal of cash for private use3. cash discount given to a customer4. The correction of errors made in the ledger



5.

Question: 4037 An entry in the journal should include

1. the name of the account to be debited2. the name of the account to be credited3. A description of the transaction4.5.

Question: 4040 A trial balance is

1. a balance of the bank account 2. The balance of the bank account3. a rough draft of the final accounts4. a list of the balances in the ledger5.

Question: 4043 The main purposes of a trial balance is to

1. help balance the bank account2. check the arithmetical accuracy of the double entry3. help check the arithmetical accuracy of the double entry4. help check the bank account with the bank statement5.



Question: 4051 which of the following errors would normally be revealed by a trial balance?

1. A transaction is completely omitted from the books2. A sale to smith brothers is entered in smith and Co.Ltd. account3. A purchase of stock for resale has been entered in an asset account4. The sale of an asset has only been entered on one side of the books5.

Question: 4055 A suspense account is opined when the

1. trading account does not balance2. profit and loss account does not balance3. trial balance does not balance4. bank account does not balance



5.



Following list gives the correct choice for the answer of the accounting mcqs.3916 . D 4032 . B 4035 . D 4037 . A 4040 . D 4043 . C 4046 . A 4051 . D 4055 . C 4059 . D

Question: 4066 if the straight line method of depreciation is used the depreciation charge is

1. a fixed percentage of the cost of the asset each year2. a percentage of the book value of the asset each year3. always 10% of the cost of the asset each year4. a fluctuating percentage of the cost of the asset each year5.

Question: 4069 Firms charge depreciation each year

1. to ensure there is enough money in the firm to replace the asset2. to spread the cost of the asset over its working life 3. to reduce the profit and thus reduce the dividends they can pay to shareholders4. because the law states they must5.

Question: 4071 which of the following assets is most likely to appreciate rather than depreciate

1. plant and machinery2. Land and buildings3. Motor vehicles4. Fixtures and fittings5.

Question: 4073 Depreciation is caused by

1. obsolescence2. wear and tear3. passage of time4.5.

Question: 4085 which of the following methods can be used to calculate depreciation?



1. straight line2. Reducing balance3. revaluation4.5.

Question: 4092 The companies Acts state that companies' Final published Accounts must show

1. depreciation charged during past year2. the balance on the provision for depreciation account3. the method of calculating depreciation4.5.

Question: 4094 Another name for the Equal Installment method of depreciation is the

1. reducing balance method2. sinking fund method3. straight line method4. revaluation method5.

Question: 4098 An asset is purchased for Rs. 11000. The scrap value is Rs. 1,000 and it is expected to last ten years. The amount of straight depreciation charged each year would be

1. RS. 9002. RS. 1,0003. RS. 1,1004. RS. 1,2005.

Question: 4104 A firm buys an asset for RS. 10,000 and depreciates it using the diminishing balance method. which of the following amounts world be the second year’s depreciation charge at 10% per annum

1. RS. 8002. RS. 8103. RS. 9004. RS. 1,0005.

Question: 4107 On 1st January a firm’s loose tools are valued at RS. 4,500. A year later they are revalued at RS. 3000. The depreciation charge for the year is

1. RS. 500 2. RS. 1,0003. RS. 1,5004. RS. 3,OOO



Following list gives the correct choice for the answer of the accounting mcqs.4066 . A 4069 . B 4071 . B 4073 . A 4085 . A 4092 . B 4094 . C 4098 . B 4104 . C 4107 .C

Question: 4110 The book value of a motor van on 1st January is RS. 20,000.Two years later the book value is Rs. 10,000.. The straight line depreciation rate of charge each years is

1. 12%2. 25%3. 33%4. 50%5.

Question: 4114 The vehicles in a company's feet usually last three years. it would probably charge depreciation on a fixed installment basis at a rate of

1. 25% per annum2. 33% per annum3. 50% per annum4. 665% per annum5.

Question: 4116 A firm buys a lathe for Rs. 20,000 on 1st January and another one for RS.24,000 on 1st July. Deprecation is charged at the rate of 10% per annum or cost, using the basis of one month's ownership needs one month's depreciation. The total depreciation charge on the 31 December should be

1. RS. 2,2002. RS. 3,2003. RS. 3,6004. RS.4,4005.

Question: 4119 An asset cost RS. 12,000 and is expected to last ten years, so depreciation is charged at RS. 1,200 per year. How-ever, after ten years the asset is still in use. Which of the following would be the future charge for depreciation?

1. Continue to charge RS. 1,200per year depreciation2. Credit profit and loss account with RS. 1,200 every year the asset continues to be in use.3. Stop charging depreciation after the ten years4. Reduce the depreciation charge on another asset5.

Question: 4121 A firm's assets at total RS. 1,00,000. The total depreciation charged to date is RS.45,000. The book value of the assets is

1. RS. 45,0002. RS. 55,0003. RS. 1,00,000



4. RS. 1,45,0005.

Question: 4125 A firm's assets at cost total Rs.1,00,000 .The total depreciation.2,40,000. charged to date is Rs.2,40000. Depreciation was charged at the rate of 10% annum by the straight line method. It decided to change its method to diminishing balance at 10% per annum, with retrospective effect. The total difference in the profits over the three years would be

1. RS, 6,6902. Rs, 6,9603. RS. 9,6604. RS. 9,6905.

Question: 4174 If the provision for bad debts account is adjusted at the end of this financial year to equal 5% of the debtors. the balance on the total debtors account at 31st December must have been

1. RS. 10,0002. RS. 25,0003. RS. 40,0004. RS. 50,0005.

Question: 4175 The nit figure for debtors which appeared in the balance sheet at the end of the previous year was

1. RS. 47,5002. RS. 48,0003. RS. 51,5004. RS. 52,5005.

Question: 4176 If the RS. 1,000 bad debts had not been written off, the overall effect on the profit for the year of all the entries relating to debtors, debts and provision for bad debts is

1. a decrease of TS. 1,5002. a decrease of RS. 1,5003. an increase of RS. 5004. an increase of RS. 1,5005.

Question: 4183 If the Rs. 1,000 bad debts had not been written off, the overall effect on the profit for the year of all the entries relating to debtors, bad provision for bad debts would have been

1. nil2. a decrease of Rs. 5003. an increase of RS. 5004. an increase of RS. 1,500



Following list gives the correct choice for the answer of the accounting mcqs.4110 . B 4114 . B 4116 . B 4119 . C 4121 . B 4125 . B 4174 . C 4175 . A 4176 . B 4183 .C


1. nil2. a decrease of Rs. 5003. an increase of RS. 5004. an increase of RS. 1,5005.

Question: 4190 Which one of the following statements about debtors, bad debts and provisions for bad debts in the incorrect?

1. Debtors usually appear as a current asset in the balance in the balance sheet2. provisions for bad debts usually have a debit balance in ledger3. The bad debts account usually has a debit balance in the ledger4. An increase in the provision for bad debts account will reduce the profit of the firm5.

Question: 4191 which one of the following types of business is likely to have the largest amount of 'bad debts' ?

1. A Chinese take away2. A newsagent3. A bank4. A supermarket5.

Question: 4193 If the sales ledger control has a debit balance of RS. 39,400 it means that

1. there is RS. 39,400 in the bank account2. customers owe you RS. 39,5003. you owe supplies R.s. 395004. you owe expenses totaling RS. 39,4005.

Question: 4197 If the purchase ledger control has a credit balance of RS. 48,000 it means that

1. your bank account is overdrawn by RS. 48,000 customers 2. customers owe you RS. 48,0003. you owe suppliers RS. 48,0004. you owe expenses totaling RS. 48,0005.

Question: 4200 The total of the returns out wards for the month should be entered on the



1. debit side of the purchase control account2. credit side of the purchase control account3. credit side of the sales control account4. debit side of the sales control account5.

Question: 4201 Additional freight costs charged control account

1. credit side of the purchase control account2. credit side of the purchase control account3. credit side of the sales control account 4. debit side of the sales control account5.

Question: 4202 Cash discounts received should be entered on the


Question: 4207 At the end of the financial year, once the balances on the control account are agreed with the total balances from their respective ledgers, they should appear in the balance sheet as

1. fictitious assets and debentures2. debtors' and creditors' balance3. fixed assets and long term liabilities4. fixed assets and share capital5.

