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Gat Subject (Management Sciences Accounting-Management -Economics)

GAT SUBJECT MCQS


(Management Sciences AccountingManagement -Economics)

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Gat Subject (Management Sciences Accounting-Management -Economics)

Table of Content ACCOUNTING.................... 3-100 Management 101-200 Economics........................ 200-298

Made By Farhan Qadeer (M.Sc. Management and Finance, Birmingham City University, UK) Lecturer (University of The Lahore) Email: qadeerfarhan@yahoo.com Cell: +92333-4881302

Gat Subject (Management Sciences Accounting-Management -Economics)

A C C O U N T I N G
Made By Farhan Qadeer (M.Sc. Management and Finance, Birmingham City University, UK) Lecturer (University of The Lahore) Email: qadeerfarhan@yahoo.com Cell: +92333-4881302

Gat Subject (Management Sciences Accounting-Management -Economics)


Question: 924 direct wages should always be classified 1. 2. 3. 4. 5. as variable costs as fixed costs as semi-fixed according to their actual behavior

Question: 928 The First in First out (FIFO) materials pricing system charges issues at 1. 2. 3. 4. 5. the price of the most recent batch in stock the price of the first component used in the period the average price of goods in stock the price of the oldest batch in stock

Question: 933 The Last in First out (LIFO) system will 1. 2. 3. 4. 5. value stocks at current values understate product in times of rising prices tend to produce realistic product costs make cost comparisons between jobs easier

Question: 940 When Activity Based Costing is used it is probable the 1. 2. 3. 4. 5. all products will cost more high volume product will tend to be costed lower direct costs will be a smaller proportion of total costs more costs will be charghed to products which are produced for stock

Question: 942 the use of backflush accounting means that 1. 2. 3. 4. 5. conversion costs cannot be carried forward in stock values stocks cannot occur raw material costs will be reduced costs are attributed to stock and cost of sales when the finished goods are made

Question: 943 Unit costs are extensively used in the public sector. This is because 1. 2. 3. 4. 5. they are a rough and ready guide to efficiency they are a good measure of the quality of service provided they allow for regional differences they enable public sector organizations to stay within the set cash limits

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Gat Subject (Management Sciences Accounting-Management -Economics)


Question: 944 which of the following firms are most likely to use process costing 1. 2. 3. 4. 5. a car manufacturer a sugar refinery a builder a departmental store

Question: 946 Activity Based Costing absorbs overheads into products 1. 2. 3. 4. 5. by treating most of them as long-term variable costs by ignoring the volume of production according to the usage of support overheads by only producing on demand

Question: 948 Significant Digit Codes are 1. 2. 3. 4. 5. where some of the digits are part of the description only used for raw materials to enable a code to be self-checking a means of combing expenditure and location codes

Question: 952 Check digit variations is 1. 2. 3. 4. 5. the process of checking invoices for correct calculations a method of making code numbers self checking to enable codes to be self-indexing the encoding of invoices with internal codes

Question: 956 which of the following firms would be most likely to use job costing 1. 2. 3. 4. 5. a paint manufacturer a sugar refinery a firm of architects a car manufacturers

Following list gives the correct choice for the answer of the accounting mcqs. 924. D 928 . D 933 . C 940 . B 942 . D 943 . A 944 . B 946 . C C Question: 960 Labor turnovers can be expressed as a ratio as follows 1. 2. Number of leavers Number replaced

948 . A

952 . B

956 .

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Gat Subject (Management Sciences Accounting-Management -Economics)


3. 4. 5. Numbers of employees at the end Number of leavers in a period

Question: 965 A cost drivers is 1. 2. 3. 4. 5. the amount of overhead caused by an activity a unit of activity which causes costs a long term variable costs equivalent to a cost centre

Question: 969 Prime cost includes 1. 2. 3. 4. 5. Direct labour,direct materials and direct expenses All direct costs plus factory overheads Direct materials plus total overheads Direct labor plus factory overheads

Question: 974 A cost center is 1. 2. 3. 4. 5. A unit of production in relation to which costs are ascertained A location which is responsible for controlling direct costs Part of the overhead system by which costs are gathered together Any location or department which incurs cost

Question: 981 Cost apportionments is carried out by 1. 2. 3. 4. 5. Charging each cost unit a realistic proportion of overheads charging whole items of cost to centers Ensuring that each period carries its amount of cost by making accruals or prepayment s Dividing common costs among centers in proportion to the benefit received

Question: 990 Overhead absorption is done so that 1. 2. 3. 4. 5. common costs are shared among cost centres,in portion to the benefit received The total amount of overheads for the firm can be calculated The total overheads for a cost centre can be calculated Each unit of the product carries a share of overheads

Question: 998 Expenditure on steel used in the product would be classified into which of the following categories 1. Direct material/cost unit

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Gat Subject (Management Sciences Accounting-Management -Economics)


2. 3. 4. 5. direct material/production overheads in direct material/cost unit prime cost/production overhead

Question: 1005 A firms uses direct labor a basis for overhead absorption if large fluctuations in labor house are experiences 1. 2. 3. 4. 5. this is a reason to use predetermined overhead rate this will mean that overheads will be under or over absorbed for the year different amounts of overhead will be charged to jobs with the same labor hours it will be better to use a machine hour rate

Question: 1039 A predetermined overhead rate using machine hours as a basis 1. 2. 3. 4. 5. is calculated by dividing actual overhead by budgeted machine hours results in the over absorption of overhead is inferior to a rate based on labor hours results in charging similar overheads to jobs with similar machine hours

Question: 1043 the costing associated with a typical site based contract 1. 2. 3. 4. 5. means that more costs can be identified as direct requires some estimate to be made of interim profits means that the contract account will be credited with materials at the end of thee contract includes all of these

Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 952 . B 956 . C 960 . B 965 . B 969 . A 974 . C 981 . D 990 . D .D 1043 . D

998 . A

1005 . A

1039

Question: 1046 Using process costing the amount of cost transferred to finished goods stock is the cost of 1. 2. 3. 4. 5. the equivalent production for the period the units completed during the period the units started and completed during the period the units in the opening Finished Goods stocks

Question: 1054 Double loop feedback 1. 2. is information designed to ensures that operations conform to plans is designed to assess how well the control system operates and how relevant current pains are

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Gat Subject (Management Sciences Accounting-Management -Economics)


3. 4. 5. is information passed up two layers of the organization is information that is double checked for accuracy

Question: 1057 the distance A represents 1. 2. 3. 4. 5. contribution at activity level X profit at activity level X the amount of variable costs at activity level X the margin of safety

Question: 1061 the distance represents 1. 2. 3. 4. 5. contribution at activity level Y the amount of variable costs at activity level Y the level of sales at activity level Y the amount of variable costs at activity level Y

Question: 1069 which of the following are possible causes of the changes in the graph at activity level Z 1. 2. 3. 4. 5. an increase in sales value causing an increase in contribution a decrease in fixed costs causing an increase in variable costs an increase in total fixed costs and a decrease in variable costs per unit an increase in total variable costs and a decrease in fixed costs per unit

Question: 1078 what do the lines C and D represent 1. 2. 3. 4. 5. Fixed costs and variable costs respectively Total costs and variable costs respectively Variable cost and fixed costs respectively Sales revenue and total costs respectively

Question: 1081 if the total expenditure on cost type X was expressed as a cost per unit of the product X would be classified as variable if 1. 2. 3. 4. 5. the cost per unit changed with the level of activity the cost per unit was affected by inflation the cost per unit remained constant with changes in the level of activity the total expenditure on X remained the same

Question: 1085 the main purpose of cost accounting is to 1. maximize profits

Made By Farhan Qadeer (M.Sc. Management and Finance, Birmingham City University, UK) Lecturer (University of The Lahore) Email: qadeerfarhan@yahoo.com Cell: +92333-4881302

Gat Subject (Management Sciences Accounting-Management -Economics)


2. 3. 4. 5. help in inventory valuation provide information to management for decision-making aid in the fixation of selling prices

Question: 1086 one of the most important tools in cost planning is 1. 2. 3. 4. 5. direct cost budget cost sheet marginal costing

Question: 1088 the purpose of cost accounting is to provide information for 1. 2. preparing costing P& L A/c cost control

3. 4. 5.

locating factors leading to wastages and losses assessing the profitability and financial position of the firm

Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 1039 . D 1043 . D 1046 . C 1054 . A 1057 . A 1061 . D 1069 . C C 1086 . B 1088 . B

1078 . B

1081 . C

1085 .

