LIST OF ATTEMPTED QUESTIONS AND ANSWERS True/False Question Correct Answer True/False Question period.

Correct Answer

A business is an activity carried out with the intention of earning the profit. True Balance sheet indicates the financial status of the business at given True

True/False Question Accounting refers to the process of analyzing & interpreting the information already recorded in the books of accounts. Correct Answer True True/False Question Accounting is an art of recording classifying & summarizing in a significant manner. Correct Answer True True/False Question Correct Answer True/False Question Correct Answer !rofitability statement indicates the amount of assets & liabilities. "alse Balance sheet indicates the e#penditure & income from the business. "alse

True/False Question The process of accounting split into three steams i.e. financial cost management accounting. Correct Answer True True/False Question $% "inancial statements are basically in two forms i.e. profitability statement and balance sheet. Correct Answer True True/False Question "inancial Accounting discloses the financial performance & financial statements of the business as a whole. Correct Answer True True/False Question Correct Answer Budgetary control is one of the techni&ues of management accounting. True

Multiple Choice Multiple A s!er Question Accounts is a Correct Answer 'ecord of all transaction Multiple Choice Si "le A s!er Question !rofit & (oss Account shows )ross !rofit $* +++. ,#penses incurred as Telephone charges $-++ Traveling e#penses *+++ .alary paid /+++ discount allowed -++ depreciation /++. Calculate the net profi Correct Answer -0++ Multiple Choice Si "le A s!er Question )oods distributed as free sample amounted to 's. $+ +++. !repare 1eonboard 's. -+++. The total amount transfer to advertisement account is 's.2222 Correct Answer $- +++ Multiple Choice Si "le A s!er Question .alary given in trial balance 's. -+++34 still /+++34 is to be paid . The outstanding salary is debited to !rofit &(oss A3C. The second effect is 44

Correct Answer

Transfer to balance sheet liability side

True/False Question "or the purpose of preparation of trial balance bank balance as per bank book maintained by the business is considered and not the balance as per pass book. Correct Answer True Multiple Choice Si "le A s!er Question .alary paid to employee amounted 's. $+ +++ transferred to Trading A3C is an e#ample of2222222 Correct Answer ,rror of Commission Multiple Choice Si "le A s!er Question 5ld furniture sold for 's. -6++ has been entered as 's 6-++ in the cash book for rectifying the same .uspense A3C credited to 's Correct Answer 7++ Multiple Choice Multiple A s!er Question "ollowing error affect the trial balance Correct Answer 8rong totaling of subsidiary books !osting on the wrong side of an account 5mission of posting an account in the ledger Multiple Choice Multiple A s!er Question "ollowing errors do not affect the trial balance Correct Answer ,rror of !rinciple ,rror of 5mission ,rror of Commission True/False Question 5n tallying of trial balance books of account become free from compensating errors. Correct Answer "alse Multiple Choice Si "le A s!er Question Cost4sheet may be prepared separately for each Correct Answer 9ifferent Cost Centre Multiple Choice Multiple A s!er Question Bin Card :ncludes Correct Answer ,ntries in receipt column on basis of goods received note or material returned note ,ntries in issue column on basis of material re&uisition note The balance &uantity is calculated and recorded Multiple Choice Multiple A s!er Question ;aluation of material movements having the problems under following heads Correct Answer valuation of receipt valuation of issues valuation of returns from production to store Multiple Choice Si "le A s!er Question The material physically received is compared with material ordered as per the this order Correct Answer !urchase order Multiple Choice Si "le A s!er Question This is not the non monetary incentive. Correct Answer Co4partnership True/False Question The variable overheads can be controlled at the lower or middle level of management also. Correct Answer True Multiple Choice Si "le A s!er Question This is the best e#ample of element wise classification of cost. Correct Answer material Multiple Choice Multiple A s!er Question wise classification of overheads takes the form of < Correct Answer indirect material indirect labour indirect e#penses