Question: 4210 A cherub received which has now been dishonored should be entered on the

1. debit side of the purchase control account2. credit side of the purchase control account3. credit side of the sales control account4. debit side of the sales control account


4186 . C 4190 . B 4191 . D 4193 . B 4197 . C 4200 . A 4201 . D 4202 . C 4207 . B 4210 . D

Question: 4217 Assuming that it reconciles with the cash book, a credit balance on a bank statement on the 31st December would appear in the balance sheet as a

1. current asset2. current liability



3. fixed asset4. long term liability5.

Question: 4220 when the monthly bank statement is out which one of the following would appear?

1. cherubs written but not yet presented for payment2. credit transfer received from customers3. payment into the band not yet credited4. A sales ledger balance written off as a bad debt5.

Question: 4224 which one of the following be entered in the cash book and not on the bank statement ?

1. Bank charges 2. A dishonored cherub3. payments into the bank but not yet credited4. A credit transfer received from a customer5.

Question: 4225 when drawing up a bank reconciliation statement, if you start with a debit balance as per the bank statement, the unrepresented cherubs should be

1. added2. subtracted3. multiplied4. divided5.

Question: 4228 when drawing up a bank reconciliation statement, if you start with a debit balance in the cash book , bank charges should be


Question: 4233 The petty cash is kept on the IMPREST system and the balance at the start of the month is Rs. 1,000. If petty cash expenses during the month of Rs.720 are incurred, the amount received from the cashier at the start of the next month should be

1. Rs.2802. Rs.7203. Rs.1,0004. Rs.1,7205.



Question: 4234 The main purpose of petty cash is

1. to pay employees wages 2. to pay suppliers for their goods 3. as change for the till 4. to pay small day to day business expenses 5.

Question: 4236 Under the immprest system the petty cash is

1. increased every week 2. reduced every week 3. always restored to the original amount 4. used up completely before being restored 5.

Question: 4237 A receipts and payments account is similar to

1. an income and expenditure account 2. a statement of affairs 3. a cash or bank account 4. a profit and loss account 5.

Question: 4238 A club's income and expenditure account performs the same function as a firm's

1. trading profit and loss account 2. balance sheet 3. bank account 4. petty cash book 5.

Following list gives the correct choice for the answer of the accounting mcqs.4217 . A 4220 . B 4224 . C 4225 . A 4228 . B 4233 . B 4234 . D 4236 . C 4237 . C 4238 .A

Question: 4239 A club's balance sheet may be referred to as its

1. income and expenditure account 2. receipts and payments account 3. accumulated fund4. statement of affairs 5.

Question: 4240 A club's loss is often referred to as

1. a balance 2. a deficit



3. a surplus 4. drawing 5.

Question: 4241 The amount of member's subscriptions paid advance is

1. as asset 2. an expense 3. a liability 4. a surplus 5.

Question: 4242 If a club owned a bar, the amount of profit or made by the bar in a financial year would be shown in the

1. receipts and payments account 2. income and expenditure account 3. balance sheet 4. bank account 5.

Question: 4243 A club's capital may be referred to as its

1. bank balance 2. assets 3. accumulated fund 4. surplus 5.

Question: 4244 A club has 100 members and the subscription is Rs.10 per year. All have paid the right amount except three members who paid Rs.20 each because they owed for the previous year, and one member who also paid for next year . The income from subscriptions for the year in the income and expenditure account should be

1. Rs.9602. Rs.1,0003. Rs.1,0304. Rs.1,0405.

Question: 4245 Depreciation written off the snooker table should be entered in the

1. receipts and payments account only 2. receipts and payments account and the income and expenditure account 3. receipts and payments account and the statement of affairs 4. income and expenditure account and the statement 5.



Question: 4246 Rs.4,000 spent on a snooker table should be entered in the

1. receipts and payments account only 2. receipts and payments account and the income and expenditure account 3. receipts and payments account and the statement affairs 4. income and expenditure account and the statement of affairs 5.

Question: 4247 The rate of turnover of stock is the

1. total value of turnover 2. average stock divided by the cost of sales 3. numbers of times the average stock is sold 4. average of the opening and closing stock 5.

Question: 4248 The cost of goods sold is the

1. average stock divided by the rate of turnover of stock 2. average stock multiplied by the turnover 3. rate of turnover of stock divided by the average stock 4. average stock multiplied by the rate of turnover of stock

Following list gives the correct choice for the answer of the accounting mcqs.4239 . D 4240 . B 4241 . C 4242 . B 4243 . C 4244 . B 4245 . D 4246 . C 4247 . C 4248 .D

Question: 4249 Which one of the following is most likely to have the lowest rate of stock turn?

1. a super market 2. a greengrocer 3. a newsagent 4. a jeweler 5.

Question: 4250 If a supermarket marks up its goods for resale by 10% on cost, the gross profit made on Rs. 1,000 worth of purchased should be

1. Rs.1002. Rs.9003. Rs.1,0004. Rs.1,1005.

Question: 4252 During a year a store makes a gross profit of Rs.80,000 which is 20% of the cost of goods sold. The sales mast therefore be

1. Rs. 4,00,000



2. Rs. 4,80,0003. Rs. 4,00,0004. Rs. 1,00,0005.

Question: 4253 During a year a store's sales are Rs.5,00,000 and expenses are 20% of the gross profit. If 25% is added to the cost price of goods to obtain the selling price, the net profit is

1. Rs. 25,0002. Rs. 55,0003. Rs. 80,0004. Rs. 1,00,0005.

Question: 4254 A trader starts a business with Rs.10000 cash and a van worth Rs.5000. At the end of his first year he has Rs.2000 in the bank, stock worth Rs.5,000, debtors valued Rs.2,000 and the van which is now worth Rs.Rs.4,000. If he has withdrawn Rs.2,000 from the business during the year for private expenses, he has made

1. a loss of Rs.1,0002. neither a profit nor a loss3. a profit of Rs.1,0004. a profit of Rs.2,0005.

Question: 4257 A store's make up is the

1. gross profit expressed as a percentage of the cost of goods sold 2. gross profit expressed as a percentage of the sales 3. not profit expressed as a percentage of the cost of goods sold 4. net profit expressed as a percentage of the sales 5.

Question: 4258 A store's margin is the

1. gross profit expressed as a percentage of the cost goods sold 2. gross profit expressed as a percentage of the sales 3. net profit expressed as a percentage of the cost goods sold 4. net profit expressed as a percentage of the sales 5.

Question: 4259 A trader uses his business bank account and writes cherubs totaling Rs 25,000 for his private use. He also takes stock valued at Rs.9,000 from the shelves for his own use, and decides to give his daughter one of the firm's typewriters valued at Rs.1,200 as she is starting a secretarial course at the local college. His drawings for the year total

1. Rs. 25,0002. Rs. 26,2003. Rs. 34,0004. Rs. 35,200



5.

Question: 4260 if a store's mark up is 25% the margin must be

1. 5%2. 10%3. 15%4. 20%5.

Question: 4261 Ten people formed a partnership and contributed Rs.100 each to the venture. The total capital was used to purchase goods which were resold at a markup of 100% on cost. If expenses were 25% of sales and the net profit was distributed equally to the partners, each partner has increased his initial capital by

1. 25%2. 50%3. 75%4. 100%5.

Following list gives the correct choice for the answer of the accounting mcqs.4249 . D 4250 . A 4252 . B 4253 . C 4254 . B 4257 . A 4258 . B 4259 . D 4260 . D 4261 .B

Question: 4266 A firm owes Rs. 200 to trade creditors at the start in the year and Rs.300 at the end. Purchases on credit during the year totaled Rs.10,000. If suppliers allowed a total of Rs. 500 cash discount during the year, the amount paid so the creditors have been

1. Rs. 9,2002. Rs. 9,4003. Rs. 9,6004. Rs. 9,2005.

Question: 4267 A firm's debtors fell from Rs.1,000 at the start of the year to Rs.900 at the end. the total of the sales day book was Rs.7,900 and the cash book showed that Rs. 7,700 was received from debtors during the year. Assuming a bad debt of Rs. 100 was written off, the cash discount allowed to credit customers during the year must have amounted to

1. Rs. 2002. Rs. 4003. Rs. 7004. Rs. 9005.

Question: 4268 the main purpose of a manufacturing account is to find the

1. cost of overheads



2. cost of raw materials used 3. cost of production 4. gross profit 5.

