True/False

Question Indirect material cost is an integral part of

finished goods.
Correct Answer False
Your Answer False
Multiple Choice Multiple Answer
Question Which of the following aspects are mainly
responsible for difficulty in application of
Uniform costing system?
Correct Answer Capital investment , Plant size , Location
Your Answer Plant size , Location , Capital investment

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
organization , Whether the organization's
market share is increasing or decreasing? ,
Details of seasonal fluctuations in sales
Your Answer The number and types of products sold by the
organization , Whether the organization's
market share is increasing or decreasing? ,
Details of seasonal fluctuations in sales

True/False
Question Financial Accounting primarily protects the
interests of the outsiders dealing with
organization in various capacities.
Correct Answer True
Your Answer True

Multiple Choice Multiple Answer

Question The balance as per bank book as on 30th June,
2004 is Rs.10,298/- while the balance as per
pass book as on the same date is
Rs.10,123.60. Select the transactions
representing the reasons for this difference :-
Correct Answer Interest credited by bank, not entered in the
bank book, Rs.125.60 , Cheques dishonoured
not entered in the bank book Rs.200/- , Debit
side of the cash book is overcast by Rs.100/-
Your Answer Interest credited by bank, not entered in the
bank book, Rs.125.60 , Cheques dishonoured
not entered in the bank book Rs.200/- , Debit
side of the cash book is overcast by Rs.100/-

True/False
Question The sales mix variance highlights the fact that
the actual mix of sales has been in the same
ratio as budgeted.
Correct Answer False
Your Answer True

Select The Blank

Question Non-trading income is disclosed on the credit
side of ________ account.
Correct Answer Profit and loss
Your Answer Profit and loss

Select The Blank

Question ________ is any documentary evidence to
justify that a particular transaction has taken
place.
Correct Answer Voucher
Your Answer Voucher

True/False
Question All the expenses are treated as losses of the
business transferred to profit & loss A/C debit
side.
Correct Answer True
Your Answer True
Select The Blank
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
Your Answer Uniform costing

True/False
Question New companies can adopt Uniform costing
system as a ready-made system.
Correct Answer True
Your Answer True

True/False
Question Financial Statements which are generated as a
result of the management accounting report &
financial performance of the organization as a
whole.
Correct Answer False
Your Answer False

True/False
Question According to revaluation method, the assets
are revaluated periodically.
Correct Answer True
Your Answer True

True/False
Question Purchased goods by paying Rs.35,000/-: In this
case, the cash account should be debited.
Correct Answer True
Your Answer True

True/False
Question Depreciation can be defined as a permanent,
continuous and gradual reduction in the book
value of a fixed asset.
Correct Answer True
Your Answer True

Select The Blank

Question The closing stocks should ________ the cost of
the goods which sent on approval basis.
Correct Answer Be increased by
Your Answer Not get affected by

Select The Blank

Question The difference between sales and prime cost is
known as ________.
Correct Answer Gross Profit
Your Answer Operating Margin

Multiple Choice Multiple Answer

Question The suspense account has a debit balance of
Rs.40,000/-. Select the transactions which are
capable of nullifying this balance.
Correct Answer Conveyance expenses of Rs.25,000/- were
posted on the wrong side of the account. ,
Purchased computer worth Rs.28,000/- was
recorded in the ledger as , The total of the
purchase book was cast short by Rs.44,000/-
Your Answer Free samples worth Rs.40,000/- distributed
during the year were credited to sales account
, Conveyance expenses of Rs.25,000/- were
posted on the wrong side of the account. ,
Purchased computer worth Rs.28,000/- was
recorded in the ledger as
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 Select the entries which need to be rectified :-
Correct Answer Purchase A/c ......... Dr. to Damodar's A/c
(Being furniture purchased from Damodar) ,
Gopal's A/c ........... Dr. to cash A/c (Being entry
for payment of railway freight for goods
purchased) , Cash A/c ............Dr. to Suresh's
A/c (Being cash received from Suresh for
goods sold to him for)
Your Answer Purchase A/c ......... Dr. to Damodar's A/c
(Being furniture purchased from Damodar) ,
Gopal's A/c ........... Dr. to cash A/c (Being entry
for payment of railway freight for goods
purchased) , Joshi's A/c ........... Dr. to Bank A/c.
(Being entry for dishonour of cheque which
was originally issued by Joshi)

Multiple Choice Single Answer

Question Double entry system of accounting follows the
principle of :-
Correct Answer Every debit has corresponding credit
Your Answer Every debit has corresponding credit

Multiple Choice Multiple Answer

Question Features of purchase requisition slip are :-
Correct Answer Raised when the stock of a raw material has
fallen to the re-order level. , Indicates the type,
quantity and quality of material required , The
information about the price of material is
excluded
Your Answer Raised when the stock of a raw material has
fallen to the re-order level. , Raised to intimate
the supplier the quantity and quality of new
material required. , Indicates the type,
quantity and quality of material required

Match The Following

Questio
n
Correct
Answer
Your
Answer

Liabiliti
es
All the
amount
owed
by the
busines
s
All the
amount
owed
by the
busines
s
Drawin
g
Withdr
awn
for
person
al use
Withdr
awn
for
person
al use

