Professional Documents
Culture Documents
Question
A journal entry is passed for trade discount, but no entry is passed for cash discount.
Correct Answer False
Question The objectives of Uniform costing system are as follows :
Correct Answer To fix a common selling price for the industry as a whole , To compare efficiency of each unit against industry's
overall performance , To compile reliable cost data for inter-firm comparison of costs
Your Answer To fix a common selling price for the industry as a whole , To compare efficiency of each unit against industry's
overall performance , To compile reliable cost data for inter-firm comparison of costs
Question The lowest profit volume ratio can be ________%.
Correct Answer 0
Question Under time rate system a worker is paid on the basis of production achieved by him in a given time.
Question The balance as per bank book as on 30th November, 2004 was Rs.6,500/- and the bank pass book balance as
on the same date was Rs.8,015/-. Select the transactions representing the reasons for this difference.
Correct Answer Cheques deposited but not cleared Rs.1,200/- , Unpresented cheques Rs.2,625/- , Bank interest not entered in
the bank book Rs.90/-
Your Answer Cheques deposited but not cleared Rs.1,200/- , Unpresented cheques Rs.2,625/- , Bank interest not entered in
the bank book Rs.90/-
Question Accounts representing expenses will have ________balance.
Correct Answer Debit
Question It is said that adoption of uniform costing creates customer confidence because . . .
Question Purchases included an amount of Rs. 25,450/- representing purchase of computer. The rate of depreciation is
10% for computers. Calculate the net effect of this transaction on the profitability statement.
Correct Answer Net profit will increase by Rs.22,905/-
Your Answer Net profit will increase by Rs.22,905/-
Question Balance sheet indicates the financial status of the business at given period.
Question
The Balance Sheet method of cash budget ignores any excess or shortage of cash during the budget period.
Correct Answer True
Question Presentation of information to enable managerial decision making' is one of the objects of which of the
LIST OF ATTEMPTED QUESTIONS AND ANSWERS - Accounts
Select The Blank
Question
If the customer is not likely to pay the amount receivable from him, this amount should to be treated as ________.
Correct Answer Bad debts
Correct Answer Cost of maintaining good relations with the workers , Cost of medical services , Cost of welfare facilities
Question Judge the sentence in italics according to criteria given below : " It is difficult to adopt Uniform costing system when
a product can be manufactured by employing more than one method because the cost of production will vary
according to the method used."
Correct Answer The assertion and the reason are both correct
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
Question Loss on account of goods lost due to earthquake should be debited to which account?
Question It is very easy to measure the portion of increased sales which is due to expenditure incurred for advertisement of
the product
Correct Answer False
Correct Answer Inefficiency of new workers , Cost of selection and placement , Increased spoilage and defectives
Question The perpetual inventory system enables management to ascertain stock without physical verification.
Correct Answer Functional responsibility of different functional managers , Delegation of authority to various managers , Inter-
functional relationships of these managers
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
Correct Answer Repairs of plant when it is undertaken by an outside agency , Carriage inward by hired carriers , Wages paid to
casual workers
Question Accounting refers to the process of analyzing & interpreting the information already recorded in the books of
accounts.
Correct Answer True
Question Uniform Costing simplifies the work of wage boards of fixing minimum wages and fair wages.
Question Which system involves adoption of same costing principles, practices and procedures by the individual firms of an
industry ?
Correct Answer Uniform costing
Question Which of the following aspects are mainly responsible for difficulty in application of Uniform costing system.
Question ________ Accounting is the process of analysis and interpretation of financial data collected with help of financial
accounting & cost accounting.
Correct Answer Management
Question Receipts and payments method of cash budget is useful for preparing long term estimates.
Question Economical use of labour, materials and facilities can achieved with the help of ________.
Question The system which provides an opportunity to the small units to take advantage of the research work taken by the large
scale units of the same industry is known as ________ system..
Correct Answer Uniform costing
Correct Answer Employees try to increase productivity , Incentives are shared by all the employees , Augments emplyees' efficiency
Question A business is an activity carried out with the intention of earning the profit.
:
Correct Answer True
Question In the adjustment entry passed for closing stock, the ________ account should be credited.
Your Answer
Question The difference between sales and cost of sales is termed as ________.
Question Price based on Uniform Costing may be taken to be reliable and representative of the whole industry.
Correct Answer
Question Correct Answer Your Answer
Global Tender Any supplier from the global market can fill Any supplier from the global market can fill the
the tender tender
Contribution - Fixed cost Tender from only one supplier Tender from only one supplier
Limited Tender Tenders from reliable but few suppliers Tenders from reliable but few suppliers
Open Tender Any supplier from the local market can fill the Any supplier from the local market can fill the
tender tender
Question The balance sheet has three columns, viz. assets, liabilities and ledger folio.
Correct Answer
Direct material , Direct labour , Direct expenses
Question The perpetual inventory system enables management to ascertain stock without physical verification.