Question: 4270 Which one of the following is not an overhead?

1. cost of raw materials 2. depreciation of plant and machinery 3. rent and rates of the factory 4. foreman's wages 5.

Question: 4272 An alternative expression for indirect expenses is

1. prime cost 2. production cost 3. work in progress 4. overheads 5.

Question: 4273 Which one of the following would not be included in the prime cost?

1. manufacturing wages 2. direct power 3. direct factory expenses 4. heating and lighting of the factory 5.

Question: 4275 The prime cost consists of

1. wages plus overheads 2. materials plus overheads 3. all direct factory expenses 4. indirect factory expense5.

Question: 4286 A bank reconciliation statement reconciles the

1. ledger with the journals2. petty cash book with the bank account3. bank statement with the cash book4. day books with the bank statement5.




1. current asset2. current liability3. fixed asset4. long term liability5.

Question: 4288 when the monthly bank statement is sent out which one of the following would appear?

1. cherubs written but not yet presented for payment2. credit transfer received from customers3. payment into the bank not yet credited4. A sales ledger balance written off as a bad debt

Following list gives the correct choice for the answer of the accounting mcqs.4266 . B 4267 . A 4268 . C 4270 . A 4272 . D 4273 . D 4275 . C 4286 . C 4287 . A 4288 .B

Question: 4289 work in progress at the end of the financial year is

1. included in the present year's production cost2. not included in the present year's production cost3. included in the previous year's production cost4. added to the cost of raw materials5.



Question: 4291 If the prime cost is Rs. 40,000 overheads R.s. 60,000, work in progress at 1st January Rs. 10,000 and work in progress at 31st December RS. 20,000 the cost of the year's production of finished goods is

1. RS. 90,0002. RS. 1, 00,0003. RS. 1,10,0004. RS. 1,30,0005.

Question: 4292 Depreciation of plant and machinery is usually classified as

1. a financial cost 2. an overhead cost



3. a selling cost4. an administration cost5.

Question: 4293 If a manufacturing company gas to pay a royalty for every unit it produces, this would probably be classified as

1. an indirect cost2. a direct cost3. an overhead4. a cost of materials5.

Question: 4294 Which one of the following is usually classified as a variable cost in the short term?

1. cost of materials used2. factory rates3. factory rent4. foreman's wages5.

Question: 4295 which one of the following is usually classified as a fixed cost in the short term?

1. Direct labor costs2. power for the factory machinery3. cost of materials used 4. factory rent and rates5.

Question: 4296 In a manufacturing firm's trading account the cost of production figure replaces the

1. cost of goods sold2. closing stock of finished goods 3. purchase of finished goods4. gross profit5.

Question: 4297 The cost of raw materials used is

1. Rs. 5,00,0002. Rs. 6,00,0003. RS. 6,50,0004. RS. 6,70,0005.

Question: 4298 The prime cost is

1. RS. 6,00,000



2. RS. 670,0003. RS. 11,00,0004. RS. 14,20,0005.


Following list gives the correct choice for the answer of the accounting mcqs.4289 . B 4290 . B 4291 . A 4292 . B 4293 . B 4294 . A 4295 . D 4296 . C 4297 . B 4298 .C

Question: 4299 The total factory overheads are

1. RS.2,30,0002. RS. 3,20,0003. RS. 14,10,0004. RS. 14,20,0005.

Question: 4300 The cost of the year's production of finished goods is

1. RS. 11,00,0002. RS. 14,10,0003. RS. 14,20,0004. RS. 14,60,0005.

Question: 4301 The work in progress at the start of the year was

1. RS. 10,0002. RS. 30,0003. RS. 40,0004. RS. 50,0005.

Question: 4302 The indirect wages for the year totaled

1. RS. 10,0002. RS. 20,0003. RS. 30,0004. RS. 40,0005.

Question: 4303 If the accountant had forgotten to take in to account that RS. 5,000 paid for forgotten to take into account that RS. 5,000 paid for factory rates was for the following year, the production cost would have been

1. RS. 14,05,000



2. RS. 14,10,0003. RS. 15,0004. RS. 14,20,0005.

Question: 4304 At the end of the financial year a partner's drawing current account are transferred to the

1. credit side of the partner's capital account2. credit side of the partner's current account3. debit side of the partnership bank account4. debit side of the partner's5.

Question: 4305 After the final accounts have been prepared, a debit balance on a partner's current account means that the

1. partner is owed that amount by partnership2. partnership's bank account is overdrawn3. partner is in debt to the partnership for that amount4. partnership has no working capital5.

Question: 4306 If one partner received a salary which is credited to him at the end of the year, the share of the profit available for distribution will be

1. increased 2. decreased3. unchanged4. non-existent5.

Question: 4314 which one of the following would be entered in the cash book and not on the bank statement

1. Bank charges2. A dishonored cherub3. payment into the bank but not yet credited4. A credit transfer received from a customer5.

Question: 4315 when drawing up a bank reconciliation statement, if you start with a debit balance as per the bank statement, the unprecedented cheques should be

1. added 2. subtracted3. multiplied4. divided



Following list gives the correct choice for the answer of the accounting mcqs.4299 . B 4300 . B 4301 . C 4302 . C 4303 . A 4304 . D 4305 . C 4306 . B 4314 . C 4315 .A

Question: 4316 when drawing up a bank reconciliation statement, if you start with a debit balance in the cash book, the bank charges should be

1. added 2. subtracted3. multiplied4. divided5.

Question: 4317 when the monthly bank statement is sent out which one of the following would not appear

1. Interest charged by the bank2. A dishonored cheque3. A direct debit4. A payment from petty cash5.

Question: 4318 The petty cash is kept on the Imprest system and the balance at the start of the month is RS. 1,000. If petty cash expenses during the month of RS. 720 are incurred, the amount received from the cashier at the start of the next month should be

1. RS. 2802. RS. 7203. RS. 1,0004. RS. 1,7205.

Question: 4319 The main purpose of petty

1. to pay employees, wages2. to pay suppliers for their goods3. as change for the till4. to pay small day to day business expenses5.

Question: 4351 An analytical petty cash book

1. Lists different petty expenses under their relevant headings2. is used instead of three column cash book3. is not part of the double entry system4. is always run on the imprest system5.

Question: 4353 Under the Imprest system the cash is



1. increased every week2. reduced every week3. always restored to the original amount4. used op completely before being restored5.


1. an income and expenditure account2. a statement of affairs3. a cash or bank account4. a profit and loss account5.


1. trading, profit and loss account2. balance sheet3. bank account4. petty cash book5.


1. income and expenditure account2. receipts and payments account3. accumulated fund4. statement of affairs5.


1. bank balance2. assets3. accumulated fund4. surplus5.

Following list gives the correct choice for the answer of the accounting mcqs.4316 . B 4317 . D 4318 . B 4319 . D 4351 . A 4353 . C 4355 . C 4358 . A 4359 . D 4360 .C


1. a balance2. a deficit3. a surplus4. drawings



5.

Question: 4366 The amount of member's subscriptions paid in advance is

1. an asset2. an expense3. a liability4. a surplus5.

Question: 4368 I a club owned a bar, the amount of profit or loss made by the bar in a financial year would be shown in the

1. receipts and payments account2. income and expenditure account3. balance sheet4. bank account5.

Question: 4372 A club has 100 members and the subscription is RS. 10 per year. All have paid the right amount except three members who paid RS. 20each because they owed for the previous year, and one member who also paid for next year. The income from subscriptions for the year in the income and expenditure account should be

1. RS. 9602. RS. 1,0003. RS. 1,0304. RS. 1,0405.

Question: 4373 RS. 4,000 spent on a snooker table should be entered in the

1. receipts and payments account only2. receipts and payments account and the income and expenditure account3. receipts and payments account and the statement of affairs4. income and expenditure account and the statement of affairs5.

Question: 4374 Depreciation written off the snooker table should be entered on the


Question: 4375 During the year the cash figure has increased by



1. RS. 8202. RS. 1,0003. RS.1,8204. RS.2,7905.

Question: 4376 The accumulated fund at the beginning of the club's second year amounted to

1. RS. 8202. RS.1,0003. RS. 1,8204. RS. 2,7905.

Question: 4377 Rent owing at the end of the year amounted to

1. nil2. RS. 503. RS. 3504. RS. 4005.

