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Management Accoutning
Question Paper – 1
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Multiple Choice Multiple Answer Question Uniform Costing Methods may be advantageously applied to . . .
Correct Answer
Similar Industries such as cotton, jute etc. , Single organization having number of branches. , Number of companies in same industry
Your Answer Similar Industries such as cotton, jute etc. , Single organization having number of branches. , Number of companies in same industry
Multiple Choice Multiple Answer Question Subsidiary books include:
Correct Answer
Cash Book , Purchase Register , Sales Register
Your Answer Purchase Register , Sales Register
Select The Blank Question The sales forecast (quantity) should be compared with the
________ to find out whether it is possible for the firm to handle this level of sales.
Correct Answer
Production capacity
Your Answer Production capacity
True/False Question A business is an activity carried out with the intention of earning
the profit. Correct Answer
True
Your Answer True
Multiple Choice Single Answer Question Which of the following operations would normally be carried out
first when preparing a master budget? Correct Answer
Determining the budget period
Your Answer Preparing a forecast profit and loss account
True/False Question If the storage cost of inventory increases, then the economic
order quantity also increases. Correct Answer
False
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Management Accoutning
Your Answer False
True/False Question Accounting refers to the process of analyzing & interpreting the
information already recorded in the books of accounts. Correct Answer
True
Your Answer True
Multiple Choice Multiple Answer Question Features of convention of conservation are . . .
Correct Answer
Anticipates all future losses and expenses , Ignores all future incomes and profits, unless they are actually realised , Applicable to valuation of current assets
Your Answer Anticipates all future losses and expenses , Ignores all future incomes and profits, unless they are actually realised , Applicable to valuation of current assets
Multiple Choice Multiple Answer Question Features of Taylor's differential piece rate system are as
follows : Correct Answer
Minima clerical work is involved in calculating the wages , Helps in building up an efficient labour force , Strong incentive to efficient and ambitious workers.
Your Answer Minima clerical work is involved in calculating the wages , Helps in building up an efficient labour force , Strong incentive to efficient and ambitious workers.
True/False Question Accounting is an art of recording, classifying & summarizing in a
significant manner. Correct Answer
True
Your Answer True
True/False Question GAIL having monopoly in the CNG (Compressed Natural Gas)
market can implement the Uniform costing system. Correct Answer
False
Your Answer False
Select The Blank Question Accounts representing expenses will have ________balance.
Correct Answer
Debit
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Management Accoutning
Your Answer Debit
True/False Question Balance sheet indicates the financial status of the business at
given period. Correct Answer
True
Your Answer True
Select The Blank Question In case of defective material being returned by the stores
department to the vendor, such material should be valued at the________.
Correct Answer
Purchase price
Your Answer Purchase price
Multiple Choice Multiple Answer Question Different types of tenders are :
Correct Answer
Singly tender , Open tender , Global tender
Your Answer Singly tender , Open tender , Global tender
True/False Question Profitability statement indicates the amount of assets & `.
Correct Answer
False
Your Answer False
Multiple Choice Multiple Answer Question Select the items which may be classified as selling and
distribution overheads. Correct Answer
Delivery van expenses , Rent of finished goods warehouse , Sales research expenses
Your Answer Delivery van expenses , Rent of finished goods warehouse , Sales research expenses
True/False Question Balance sheet indicates the expenditure & income from the
business. Correct Answer
False
Your Answer False
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Management Accoutning
True/False Question GAIL having monopoly in the CNG (Compressed Natural Gas)
market can implement the Uniform costing system. Correct Answer
False
Your Answer False
Select The Blank Question Under the Merrick's differential piece rate system of wage
payment if the efficiency level of a worker is below 83%, then he is paid wages at ________ piece rate.