Multiple Choice Multiple A s!er Question "unctionwise classification of overheads takes the form of Correct Answer administration overheads factory overheads distribution overheads Multiple Choice Multiple A s!er Question "ollowing methods are available for segregating the semi variable cost into its individual components of fi#ed cost and variable cost. Correct Answer analytical method scattergraph method least s&uare method True/False Question 1ormally advertising cost budget is established in the form of a fi#ed amount for a specific period. Correct Answer True Multiple Choice Multiple A s!er Question Basic three steps in .tandard Costing are Correct Answer .etting standards Comparing actuals with standards =easurement of variance Multiple Choice Si "le A s!er Question "or a material if standard &uantity is 6++ kg and standard price is 's.*.>-34 per kg. "ind out the =aterial ?sage variance if actual &uantity is -++ kg and actual price is 's.*.@+34 per kg. Correct Answer 's.*>-34A Adverse % Multiple Choice Si "le A s!er Question "ind out (abour ,fficiency ;ariance if .tandard 'ate is 's.$.-+34 per hour .tandard hours are $/ +++ and Actual hours are $/ @++. Correct Answer 's.7++34 A Adverse % Multiple Choice Multiple A s!er Question Cash Budget can be prepared by using three methods namely Correct Answer 'eceipt & !ayment =ethod AdBusted !rofit & (oss Account =ethod Balance .heet =ethod Match The Follo!i " Question 'e4order level =a#imum level minimum lead time% minimum lead time% =inimum level Average level 9anger level purchases purchases Match The Follo!i " Question Budgetary Control .tandard Costing :deal .tandards Correct Answer Cour Answer

=a#imum lead time multiplied by ma#imum usage =a#imum lead time multiplied by ma#imum usage 'e4order D re4order &uantity < Aminimum usage multiplied by 'e4order D re4order &uantity < Aminimum usage multiplied by 'e4order level < Anormal usage multiplied by normal lead time% 'e4order level < Anormal usage multiplied by normal lead time% =a#imum level D minimum level3/ =a#imum level D minimum level3/ 1ormal usage multiplied by lead time for emergency 1ormal usage multiplied by lead time for emergency

Correct Answer

Cour Answer

!oints out efficiency3inefficiency "urther probe and investigation "urther probe and investigation !oints out efficiency3inefficiency Theoretical in nature Theoretical in nature

Current .tandards 1ormal .tandards

,stablished for a shorter period ,stablished for a shorter period Considers past performance Considers past performance

Select The #la $ Question Accounting to the matching principles of accounting the 22222222 incurred during an accounting period are re&uired to be match with 22222222 during that period Correct Answer cost Correct Answer revenues Select The #la $ Question :f 22222222 books are the books which record the transactions in the chronological order 22222222 is the book where transactions of a similar nature are pooled together Correct Answer subsidiary Correct Answer ledger Select The #la $ Question The bank reconciliation statement is prepared to reconcile the balances of 22222222 and 22222222 Correct Answer cash book Correct Answer pass book Select The #la $ Question :f the revenue e#penditure is treated as 22222222 e#penditure it will not affect the agreement of 22222222 balance Correct Answer capital Correct Answer trial Select The #la $ Question !reventive costs of labour turnover refers to all the costs which may be incurred by the organisation to keep workers happy and 22222222 them from 22222222 the Bob Correct Answer discourage Correct Answer leaving Select The #la $ Question "i#ed cost is the cost that tend to remain 22222222 irrespective of 22222222 Correct Answer constant Correct Answer Cour Answer level of activity level of activity

Select The #la $ Question variable cost is the cost that tend to 22222222 in direct proportion with 22222222 Correct Answer vary Cour Answer vary Correct Answer level of activity Cour Answer level of activity Select The #la $ Question A key factor is defined as the factor which at a particular point of time or over a period will 22222222 the volume of 22222222 Correct Answer limit Cour Answer increase Correct Answer output Cour Answer activity level Select The #la $ Question 22222222 of Trial Balance generally ensures 22222222 accuracy of the process of ledger posting .