Question: 4378 Rates owing at the end of the year amounted to

1. nil2. RS. 303. RS. 1004. RS. 1305.

Following list gives the correct choice for the answer of the accounting mcqs.4362 . B 4366 . C 4368 . B 4372 . B 4373 . C 4374 . D 4375 . B 4376 . A 4377 . B 4378 .A

Question: 4379 The amount owed to creditors for supplies of sweets at 31 December was

1. RS. 302. RS. 2103. RS. 4204. RS. 6005.

Question: 4381 The book value of fixed assets at 31st December amounted to

1. RS. 202. RS. 703. RS.904. RS. 110



5.

Question: 4382 If the donations had been 'capitalized,' the accumulated fund at 31st December would have been

1. RS. 7002. RS. 8203. RS. 1,5204. RS. 1,7405.

Question: 4383 If the donations had been 'capitalized,' the surplus would have been

1. RS. 1202. RS. 7003. RS.8204. RS.1,5205.

Question: 4384 The current assets at 31st December amounted to

1. RS. 1,0002. RS. 1,0403. RS. 1,0704. RS. 1,1105.


1. total value of turnover 2. average stock divide by the cost of sales3. number of times the average stock is sold4. average of the opening and closing stock5.


1. average stock divided by the rate of turnover of stock2. average stock multiplied by the turnover3. rate of turnover of stock divided by the average stock4. average stock multiplied by the rate of turnover of stock5.

Question: 4392 which one of the following is most likely to have the lowest rate of stock turn?

1. A super market2. A greengrocer3. A news agent



4. A jeweler5.

Question: 4398 If a supermarket marks up its goods for resale by 10% on cost, the gross profit made on RS. 1,000 worth of purchased should be

1. RS. 1002. RS. 9003. RS. 1,0004. RS. 1,1005.


1. A super market2. A greengrocer3. A news agent4. A jeweler5.

Following list gives the correct choice for the answer of the accounting mcqs.4379 . B 4381 . C 4382 . B 4383 . A 4384 . C 4386 . C 4389 . D 4392 . D 4398 . A 4399 .D


1. RS. 302. RS. 2103. RS. 4204. RS. 6005.

Question: 4404 During a year a store makes a gross profit of RS. 80,000 which is 20% of the cost of goods sold The sales mast therefore be

1. RS. 4,000,0002. 4,80,0003. RS. 5,20,0004. RS. 1,00,0005.

Question: 4411 During a year a store's sales are R.s. 5,00,000 and expenses are 20% of the gross profit. If 25% is added to the cost price of goods to obtain the selling price, the net profit is

1. RS. 25,0002. RS. 55,0003. RS. 80,0004. RS. 1,00.000



Following list gives the correct choice for the answer of the accounting mcqs.4398 . A 4399 . D 4401 . B 4404 . B 4411 . C

M

A

N

A



G

E

M

E

N

T

Question: 924 Direct wages should always be classified


Question: 928 The First in First Out (FIFO) materials pricing system charges issues at




Question: 933 The Last in First Out (LIFO) system will




















Following list gives the correct choice for the answer of the accounting mcqs.924 . D 928 . D 933 . C 940 . B 942 . D 943 . A 944 . B 946 . C 948 . A 952 . B 956 .C


6. Number of leavers 7. Number replaced 8. Numbers of employees at the end9. Number of leavers in a period10.




6. Direct labour,direct materials and direct expenses7. All direct costs plus factory overheads



8. Direct materials plus total overheads9. Direct labor plus factory overheads10.


6. A unit of production in relation to which costs are ascertained7. A location which is responsible for controlling direct costs8. Part of the overhead system by which costs are gathered together9. Any location or department which incurs cost 10.






6. Direct material/cost unit7. direct material/production overheads8. in direct material/cost unit9. prime cost/production overhead10.














6. is information designed to ensures that operations conform to plans7. is designed to assess how well the control system operates and how relevant current pains are8. is information passed up two layers of the organization9. is information that is double checked for accuracy10.




6. contribution at activity level Y7. the amount of variable costs at activity level Y



8. the level of sales at activity level Y9. the amount of variable costs at activity level Y10.


6. an increase in sales value causing an increase in contribution7. a decrease in fixed costs causing an increase in variable costs8. an increase in total fixed costs and a decrease in variable costs per unit 9. an increase in total variable costs and a decrease in fixed costs per unit10.






6. maximize profits 7. help in inventory valuation8. provide information to management for decision-making9. aid in the fixation of selling prices10.




6. preparing costing P& L A/c



7. cost control8. locating factors leading to wastages and losses9. assessing the profitability and financial position of the firm10.












6. direct material cost



7. works managers salary8. depreciation of machinery9. chargeable expenses10.






























































6. Electricity representing 90% of the total cost7. Sand paper used in production8. Thread used in stitching garments9. All of the above10.



















6. simple average



7. weighted average8. FIFO9. LIFO10.






6. RS.1,6007. RS.10,0008. RS.3,2009. RS.5,00010.


6. 107. 508. 209. 10010.






6. 107. 508. 209. 10010.






6. FIFO7. LIFO8. Weighted average 9. Replacement price10.



Question: 1313 When production is below standard specification or quality and cannot be rectified by incurringadditional cost, it is called





6. Fore accident7. Theft8. Breaking the bulk9. Evaporation10. pilferage




6. RS.1,5507. RS.1,5758. RS1,7009. RS1,75010.


6. RS.1,5507. RS.1,5758. RS.1,7009. RS.1,75010.


6. RS.1,5507. RS1,5758. RS.1,6109. RS.1,70010.






6. RS.1,5757. RS.1,6108. RS.1,6259. None of these10.


6. RS.1,4007. RS.1,7008. RS.2,1009. RS. 1,75010.




6. RS.6007. RS.6758. RS.6909. RS.75010.


6. RS.6007. RS.6908. RS.7259. RS.75010.


6. RS.6007. RS.6908. RS.7259. RS.75010.




6. RS.1007. RS.3008. RS.2009. None of these10.














6. charged to costing profit and loss A/c7. charged to overhead costs 8. charged to respective jobs 9. all of these 10.






6. 80%7. 120%8. 100%9. none of these 10.




6. Rs 187. Rs 148. Rs 169. Rs12



10.


6. RS. 127. RS.148. 169. 18.10.




6. RS. 27. RS.38. RS.49. Nil10.




6. RS.14.007. RS.14.258. 18.509. 19.0010.


6. RS.15.157. RS.20.00



8. 20.159. 20.2010.






6. RS.24.007. RS.26.808. RS.17.289. RS.20.4010.








6. production overhead7. selling overhead8. administration overhead 9. distribution overhead10.



Question: 1472 Charging to a cost centre those overheads that result soleoy from existence of that cost centre is known as



1451 . B 1453 . A 1457 . B 1459 . D 1460 . A 1461 . B 1463 . C 1464 . A 1466 . D 1468 .B 1471 . C 1472 . A






6. Insurance to cover sold goods while in transit7. Royalty on sales



8. Legal costs for debt realization9. Distribution of samples10.






6. maximum capacity and practical capacity7. practical capacity and normal capacity8. practical capacity and capacity based on sales expectancy9. maximum capacity and actual capacity10.








6. under-absorption of overhead 7. over-absorption of overhead8. proper absorption of overhead9.10.











6. normal capacity7. maximum capacity8. direct labor hours



9. machine hours 10. none of the above






6. excess variable factory overhead costs7. factory cost not allocated to units produced8. fixed factory costs not allocated to unit produced9. cost that cannot be controlled10. None of the above



















6. RS. 1,50,0007. RS. 1,65,0008. RS. 15,000



9. RS 20,00010.






6. treated as production cost7. transferred to costing P& L A/c in the year of sale8. spread over the years of the remaining expected life of the machine9. Either(b)or(c)10.






6. job costing



7. Batch costing8. Contract costing9. None of these10.


1573 . A 1580 . C 1583 . A 1585 . B 1592 . B 1594 . B 1599 . B 1603 . E 1606 . A 1609 .B










6. transferred to profit and loss Account7. transferred to reserve



8. transferred profit to profit and loss Account and partly to reserve9.10.