Question: 1089 Fixed cost per unit increases when 1. 2. 3. 4. 5. variable cost per unit increases variable cost per unit decreases Production volume increases production volume decreases

Question: 1091 Variable cost per unit 1. 2. 3. 4. 5. varies when output varies remains constant increases when output increases decreases when output decreases

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Gat Subject (Management Sciences Accounting-Management -Economics)


Question: 1093 Increase in total variable cost is due to 1. 2. 3. 4. 5. increase in fixed cost increase in sales increase in production increase in total cost

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Question: 1095 an example of variable cost is 1. 2. 3. 4. 5. property taxes interest on capital direct material cost depreciation of machinery

Question: 1100 an example of fixed cost is 1. 2. 3. 4. 5. direct material cost works managers salary depreciation of machinery chargeable expenses

Question: 1102 Cost accounting concepts include all of following except 1. 2. 3. 4. 5. Planning controlling profit sharing product costing

Question: 1104 the three major elements of product costs are all but 1. 2. 3. 4. 5. direct materials Factory overhead direct labor indirect labor

Question: 1111 Cost of goods produced includes 1. 2. 3. 4. 5. production cost and finished goods inventory production cost and work-in-progress production cost, work-in-progress and finished goods inventory

Made By Farhan Qadeer (M.Sc. Management and Finance, Birmingham City University, UK) Lecturer (University of The Lahore) Email: qadeerfarhan@yahoo.com Cell: +92333-4881302

Gat Subject (Management Sciences Accounting-Management -Economics)


Question: 1117 Cost of goods sold includes 1. 2. 3. 4. 5. cost of production and work-in-progress cost of production and finished goods inventory cost production, work-in-progress and finished goods inventory

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Question: 1123 an overstatement of work-in-progress at the end of a period will 1. 2. 3. 4. 5. overstate cost of goods produced understate current assets understate gross profit overstate net profit

Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 1086 . B 1088 . B 1089 . D 1091 . B 1093 . C 1095 . C 1100 . B B 1117 . B 1123 . D

1102 . C

1104 . D

1111 .

Question: 1117 Cost of goods sold includes 1. 2. 3. 4. 5. cost of production and work-in-progress cost of production and finished goods inventory cost production, work-in-progress and finished goods inventory

Question: 1123 an overstatement of work-in-progress at the end of a period will 1. 2. 3. 4. 5. overstate cost of goods produced understate current assets understate gross profit overstate net profit

Question: 1126 Conversion cost is equal to the total of 1. 2. 3. 4. 5. material cost and indirect wages material cost and indirect wages direct wages and factory overhead material cost and factory overhead

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Gat Subject (Management Sciences Accounting-Management -Economics)


Question: 1127 multiple costing methods is used in 1. 2. 3. 4. 5. oil refinery car manufacturing company sugar mill multi-product company

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Question: 1128 Toy manufacturing company should use 1. 2. 3. 4. 5. unit costing job costing batch costing multiple costing

Question: 1129 Electricity generating company should use 1. 2. 3. 4. 5. unit costing process costing batch costing multiple costing

Question: 1130 Job costing is used in 1. 2. 3. 4. 5. paper mills chemical works printing press textile mill

Question: 1131 Output costing is employed in 1. 2. 3. 4. 5. mining quarries steel production brick kilns all of these

Question: 1132 Contract costing is used in 1. 2. 3. 4. 5. ship-building airplane industries automobile industries none of these

Made By Farhan Qadeer (M.Sc. Management and Finance, Birmingham City University, UK) Lecturer (University of The Lahore) Email: qadeerfarhan@yahoo.com Cell: +92333-4881302

Gat Subject (Management Sciences Accounting-Management -Economics)


Question: 1167 Direct material is a 1. 2. 3. 4. 5. Fixed cost variable cost semi variable cost

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Question: 1172 Direct material is a 1. 2. 3. 4. 5. manufacturing cost Administration Selling and distribution cost Any of the above

Question: 1174 in manufacturing industries, the most important element of cost is 1. 2. 3. 4. 5. Material Labor Overheads

Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 1117 . B 1123 . D 1126 . C 1127 . B 1128 . C 1129 . D 1130 . C .B 1172 . An 1174 . A

1131 . D

1132 . An

1167

Question: 1176 which of the following is an accounting record 1. 2. 3. 4. 5. Bill of Material Bin card stores ledger All of these

Question: 1180 which of the following documents is used for issuing materials to productions departments 1. 2. 3. 4. 5. purchase Requisition Note stores Requisition note Goods Received Note stores Credit Note

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Gat Subject (Management Sciences Accounting-Management -Economics)


Question: 1183 which of following is considered to be a normal loss of materials 1. 2. 3. 4. 5. Loss due to accidents pilferage Loss due to breaking the bulk Loss due to careless handling of materials All of these

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Question: 1186 According to which of the following methods of pricing, issues are close to current economic values 1. 2. 3. 4. 5. Last-in-first-out price First-in-first-out price Highest-in-first-out price Weighted average price

Question: 1187 in which of the following methods of pricing costs lag behind the current economic values 1. 2. 3. 4. 5. Last-in-first-out price. First-in -first-out price. Replacement price. Weighted average price.

Question: 1192 which of the following methods of stock control aims at concentrating efforts on selected items of materials 1. 2. 3. 4. 5. perpetual inventory system Materials turnover Maximum, minimum and re-order level setting ABC analysis

Question: 1193 in base stock method of pricing the material issues, the term base stock represents the 1. 2. 3. 4. 5. Quantity of stock being issued stock in balance Minimum stock Maximum stock

Question: 1194 which of the following items of cost should NOT be treated as NOT be treated as direct material 1. 2. 3. 4. Electricity representing 90% of the total cost Sand paper used in production Thread used in stitching garments All of the above

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Gat Subject (Management Sciences Accounting-Management -Economics)


5. Question: 1195 Continuous stock-taking is a part of 1. 2. 3. 4. 5. Annual stock-taking Perpetual inventory system ABC analysis periodic inventory system

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Question: 1197 the classification of items in ABC analysis is made on the basis of 1. 2. 3. 4. Investment value of materials Consumption value of materials Quantity of materials consumed All of these

Following list gives the correct choice for the answer of the accounting mcqs. 1172 . An 1174 . An 1176 . C 1180 . B 1183 . C 1186 . An 1187 . B C 1194 . D 1195 . B 1197 . D

1192 . D

1193 .