Correct Answer Cour Answer Correct Answer Cour Answer

Talling Talling arithmetical arithmetical

Select The #la $ Question The levels indicated on the Bin card enables the 22222222 department to keep a watch on the balance and replace the material as soon as it reached at 22222222 level. Correct Answer .tores Cour Answer .tores Correct Answer 'e4order level Cour Answer 'e4order level

1. Sales quantity may be forecasted after taking into consideration various factors such as Analysis of past trends Market research Reports by salesmen 8. 1. Dividend Received ". #nterest %. Discount &. 'rovision (. $ommission Received 1. ". %. &. oss of !usiness Added in $apital Amount of #ncome !enefit

(. Amount kept outside from profit

1&. $ost of machine is 1)*))*))). +o be depreciated on time basis over life of machine i.e. 1) yrs , (*))*))). -stimated number of units to be produced (*))*))). $alculate depreciation on time basis . on 1*()*))) 1*")*))) 1*))*))) "*))*))) True/False Question A business is an activity carried out with the intention of earning the profit. Correct Answer True Cour Answer True True/False Question

Balance sheet indicates the financial status of the business at given period.

Correct Answer True Cour Answer True True/False Question Accounting refers to the process of analyzing & interpreting the information already recorded in the books of accounts. Correct Answer True Cour Answer "alse True/False Question Accounting is an art of recording classifying & summarizing in a significant manner. Correct Answer True Cour Answer True True/False Question "inancial accounting may deal with the ascertainment of cost & calculation of profitability of the individual product. Correct Answer "alse Cour Answer "alse True/False Question The reports generated by financial accounting are meant for the use by management for effective decisions. Correct Answer True Cour Answer True Multiple Choice Multiple A s!er Question Cost Accounting 22222222222222. Correct Answer Concerned with specific activities. Classified according to their nature. :t deals with both i.e. past & present. Cour Answer Concerned with specific activities. Classified according to their nature. :t covers whole business Multiple Choice Multiple A s!er Question =anagement Accounting 222222222222222222. Correct Answer 9esigned particularly for internal use only. (ooks forward in estimating the future along with past period. This furnishes the necessary information to management. Cour Answer 9esigned particularly for internal use only. (ooks forward in estimating the future along with past period. This furnishes the necessary information to management. 5nly a b c. Multiple Choice Multiple A s!er Question Accounting is the art of 22222222222222 222222222222 and 222222222222 in a significant manner and in terms of money transactions and events which are of a financial character and interpreting the res Correct Answer .ummarizing Classifying 'ecording Cour Answer .ummarizing Classifying 'ecording Multiple Choice Multiple A s!er Question The process of accounting has three streams of accounting 444444444444444 44444444and 4444444444444444444444. Correct Answer "inancial Accounting Cost Accounting =anagement Accounting Cour Answer "inancial Accounting Cost Accounting =anagement Accounting Match The Follo!i "

Question !ersonal A3C 'eal A3C 1ominal A3C Tangible assets :n tangible assets

Correct Answer

Cour Answer

9ebit the receiver Credit the giver 9ebit the receiver Credit the giver 9ebit what comes in Credit what goes out 9ebit what comes in Credit what goes out 9ebit all the e#penses Credit all the incomes 9ebit all the e#penses Credit all the incomes Building =achinery !atents Trade marks Building =achinery !atents Trade marks