6. cost of work uncompleted7. cost of work uncompleted8. the amount of profit not transferred to profit and Loss Account9. (a) and(B) above10. (a)(b) and(C)






6. Cost-plus contracts7. Escalation clause



8. De-escalation clause9. All of the above10.









6. RS.15,0007. RS. 12,0008. RS. 8,0009.10.


6. average cost is minimum7. total cost is minimum8. set-up cost of machine is minimum9. carrying cost is minimum



10.


6. an order received from a customer for the production of a specific item7. instructions to the shops to proceed with the production of the product8. an order to the store-keeper to issue necessary materials for production9.10.










6. abnormal loss 7. normal loss8. seasonal loss



9. standard loss10.


5. RS.186. RS.16.367. RS.128. RS.9


. C




6. RS. 1.257. RS.8.008. RS.8.759. RS.8.88.10.


6. RS.0.257. RS.1.608. RS.1.789. RS.1.7510.


6. 8,900 units7. 9,100 units8. 9,300 units



9. 9,500 units10.


6. 6,7507. 6,8508. 7,0509. 7,15010.

















6. RS.2807. RS.2008. RS.809. RS.36010.


6. 5,0007. 4,7008. 5,2009. 5,80010.












6. raw material costs 7. direct labor costs8. selling and distribution cost9. None of these10.













6. waste7. scrap8. by-product9. joint product10.








6. develop accurate processing cost variances product-wise7. report more correct standard product costs for comparative analysis8. establish inventor cost assigned to unsold units9. record accurate cost of sales by product lines10. None of the above




6. Rs. 2.187. Rs. 2.058. Rs. 29. RS. 1.8910.


6. 2,7007. 3,0008. 3,2009. 3,50010.









6. 5,0007. 3008. 15,0009. 15010.




6. overhead adjustment account7. Costing P.& L. account8. Cost Ledger control account9. None of the above10.






6. Cost Ledger Control account



7. stores ledger control account8. Overhead adjustment account9. All of these10.






6. RS. 5,6007. RS.6,0008. RS. 5,2009.10.


6. RS. 5,0007. RS. 3,7008. RS. 6,3009.10.



6. RS. 72,0007. RS.70,500



8. RS. 69,5009.10.






6. Overhead adjustment account7. work in progress ledger control account8. Cost ledger control account.9. Factory overhead control account10.


6. RS. 40,0007. RS. 33,0008. RS. 41,0009. RS. 55,00010. RS. 30,000


6. RS. 36,0007. RS. 75,0008. RS.76,0009. RS. 77,00010. RS. 35,000


6. RS. 25,000



7. RS. 20,0008. RS. 5,0009. RS. 10,00010. RS. 30,000


6. RS. 40,0007. RS. 10,0008. RS. 20,0009. RS. 30,00010. RS. 50,000




6. statements included in the budget report vary from period to period7. budget standards may be adjusted at will8. reporting dates vary according to the activity level reported upon 9. planned activity level is adjusted to the actual activity level before the budget comparison report is

prepared10.





6. Flexible budget7. Master budget8. cash budget9. Fixed budget



10.






6. Cash budget7. Master budget 8. capital expenditure budget9. Budget for the key factor10. sales budget






6. Forecast



7. Budget8. Marginal cost9. None of these10.









6. RS. 30,0007. RS. 40,0008. RS. 50,0009. RS. 80,00010.






6. RS. 107. RS. 208. RS.21.369. RS. 17.1410.


6. RS. 80,0007. RS. 1,20,0008. RS. 1,10,0009. RS. 1,17,50010.


6. RS. 7,500(A)7. RS.12,500(A)8. RS. 10,000(A)9. Nil10.


6. RS. 7,5007. RS. 12,5008. RS. 10,0009. RS. 20,00010.



















6. RS 13.58



7. RS 13.488. RS.18.009. None of these10.












. C

















































6. Material cost variance 7. Material price variance8. Material quantity variance9. Material yield variance10.


5. RS. 400(A)6. RS. 700(A)7. RS. 400(F)8. RS. 700(F)











6. RS. 50(A)7. RS. 100(A)8. RS. 300(A)9. RS. 250(A)10.


6. RS. 1,000(F)7. RS. 400(A)8. RS. 400(F)9. RS. 1,000(A)10.













5. cost of goods sold6. inventories of work-in progress and finished goods7. cost of goods sold and inventories8. costing profit and Loss A/c




















6. sales margin mix variance7. Fixed overhead capacity8. idle time variance9. None of these



10.







6. RS. 2,700(A) 7. RS. 1,900(A)8. Rs. 2,200(A),9. Rs. 2,500(f)10.


6. RS 400(F)7. RS 400(A)8. RS 440(F)9. RS 440(A)10.


6. RS 960(A)7. RS 960(f)8. RS 1,000(A)9. RS 1,000(F)10.














6. RS. 2,000(A)7. RS 4,000(A)8. RS 2,000(F)9. RS 4,000(F)10.




5. RS 2,000(A)6. RS 4,000(A)7. RS6,000(A)8. RS 8,000(A)





6. prime costs only 7. prime costs and variable overhead 8. prime costs and fixed overhead 9. material cost and variable overhead10.






6. direct costing 7. marginal costing



8. absorption costing 9. none of these 10.






6. a decrease in the number of units produced 7. an increase in the number of units produced 8. an increase in the commission paid to salesman for each unit sold 9. an increase in the remaining useful life of factory machinery depreciated on written down value

method 10.













6. 14%7. 20%8. 25%9. p/v ratio cannot be computed from the data given10.






6. increasing sales volume



7. increasing selling price8. lowering variable cost9. lowering fixed costs10. All of these











6. 10%7. 20%



8. 50%9. margin of safety cannot be computed10.






6. selling price per unit will remain fixed7. total fixed costs remain the same8. variable cost per unit will vary9. productivity per worker will remain unchanged10.














6. RS. 37,5007. RS. 12,5008. RS. 2,00,0009. cannot be determined10.





6. sales7. fixed cost8. total cost9. profit



10.










6. RS. 40,0007. RS. 30,0008. RS. 1,00,0009. RS. 1,50,00010.


6. 20%7. 80%8. 25%



9. cannot be calculated10.






2175 . A 2176 . A 2177 . E 2182 . C 2187 . A 2206 . C 2210 . D 2212 . B 2213 . B 2216 . B




















6. hormocyst7. hormogonium 8. trichome9. trichogyne



10.



















10.








6. Rs. 10,0007. Rs. 20,0008. Rs. 30,0009. Rs. 40,00010.


6. Rs. 3,0007. Rs. 9,0008. Rs. 10,1009. Rs. 11,00010.





6. Rs. 1,2507. Rs. 3,7508. Rs. 4,1509. Rs. 6,25010.


6. Rs. 6007. Rs. 1,2008. Rs. 2,4009. Rs. 4,80010.


6. trial balance7. balance sheet8. trading profit and loss account9. bank reconciliation statement10.




6. Rs. 99,0007. Rs. 99,5008. Rs. 1,00.5009. Rs. 1,01,00010.


6. 10%7. 20%



8. 30%9. 40%10.


6. Rs. 69,0007. Rs. 70.0008. Rs.71,0009. Rs.73,00010.


6. Rs. 5007. Rs. 1,0008. Rs. 1,5009. Rs. 2,00010.


6. Rs. 31,5007. Rs. 41,5008. Rs. 51,500 9. Rs. 61,50010.


6. Rs. 59,0007. Rs. 69,0008. Rs. 71,0009. Rs. 89,00010.



6. 5%7. 10%8. 15%9. 20%10.




6. Rs. 29,0007. Rs. 30,0008. Rs. 31,0009. Rs. 32,00010.
















6. 15%7. 20%8. 25%9. 30%10.


6. Rs. 20,0007. Rs. 30,0008. Rs. 50,0009. Rs. 1,70,00010.



6. Rs. 1,20,0007. Rs. 1,40,0008. RS. 1,90,0009. Rs. 2,13,50010.


6. Rs. 50,0007. Rs. 73,5008. Rs. 1,20,0009. Rs. 1,40,00010.


6. Rs. 2,5007. RS. 5,000



8. Rs. 7,5009. Rs. 10,00010.


6. RS. 50,0007. RS. 1,70,0008. RS. 2,20,0009. RS. 2,70,00010.


6. RS. 73,5007. RS. 1,40,0008. RS, 1,90,0009. RS. 2,13,50010.


6. RS. 10007. RS. 20008. RS. 30009. RS. 400010.


6. 9%7. 14%8. 20%9. 25%10.