Question: 1202 in which of the following methods, issues of materials are priced at a pre-determined rate 1. 2. 3. 4. 5. Inflated price method Standard price method Replacement price method Specific price method

Question: 1204 in which of the following methods, materials are issued at the price prevailing at the time of issue 1. 2. 3. 4. 5. Inflated price method Standard price method Replacement price method Specific price method

Question: 1205 the storekeeper should initiate a purchase requisition when stock reaches 1. 2. 3. 4. 5. Minimum leveled maximum level re-order level overage level

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Question: 1207 which of the following material losses should be transferred to costing profit and loss account 1. 2. 3. 4. 5. Loss by evaporation Loss due to improper storage of materials Loss due to breaking the bulk All of these

Question: 1210 when material prices fluctuate widely, the method of pricing that gives absurd results is 1. 2. 3. 4. 5. Simple average price Weighted average price Moving average price Inflated price

Question: 1212 when prices fluctuate widely, the method that will smooth out the effect of fluctuations is 1. 2. 3. 4. 5. simple average weighted average FIFO LIFO

Question: 1213 in which of the following methods, the charge to production is at actual cost 1. 2. 3. 4. 5. Weighted average price standard price Replacement price FIFO

Question: 1294 Expected annual usage of a particular raw material is 2,00,000 units and the economic order quantity is 10,000 units The invoice cost of each unit is RS.500 and the cost to place one order is RS.80. The average inventory is 1. 2. 3. 4. 5. 1,00,000 units 5,ooo units 10,000 units 7,500 units

Question: 1297 taking the data in Q.3.21 above, the estimated annual ordering cost is 1. 2. 3. 4. RS.1,600 RS.10,000 RS.3,200 RS.5,000

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Gat Subject (Management Sciences Accounting-Management -Economics)


5. Question: 1300 On the basis of data given in Q 3.21 above, number of orders to be placed in each year are 1. 2. 3. 4. 5. 10 50 20 100

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Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 1195 . B 1197 . D 1202 . B 1204 . C 1205 . B 1207 . B 1210 . A B 1297 . A 1300 . B

1212 . B

1213 . D

1294 .

Question: 1300 On the basis of data given in Q 3.21 above, number of orders to be placed in each year are 1. 2. 3. 4. 5. 10 50 20 100

Question: 1304 when material prices are showing a rising trend, which method of pricing will show lower cost of production 1. 2. 3. 4. 5. FIFO LIFO Weighted average Replacement price

Question: 1307 in periods of rising prices, which method of pricing shows higher stock values 1. 2. 3. 4. 5. FIFO LIFO Weighted average Replacement price

Question: 1309 in which method, prices charged to production are at the current prices prevailing in the market 1. 2. 3. FIFO LIFO Weighted average

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Gat Subject (Management Sciences Accounting-Management -Economics)


4. 5. Replacement price

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Question: 1312 when prices are showing a falling tendency, which method of pricing of material issues will show higher closing stock value 1. 2. 3. 4. 5. FIFO LIFO Weighted average Specific price method

Question: 1313 When production is below standard specification or quality and cannot be rectified by incurring additional cost, it is called 1. 2. 3. 4. 5. Defectives Spoilage Waste Scrap

Question: 1315 Materials losses are due to some of the following reasons 1. 2. 3. 4. 5. Fore accident Theft Breaking the bulk Evaporation pilferage

Question: 1319 Documents used in a material control system include the following 1. 2. 3. 4. 5. Purchase Requisition Note Stores Requisition Note Bill of Materials Goods Received Note Purchase order

Question: 1321 at what amount materials issued on 8-1-1997 will be charged if FIFO method is used 1. 2. 3. 4. 5. RS.1,550 RS.1,575 RS1,700 RS1,750

Question: 1323 at what amount materials issued will be charged igloo method is used 1. RS.1,550

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Gat Subject (Management Sciences Accounting-Management -Economics)


2. 3. 4. 5. RS.1,575 RS.1,700 RS.1,750

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Question: 1325 at what amount materials issued will be charged if simple average price is used 1. 2. 3. 4. 5. RS.1,550 RS1,575 RS.1,610 RS.1,700

Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 1297 . A 1300 . B 1304 . A 1307 . A 1309 . D 1312 . B 1313 . B .B 1323 . C 1325 . B

1315 . A

1319 . D

1321

Question: 1329 at what amount materials issued will be charged if weighted average price is used 1. 2. 3. 4. 5. RS.1,575 RS.1,610 RS.1,625 None of these

Question: 1330 at what amount materials issued will be charged if replacement price method is used 1. 2. 3. 4. 5. RS.1,400 RS.1,700 RS.2,100 RS. 1,750

Question: 1335 what will be the value of closing stock under FIFO method 1. 2. 3. 4. 5. RS 600 RS 675 RS 700 None of these

Question: 1336 what will be the value of closing under LIFO method 1. RS.600

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2. 3. 4. 5. RS.675 RS.690 RS.750

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Question: 1337 what will be the value of closing stock under simple average method 1. 2. 3. 4. 5. RS.600 RS.690 RS.725 RS.750

Question: 1339 what will be the value of closing stock if weighted average method is applied 1. 2. 3. 4. 5. RS.600 RS.690 RS.725 RS.750

Question: 1340 what will be the value of closing stock if replacement price method if used 1. 2. 3. 4. 5. RS.100 RS.300 RS.200 None of these

Question: 1344 in which of following incentive plans of wages payment, wages on time basis are NOT guaranteed 1. 2. 3. 4. 5. Halsey plan Rowan plan Taylors differential piece rate system Gantt's task and bonus system

Question: 1427 in which of the following incentive plan of wages payment, wages on time basis are NOT guaranteed? 1. 2. 3. 4. 5. Halsey plan Rowan plan Taylor's differential piece rate system Gantt's task and bonus system

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Gat Subject (Management Sciences Accounting-Management -Economics)

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Question: 1429 which of the following methods of wage payment is most suitable where quality and accuracy of work is of primary importance? 1. 2. 3. 4. 5. piece rate system differential piece work system time rate system Halsey premium system

Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 1323 . C 1325 . B 1329 . B 1330 . C 1335 . D 1336 . A 1337 . C C 1427 . C 1429 . B Question: 1430 Cost of idle time arising due to non-availability of raw material is 1. 2. 3. 4. 5. charged to costing profit and loss A/C charged to factory overheads recovered by inflating the wage rate all of these

1339 . B

1340 . B

1344 .

Question: 1432 when overtime is required for meeting urgent orders, overtime premium should be 1. 2. 3. 4. 5. charged to costing profit and loss A/c charged to overhead costs charged to respective jobs all of these

Question: 1433 Time and motion study is conducted by the 1. 2. 3. 4. 5. time keeping department payroll department personnel department engineering department

Question: 1435 Labor productivity is measured by comparing 1. 2. 3. 4. 5. actual time with standard time total output with total man hours added value for the product with total wage cost none of the above

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Gat Subject (Management Sciences Accounting-Management -Economics)


Question: 1436 when standard outputs is 10 units per hour and actual output is 12 units per hour , the efficiency is 1. 2. 3. 4. 5. 80% 120% 100% none of these

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Question: 1438 Wages sheet is prepared by 1. 2. 3. 4. 5. time keeping department payroll department personnel department cost accounting department

Question: 1443 given that for a job, standard time is 8 hours, actual 6 hour and the time rate is Rs 2per hour what is the total wages under halsey premium plan 1. 2. 3. 4. 5. Rs 18 Rs 14 Rs 16 Rs12

Question: 1449 using data as given in Q. 314 above, what will be the amount of wages under time rate system 1. 2. 3. 4. 5. RS. 12 RS.14 16 18.

Question: 1451 using data as given in Q. 314 above, what will be the amount of bonus under rowan plan 1. 2. 3. 4. 5.

RS. 2 RS. 3 RS. 4 None of the above

Question: 1453 using data as given in Q 3.14 above, what is the amount of bonus under Halsey plan 1. 2. 3. 4. RS. 2 RS.3 RS.4 Nil

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5. Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 1427 . C 1429 . B 1430 . A 1432 . C 1433 . D 1435 . D 1436 . C A 1451 . B 1453 . A

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1438 . C

1443 . C

1449 .