True/False Question Credit note is an intimation send to person dealing with the business that his account being debited for the purpose indicated therein. Correct Answer "alse Cour Answer True True/False Question Amount invested in purchasing "i#ed Asset is a revenue e#penditure. Correct Answer "alse Cour Answer "alse True/False Question As per double entry system o accounting total of all debits should be e&ual to all credits. Correct Answer True Cour Answer True Multiple Choice Multiple A s!er Question Convention of Consistency =ateriality 2222222222222222 Correct Answer The accounting policies & procedures should follow consistently on period to period :t facilitates the comparison of financial statements on period to period :f any change the fact should be disclosed with its effects on profitability Cour Answer The accounting policies & procedures should follow consistently on period to period :t facilitates the comparison of financial statements on period to period :f any change the fact should be disclosed with its effects on profitability Multiple Choice Multiple A s!er Question Cash and444444444444444are the two systems of accounting. Correct Answer =ercantile Cour Answer =ercantile Multiple Choice Si "le A s!er Question The opening balance of cash account is 's. /- +++ cash received from debtors 's. *+ +++ sold goods amounted to 's. -+ +++ paid to creditors 's. /+ +++ purchase furniture 's. -+++. 8hat is the clos Correct Answer 0+ +++ Cour Answer 0+ +++ Multiple Choice Si "le A s!er Question Bank 'econciliation statement is re&uired in case of

Correct Answer difference between the bank balance as per the bank book and as per pass book Cour Answer difference between the bank balance as per the bank book and as per pass book Match The Follo!i " Question ,rror of !rinciple ,rror of 5mission ,rror of commission Compensating ,rror affected 9ifference in trial balance

Correct Answer

Cour Answer

Trial Balance does not get affected 8rong !osting The transaction is totally omitted The transaction is totally omitted 8rong !osting 8rong classification 8rong classification Trial Balance does not get

Transferred to suspense account Transferred to suspense account

Multiple Choice Multiple A s!er Question 9irect Cost includes Correct Answer 9irect material 9irect labour 9irect e#penses Cour Answer 9irect material 9irect labour 9irect e#penses Multiple Choice Si "le A s!er Question (abour cost indicates that labour cost which cannot be identified with the individual cost centre and is incurred for those employees who are not engaged in the manufacturing process but only assist i Correct Answer 'emuneration Cour Answer :ndirect Multiple Choice Multiple A s!er Question The !rime Cost includes the aggregate of Correct Answer 9irect =aterial Cost 9irect (abour Cost 9irect ,#penses Cour Answer 9irect =aterial Cost 9irect (abour Cost 9irect ,#penses Multiple Choice Multiple A s!er Question "rom the following particulars what must appear in purchase re&uisition Correct Answer =aterial to be purchased should be cleanly specified =aterial should purchase whenever the market for the same is favorable !urchase re&uisition should state the &uantity of material re&uired. Cour Answer =aterial to be purchased should be cleanly specified !urchase re&uisition should state the &uantity of material re&uired. Multiple Choice Multiple A s!er Question "ollowing points are taking into consideration for evaluation of receipts Correct Answer The !rice The trade discount is to be deducted 5ther amounts such as sales ta# e#cise duty octroi duty Cour Answer The !rice The trade discount is to be deducted 5ther amounts such as sales ta# e#cise duty octroi duty Multiple Choice Multiple A s!er Question 8hile fi#ing the ma#imum level following factors are considered