6. cost7. book value



8. scarp value 9. replacement value10.


































6. The sale of an asset for cash7. The withdrawal of cash for private use8. cash discount given to a customer9. The correction of errors made in the ledger10.






6. help balance the bank account7. check the arithmetical accuracy of the double entry



8. help check the arithmetical accuracy of the double entry9. help check the bank account with the bank statement10.






6. trading account does not balance7. profit and loss account does not balance8. trial balance does not balance9. bank account does not balance10.























6. RS. 9007. RS. 1,0008. RS. 1,1009. RS. 1,20010.


6. RS. 8007. RS. 8108. RS. 9009. RS. 1,00010.


5. RS. 500 6. RS. 1,0007. RS. 1,5008. RS. 3,OOO



6. 12%7. 25%8. 33%9. 50%10.






6. RS. 2,2007. RS. 3,2008. RS. 3,6009. RS.4,40010.




6. RS. 45,0007. RS. 55,0008. RS. 1,00,0009. RS. 1,45,00010.


6. RS, 6,6907. Rs, 6,9608. RS. 9,6609. RS. 9,69010.


6. RS. 10,0007. RS. 25,0008. RS. 40,0009. RS. 50,00010.




6. RS. 47,5007. RS. 48,0008. RS. 51,5009. RS. 52,50010.































4186 . C 4190 . B 4191 . D 4193 . B 4197 . C 4200 . A 4201 . D 4202 . C 4207 . B 4210 . D














6. Rs.2807. Rs.7208. Rs.1,0009. Rs.1,72010.















6. a balance 7. a deficit 8. a surplus 9. drawing 10.






6. bank balance



7. assets 8. accumulated fund 9. surplus 10.


6. Rs.9607. Rs.1,0008. Rs.1,0309. Rs.1,04010.















6. Rs.1007. Rs.9008. Rs.1,0009. Rs.1,10010.


6. Rs. 4,00,0007. Rs. 4,80,0008. Rs. 4,00,0009. Rs. 1,00,00010.


6. Rs. 25,0007. Rs. 55,0008. Rs. 80,0009. Rs. 1,00,00010.










6. Rs. 25,0007. Rs. 26,2008. Rs. 34,0009. Rs. 35,20010.


6. 5%7. 10%8. 15%9. 20%10.


6. 25%7. 50%8. 75%9. 100%10.





6. Rs. 9,2007. Rs. 9,4008. Rs. 9,6009. Rs. 9,20010.


6. Rs. 2007. Rs. 4008. Rs. 7009. Rs. 90010.


6. cost of overheads 7. cost of raw materials used 8. cost of production 9. gross profit 10.






6. manufacturing wages



7. direct power 8. direct factory expenses 9. heating and lighting of the factory 10.











6. included in the present year's production cost7. not included in the present year's production cost8. included in the previous year's production cost



9. added to the cost of raw materials10.




6. RS. 90,0007. RS. 1, 00,0008. RS. 1,10,0009. RS. 1,30,00010.


6. a financial cost 7. an overhead cost8. a selling cost9. an administration cost10.






6. Direct labor costs



7. power for the factory machinery8. cost of materials used 9. factory rent and rates10.




6. Rs. 5,00,0007. Rs. 6,00,0008. RS. 6,50,0009. RS. 6,70,00010.


6. RS. 6,00,0007. RS. 670,0008. RS. 11,00,0009. RS. 14,20,00010.




6. RS.2,30,0007. RS. 3,20,0008. RS. 14,10,0009. RS. 14,20,00010.


6. RS. 11,00,0007. RS. 14,10,0008. RS. 14,20,000



9. RS. 14,60,00010.


6. RS. 10,0007. RS. 30,0008. RS. 40,0009. RS. 50,00010.


6. RS. 10,0007. RS. 20,0008. RS. 30,0009. RS. 40,00010.


6. RS. 14,05,0007. RS. 14,10,0008. RS. 15,0009. RS. 14,20,00010.



















6. RS. 280



7. RS. 7208. RS. 1,0009. RS. 1,72010.












6. income and expenditure account



7. receipts and payments account8. accumulated fund9. statement of affairs10.





6. a balance7. a deficit8. a surplus9. drawings10.






6. RS. 960



7. RS. 1,0008. RS. 1,0309. RS. 1,04010.






6. RS. 8207. RS. 1,0008. RS.1,8209. RS.2,79010.


6. RS. 8207. RS.1,0008. RS. 1,8209. RS. 2,79010.


6. nil7. RS. 508. RS. 3509. RS. 40010.


6. nil



7. RS. 308. RS. 1009. RS. 13010.



6. RS. 307. RS. 2108. RS. 4209. RS. 60010.


6. RS. 207. RS. 708. RS.909. RS. 11010.


6. RS. 7007. RS. 8208. RS. 1,5209. RS. 1,74010.


6. RS. 1207. RS. 7008. RS.8209. RS.1,52010.


6. RS. 1,0007. RS. 1,0408. RS. 1,0709. RS. 1,110



10.








6. RS. 1007. RS. 9008. RS. 1,0009. RS. 1,10010.







6. RS. 307. RS. 2108. RS. 4209. RS. 60010.


6. RS. 4,000,0007. 4,80,0008. RS. 5,20,0009. RS. 1,00,00010.


5. RS. 25,0006. RS. 55,0007. RS. 80,0008. RS. 1,00.000




E

C

O

N

O

M



I

C

S

Question: 924 Direct wages should always be classified


Question: 928 The First in First Out (FIFO) materials pricing system charges issues at


Question: 933 The Last in First Out (LIFO) system will






















Following list gives the correct choice for the answer of the accounting mcqs.924 . D 928 . D 933 . C 940 . B 942 . D 943 . A 944 . B 946 . C 948 . A 952 . B 956 .C


11. Number of leavers 12. Number replaced 13. Numbers of employees at the end14. Number of leavers in a period15.




11. Direct labour,direct materials and direct expenses12. All direct costs plus factory overheads13. Direct materials plus total overheads14. Direct labor plus factory overheads15.


11. A unit of production in relation to which costs are ascertained12. A location which is responsible for controlling direct costs



13. Part of the overhead system by which costs are gathered together14. Any location or department which incurs cost 15.






11. Direct material/cost unit12. direct material/production overheads13. in direct material/cost unit14. prime cost/production overhead15.














11. is information designed to ensures that operations conform to plans12. is designed to assess how well the control system operates and how relevant current pains are13. is information passed up two layers of the organization14. is information that is double checked for accuracy15.




11. contribution at activity level Y12. the amount of variable costs at activity level Y13. the level of sales at activity level Y14. the amount of variable costs at activity level Y15.


11. an increase in sales value causing an increase in contribution12. a decrease in fixed costs causing an increase in variable costs



13. an increase in total fixed costs and a decrease in variable costs per unit 14. an increase in total variable costs and a decrease in fixed costs per unit15.






11. maximize profits 12. help in inventory valuation13. provide information to management for decision-making14. aid in the fixation of selling prices15.




11. preparing costing P& L A/c12. cost control13. locating factors leading to wastages and losses14. assessing the profitability and financial position of the firm15.














11. direct material cost12. works managers salary13. depreciation of machinery14. chargeable expenses15.
































































11. Electricity representing 90% of the total cost12. Sand paper used in production13. Thread used in stitching garments14. All of the above15.



















11. simple average12. weighted average13. FIFO14. LIFO15.








11. RS.1,60012. RS.10,00013. RS.3,20014. RS.5,00015.


11. 1012. 5013. 2014. 10015.




11. 1012. 5013. 2014. 10015.