Correct Answer
Normal
Your Answer Normal
Match The FollowingQuestion Correct Answer Your Answer
Ledger Maintain all types of accounts
Maintain all types of accounts
Audit Reviewing internal control system
Reviewing internal control system
Accounting Process of analyzing & interpretation
Process of analyzing & interpretation
Journal Book of original entry Book of original entry
Multiple Choice Multiple Answer Question Management Accounting is…
Correct Answer
Designed particularly for internal use , Helpful in estimating the future along with past period , Useful in furnishing the necessary information to the management
Your Answer Designed particularly for internal use , Helpful in estimating the future along with past period , Useful in furnishing the necessary information to the management
Select The Blank Question A complete list of all material required, with quantities, for a
particular job is given in the ________. Correct Answer
Bill of material
Your Answer Bill of material
Select The Blank Question The various contents of a uniform cost manual are organisation,
cost accounting system and ________. Correct Answer
presentation of information
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Management Accoutning
Your Answer presentation of information
Select The Blank Question Normally, the planning for dividend payments and interest
payments is based on the ________ budget. Correct Answer
Cash
Your Answer Purchase
Multiple Choice Multiple Answer Question The data for two materials P and Q is given below : Material P :
opening stock Rs.80,000/-; closing stock Rs.40,000/- and purchases Rs.500,000/-. Material Q : opening stock Rs.170,000/-; closing stock Rs.60,000/- and purchases Rs.750,000/-. Identify which of the given statements relevant to the data given are correct.
Correct Answer
Consumption of material Q is Rs.860,000/- , Inventory turnover period for material P is 40.5 days , Material P is faster moving material
Your Answer Material Q is faster moving material , Consumption of material Q is Rs.860,000/-
Multiple Choice Single Answer Question Which system can assist in fixing a common selling price for the
industry as a whole on the basis of cost of production of all units belonging to that industry ?
Correct Answer
Uniform costing
Your Answer Uniform costing
Match The FollowingQuestion Correct Answer Your Answer
Expected Standards Anticipated to be achieved in the budget period
Anticipated to be achieved in the budget period
Normal Standards Anticipated to be achieved in future
Anticipated to be achieved in future
Basic Standards Established for a longer period of time
Established for a longer period of time
Current Standards Established for a shorter period of time
Established for a shorter period of time
True/False Question Uniform costing system is defined as a system using common
concepts and standard accounting practices by different entities in different industry to facilitate inter-firm comparison.
Correct Answer
True
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Management Accoutning
Your Answer False
Multiple Choice Multiple Answer Question Material Yield variance -Rs.1,000/- (Adverse); material mix
variance -Rs.250/- (Favourable) and material price variance - Rs.350/- (Favourable). Find material cost variance and material usage variance.
Correct Answer
Material cost variance -Rs.400/- (Adverse) , Material usage variance -Rs.750/- , Material usage variance is adverse
Your Answer Material cost variance -Rs.400/- (Adverse) , Material usage variance is adverse
Select The Blank Question ________ system of wage payment is a combination of Halsey
system and Gantt system. Correct Answer
Diemer
Your Answer Diemer
Multiple Choice Single Answer Question A cheque of Rs.400/- received and deposited into bank on 26th
September, was credited in the pass book but was omitted to be entered in the bank book: this error will result in :
Correct Answer
Difference in the balance as per bank book and as per pass book
Your Answer Difference in the trial balance
Multiple Choice Single Answer Question Presentation of information to enable managerial decision
making' is one of the objects of which of the following Correct Answer
Cost Accounting
Your Answer Management Accounting
Multiple Choice Single Answer Question A good purchase system, for materials, prevents production
hold-ups due to: Correct Answer
Lack of material
Your Answer Excess receipt of material
True/False Question A cash payment of Rs.1,000/- for traveling expenses has been
entered in the books but not debited to traveling A/c. The trial balance will NOT agree.
Correct Answer
True
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Management Accoutning
Your Answer True
Select The Blank Question Education facility to workers and their children, pension,
superannuation fund are examples of ________ incentives. Correct Answer
Non-monetary
Your Answer Non-monetary
Multiple Choice Single Answer Question The reporting method used in the costing system should be
based on the principle of Correct Answer
Management by exception
Your Answer Management by exception
Select The Blank Question Fixed overhead volume variance = Expenditure variance +
Capacity variance + ________ variance Correct Answer
Calendar
Your Answer Calendar
True/False Question Credit balances in all the Personal & Real accounts appear on
asset side. Correct Answer
False
Your Answer False
Multiple Choice Single Answer Question The reporting method used in the costing system should be
based on the principle of Correct Answer
Management by exception
Your Answer Management by exception
Multiple Choice Single Answer Question Which system provides an opportunity to companies to adopt
the one best method of cost accounting system known to the industry ?
Correct Answer
Uniform costing
Your Answer Uniform costing
Multiple Choice Single Answer
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Question A worker 12 hours on a scheme of payment by results. His day rate is Rs.150/- an hour, the material cost of the product is Rs.600/- and the overheads are recovered at 15% of the total direct wages. Calculate the factory cost of the product under the piece rate work plan.
