Professional Documents
Culture Documents
a. Babylonia
b. Rome
c. Indian civilization
d. America
2.Indicate the best answer for the question as what is the primary function of book
keeping.
3.One of the ingredients responsible for the creation of double entry book keeping is
Private property. What does this mean?
b. Profession of accounting
c. System of holding a person accountable
d. Knowledge of finding out profit or loss
d. Cost Accounting
9.Why did corporate form of organization create a need for increased financial disclosure
and reporting?
a. One can not remember particulars of all transactions, taking place during an
accounting period
b. Business transactions take place rarely
c. It is more a formality
d. To satisfy the stakeholders
a. Concept
b. Luck
c. Convention
d. Practice
a. It is a presumption
3.A has deposited Rs.5 lakh in four installments during the first four weeks of starting a
financial company. Next month, the company is closed without paying back the money.
Does this defeat the business concept of
5.A manufacturing Company has produced 50000 units of a product during 2006. What
accounting concept is missing in the above statement?
d. Practicability
a. Convention
b. Necessity
c. Unreasonable habit
d. Concept
a. A willful prediction
b. Reasonable assumption
c. Universal characteristic
d. A regulated condition
a. To fulfill a formality
b. To build up a science
c. To lay down rules for action
d. To control activities
a. Cash increases the liability and capital increases asset of the business
b. Capital of the business increases
10.Why is double entry system of book keeping better than single entry system?
a. Supplier
b. Tr. Creditors
c. Agents
d. Tr. Debtors
2.Debit all assets and credit all liabilities. This principle hold good because, they belong
to
a. Nominal accounts
b. Real accounts
3.How do you read this journal entry cash account: Dr To capital account
4.If credit purchases are recorded in purchases book, in which book purchases are
recorded
a. journal
b. bank pass book
c. Journal proper
d. cash book
a. All purchases
b. cash purchases of goods
c. Purchases of goods
d. Purchases of goods only
14.What is journalising
a. A career of journalism
b. Process of making a record
c. Writing a transaction in a book
subsidiary books
period
a. Replica of Journal
b. Book of less importance
c. Book of second entry to ensure internal check
3.If personal account shows a credit balance, what does this indicate ?
a. It indicates 'Creditor'
b. It indicates an item of income
c. It indicates a 'Debtors'
d. It indicates an asset
b. On credit
c. Both debit and credit
d. On Debit side
c. Ravi,s account is debited by Rs 2000 but posted to the credit side of his a/c
d. Plant purchased is transferred to purchases a/c
d. Accrual Concept
2.If outstanding expense account appears in the trial balance, what does it mean?
3.On which side outstanding expenses account appear in the balance sheet?
a. Asset side
b. Appears in trial balance
c. Appears in Journal proper
4.Prepaid tax for 2004-05 is Rs.12,000 and prepaid tax for 2005-06 is Rs.18,000. If the
taxes payable for the year is Rs.88,000, find out what is the actual tax paid in 2005-06?
a. Rs. 82,000
b. Rs. 88,000
c. Rs.58,000
d. Rs. 94,000
5.Rent paid per month is Rs.5,000 . During the year 2005-06 the rent actually paid was
Rs. 75,000. Find out what is prepaid in the year 2005-06?
a. Rs.15,000
b. Rs.5,000
c. Rs.20,000
d. Rs. 10,000
6.The basis for preparing Final Accounts is
a. Journal proper
b. Trial Balance
c. Journal entries
d. Ledger accounts
7.What is outstanding expense?
a. Expense yet to be incurred
a. Real account
b. Personal account
c. Ficticious account
d. Nominal account
c. Quantitative expression
d. Written expression
2.Budgetary control is
a. Reaction in advance
b. Action in advance
c. No action in advance
d. Planning in advance
a. Production
b. Budgets
c. Cash
d. Credit
a. Responsibility
b. Function
c. Duty
d. Action
a. Ever
b. Only once
c. Time to time
d. At emergency.
6.Forecasting and planning function include:
a. Short and long term rejection.
a. Decisions
b. Postulates
c. Principles
d. Activities
a. Accounting information.