Journal
Book
of
origina
l entry
Book
of
origina
l entry

Ledger
Mainta
in all
types
of
Accou
nts
Mainta
in all
types
of
Accou
nts
Assets
All the
proper
ties
owned
by the
busine
ss
All the
proper
ties
owned
by the
busine
ss

Multiple Choice Multiple Answer

Question The features of multiplicity of key factors are
as follows :-
Correct Answer More than one key factors , Refers to a
complex situation , Can be resolved by using
linear programming technique
Your Answer More than one key factors , Refers to a
complex situation , Can be resolved by using
linear programming technique

True/False
Question The labour cost which can be identified with
the individual cost centre is known as the
Direct Labour Cost.
Correct Answer True
Your Answer True

True/False
Question Budgetary control is one of the techniques of
management accounting.
Correct Answer True
Your Answer True

True/False
Question The reports generated by financial accounting
are meant for the use by management for
effective decisions.
Correct Answer True
Your Answer False

Multiple Choice Single Answer

Question Advance tax account should appear in which of
the final statement of accounts?
Correct Answer Asset side of the balance sheet
Your Answer Liability side of the balance sheet

Multiple Choice Multiple Answer

Question Accounting is the art where transactions are :-
Correct Answer Summarized , Classified , Recorded
Your Answer Summarized , Classified , Recorded

Select The Blank

Question Margin of safety indicates ________ of
operations.
Correct Answer Profitability
Your Answer Profitability

Match The Following

Questio
n
Correct
Answer
Your
Answer

Advantageou
sly applicable
in similar
industries
Scope of
uniform
costing
Process of
uniform
costing

Spirit of
mutual
trust
Requisite
for
uniform
costing
Requisite
for
uniform
costing
Avoids cut
throat
competitio
n
Advantage
of uniform
costing
Advantage
of uniform
costing

Treatment
given to
research
and
developmen
t costs
Fields
covered by
uniform
costing
Fields
covered by
uniform
costing

Select The Blank

Question Category A items, as per ABC analysis,
represent ________ % of the total number of
items in inventory.
Correct Answer Less than 10
Your Answer Less than 10

True/False
Question Financial Accounting discloses the financial
 performance & financial statements of the
business as a whole.
Correct Answer True
Your Answer True

True/False
Question Financial accounting may deal with the
ascertainment of cost & calculation of
profitability of the individual product.
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer

Question These are the preventive costs of labour
turnover :-
Correct Answer Cost of maintaining good relations with the
workers , Cost of medical services , Cost of
welfare facilities
Your Answer Cost of maintaining good relations with the
workers , Cost of medical services , Cost of
welfare facilities

Multiple Choice Single Answer

Question The integrated form of all functional budgets is
known as :-
Correct Answer Master budget
Your Answer Master budget

Multiple Choice Multiple Answer

Question Features of a cost sheet are as follows :-
Correct Answer Indicates the total cost of production during a
given period , Indicates the unit cost of
production during a given period , Helps the
management in fixing the selling price to be
quoted
Your Answer Indicates the total cost of production during a
given period , Indicates the unit cost of
production during a given period , Helps the
management in fixing the selling price to be
quoted , Helps the management in taking
'make' or 'buy' decision

True/False
Question Amortization of goodwill should be considered
while preparing cash budget.
Correct Answer False
Your Answer True

True/False
Question According to last-in-first-out method of
material issue pricing, issues prices are close
to current economic values.
Correct Answer True
Your Answer True

True/False
Question Management Accounting aims at enabling the
management to take the decisions about the
future. It may consider future data as well as
non-financial factors.
Correct Answer True
Your Answer True

Multiple Choice Single Answer

Question The cost of fixed asset is Rs. 1,00,000. Rs.
17,000 is charged as depreciation. Calculate
the rate of depreciation.
Correct Answer 0.17
Your Answer 0.17
Select The Blank
Question Generally all the liabilities will have ________
balance.
Correct Answer Credit
Your Answer Credit

Multiple Choice Multiple Answer

Question Identify the items which are correctly classified
:-
Correct Answer Carriage inward - Factory overheads , Carriage
outward - Selling and distribution overheads ,
Sales research expenses -Selling and
distribution overheads
Your Answer Carriage inward - Factory overheads , Carriage
outward - Selling and distribution overheads ,
Sales research expenses -Selling and
distribution overheads

Multiple Choice Single Answer

Question Interest on bank loan, was paid till the quarter
ending 30th September, 2003, Rs.36,000/-.
Find the amount to be debited to the profit and
loss account for the year ending on 31st
March, 2004, assuming the loan is not yet
repaid as on this date.
Correct Answer Rs.72,000/-
Your Answer Rs.72,000/-

True/False
Question Factory rent is a direct cost to the factory as a
whole but indirect to the production
departments.
Correct Answer True
Your Answer False

Multiple Choice Multiple Answer

Question Master budget provides a basis for computing
effect of changes in :-
Correct Answer Product mix of the company , Sales volume ,
Production facilities
Your Answer Product mix of the company , Sales volume ,
Production facilities