Correct Answer
Rs.2,670/-
Your Answer Rs.2,670/-
Multiple Choice Single Answer Question M/s Vivek Enterprises has paid rent relating to the residence of
Mr. Vivek, proprietor of Vivek Enterprises. This payment should be treated as
Correct Answer
Drawings
Your Answer Drawings
True/False Question The purchase budget is a forecast of the value of fixed assets
requiring replacements in the budget period. Correct Answer
False
Your Answer False
True/False Question Danger level for inventory of materials means the safety stock of
inventory. Correct Answer
False
Your Answer False
True/False Question Depreciation under Reducing Balance Method is calculated as
(Number of units * Rate of depreciation per unit) Correct Answer
False
Your Answer True
Multiple Choice Multiple Answer Question The factors which influence the selection of the method for
absorption of overheads are: Correct Answer
Type of industry , Nature of products , Manufacturing process
Your Answer Type of industry , Nature of products , Manufacturing process
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Management Accoutning
Question Paper – 2
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank Question The ________ is of immense help in guiding the companies
to operate their accounts on uniform basis. Correct Answer
uniform cost manual
Your Answer accounting manual
Multiple Choice Single Answer Question Annual maintenance of Rs.28,000/- was paid on 15th June,
2003 for a period of one year therefrom. Find the amount of prepaid maitenance expenditure for the year ended 31st March.
Correct Answer
Rs.5,833/-
Your Answer Rs.5,833/-
True/False Question Accounting is an art of recording, classifying & summarizing
in a significant manner. Correct Answer
True
Your Answer True
Multiple Choice Multiple Answer Question Material Yield variance -Rs.1,000/- (Adverse); material mix
variance -Rs.250/- (Favourable) and material price variance - Rs.350/- (Favourable). Find material cost variance and material usage variance.
Correct Answer
Material cost variance -Rs.400/- (Adverse) , Material usage variance -Rs.750/- , Material usage variance is adverse
Your Answer Material cost variance -Rs.400/- (Adverse) , Material usage variance -Rs.750/- , Material usage variance is adverse
Select The Blank Question Furniture account will always have a ________ balance.
Correct Answer
Debit
Your Answer Credit
Multiple Choice Single Answer
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Management Accoutning
Question Consideration to the fact that the repairs and maintenance cost is less in the initial years of life of the asset and hence needs to be counterbalanced by higher amount of depreciation in the
Correct Answer
Written down value method
Your Answer Written down value method
True/False Question Uniform costing may lead to monopolistic conditions within
the industry, prices may be raised and customers may suffer. Correct Answer
True
Your Answer True
Multiple Choice Single Answer Question A good purchase system, for materials, prevents production
hold-ups due to: Correct Answer
Lack of material
Your Answer Lack of material
Multiple Choice Multiple Answer Question Management Accounting __________________.
Correct Answer
Designed particularly for internal use only. , Looks forward in estimating the future along with past period. , This furnishes the necessary information to management.
Your Answer Only a, b, c.
Multiple Choice Single Answer Question Production costs of a factory for the year 2003-04 are as
follows: direct labour cost Rs.100,000/-; direct material cost Rs.150,000/-; production overheads (fixed) Rs.50,000/- and production overheads (variable) Rs.80,000/-. The production manager projec
Correct Answer
Rs.426,800/-
Your Answer Rs.380,000/-
Match The FollowingQuestion Correct Answer Your Answer
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Management Accoutning
Balance-sheet Financial status Profitability statement & Balance-sheet
Book-Keeping Books of Accounts Books of Accounts
Financial statement Profitability statement & Balance-sheet
Indicates the amount of profit earned
Accounting Process of analyzing & interpretation
Financial status
Profitability statement Indicates the amount of profit earned
Process of analyzing & interpretation
True/False Question Penalty paid for delay in payment to creditors represents
uncontrollable cost. Correct Answer
False
Your Answer True
Multiple Choice Multiple Answer Question While preparing sales budget the following factors must be
considered : Correct Answer
The number and types of products sold by the organisation , Whether the organisation's market share is increasing or decreasing? , Details of seasonal fluctuations in sales
Your Answer The number and types of products sold by the organisation , Details of seasonal fluctuations in sales
Multiple Choice Multiple Answer Question Cost Accounting ______________.