Question: 1457 Standard output is 100 units per day of 8 hours and the piece rates are 20 piece per unit under Taylor's differential piece rate system, what will be amount of wages if a worker produces 95 unit in a day 1. 2. 3. 4. 5. RS.14.00 RS.14.25 18.50 19.00

Question: 1459 given the data in 3.19 above, what will be the amount of wages under Taylor's differential piece rate system, if a worker produces 101 units ohm a day 1. 2. 3. 4. 5. RS.15.15 RS.20.00 20.15 20.20

Question: 1460 Comparing Rowan and Halsey premium plans, it is seen that when the time saved is less than 50% of the time saved, 1. 2. 3. 4. 5. Rowan plan allows more wages to a worker than Halsey plan Rowan plan allows less wages to a worker than Halsey plan Rowan and Halsey plan allow equal wages to a worker

Question: 1461 when time saved is 40% of the standard time, Halsey plan allows 1. 2. 3. 4. 5. more wages than Rowan plan less wages than Rowan plan equal wages as compared to Rowan plan

Question: 1463 Standard time is 60 hours and guaranteed time rate is 30 paisa per hour what is the amount of wages if job is completed n 48 hours? Rowan plan is in use

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1. 2. 3. 4. 5. RS.24.00 RS.26.80 RS.17.28 RS.20.40

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Question: 1464 which of the following a group incentive plans 1. 2. 3. 4. 5. priestman plan Badaux plan Halsey weir plan All of these

Question: 1466 Packing cost is 1. 2. 3. 4. 5. production cost selling cost distribution cost It may be any of the above

Question: 1468 Directors' remuneration and expenses from a part of 1. 2. 3. 4. 5. production overhead selling overhead administration overhead distribution overhead

Question: 1471 Salary of a foreman should be classified as a 1. 2. 3. 4. 5. fixed overhead variable overhead semi-fixed or semi-variable overhead

Question: 1472 Charging to a cost centre those overheads that result soleoy from existence of that cost centre is known as 1. 2. 3. 4. 5. allocation apportionment absorption allotment

Following list gives the correct choice for the answer of the accounting mcqs.

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Gat Subject (Management Sciences Accounting-Management -Economics)


1451 . B 1453 . A 1457 . B B 1471 . C 1472 . A Question: 1476 Absorption means 1. 2. 3. 4. 5. charging of overheads to cost centers charging of overheads to cost units charging of overheads to cost centers or cost units 1459 . D 1460 . A 1461 . B 1463 . C 1464 . A 1466 . D

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1468 .

Question: 1481 Administration overheads are recovered as a percentage of 1. 2. 3. 4. 5. direct materials direct wages prime cost works cost

Question: 1484 which of the following is NOT is selling overhead 1. 2. 3. 4. 5. Insurance to cover sold goods while in transit Royalty on sales Legal costs for debt realization Distribution of samples

Question: 1488 which method of absorption of factory overheads do you suggest in a concern which produced only one uniform type of product 1. 2. 3. 4. 5. percentage of direct wages basis Direct labor hour rate Machine hour rate A rate per unit of output Any of the above

Question: 1490 When the amount of under-or over-absorption is significant, it should be disposed of by 1. 2. 3. 4. 5. Transferring to Costing profit and Loss A/C. the use of supplementary rates carrying over as a deferred charge to the next accounting year

Question: 1493 idle capacity of a plant refers to the difference between 1. 2. maximum capacity and practical capacity practical capacity and normal capacity

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3. 4. 5. practical capacity and capacity based on sales expectancy maximum capacity and actual capacity

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Question: 1496 Maximum possible productive capacity of a plant, when no operating time is lost, is its 1. 2. 3. 4. 5. practical capacity Theoretical capacity Normal capacity Capacity based on sales expectancy

Question: 1499 the capacity which is based on the long term average of the sales expectancy level is known as 1. 2. 3. 4. 5. practical capacity Actual capacity Normal capacity None of these

Question: 1502 when the amount of overhead absorbed is less than the amount of overhead incurred, it is called 1. 2. 3. 4. 5. under-absorption of overhead over-absorption of overhead proper absorption of overhead

Question: 1506 Bad debt is an example of 1. 2. 3. 4. production overhead Administration overhead selling overhead Distribution overhead

Following list gives the correct choice for the answer of the accounting mcqs. 1471 . C 1472 . A 1476 . B 1481 . D 1484 . A 1488 . D 1490 . B C 1502 . A 1506 . C

1493 . C

1496 . C

1499 .

Question: 1508 Number of workers employed is used as a basis for the apportionment of 1. 2. 3. 4. 5. time office costs canteen expenses personnel department expenses any of these

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27

Question: 1518 in which of the following methods of providing depreciation, the amount of depreciation goes on decreasing with the age of the asset 1. 2. 3. 4. 5. Reducing balance method sum of digits method Annuity method (a) and (b) above

Question: 1544 Selling and distribution overheads are absorbed on the basis of 1. 2. 3. 4. 5. Rate per unit percentage on selling price of each unit Any of these

Question: 1549 the difference over a period of time, between actual factory overhead and absorbed factory will usually be minimum when the predetermined overhead rate is based on 1. 2. 3. 4. 5. normal capacity maximum capacity direct labor hours machine hours none of the above

Question: 1553 A monopolies will shut down its plant in the short run if 1. 2. 3. 4. 5. It is making a loss. Marginal revenue is less than marginal cost. Marginal revenue less than average variable cost at all levels of output. Average revenue is less than average variable cost at all levels of output. Average revenue is less than marginal cost at all levels of output.

Question: 1555 A company found that the differences in product costs resulting from the application of predetermined overhead rates rather than actual overhead rates were immaterial even though actual production was substantially less than planned production the most likely explanation is that 1. 2. 3. 4. 5. factory overhead was mainly composed of variable costs several products were produced simultaneously fixed factory overhead was a significant cost costs of factory overhead items were substantially larger than anticipated

Question: 1560 Under-absorbed factory overhead costs are 1. 2. excess variable factory overhead costs factory cost not allocated to units produced

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3. 4. 5. fixed factory costs not allocated to unit produced cost that cannot be controlled None of the above

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Question: 1567 if a per-determined factory overhead rate is not employed and the volume of production is reduced from the level planned, the cost per unit would be expected to 1. 2. 3. 4. 5. remain unchanged for fixed costs and increase for variable costs increase for fixed cost and remain unchanged for variable costs increase for fixed costs and decrease for variable costs decrease for fixed costs and decrease for variable costs

Question: 1569 the least suitable basis for applying overhead is 1. 2. 3. 4. 5. materials consumed direct labor cost direct labor hours machine hours

Question: 1571 Excess plant capacity means 1. 2. 3. 4. temporary idleness of plant greater production capacity than a company can use the difference between theoretical capacity and actual capacity

Following list gives the correct choice for the answer of the accounting mcqs. 1508 . D 1518 . D 1544 . D 1549 . A 1553 . D 1555 . C 1560 . E B Question: 1571 Excess plant capacity means 1. 2. 3. 4. 5. temporary idleness of plant greater production capacity than a company can use the difference between theoretical capacity and actual capacity

1567 . B

1569 . A

1571 .

Question: 1573 the concept of ideal capacity of plant as used in cost accounting is its 1. 2. 3. 4. 5. theoretical maximum capacity Best capacity for normal production. Capacity used for standard setting. Capacity below which production should not fall.