b. Accounting service
c. Accounting necessity
d. Accounting procedure
a. ersonal use
b. External use
c. Internal use
d. Official use
a. Financial data
a. Capital
b. Liability
c. Asset
d. Inventory
3.Analysis means
a. Integration
b. Separation
c. Narration
d. Creation
a. Mutual obligation
b. Mid-term obligation
c. Long-term obligation
d. Short-term obligation
6.Current ratio is
a. Average
b. Proportion
c. percentage
d. Turnover
a. Liquidity
b. Liability
c. Viability
d. Profitability
a. Equal to none
b. Equal to one
c. Less than 1
d. More than 1
a. Convertability
b. Suitability
c. Rigidity
d. Rapidity
a. Deletion
b. Decision
c. Deduction
d. Rejection
13.Ratio analysis is a
a. Bolt
b. Nut
c. Screw
d. Tool
14.Ratio analysis is a technique of
a. Analysis and finalization
b. Analysis and introduction
c. Analysis and conclusion
a. b.Global relationship
b. Legal relationship
c. Quantitative relationship
d. Local relationship
17.Ratio is based on
a. Comparsion
b. Causation
c. Narration
d. Relation
18.Ratio is calculated by
a. Multiplying one figure with another
b. Adding one figure with another
c. Subtracting one figure with another
a. 2: -1
b. 1: -1
c. 1:1
d. 2:1
a. Creditors
b. c.Debtors
c. Funds
d. Persons
a. obsoletete
b. useless
c. Traditional
d. modern
a. Personnel items
b. Financial items
c. Technical item
d. Production items
4.fund flow indicates the inflows and outflows of
a. Cash
b. Income
c. Loss
d. Profit
a. Profit
b. Income
c. Cash
d. Assets
a. CL
b. WC
c. CA
d. none
8.Schedule of working capital changes is prepared to find
a. Net change
b. No change
c. Gross change
d. Negative change
9.SWC deals with only
a. CA and FA
b. CA and FL
c. CA and CL
d. CA and fictious assets
a. wastage of funds
b. Use of funds
c. Misuse of funds
d. Savings of funds
a. Liquidity
b. Profitability
c. Insolvency
d. Liquidation
a. Inflows
a. Receipt
b. Loss
c. Both b & c
d. Profit
a. Asset
b. Overdraft
c. Cash
d. Profit
5.CFS is a document of
a. Finance
b. Sales
c. Personnel
d. Production
a. Direct
a. Present
b. Past
c. Advance
d. None
b. Given up
c. Gone up
d. Grown up
4.Cost refer to
a. Expense
b. Source
c. Application
d. Income
5.Element of cost is
6.Materials may be
a. Finished are
b. Direct or Indirect
c. Direct
d. Indirect
a. Cash inflow
b. Source
c. None
d. Cash outlay
a. Money equivant
b. Both a and b
c. Kind
d. Money
a. Doctor
b. Engineer
c. Economist
d. Daughter
11.CFS is measured based on
a. Statement
b. Expenses
c. Income
a. Asset
b. Profit
c. Flow
d. Cash
a. Pass book
b. Cash book
c. Balance sheet
d. Petty cash book
a. Range
b. Short term
c. All
d. Plan
a. Changes
b. Charges
c. Chases
d. Chooses
Unit13 - 1 Mark Quiz Questions
1.All cost can be classified as
a. Fixed
b. Semi
a. Extended cost
b. Expanded cost
c. Extension of MC
d. None
a. Cost -volume-sales
a. All
a. Constant
b. Fixed
c. None
d. Variable
a. In price
b. In value
c. In total
d. Per unit
7.Information entile
a. Benefit
b. Cost
c. None
8.Information is
a. Commodity
b. Brutality
c. Vitality
d. Modality
9.Marginal cost is
a. Variable
b. Semi variable
c. None
d. Fixed
10.Marginal cost is not a system of
a. Cost calculation
b. Cost manipulation
c. Cost ascertainment
d. None
a. Fixed
b. Semi-variable
c. None
d. Variable
a. Fixed costs
b. Variable
c. None
d. Semi-variable
a. Variable cost
b. None
c. Variance cost
d. Standard cost
d. Constant
15.Under marginal cost, costs are classified as
a. None
b. Fixed
c. Variable
a. Factory cost
b. Marginal cost
c. Prime cost
d. Total cost
d. Per unit
c. Proportion
d. Ratio
a. Sales
b. None
a. Per unit
b. Both (a) and (b)
c. None
d. Total
a. elaborate
b. actual
c. estimate
d. accrual
2.Budget is a statement of
a. financial
b. none
c. quantitative
3.Budget is an
a. economic service
b. political service
c. family service
d. national service
4.Budget is an exercise of
a. Forward plan
b. vertical plan
c. backward plan
d. horizontal plan
a. consolidation
b. cooperation
c. covariation
d. coordination
a. fitting
b. tool
c. none
d. fixtures
c. both a and b
d. none
b. profits
c. loss
d. expenses
9.In budgeting planning refers to budget
a. calculation
b. valuation
c. preparation
d. manipulation
a. short term
a. both a and c
b. wastages of abnormal
c. normal wastage
d. Abnormal wastage
a. Pre-mature
b. Pre-determined
c. prepaid
d. Pre-conceived
3.For direct material, focus is on
a. both a and c
b. price
c. Quantity
d. none
a. technical info
b. research info
c. economic info
d. general info
a. normal time
b. Ideal time
c. none
d. Idle time
d. both a and d
a. cost control
b. cost classification
c. cost ascertainment
d. none
8.Standard costing is a system of
a. Financial accounting
b. Cost accounting
c. none
d. management accounting
a. processes
b. products
c. both a and b
d. none
c. Budgetary control
d. labor control
b. costs
c. both a and b
d. income
c. Engineering
d. Finance
13.Standards are fixed for
a. all
b. material
c. labor
d. overheads
a. time study
b. motion study
c. both a and c
d. none
a. labor control
b. cost control
c. material control
d. financial control