Correct Answer
Concerned with specific activities. , Classified according to their nature. , It deals with both i.e. past & present.
Your Answer Classified according to their nature. , It deals with both i.e. past & present.
Multiple Choice Multiple Answer Question The main objectives of determining overhead rates are :
Correct Answer
Helps in immediate compilation of costs , Helps application of overhead on an equitable basis , Assits in calculating unit cost before starting production
Your Answer Helps in immediate compilation of costs , Assits in calculating unit cost before starting production
Multiple Choice Multiple Answer Question In practical circumstances, control ledgers may be
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Management Accoutning
maintained for the following categories: Correct Answer
Sundry debtors , Sundry creditors , Advance to Staff
Your Answer Sundry creditors , Advance to Staff
True/False Question Balance sheet indicates the financial status of the business at
given period. Correct Answer
True
Your Answer True
True/False Question Profitability statement indicates the amount of assets &
liabilities. Correct Answer
False
Your Answer False
Multiple Choice Multiple Answer Question Select the accounts to be disclosed on the assets side of the
Balance sheet. Correct Answer
Furniture , Loan to Bank of U.S.A. , Land & building
Your Answer Furniture , Land & building
Select The Blank Question The stores department is a ________ department.
Correct Answer
Service
Your Answer Valuable
Match The FollowingQuestion Correct Answer Your Answer
Liabilities All the amount owed by the business
All the amount owed by the business
Drawing Withdrawn for personal use
Withdrawn for personal use
Journal Book of original entry Book of original entry
Ledger Maintain all types of Accounts
Maintain all types of Accounts
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Management Accoutning
Assets All the properties owned by the business
All the properties owned by the business
True/False Question Balance sheet indicates the expenditure & income from the
business. Correct Answer
False
Your Answer False
Multiple Choice Multiple Answer Question Uniform Costing Methods may be advantageously applied to
. . . Correct Answer
Single organization having number of branches. , Number of companies in same industry , Similar Industries such as cotton, jute etc.
Your Answer Single organization having number of branches. , Similar Industries such as cotton, jute etc.
Select The Blank Question The lowest profit volume ratio can be ________%.
Correct Answer
0
Your Answer 0.1
Multiple Choice Single Answer Question Salary given in trial balance Rs. 5000/-, and Rs. 2,000/- is yet
to be paid . The outstanding salary account will be disclosed in the …
Correct Answer
Balance Sheet - liability side
Your Answer Trading Account - debit side
True/False Question The bin card and stores ledger, being independent records,
comparison of these two records should be avoided. Correct Answer
False
Your Answer False
Multiple Choice Multiple Answer Question Accounting is the art where transactions are …
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Management Accoutning
Correct Answer
Summarized , Classified , Recorded
Your Answer Summarized , Classified , Recorded
Select The Blank Question A ________ note is prepared when excess material is
returned to stores. Correct Answer
Material returned
Your Answer Material returned
True/False Question According to the standard costing principles, only adverse
variance must be further investigated. Correct Answer
False
Your Answer True
True/False Question An item of cost that is direct for one business organisation
may be indirect for another business organisation. Correct Answer
True
Your Answer True
Multiple Choice Single Answer Question The cost of idle time incurred by employees that is
considered normal for the production process should be charged to :
Correct Answer
Factory overheads
Your Answer Direct labour
Select The Blank Question Since the pass book and the bank book record the ________
transactions, the bank balance as per these books should be equal.
Correct Answer
Same
Your Answer Same
Multiple Choice Multiple Answer
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Question The various areas in which uniform costing can be adopted are . .
Correct Answer
Valuation of inventories , Charging of depreciation , Apportionment of overheads
Your Answer Valuation of inventories , Charging of depreciation
True/False Question A business is an activity carried out with the intention of
earning the profit. Correct Answer
True
Your Answer True
Multiple Choice Single Answer Question With a 10% increase in the selling price and 10% decrease in
the physical sales volume, the profit volume ratio will: Correct Answer
Increase
Your Answer Increase
Multiple Choice Multiple Answer Question Management Accounting is…
Correct Answer
Designed particularly for internal use , Helpful in estimating the future along with past period , Useful in furnishing the necessary information to the management
Your Answer Designed particularly for internal use , Helpful in estimating the future along with past period , Useful in furnishing the necessary information to the management
True/False Question Price based on Uniform Costing may be taken to be reliable
and representative of the whole industry. Correct Answer
True
Your Answer True
Select The Blank Question A written order sent to inform the purchasing department of
a need for materials is called a ________. Correct Answer
Purchase requisition note
Your Answer Purchase requisition note
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True/False Question If the storage cost of inventory increases, then the economic
order quantity also increases. Correct Answer
False
Your Answer False
True/False Question A cash payment of Rs.1,000/- for traveling expenses has
been entered in the books but not debited to traveling A/c. The trial balance will NOT agree.