11. FIFO12. LIFO13. Weighted average 14. Replacement price15.



Question: 1313 When production is below standard specification or quality and cannot be rectified by incurringadditional cost, it is called



11. Fore accident12. Theft13. Breaking the bulk



14. Evaporation15. pilferage




11. RS.1,55012. RS.1,57513. RS1,70014. RS1,75015.


11. RS.1,55012. RS.1,57513. RS.1,70014. RS.1,75015.


11. RS.1,55012. RS1,57513. RS.1,61014. RS.1,70015.




11. RS.1,57512. RS.1,61013. RS.1,625



14. None of these15.


11. RS.1,40012. RS.1,70013. RS.2,10014. RS. 1,75015.




11. RS.60012. RS.67513. RS.69014. RS.75015.


11. RS.60012. RS.69013. RS.72514. RS.75015.


11. RS.60012. RS.69013. RS.72514. RS.75015.


11. RS.10012. RS.30013. RS.200



14. None of these15.












11. charged to costing profit and loss A/c12. charged to overhead costs



13. charged to respective jobs 14. all of these 15.






11. 80%12. 120%13. 100%14. none of these 15.




11. Rs 1812. Rs 1413. Rs 1614. Rs1215.




11. RS. 1212. RS.1413. 1614. 18.15.




11. RS. 212. RS.313. RS.414. Nil15.




11. RS.14.0012. RS.14.2513. 18.5014. 19.0015.


11. RS.15.1512. RS.20.0013. 20.1514. 20.2015.








11. RS.24.0012. RS.26.8013. RS.17.2814. RS.20.4015.






11. production overhead12. selling overhead13. administration overhead 14. distribution overhead



15.



Question: 1472 Charging to a cost centre those overheads that result soleoy from existence of that cost centre is known as



1451 . B 1453 . A 1457 . B 1459 . D 1460 . A 1461 . B 1463 . C 1464 . A 1466 . D 1468 .B 1471 . C 1472 . A






11. Insurance to cover sold goods while in transit12. Royalty on sales13. Legal costs for debt realization14. Distribution of samples15.








11. maximum capacity and practical capacity12. practical capacity and normal capacity13. practical capacity and capacity based on sales expectancy14. maximum capacity and actual capacity15.






11. under-absorption of overhead 12. over-absorption of overhead13. proper absorption of overhead14.



15.











11. normal capacity12. maximum capacity13. direct labor hours14. machine hours 15. none of the above








11. excess variable factory overhead costs12. factory cost not allocated to units produced13. fixed factory costs not allocated to unit produced14. cost that cannot be controlled15. None of the above



















11. RS. 1,50,00012. RS. 1,65,00013. RS. 15,00014. RS 20,00015.








11. treated as production cost12. transferred to costing P& L A/c in the year of sale13. spread over the years of the remaining expected life of the machine14. Either(b)or(c)15.










1573 . A 1580 . C 1583 . A 1585 . B 1592 . B 1594 . B 1599 . B 1603 . E 1606 . A 1609 .B










11. transferred to profit and loss Account12. transferred to reserve13. transferred profit to profit and loss Account and partly to reserve14.15.








11. cost of work uncompleted12. cost of work uncompleted13. the amount of profit not transferred to profit and Loss Account14. (a) and(B) above15. (a)(b) and(C)






11. Cost-plus contracts12. Escalation clause13. De-escalation clause14. All of the above15.











11. RS.15,00012. RS. 12,00013. RS. 8,00014.15.


11. average cost is minimum12. total cost is minimum13. set-up cost of machine is minimum14. carrying cost is minimum15.


11. an order received from a customer for the production of a specific item12. instructions to the shops to proceed with the production of the product



13. an order to the store-keeper to issue necessary materials for production14.15.










11. abnormal loss 12. normal loss13. seasonal loss14. standard loss15.




9. RS.1810. RS.16.3611. RS.1212. RS.9


. C




11. RS. 1.2512. RS.8.0013. RS.8.7514. RS.8.88.15.


11. RS.0.2512. RS.1.6013. RS.1.7814. RS.1.7515.






11. 6,75012. 6,85013. 7,05014. 7,15015.

















11. RS.28012. RS.20013. RS.8014. RS.36015.


11. 5,00012. 4,70013. 5,20014. 5,80015.












11. raw material costs 12. direct labor costs13. selling and distribution cost14. None of these15.













11. waste12. scrap13. by-product14. joint product15.






11. develop accurate processing cost variances product-wise12. report more correct standard product costs for comparative analysis13. establish inventor cost assigned to unsold units



14. record accurate cost of sales by product lines15. None of the above




11. Rs. 2.1812. Rs. 2.0513. Rs. 214. RS. 1.8915.


11. 2,70012. 3,00013. 3,20014. 3,50015.









11. 5,00012. 30013. 15,00014. 15015.




11. overhead adjustment account12. Costing P.& L. account13. Cost Ledger control account14. None of the above15.






11. Cost Ledger Control account



12. stores ledger control account13. Overhead adjustment account14. All of these15.






11. RS. 5,60012. RS.6,00013. RS. 5,20014.15.


11. RS. 5,00012. RS. 3,70013. RS. 6,30014.15.



11. RS. 72,00012. RS.70,500



13. RS. 69,50014.15.






11. Overhead adjustment account12. work in progress ledger control account13. Cost ledger control account.14. Factory overhead control account15.


11. RS. 40,00012. RS. 33,00013. RS. 41,00014. RS. 55,00015. RS. 30,000


11. RS. 36,00012. RS. 75,00013. RS.76,00014. RS. 77,00015. RS. 35,000


11. RS. 25,000



12. RS. 20,00013. RS. 5,00014. RS. 10,00015. RS. 30,000


11. RS. 40,00012. RS. 10,00013. RS. 20,00014. RS. 30,00015. RS. 50,000




11. statements included in the budget report vary from period to period12. budget standards may be adjusted at will13. reporting dates vary according to the activity level reported upon 14. planned activity level is adjusted to the actual activity level before the budget comparison report is

prepared15.





11. Flexible budget12. Master budget13. cash budget14. Fixed budget



15.






11. Cash budget12. Master budget 13. capital expenditure budget14. Budget for the key factor15. sales budget






11. Forecast



12. Budget13. Marginal cost14. None of these15.









11. RS. 30,00012. RS. 40,00013. RS. 50,00014. RS. 80,00015.






11. RS. 1012. RS. 2013. RS.21.3614. RS. 17.1415.


11. RS. 80,00012. RS. 1,20,00013. RS. 1,10,00014. RS. 1,17,50015.


11. RS. 7,500(A)12. RS.12,500(A)13. RS. 10,000(A)14. Nil15.


11. RS. 7,50012. RS. 12,50013. RS. 10,00014. RS. 20,00015.



















11. RS 13.58



12. RS 13.4813. RS.18.0014. None of these15.












. C

















































11. Material cost variance 12. Material price variance13. Material quantity variance14. Material yield variance15.


9. RS. 400(A)10. RS. 700(A)11. RS. 400(F)12. RS. 700(F)











11. RS. 50(A)12. RS. 100(A)13. RS. 300(A)14. RS. 250(A)15.


11. RS. 1,000(F)12. RS. 400(A)13. RS. 400(F)14. RS. 1,000(A)15.













9. cost of goods sold10. inventories of work-in progress and finished goods11. cost of goods sold and inventories12. costing profit and Loss A/c




















11. sales margin mix variance12. Fixed overhead capacity13. idle time variance14. None of these



15.







11. RS. 2,700(A) 12. RS. 1,900(A)13. Rs. 2,200(A),14. Rs. 2,500(f)15.


11. RS 400(F)12. RS 400(A)13. RS 440(F)14. RS 440(A)15.


11. RS 960(A)12. RS 960(f)13. RS 1,000(A)14. RS 1,000(F)15.














11. RS. 2,000(A)12. RS 4,000(A)13. RS 2,000(F)14. RS 4,000(F)15.




9. RS 2,000(A)10. RS 4,000(A)11. RS6,000(A)12. RS 8,000(A)





11. prime costs only 12. prime costs and variable overhead 13. prime costs and fixed overhead 14. material cost and variable overhead15.






11. direct costing 12. marginal costing



13. absorption costing 14. none of these 15.






11. a decrease in the number of units produced 12. an increase in the number of units produced 13. an increase in the commission paid to salesman for each unit sold 14. an increase in the remaining useful life of factory machinery depreciated on written down value

method 15.













11. 14%12. 20%13. 25%14. p/v ratio cannot be computed from the data given15.






11. increasing sales volume



12. increasing selling price13. lowering variable cost14. lowering fixed costs15. All of these











11. 10%12. 20%



13. 50%14. margin of safety cannot be computed15.