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Question: 1580 pre-determined overhead recovery rate is Rs 3 per hour and pre-determined hours are 50,000 Actual hours worked are 55,000 and actual overhead Rs 1,70,000. What is the amount of under or overabsorption of overhead 1. 2. 3. 4. 5. RS.20000 over-absorption RS. 20,000 over-absorption RS.5000 under-absorption RS.5,000 over-absorption

Question: 1583 in Q. 3.34, what is the amount of pre-determined overhead 1. 2. 3. 4. 5. RS.1,50,000 rs.1,65,000 cannot be computed None of these

Question: 1585 what is the amount of absorbed overhead in Q 3.34 1. 2. 3. 4. 5. RS. 1,50,000 RS. 1,65,000 RS. 15,000 RS 20,000

Question: 1592 In Q 3,37, which method should be used to treat under/over absorbed amount in cost accounts 1. 2. 3. 4. 5. Tr. to costing P& L A/c Use of supplementary rate Carry over to next year Any of the above

Question: 1594 In Q 3.37, what is the predetermined number of machine hours 1. 2. 3. 4. 5. 16,000 12,000 Cannot be known None of these

Question: 1599 A machine purchased for Rs 20,000 is discarded because of obsolescence and sold for Rs 5,000 after three years of service, resulting in a loss of Rs 3,000.This loss should be 1. 2. 3. treated as production cost transferred to costing P& L A/c in the year of sale spread over the years of the remaining expected life of the machine

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4. 5. Either(b)or(c)

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Question: 1603 the principal factors to be considered on designing a cost system include 1. 2. 3. 4. 5. Manufacturing process desires of management nature of business company organization structure all of the above

Question: 1606 the most suitable cost system where the products differ in type of materials used and work performed is 1. 2. 3. 4. 5. job costing Batch costing operating costing None of these

Question: 1609 in shoe manufacture, the most suitable cost system is 1. 2. 3. 4. 5. job costing Batch costing Contract costing None of these

Following list gives the correct choice for the answer of the accounting mcqs. 1573 . A B 1580 . C 1583 . A 1585 . B 1592 . B 1594 . B 1599 . B 1603 . E 1606 . A 1609 .

Question: 1606 the most suitable cost system where the products differ in type of materials used and work performed is 1. 2. 3. 4. 5. job costing Batch costing operating costing None of these

Question: 1609 in shoe manufacture, the most suitable cost system is 1. 2. 3. 4. job costing Batch costing Contract costing None of these

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5. Question: 1611 job costing is used in 1. 2. 3. 4. 5. Repair shops printing presses Furniture making Automobile garages All of these

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Question: 1613 Most of the expenses are direct in 1. 2. 3. 4. 5. job costing batch costing contract costing All of these

Question: 1616 when a contract is not completed at the end of the accounting year, profit on incomplete contract is 1. 2. 3. 4. 5. transferred to profit and loss Account transferred to reserve transferred profit to profit and loss Account and partly to reserve

Question: 1618 when a contract is not completed at the end of the year, loss on incomplete contract is 1. 2. 3. 4. 5. transferred to profit and loss Account transferred to work-in-progress transferred partly to profit and Loss Account and partly to work-in progress

Question: 1622 when contract id 40% complete, the amount of profit to be taken credit for is usually 1. 2. 3. 4. 5. the amount of profit estimated 40% the estimated profit 1/3of the estimate profit multiplied by cash ratio

Question: 1627 in contract accounts, the amount of work-in-progress consists of 1. 2. 3. cost of work uncompleted cost of work uncompleted the amount of profit not transferred to profit and Loss Account

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4. 5. (a) and(B) above (a)(b) and(C)

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Question: 1630 cost-plus contract is usually entered in to those where 1. 2. 3. 4. 5. cost can be easily estimated it is not possible to compute the cost in advance with a reasonable degree of accuracy contractor wants to earn a higher amount of profit

Question: 1631 Contract price is not fixed in case of 1. 2. 3. 4. 5. Cost-plus contracts Escalation clause De-escalation clause All of the above

Question: 1632 Contract price is not fixed in case of 1. 2. 3. 4. 5. Cost-plus contracts Escalation clause De-escalation clause All of the above

Question: 1633 Cost plus contract is useful from the point view of 1. 2. 3. 4. 5. contractor contracted both contractor and contractee

Following list gives the correct choice for the answer of the accounting mcqs. 1606 . A 1609 . B 1611 . E 1613 . C 1616 . C 1618 . A 1622 . C D 1632 . D 1633 . C Question: 1633 Cost plus contract is useful from the point view of 1. 2. 3. 4. 5. contractor contractee both contractor and contractee

1627 . E

1630 . B

1631 .

Question: 1634 In contract costing, contract account is prepared by the

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1. 2. 3. 4. 5. contractor contractee both by contractor and contractee

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Question: 1635 In a building contract of Rs. 2,40,000, at the end of the work certified is Rs. 1,60,000 and estimated profit is Rs. 15,000. what is the amount of profit to be credited to profit and LOSS Account assuming cash ratio is 80% 1. 2. 3. 4. 5. RS.15,000 RS. 12,000 RS. 8,000

Question: 1636 Economic batch quantity is that size of the batch of production where 1. 2. 3. 4. 5. average cost is minimum total cost is minimum set-up cost of machine is minimum carrying cost is minimum

Question: 1637 Production order means 1. 2. 3. 4. 5. an order received from a customer for the production of a specific item instructions to the shops to proceed with the production of the product an order to the store-keeper to issue necessary materials for production

Question: 1638 In contract costing, valuation of which of the following does not include an element of profit 1. 2. 3. 4. 5. work in progress certified work in progress uncertified Both(a) and(b) Neither(a)nor(b)

Question: 1641 A contract of RS.5,00,000 is 55% complete as certified it shows a notional loss of RS 20,000. Accounting treatment of this loss is 1. 2. 3. 4. 5. Transfer 2/3 of this loss to P&L A/c Transfer 2/3 X cash ratio of this loss to P&L A/c Transfer 55% of this loss to P&L A/c Transfer entire amount of loss to P&L A/c

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Question: 1652 Direct cost chargeable to contract does not include 1. 2. 3. 4. 5. Materials Labor Supervision Storage lost both(c)and (d)

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Question: 1655 Which of the following items is not written on the credit side of the contract account 1. 2. 3. 4. 5. work in progress-certified and uncertified Materials returned Cash received from contractee plant at site

Question: 1659 The type of process loss that should not affect the cost of inventories is 1. 2. 3. 4. 5. abnormal loss normal loss seasonal loss standard loss

Question: 1663 During Jan. 1997, Marconi L.t.d. had total manufacturing cost of Rs.1,80,000. The business completed 14,000 units of product, of which 4,000 units were half completed in Dec 1996 and started production on an additional 6,000 units that production cost per unit was 1. 2. 3. 4. RS.18 RS.16.36 RS.12 RS.9

Following list gives the correct choice for the answer of the accounting mcqs. 1634 . A 1635 . C 1636 . B 1637 . B 1638 . B 1641 . D 1652 . D .C

1655 . C

1659 . A

1663

Question: 1668 100 units are introduced in a process in which normal loss is 15 units If actual output is also 100 units, than there is 1. 2. 3. 4. 5. no abnormal loss or abnormal gain an abnormal loss an abnormal gain

Question: 1670 50 units are processed at a total cost of RS.80, normal loss being 10% Each unit carries a scrap value of 25 paisa. If output is 40 units, the value of abnormal loss will be

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1. 2. 3. 4. 5. RS. 1.25 RS.8.00 RS.8.75 RS.8.88.