Correct Answer
True
Your Answer True
Select The Blank Question Factory cost of a product is Rs.335,000/-, if the selling
overheads are charged @25% of factory cost, then the amount of selling overheads should be Rs.________/-
Correct Answer
83750
Your Answer 83750
True/False Question Accounting refers to the process of analyzing & interpreting
the information already recorded in the books of accounts. Correct Answer
True
Your Answer True
Select The Blank Question An error of partial omission can be rectified by either
debiting or crediting the ________ account, as the case maybe.
Correct Answer
suspense
Your Answer profit and loss
Multiple Choice Multiple Answer Question Which of the following transactions should be excluded
while preparing a cost sheet ? Correct Interest on loan , Bad debts , Expenses on criminal law suit
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Answer Your Answer Sale of scrap material , Interest on loan
Multiple Choice Single Answer Question Over which of the following costs is the management likely
to have least control? Correct Answer
Buildings insurance cost
Your Answer Wages cost
Multiple Choice Single Answer Question Insurance premium of Rs.18,000/- was paid on 15th January,
2004. The policy period is one year from the date of payment of insurance. On 31st March, 2004 what amount should be debited to the Profit and Loss account as expenditure on account of insurance premium?
Correct Answer
Rs.3,750/-
Your Answer Rs.3,750/-
True/False Question Maintenance Department is a service cost centre.
Correct Answer
True
Your Answer True
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Management Accoutning
Question Paper – 3
LIST OF ATTEMPTED QUESTIONS AND ANSWERS
Select The Blank Question The column which refers to the page number of the ledger is
known as ________. Correct Answer
Ledger folio
Your Answer Ledger folio
Multiple Choice Multiple Answer Question Financial Accounting is …
Correct Answer
Designed to supply information to internal/ external users , Referred as 'Historical' form of accounting , Concerned with financial factors
Your Answer Referred as 'Historical' form of accounting , Concerned with financial factors
True/False Question Profitability statement indicates the amount of assets &
liabilities. Correct Answer
False
Your Answer False
Select The Blank Question The method of overhead apportionment which considers both
the material cost as well as the labour cost, is known as ________ method.
Correct Answer
Prime cost percentage rate
Your Answer Supplementary rate
Multiple Choice Multiple Answer Question If you are required to enforce uniform costing system in your
industry, how would you proceed ? Correct Answer
Collecting data from all units of your industry , Ensuring that the data collected is complete and correct , Maintaining secrecy of the data collected
Your Answer Collecting data from all units of your industry , Ensuring that the data collected is complete and correct , Allowing free
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Management Accoutning
access to all the units to the collected data
Multiple Choice Multiple Answer Question The data for two materials P and Q is given below : Material
P : opening stock Rs.80,000/-; closing stock Rs.40,000/- and purchases Rs.500,000/-. Material Q : opening stock Rs.170,000/-; closing stock Rs.60,000/- and purchases Rs.750,000/-. Identify which of the given statements relevant to the data given are correct.
Correct Answer
Inventory turnover period for material P is 40.5 days , Material P is faster moving material , Consumption of material Q is Rs.860,000/-
Your Answer Inventory turnover period for material P is 40.5 days , Material P is faster moving material , Consumption of material Q is Rs.860,000/-
Multiple Choice Single Answer Question A new computer worth Rs.35,000 was purchased on 18th
June, 2003. The company has 10 such computers costing Rs.20,000/- each. The depreciation is charged @ 18% p.a. Find the depreciation on computers to be charged for the year.
Correct Answer
Rs.40,953.70
Your Answer Rs.36,000/-
Multiple Choice Single Answer Question Journal is popularly known as 'Book of . . .