11. selling price per unit will remain fixed12. total fixed costs remain the same13. variable cost per unit will vary14. productivity per worker will remain unchanged15.














11. RS. 37,50012. RS. 12,50013. RS. 2,00,00014. cannot be determined15.





11. sales12. fixed cost13. total cost14. profit



15.










11. RS. 40,00012. RS. 30,00013. RS. 1,00,00014. RS. 1,50,00015.


11. 20%12. 80%13. 25%



14. cannot be calculated15.






2175 . A 2176 . A 2177 . E 2182 . C 2187 . A 2206 . C 2210 . D 2212 . B 2213 . B 2216 . B




















11. hormocyst12. hormogonium 13. trichome14. trichogyne



15.



















15.








11. Rs. 10,00012. Rs. 20,00013. Rs. 30,00014. Rs. 40,00015.


11. Rs. 3,00012. Rs. 9,00013. Rs. 10,10014. Rs. 11,00015.





11. Rs. 1,25012. Rs. 3,75013. Rs. 4,15014. Rs. 6,25015.


11. Rs. 60012. Rs. 1,20013. Rs. 2,40014. Rs. 4,80015.


11. trial balance12. balance sheet13. trading profit and loss account14. bank reconciliation statement15.




11. Rs. 99,00012. Rs. 99,50013. Rs. 1,00.50014. Rs. 1,01,00015.


11. 10%12. 20%



13. 30%14. 40%15.


11. Rs. 69,00012. Rs. 70.00013. Rs.71,00014. Rs.73,00015.


11. Rs. 50012. Rs. 1,00013. Rs. 1,50014. Rs. 2,00015.


11. Rs. 31,50012. Rs. 41,50013. Rs. 51,500 14. Rs. 61,50015.


11. Rs. 59,00012. Rs. 69,00013. Rs. 71,00014. Rs. 89,00015.



11. 5%12. 10%13. 15%14. 20%15.




11. Rs. 29,00012. Rs. 30,00013. Rs. 31,00014. Rs. 32,00015.
















11. 15%12. 20%13. 25%14. 30%15.


11. Rs. 20,00012. Rs. 30,00013. Rs. 50,00014. Rs. 1,70,00015.



11. Rs. 1,20,00012. Rs. 1,40,00013. RS. 1,90,00014. Rs. 2,13,50015.


11. Rs. 50,00012. Rs. 73,50013. Rs. 1,20,00014. Rs. 1,40,00015.


11. Rs. 2,50012. RS. 5,000



13. Rs. 7,50014. Rs. 10,00015.


11. RS. 50,00012. RS. 1,70,00013. RS. 2,20,00014. RS. 2,70,00015.


11. RS. 73,50012. RS. 1,40,00013. RS, 1,90,00014. RS. 2,13,50015.


11. RS. 100012. RS. 200013. RS. 300014. RS. 400015.


11. 9%12. 14%13. 20%14. 25%15.




11. cost12. book value



13. scarp value 14. replacement value15.


































11. The sale of an asset for cash12. The withdrawal of cash for private use13. cash discount given to a customer14. The correction of errors made in the ledger15.






11. help balance the bank account12. check the arithmetical accuracy of the double entry



13. help check the arithmetical accuracy of the double entry14. help check the bank account with the bank statement15.






11. trading account does not balance12. profit and loss account does not balance13. trial balance does not balance14. bank account does not balance15.























11. RS. 90012. RS. 1,00013. RS. 1,10014. RS. 1,20015.


11. RS. 80012. RS. 81013. RS. 90014. RS. 1,00015.


9. RS. 500 10. RS. 1,00011. RS. 1,50012. RS. 3,OOO



11. 12%12. 25%13. 33%14. 50%15.






11. RS. 2,20012. RS. 3,20013. RS. 3,60014. RS.4,40015.




11. RS. 45,00012. RS. 55,00013. RS. 1,00,00014. RS. 1,45,00015.


11. RS, 6,69012. Rs, 6,96013. RS. 9,66014. RS. 9,69015.


11. RS. 10,00012. RS. 25,00013. RS. 40,00014. RS. 50,00015.




11. RS. 47,50012. RS. 48,00013. RS. 51,50014. RS. 52,50015.































4186 . C 4190 . B 4191 . D 4193 . B 4197 . C 4200 . A 4201 . D 4202 . C 4207 . B 4210 . D














11. Rs.28012. Rs.72013. Rs.1,00014. Rs.1,72015.















11. a balance 12. a deficit 13. a surplus 14. drawing 15.






11. bank balance



12. assets 13. accumulated fund 14. surplus 15.


11. Rs.96012. Rs.1,00013. Rs.1,03014. Rs.1,04015.















11. Rs.10012. Rs.90013. Rs.1,00014. Rs.1,10015.


11. Rs. 4,00,00012. Rs. 4,80,00013. Rs. 4,00,00014. Rs. 1,00,00015.


11. Rs. 25,00012. Rs. 55,00013. Rs. 80,00014. Rs. 1,00,00015.










11. Rs. 25,00012. Rs. 26,20013. Rs. 34,00014. Rs. 35,20015.


11. 5%12. 10%13. 15%14. 20%15.


11. 25%12. 50%13. 75%14. 100%15.





11. Rs. 9,20012. Rs. 9,40013. Rs. 9,60014. Rs. 9,20015.


11. Rs. 20012. Rs. 40013. Rs. 70014. Rs. 90015.


11. cost of overheads 12. cost of raw materials used 13. cost of production 14. gross profit 15.






11. manufacturing wages



12. direct power 13. direct factory expenses 14. heating and lighting of the factory 15.











11. included in the present year's production cost12. not included in the present year's production cost13. included in the previous year's production cost



14. added to the cost of raw materials15.




11. RS. 90,00012. RS. 1, 00,00013. RS. 1,10,00014. RS. 1,30,00015.


11. a financial cost 12. an overhead cost13. a selling cost14. an administration cost15.






11. Direct labor costs



12. power for the factory machinery13. cost of materials used 14. factory rent and rates15.




11. Rs. 5,00,00012. Rs. 6,00,00013. RS. 6,50,00014. RS. 6,70,00015.


11. RS. 6,00,00012. RS. 670,00013. RS. 11,00,00014. RS. 14,20,00015.




11. RS.2,30,00012. RS. 3,20,00013. RS. 14,10,00014. RS. 14,20,00015.


11. RS. 11,00,00012. RS. 14,10,00013. RS. 14,20,000



14. RS. 14,60,00015.


11. RS. 10,00012. RS. 30,00013. RS. 40,00014. RS. 50,00015.


11. RS. 10,00012. RS. 20,00013. RS. 30,00014. RS. 40,00015.


11. RS. 14,05,00012. RS. 14,10,00013. RS. 15,00014. RS. 14,20,00015.



















11. RS. 280



12. RS. 72013. RS. 1,00014. RS. 1,72015.












11. income and expenditure account



12. receipts and payments account13. accumulated fund14. statement of affairs15.





11. a balance12. a deficit13. a surplus14. drawings15.






11. RS. 960



12. RS. 1,00013. RS. 1,03014. RS. 1,04015.






11. RS. 82012. RS. 1,00013. RS.1,82014. RS.2,79015.


11. RS. 82012. RS.1,00013. RS. 1,82014. RS. 2,79015.


11. nil12. RS. 5013. RS. 35014. RS. 40015.


11. nil



12. RS. 3013. RS. 10014. RS. 13015.



11. RS. 3012. RS. 21013. RS. 42014. RS. 60015.


11. RS. 2012. RS. 7013. RS.9014. RS. 11015.


11. RS. 70012. RS. 82013. RS. 1,52014. RS. 1,74015.


11. RS. 12012. RS. 70013. RS.82014. RS.1,52015.


11. RS. 1,00012. RS. 1,04013. RS. 1,07014. RS. 1,110



15.








11. RS. 10012. RS. 90013. RS. 1,00014. RS. 1,10015.







11. RS. 3012. RS. 21013. RS. 42014. RS. 60015.


11. RS. 4,000,00012. 4,80,00013. RS. 5,20,00014. RS. 1,00,00015.


9. RS. 25,00010. RS. 55,00011. RS. 80,00012. RS. 1,00.000