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Question: 1676 Given the data in Q.3.5 above, the normal cost of unit is 1. 2. 3. 4. 5. RS.0.25 RS.1.60 RS.1.78 RS.1.75

Question: 1678 A factories transferred out 8,800 completed and closing stock was 800 units 50% completed. Assuming FIFO method, the equivalent production during the period was 1. 2. 3. 4. 5. 8,900 units 9,100 units 9,300 units 9,500 units

Question: 1682 in a factory, the equivalent production (using FIFO method) was 7,500 units during a period which had 500 units 60% complete on hand at the start and 600 units 75% complete at the end of the period. How many units were introduced during the period 1. 2. 3. 4. 5. 6,750 6,850 7,050 7,150

Question: 1685 An under-statement of ending work-in-progress inventory will 1. 2. 3. 4. 5. understate cost of goods produced understate net profit overstate gross profit overstate current assets

Question: 1688 An over-statement of beginning work-in-progress inventory will 1. 2. 3. 4. 5. understate cost of goods sold understate the profit overstate net profit overstate gross profit

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Question: 1689 When units are lost at end of the production process, the cost is charged to 1. 2. 3. 4. 5. factory overhead selling expense work-in-progress completed units

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Question: 1691 The term Economic Batch Quantity is used in relation to 1. 2. 3. 4. 5. Operating costing Batch costing process costing Unit costing

Question: 1698 Input in a process is 4,000 units and normal loss is 20%. When finished output in the process is only 3240 units, there is an 1. 2. 3. 4. 5. abnormal loss of 40 units abnormal gain of 40 units neither abnormal loss nor abnormal gain

Following list gives the correct choice for the answer of the accounting mcqs. 1668 . C 1670 . C 1676 . D 1678 . A 1682 . B 1685 . B 1688 . B B

1689 . D

1691 . B

1698 .

Question: 1700 In Q.3.14 further assuming scrap value of loss is RS.5 per unit, the amount of sales from scrap is 1. 2. 3. 4. 5. RS.3,800 RS. 4,000 RS. 200 None of these

Question: 1704 Further assuming (in Q. 3.14 and Q 3.15) the cost assigned to abnormal gain of 40 units is RS. 280, the amount to be transferred to costing profit and loss account 1. 2. 3. 4. 5. RS.280 RS.200 RS.80 RS.360

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Question: 1705 Hopeless Company, which uses FIFO method in process costing, began the current year with 300 units 50% completed, transferred out 5,000 completed units during the year ended with 500 units 70% completed Equivalent production for the period was 1. 2. 3. 4. 5. 5,000 4,700 5,200 5,800

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Question: 1706 Classification and accumulation of costs by fixed and variable costs is of special importance in 1. 2. 3. 4. 5. process costing unit costing operation costing operating costing none of these

Question: 1708 Joint product manufacturing is fundamental in 1. 2. 3. 4. 5. automobile industry oil refineries engineering company All of the above

Question: 1709 Individual products, each of a significant sales value, produced simultaneously from the same raw material, should be known as 1. 2. 3. 4. 5. by-products main products joint products common products

Question: 1712 Total manufacturing costs are divided by the total number of units produced to obtain a cost per unit under the 1. 2. 3. 4. 5. average unit cost method sales value method physical unit measurement method

Question: 1714 which of the following are virtually always subsequent costs 1. 2. raw material costs direct labor costs

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3. 4. 5. selling and distribution cost None of these

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Question: 1720 When by-products are of small total value, its accounting should by 1. 2. 3. 4. 5. apportioning a part of joint cost to by-products realizable value of by-products should be treated as miscellaneous income and transferred to P&L A/c realizable value of by-products should be apportioned over the main products Any of these

Question: 1723 Net realizable value of by-products at the split off point should be calculated by reverse cost method when 1. 2. 3. 4. 5. BY products are of small total value BY-products are of considerable sales value BY-products require further processing for their sale

Following list gives the correct choice for the answer of the accounting mcqs. 1700 . A 1704 . C 1705 . C 1706 . D 1708 . B 1709 . C 1712 . A C

1714 . C

1720 . B

1723 .

Question: 1723 Net realizable value of by-products at the split off point should be calculated by reverse cost method when 1. 2. 3. 4. 5. BY products are of small total value BY-products are of considerable sales value BY-products require further processing for their sale

Question: 1729 Cost per unit is the average cost is applicable in 1. 2. 3. 4. 5. Job costing Operating costing Multiple costing Contract costing

Question: 1732 Trimmings in timber industry should be treated as a 1. 2. 3. 4. waste scrap by-product joint product

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5.

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Question: 1735 Which of the following methods of accounting of by-products should be applied when the byproduct is to be utilized in the undertaking itself as material for some other process 1. 2. 3. 4. 5. sales value method Other income method Opportunity cost method Reverse cost method

Question: 1737 Credit is given to the process account at a pre-determined value of the by-product under the 1. 2. 3. 4. 5. Standard cost method opportunity cost method Reserve cost method sales value method

Question: 1742 The primary purpose of apportioning joint costs of a processing centre to various products produced is to 1. 2. 3. 4. 5. develop accurate processing cost variances product-wise report more correct standard product costs for comparative analysis establish inventor cost assigned to unsold units record accurate cost of sales by product lines None of the above

Question: 1823 Given: input 1,000 units, Cost production RS 1,850 per Normal loss 10% of input, Actual loss 50 units, Scrap value Rs 0.50 per unit. What is the abnormal loss/gain 1. 2. 3. 4. 5. 50 units abnormal loss 50 units abnormal gain 100 units abnormal gain 100 units abnormal loss

Question: 1826 In Q3.35,what is the cost per unit 1. 2. 3. 4. 5. Rs. 2.18 Rs. 2.05 Rs. 2 RS. 1.89

Question: 1828 Output of a process was 2,500 units, normal loss is 10% of input and abnormal loss 200 units. How many units were introduced in the process

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1. 2. 3. 4. 5. 2,700 3,000 3,200 3,500

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Question: 1842 In Q 3.37, What is the quantity of total loss 1. 2. 3. 4. 5.

2700 units 300 units 350 units 500 units

Question: 1843 when quantity sold is 18,000 units, opening stock 2,000 units and closing stock 3,000 units, what is the quantity produced 1. 2. 3. 4. 5. 16,000 units 17,000 units 19,000 units 20,000 units

Following list gives the correct choice for the answer of the accounting mcqs. 1729 . B 1732 . B 1735 . C 1737 . A 1742 . D 1823 . An 1826 . C .C

1828 . B

1842 . D

1843

Question: 1845 A transport company is running 3 bases with 50 passengers each, covering a distance of 100 km daily. what is the number of passenger km. per day 1. 2. 3. 4. 5. 5,000 300 15,000 150

Question: 1847 Cost and financial accounts are reconciled under 1. 2. 3. 4. 5. Integral system Non-integral system Under both (a)and (b) None of these

Question: 1852 Which of the following accounts make the cost ledger self-balancing 1. 2. overhead adjustment account Costing P.& L. account

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3. 4. 5. Cost Ledger control account None of the above

41

Question: 1855 Costing profit and Loss account does not record the 1. 2. 3. 4. 5. sales value of goods balance of overhead adjustment account balance of cost of sales account balance of stores ledger control account

Question: 1866 Purchases for special jobs is debited to 1. 2. 3. 4. 5. Work-in-progress ledger control account Cost ledger control account Stores ledger control

Question: 1871 Integral accounts eliminate the necessity of operating 1. 2. 3. 4. 5. Cost Ledger Control account stores ledger control account Overhead adjustment account All of these

Question: 1874 Which of the following items is not included in cost accounts 1. 2. 3. 4. 5. Interest received on bank deposits Dividend paid on share capital Damages payable at law Debenture interest all of these

Question: 1879 Which following items is included in cost accounts 1. 2. 3. 4. 5. Transfer to general reserve Notional rent Rent receivable None of the above

Question: 1885 When costing loss is RS. 5,600, administrative overhead under-absorbed being RS. 400, the loss as per financial accounts should be 1. RS. 5,600

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2. 3. 4. 5. RS.6,000 RS. 5,200

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Question: 1889 Depreciation charged in costing is RS.12,500 and in financial books is RS.11,200.What will be the financial profit when costing profit is RS.5,000 1. 2. 3. 4. 5. RS. 5,000 RS. 3,700 RS. 6,300

Following list gives the correct choice for the answer of the accounting mcqs. 1845 . B 1847 . B 1852 . C 1855 . D 1866 . A 1871 . A 1874 . E C

1879 . C

1885 . B

1889 .