Correct Answer =a#imum usage .torage facilities Availability of funds Cour Answer =a#imum usage 'ate of consumption True/False Question "i#ed cost tends to vary with time rather than with level of activity. Correct Answer True Cour Answer True True/False Question To take make or buy decision under the marginal costing if purchase price of the product is less than its variable cost it is advisable to go for manufacturing proposition. Correct Answer "alse Cour Answer "alse Multiple Choice Si "le A s!er Question "ind out the break even point and profit if sales are 's. -+ ++ +++ and !3; 'atio is -+E and margin of safety is 6+E Correct Answer 's.*+ ++ +++ and 's.$+ ++ +++ Cour Answer 's.*+ ++ +++ and 's.$+ ++ +++ True/False Question "or better control variances of a period may be compare with the previous period. Correct Answer True Cour Answer True True/False Question ,#pected standards are more realistic and useful for cost control. Correct Answer True Cour Answer True True/False Question The difference between standard cost and actual cost is termed as ;ariance. Correct Answer True Cour Answer True Multiple Choice Multiple A s!er Question "or reporting of variance following propositions should be considered Correct Answer 'esponsibility of each individual should be defined 'eporting should be simple clear and &uick Analysis of variance should be accurate. Cour Answer 'esponsibility of each individual should be defined 'eporting should be simple clear and &uick Analysis of variance should be accurate. Multiple Choice Multiple A s!er Question Basic three steps in .tandard Costing are Correct Answer .etting standards Comparing actuals with standards =easurement of variance Cour Answer .etting standards Comparing actuals with standards =easurement of variance Multiple Choice Si "le A s!er Question "ind out (abour ,fficiency ;ariance if .tandard 'ate is 's.$.-+34 per hour .tandard hours are $/ +++ and Actual hours are $/ @++. Correct Answer 's.7++34 A Adverse % Cour Answer 's.7++34 A Adverse %

Multiple Choice Si "le A s!er Question .tandard costs are the targets to be attained by the actual performance. Correct Answer =inimum Cour Answer =inimum Multiple Choice Si "le A s!er Question .tandard Costs are used as tool for Correct Answer Cost Control Cour Answer Cost Control Select The #la $ Question Accounting to the matching principles of accounting the 22222222 incurred during an accounting period are re&uired to be match with 22222222 during that period Correct Answer cost Cour Answer cost Correct Answer revenues Cour Answer revenues Select The #la $ Question Along with financial accounting 22222222 and 22222222 are the other streams of accounting Correct Answer Cost Accounting Cour Answer =anagement Accounting Correct Answer =anagement Accounting Cour Answer Cost Accounting Select The #la $ Question :f the revenue e#penditure is treated as 22222222 e#penditure it will not affect the agreement of 22222222 balance Correct Answer capital Cour Answer capital Correct Answer trial Cour Answer trial Select The #la $ Question 8hile selecting source of supply 22222222 epartment may call for the 22222222 from the prospective suppliers Correct Answer purchase Cour Answer purchase Correct Answer &uotation Cour Answer &uotation Select The #la $ Question After material is received from the supplier &uantity actually received is compared with &uantity 222222224and 222222224if any are taken up with the supplier Correct Answer ordered Cour Answer ordered Correct Answer variation Cour Answer variation Select The #la $ Question ?nder the daily 22222222 sheets method each worker is provided with a daily time sheet on which time 22222222 by him on various Bobs is e#pected to be mentioned Correct Answer time Cour Answer work

Correct Answer spent Cour Answer spent Select The #la $ Question 6.?nder the differential time rate method the wages are paid at 's. $.-+ per hour between 22222222 efficiency and 's.$./- per hour between 22222222 efficiency Correct Answer $+$E to $/- E Cour Answer 7+4$++ Correct Answer 0+E to7+E Cour Answer $+$E to $/- E Select The #la $ Question ?nder )annt Task bonus system where the output is 22222222 payment is made as per minimum time rate output is 22222222 payment is made as per time wages plus some increase in wage rates Correct Answer below standard Cour Answer below standard Correct Answer at standard Cour Answer at standard Select The #la $ Question 22222222 and 22222222 are e#amples of element wise classification ofoverhead costs Correct Answer :direct material Cour Answer :direct material Correct Answer indirect labour Cour Answer selling overheads Select The #la $ Question "i#ed cost is the cost that tend to remain 22222222 irrespective of 22222222 Correct Answer constant Cour Answer constant Correct Answer level of activity Cour Answer level of activity Select The #la $ Question The process of Allocation & apportionment can followed to decide the 22222222 of overheads to each budget center Correct Answer Allocation & apportionment Cour Answer 9istribution Correct Answer (oading Cour Answer