Correct Answer
Original Entry
Your Answer Original Entry
Multiple Choice Single Answer Question Out of debtors totaling to Rs.58,750/-, Rs.5,000/- were
expected to be bad. What should be the amount of debtors that must be disclosed in the balance sheet?
Correct Answer
Rs.53,750/-
Your Answer Rs.53,750/-
True/False Question A business is an activity carried out with the intention of
earning the profit.
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Correct Answer
True
Your Answer True
Select The Blank Question Copy of a firm's account in the bank's ledger is known as
________. Correct Answer
Bank statement
Your Answer Bank book
Multiple Choice Single Answer Question The direct material useage budget and direct material
purchase budget differ because of which of the following: Correct Answer
A planned change in the level of material stock
Your Answer A planned change in the level of material stock
True/False Question In marginal costing, decisions are guided by profit rather
than contribution margin. Correct Answer
False
Your Answer False
Select The Blank Question An amount of Rs.200/- is received from P and is credited to
Q. The rectification entry would affect ________ Correct Answer
P's A/c and Q's A/c
Your Answer P's A/c
Multiple Choice Multiple Answer Question Features of convention of consistency are . . .
Correct Answer
The accounting policies and procedures should be followed consistently , Facilitates the comparison of financial statements , It facilitates comparison of financial statements on period-to-period basis
Your Answer The accounting policies and procedures should be followed consistently , Facilitates the comparison of financial statements , It facilitates comparison of financial statements on period-to-period basis
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Select The Blank Question The variance which measures the profit consequences of
selling different products in proportions other than the standard, is known as ________ variance.
Correct Answer
Sales margin mix
Your Answer Sales margin mix
Multiple Choice Single Answer Question Basic objective of Uniform Costing is . . .
Correct Answer
comparison
Your Answer To control cost
True/False Question Balance sheet indicates the expenditure & income from the
business. Correct Answer
False
Your Answer True
Select The Blank Question ________is the summary of all the balances in all the
accounts listed in ledger account of an organization at any given point of time.
Correct Answer
Trial Balance
Your Answer Trial Balance
Select The Blank Question The principle of ________ is followed while preparing the
financial statements. Correct Answer
Going concern
Your Answer Closing concern
Multiple Choice Single Answer Question Firm X manufactures surgical goods. Its normal production
is 2,600 units per month at a total cost of Rs.32,000/-. At full capacity it can manufacture 3,400 units per month at a total cost of Rs.38,000/-. Calculate total fixed cost.
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Correct Answer
Rs.12,500/-
Your Answer Rs.13,500/-
Multiple Choice Multiple Answer Question Ram and Laxman are partners of Kush & Bros. As on 1st
April, 2003 Ram's capital is Rs.50,000/- and Laxman's capital is Rs.80,000/-. If interest on capital is to be provided @ 10% p.a., what will be amount of capital of each of the partners as on 31st March, 2004, assuming there were no additions during this period? Also, state the treatment of this item in the Profit and loss account.
Correct Answer
Ram's capital Rs.55,000/- , Laxman's capital Rs.88,000/- , Interest on capital should be debited to the Profit and loss account
Your Answer Ram's capital Rs.55,000/- , Laxman's capital Rs.88,000/- , Interest on capital should be credited to the Profit and loss account
Multiple Choice Single Answer Question A factory has 8 hours a day and the standard daily wage is
Rs.80/-. Standard output per hour is 5 units. During a day worker P produced 30 units, Q produced 36 units and S produced 42 units. Calculate wages payable to P,Q and S under Merrick Multiple Piece Rate System.
Correct Answer
P - Rs.60/-; Q - Rs.79.20; S - Rs.100.80
Your Answer P - Rs.60/-; Q - Rs.72/-; S - Rs.84/-
True/False Question Accounting refers to the process of analyzing & interpreting
the information already recorded in the books of accounts. Correct Answer
True
Your Answer True
Multiple Choice Single Answer Question Commission payable to General Manager is 10 % of the net
profits. If the net profit before charging commission is Rs.29,200/-, then what will be the amount of his net profit after commission?
Correct Answer
Rs.26,545.45
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Your Answer Rs.26,788.99
Select The Blank Question The most appropriate method for apportionment of
overheads of the purchasing and stores department is percentage on ________.