Question: 1891 Profit as per financial books is Rs. 72,000.What will be the profit as per costing books when selling and distribution expenses, actual as well as predetermined, are RS. 2,500 1. 2. 3. 4. 5. RS. 72,000 RS.70,500 RS. 69,500

Question: 1895 Which of the following items is not included in financial books 1. 2. 3. 4. 5. Heavy donations Loss on the sale of fixed assets Notional rent Interest on borrowed capital all of these

Question: 1897 Which of the following items shall be added to costing profit to arrive at financial profit 1. 2. 3. 4. 5. Under-absorption of words overhead Interest on debentures paid Rent receivable Income tax paid All of the above

Question: 1913 Which of the following account will always have debit balance 1. 2. 3. Overhead adjustment account work in progress ledger control account Cost ledger control account.

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4. 5. Factory overhead control account

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Question: 1916 The amount of total direct labor cost that should have been charged to all the individual production orders worked on during January should be 1. 2. 3. 4. 5. RS. 40,000 RS. 33,000 RS. 41,000 RS. 55,000 RS. 30,000

Question: 1918 The January 31 balance of work in progress control account should be 1. 2. 3. 4. 5. RS. 36,000 RS. 75,000 RS.76,000 RS. 77,000 RS. 35,000

Question: 1919 The January 31 balance of finish Goods Control Account should be 1. 2. 3. 4. 5. RS. 25,000 RS. 20,000 RS. 5,000 RS. 10,000 RS. 30,000

Question: 1932 The cost of goods sold during January was 1. 2. 3. 4. 5. RS. 40,000 RS. 10,000 RS. 20,000 RS. 30,000 RS. 50,000

Question: 1943 The amount of under-applied or over-applied cost for January 1. 2. 3. 4. 5. Under-applied by RS. 1,000 under-applied by rs. 2,000 over-applied by RS. 1,000 Over-applied by RS. 2,000 Neither under-applied nor over-applied

Question: 1955 in flexible budgeting 1. 2. statements included in the budget report vary from period to period budget standards may be adjusted at will

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3. 4. 5. Following list gives the correct choice for the answer of the accounting mcqs. 1891 . A 1895 . C 1897 . C 1913 . B 1916 . B 1918 . A 1919 . E D reporting dates vary according to the activity level reported upon planned activity level is adjusted to the actual activity level before the budget comparison report is prepared

44

1932 . C

1943 . B

1955 .

Question: 1963 The fixed-variable cost classification has a special significance in the preparation of 1. 2. 3. 4. 5. Flexible budget Master budget cash budget capital budget

Question: 1966 If a company wishes to establish a factory overhead budget system in levels, it should prepare a 1. 2. 3. 4. 5. Flexible budget Master budget cash budget Fixed budget

Question: 1968 Of little or no relevance in evaluating the performance of an activity would be 1. 2. 3. 4. 5. Flexible budget Flexed budget difference between planned and actual results planning and control of activities

Question: 1994 The budget for a specific activity level during a year was Rs. 50,000, while actual costs for the same period was Rs. 45,000. Considering these facts, it can be said that the plant manager has done a better than expected job in controlling the costs if 1. 2. 3. 4. 5. the cost is variable and actual production was 80% of budgeted production the cost is variable and actual production was 90% of budgeted production the cost is variable and actual production equaled budgeted production

Question: 1997 THE budget that is set first and all the other budgets are subordinate to it, is 1. 2. 3. Cash budget Master budget capital expenditure budget

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Gat Subject (Management Sciences Accounting-Management -Economics)


4. 5. Budget for the key factor sales budget

45

Question: 1999 The success of a flexible budget depends upends upon careful study and classification of expenses into 1. 2. 3. 4. 5. historical and predetermined manufacturing, administrative and selling is fixed, variable and semi-variable

Question: 2000 one of the most important tools of cost planning is 1. 2. 3. 4. 5. cost sheet unit cost direct cost budget

Question: 2001 A is a prediction of what will happen as a result of a given set of circumstances 1. 2. 3. 4. 5. Forecast Budget Marginal cost None of these

Question: 2002 A budget which lays more stress on control aspect is a an 1. 2. 3. 4. 5. operating budget responsibility budget flexible budget financial budget

Question: 2003 which of the following is usually a long-term budget 1. 2. 3. 4. Sales budget cash budget capital expenditure budget fixed budget

Following list gives the correct choice for the answer of the accounting mcqs. 1963 . A 1966 . A 1968 . D 1994 . C 1997 . D 1999 . C 2000 . D .C

2001 . A

2002 . B

2003

Question: 2004 A budget representing fixed assets expenditure during the budget period is

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Gat Subject (Management Sciences Accounting-Management -Economics)


1. 2. 3. 4. 5. Fixed budget Capital expenditure budget Long term cash budget Master budget

46

Question: 2005 The budgeted fixed cost is 1. 2. 3. 4. 5. RS. 30,000 RS. 40,000 RS. 50,000 RS. 80,000

Question: 2006 The standard volume per month on which the budgeted overhead rate is based is 1. 2. 3. 4. 5. 3,000 tons 5,000 tons RS. 5,500 tons 7,000 tons

Question: 2008 The budgeted fixed overhead cost per ton is 1. 2. 3. 4. 5. RS. 10 RS. 20 RS.21.36 RS. 17.14

Question: 2009 The amount of overhead absorbed in March is 1. 2. 3. 4. 5. RS. 80,000 RS. 1,20,000 RS. 1,10,000 RS. 1,17,500

Question: 2010 The expenditure variance in March is 1. 2. 3. 4. 5. RS. 7,500(A) RS.12,500(A) RS. 10,000(A) Nil

Question: 2011 Total overhead variance in March is

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Gat Subject (Management Sciences Accounting-Management -Economics)


1. 2. 3. 4. 5. RS. 7,500 RS. 12,500 RS. 10,000 RS. 20,000

47

Question: 2012 What is the raw material cost per unit at the actual production level 1. 2. 3. 4. 5. RS. 10.08 RS. 16.80 RS. 8.40 None of these

Question: 2013 What is the total cost of direct labor at actual production level 1. 2. 3. 4. 5. RS. 3,00.000 RS. 2,40,000 None of these

Question: 2014 What is the fixed works overhead total amount when output of 1,00,000 units 1. 2. 3. 4. RS. 4,00,000 RS. 2,40,000 RS. 6,00,000 None of these

Following list gives the correct choice for the answer of the accounting mcqs. 2004 . B 2005 . C 2006 . B 2008 . A 2009 . C 2010 . B 2011 . A B

2012 . A

2013 . C

2014 .