Question Fundamentally, changes in price and changes in sales volume give rise to sales variances.
:
Correct Answer True
Question Overheads chargeable to a product, using direct labour cost basis, may be calculated by multiplying percentage of direct
labour cost and ________.
Correct Answer Direct labour cost of the product
Your Answer
Question Piece rate system is suitable when quality of goods produced is of extreme importance.
Correct Answer Cost control , Ascertain ment of cost of each product , Assist in managerial decision-making
Question The greater the volume of production, the greater is the unit cost of production.
Error of Principle Trial Balance does not get affected Wrong classification
Compensating Error Wrong classification Trial Balance does not get affected
True/False
Question Indirect material cost is an integral part of finished goods.
True/False
Question Linking overhead to a cost unit is known as overhead absorption.
Correct True
Answer
Your Answer True
True/False
Question Accounting is an art of recording, classifying & summarizing in a significant manner.
Correct True
Answer
Your Answer True
True/False
Question Treating capital receipt as revenue income is an example of errors of commission.
Correct False
Answer
Your Answer False
Correct Closing stock is valued at cost or market price whichever is lower , Providing for discount on
Answer debtors , Amortization of goodwill (goodwill being written off to Profit and Loss Account)
Your Answer Closing stock is valued at cost or market price whichever is lower , Amortization of goodwill
(goodwill being written off to Profit and Loss Account) , Providing for discount on creditors
Standard Costing Further probe and investigation Further probe and investigation
Current Standards Established for a shorter period Established for a shorter period
Correct False
Answer
Your Answer False
Correct Sales recorded in the sales register as Rs.2,020/- instead of Rs.2,200/- , Received cash from
Answer Sham, credited to Ram's account , Paid transport charges, credited to transport charges account
Your Answer Received cash from Sham, credited to Ram's account , Paid transport charges, credited to
transport charges account , Sales recorded in the sales register as Rs.2,020/- instead of
Rs.2,200/-
True/False
Question Financial accounting may deal with the ascertainment of cost & calculation of profitability of the
individual product.
Correct False
Answer
Your Answer False
True/False
Question It is said that marginal costs are used primarily in guiding decisions that are yet to be made.
Correct True
Answer
Your Answer True
Correct Subsidiary
Answer
Your Answer Journal
Correct Answer Excess staffing , Lack of experienced and efficient personnel , High labour turnover
Your Answer Excess staffing , Lack of experienced and efficient personnel , High labour turnover
Correct Answer Fixed cost / (Selling price per unit - Variable cost per unit) , [Fixed cost / Marginal
contribution] X Sales , [Fixed cost / (Fixed cost + Net Profit)] X Sales
Your Answer Fixed cost / (Selling price per unit - Variable cost per unit) , [Fixed cost / Marginal
contribution] X Sales , [Fixed cost / (Fixed cost + Net Profit)] X Sales
True/False
Question Amortization of goodwill should be considered while preparing cash budget.
Correct Answer Anticipates all future losses and expenses , Ignores all future incomes and profits, unless
they are actually realized , Applicable to valuation of current assets
Your Answer Anticipates all future losses and expenses , Ignores all future incomes and profits, unless
they are actually realized , Applicable to valuation of current assets
Your Answer Sales Rs.128,000/- , Return on capital employed , Working capital Rs.32,000/-
Correct Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production
activity
Your Answer Sales are too difficult to predict , Supply level of input cannot be predicted , Varying levels of production
activity
Received sanction for a loan of Rs.10 Overdraft as per bank book = Overdraft Henceforth, there shall be no difference in
lakhs as per pass book overdraft balances
Closed the account with State Bank of Henceforth, there shall be no difference in Overdraft as per bank book = Balances per
India overdraft balances pass book
Debit side of bank book is overcast Overdraft as per bank book < Overdraft Overdraft as per bank book < Overdraft as
as per pass book per pass book
Interest on debentures directly credited by Overdraft as per bank book > Overdraft Overdraft as per bank book = Overdraft as
bank as per pass book per pass book
Correct False
Answer
Your Answer True
Correct The accounting policies and procedures should be followed consistently , Facilitates the
Answer comparison of financial statements , It facilitates comparison of financial statements on period-to-
period basis
Your Answer Facilitates the comparison of financial statements , The accounting policies and procedures
should be changed consistently. , It facilitates comparison of financial statements on period-to-
period basis , The accounting policies and procedures should be followed consistently
Advantageously applicable in similar Scope of uniform costing Fields covered by uniform costing
industries
Spirit of mutual trust Requisite for uniform costing Scope of uniform costing
Avoids cut throat competition Advantage of uniform costing Requisite for uniform costing
Treatment given to research and Fields covered by uniform costing Disadvantage of uniform costing
development costs
True/False
Question Long term loan borrowed from financial institution comes under the heading of long term liabilities.
Correct True
Answer
Your Answer True