Correct Answer
Direct Material
Your Answer Labour hours
Multiple Choice Multiple Answer Question The various areas in which uniform costing can be adopted
are . . Correct Answer
Valuation of inventories , Charging of depreciation , Apportionment of overheads
Your Answer Valuation of inventories , Charging of depreciation , Apportionment of overheads
Select The Blank Question If the firm is operating with zero margin of safety, decline of
even a single unit in sales will result in ________. Correct Answer
Loss
Your Answer Loss
Select The Blank Question Dividend received on amount invested in shares is an
example of ________. Correct Answer
non-operating income
Your Answer non-operating income
True/False Question If the storage cost of inventory increases, then the economic
order quantity also increases. Correct Answer
False
Your Answer False
True/False Question Routing the purchase requisition through the purchase
department entails unnecessary delay in receiving the required materials.
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Correct Answer
False
Your Answer True
Select The Blank Question The process of recording the business transactions in a
defined set of records is referred to as ________. Correct Answer
Balance sheet
Your Answer Trading account
True/False Question The rates at which the depreciation is to be calculated are
specified in the Income Tax Act 1961 and The Companies Act, 1956.
Correct Answer
True
Your Answer True
True/False Question The effect of price reduction is always reduction in the
margin of safety and also reduction in the break even point. Correct Answer
False
Your Answer True
Multiple Choice Single Answer Question The opening balance of cash account is Rs. 25,000/-, cash
received from debtors Rs. 30,000/-, sold goods on cash basis amounting to Rs. 50,000/-, paid to creditors Rs. 20,000/-, purchase furniture Rs. 5000/-. What is the closing balance of the cash account?
Correct Answer
Rs. 80,000
Your Answer Rs. 80,000
Multiple Choice Multiple Answer Question The main objectives of determining overhead rates are :
Correct Answer
Helps in immediate compilation of costs , Helps application of overhead on an equitable basis , Assits in calculating unit cost before starting production
Your Answer Helps in immediate compilation of costs , Helps application
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of overhead on an equitable basis , Assits in calculating unit cost before starting production
Multiple Choice Multiple Answer Question Identify the fixed expenses from the following.
Correct Answer
Rent and taxes of the factory , Wages paid to indirect workers like cleaners, helpers,etc. , Salary paid to factory supervisor
Your Answer Rent and taxes of the factory , Salary paid to factory supervisor
Multiple Choice Single Answer Question Labour turnover rate is best defined as :
Correct Answer
The number of leavers replaced divided by the average of employees on the payroll
Your Answer The number of employees successfully completing the required job training program
Multiple Choice Multiple Answer Question Direct Cost includes
Correct Answer
Direct material , Direct labour , Direct expenses
Your Answer Direct material , Direct labour , Direct expenses
True/False Question Balance sheet indicates the financial status of the business at
given period. Correct Answer
True
Your Answer True
Multiple Choice Multiple Answer Question Select the various methods adopted for treatment of under or
over absorbed overheads Correct Answer
Use of supplementary rates , Carrying over the amount to remaining period , Writing off to the Costing Profit and Loss Account
Your Answer Use of supplementary rates , Carrying over the amount to remaining period , Writing off to the Costing Profit and Loss Account
True/False Question Accounting is an art of recording, classifying & summarizing
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in a significant manner. Correct Answer
True
Your Answer True
True/False Question The variable costs are controllable at the lower lever.
Correct Answer
True
Your Answer True
Match The FollowingQuestion Correct Answer Your Answer
Balance-sheet Financial status Financial status
Book-Keeping Books of Accounts Books of Accounts
Financial statement Profitability statement & Balance-sheet
Profitability statement & Balance-sheet
Accounting Process of analyzing & interpretation
Process of analyzing & interpretation
Profitability statement Indicates the amount of profit earned
Indicates the amount of profit earned
Multiple Choice Single Answer Question Which of the following is usually prepared daily by
employees for each job worked on? Correct Answer
Job card
Your Answer Job card
True/False Question The actual loss incurred by a company, due to fire, is the
extent of difference between the cost of goods destroyed and the amount of claim settled by the insurance company.
Correct Answer
True
Your Answer True
Match The FollowingQuestion Correct Answer Your Answer
Liabilities All the amount owed by All the amount owed by
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Management Accoutning
the business the businessDrawing Withdrawn for personal
useWithdrawn for personal use
Journal Book of original entry Book of original entry
Ledger Maintain all types of Accounts
Maintain all types of Accounts
Assets All the properties owned by the business
All the properties owned by the business
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