Question: 2015 What is the fixed works overhead per unit when output is 60,000 units 1. 2. 3. 4. 5. RS. 6 RS. 7 RS. 8 None of these

Question: 2016 What is the variable works overhead per unit at actual production level 1. 2. 3. RS. 4 RS. 3 RS. 2

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Gat Subject (Management Sciences Accounting-Management -Economics)


4. 5. None of these

48

Question: 2017 what is the total administrative overhead per unit at actual production level 1. 2. 3. 4. 5. RS. 2.45 RS 1.90 RS. 1,60 None of these

Question: 2018 what is the total selling overhead per unit at 60,000 output 1. 2. 3. 4. 5. RS 0.80 RS 0.90 RS 1.07 None of these

Question: 2019 what is the prime cost at 60,000 output level 1. 2. 3. 4. 5. RS 13.58 RS 13.48 RS.18.00 None of these

Question: 2042 production required in the month of July 1996 is 1. 2. 3. 4. 5. 1,100 units 1,150 units 1,350 units None of the above

Question: 2045 production required in the month of August 1996 is 1. 2. 3. 4. 5. 1,100 units 1,150 units 1,350 units None of these

Question: 2048 production required in the month of September 1996 is 1. 2. 3. 1,400 units 1,150 units 1,850 units

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Gat Subject (Management Sciences Accounting-Management -Economics)


4. 5. None of these

49

Question: 2049 production required in the month of October 1996 is 1. 2. 3. 4. 5. 1,800 units 2,000 units 2,200 units None of these

Question: 2051 production required in the month of November 1996 is 1. 2. 3. 4. 1,800 units 2,200 units 2,400 units None of these

Following list gives the correct choice for the answer of the accounting mcqs. 2015 . D 2016 . A 2017 . A 2018 . C 2019 . B 2042 . A 2045 . D .C Question: 2052 production required in the month of December 1996 is 1. 2. 3. 4. 5. 1,800 units 2,200 units 2,400 units None of these

2048 . B

2049 . C

2051

Question: 2054 production required for the six months ending December 1996 is 1. 2. 3. 4. 5. 11,000 units 2,200 units 2,400 units None of these

Question: 2057 Closing stock at the end of December will be 1. 2. 3. 4. 5. 1,000 units 1,100 units 1,150 units None of these

Question: 2060 The cost of product as determined under standard cost system is

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Gat Subject (Management Sciences Accounting-Management -Economics)


1. 2. 3. 4. 5. fixed cost historical cost direct cost pre-determined cost

50

Question: 2061 In evaluating deviations of actual from standard cost, the probable technique used is 1. 2. 3. 4. 5. variable regression variance analysis trend analysis linear progression

Question: 2063 The type of standard that is best suited from cost control point of views is 1. 2. 3. 4. 5. Theoretical standard Expected standard Normal standard Basic standard

Question: 2069 which of the following standards can be attained under the most favorable conditions possible 1. 2. 3. 4. 5. Theoretical standard Expected standard Normal standard Basic standard

Question: 2071 one purpose of standard costs may be described as 1. 2. 3. 4. 5. promoting and measuring performance setting costs of manufacture controlling and reducing costs simplifying production operations

Question: 2072 A company using theoretical standard cost system should expect that 1. 2. 3. 4. 5. most variances will be strongly motivated to attain the standards employees will be strongly motivated to attain the standards a large incentive bonus will be paid costs will be controlled better if lower standards were used

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Gat Subject (Management Sciences Accounting-Management -Economics)

51

Question: 2077 A company controls its production costs by comparing its actual monthly production cost with the expected levels. Any significant deviations from these expected levels are investigated and evaluated as a basis for corrective action. The quantitative technique that is most probably being used is 1. 2. 3. 4. time series or trend regression analysis differential calculus standard cost variance analysis correlation analysis

Following list gives the correct choice for the answer of the accounting mcqs. 2052 . D 2054 . B 2057 . A 2060 . D 2061 . B 2063 . B 2069 . A C

2071 . C

2072 . A

2077 .

Question: 2077 A company controls its production costs by comparing its actual monthly production cost with the expected levels. Any significant deviations from these expected levels are investigated and evaluated as a basis for corrective action. The quantitative technique that is most probably being used is 1. 2. 3. 4. 5. time series or trend regression analysis differential calculus standard cost variance analysis correlation analysis

Question: 2080 In standard costing system, labor rate variance is obtained by multiplying the 1. 2. 3. 4. 5. actual rate by the difference between actual hours and standard hours actual hours by the difference between actual rate and standard rate standard rate by the difference between standard hours and actual hours

Question: 2082 if standard hours are 400 @Re 1 per hour and actual hours are 380 @ Rs. 1.25 per hour, the labor rate variance is 1. 2. 3. 4. 5. Rs. 20(Favorable) RS.25(FAVOURABLE) RS. 100(Adverse) RS. 95 (Adverse) None of these

Question: 2084 Labor efficiency variance in the above Q.3.10 is 1. 2. 3. 4. 5. RS. 20(Favorable) RS. 25(Favorable) RS. 100 (unfavorable) RS. 95 (unfavorable) None of these

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Gat Subject (Management Sciences Accounting-Management -Economics)


Question: 2092 in standard costing, the material price variance is obtained by multiplying the 1. 2. 3. 4. 5.

52

actual price by the difference between actual quantity purchased and standard quantity allowed actual quantity consumed by the difference between actual price and standard price standard price by the difference between standard quantity purchased and standard quantity allowed standard quantity by the difference between actual price and standard price

Question: 2101 if actual material cost is 900 units at Rs. 8 per unit and standard material cost in 1,000 units at RS. 6 per unit, the material cost variance is 1. 2. 3. 4. 5. RS. 2,400 (Favorable) RS. 2,400(Adverse) R.s. 1,200 (Favorable) RS. 1,200 (Adverse)

Question: 2102 The material price variance in the above Q. 3.13 is 1. 2. 3. 4. 5. RS. 600(Favorable) RS. 1,200(Adverse) RS. 1,800(Adverse) RS. 2,400(Favorable)

Question: 2103 Material usage variance in the above Q. 3.13 is 1. 2. 3. 4. 5. RS.600(Favorable) Rs. 1,000(Adverse) RS. 1,800(Adverse) R.s. 2,400(Favorable)

Question: 2106 standard costing will produce the same financial statement results as actual or conventional costing when standard cost variances are distributed to 1. 2. 3. 4. 5. cost of goods sold income or Expense account cost of goods sold and inventory a balance sheet account

Question: 2107 Material mix variance is a sun-variance of 1. 2. 3. 4. Material cost variance Material price variance Material quantity variance Material yield variance

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Gat Subject (Management Sciences Accounting-Management -Economics)


5.

53

Question: 2109 Material cost variance is RS. 550(A) and material price variance RS. 150(F), the material usage variance should be 1. 2. 3. 4. RS. 400(A) RS. 700(A) RS. 400(F) RS. 700(F)

Following list gives the correct choice for the answer of the accounting mcqs. 2072 . A 2077 . C 2080 . B 2082 . D 2084 . A 2092 . B 2101 . D C 2107 . C 2109 . B

2102 . C

2103 . A

2106 .

Question: 2110 Overhead Budget variance is a sub-variance of 1. 2. 3. 4. 5. overhead volume variance overhead efficiency variance overhead cost variance None of these

Question: 2111 idle time a variance is a sub-variance of 1. 2. 3. 4. 5. overhead efficiency variance Labor cost variance Labor time variance Labor efficiency variance

Question: 2112 Material price variance is Rs. 300(A), material mix variance RS. 150(A) and material sub-usage variance is RS. 50(A). The material cost variance is 1. 2. 3. 4. 5. RS. 400(A) RS. 450(A) RS. 500(A) cannot be computed

Question: 2113 in Q.322 above, the material quantity variance is 1. 2. 3. 4. 5. RS. 50(A) RS. 100(A) RS. 300(A) RS. 250(A)

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54

Question: 2114 Overhead budget variance is RS. 700(A), overhead efficiency variance is RS. 300(F).what is the amount of variable overhead cost variance 1. 2. 3. 4. 5. RS. 1,000(F) RS. 400(A) RS. 400(F) RS. 1,000(A)

Question: 2115 The type of variance not computed for factory overhead is 1. 2. 3. 4. 5. controllable volume equivalent production idle capacity

Question: 2116 standard costing can be used along with 1. 2. 3. 4. 5. Marginal costing Absorption costing job and process costing All of the above

Question: 2117 standard cost are useful in all of the following except 1. 2. 3. 4. 5. reducing costs speeding up preparation of operating reports establishing records costing inventories

Question: 2118 At the end of a financial year Hot shot company had several substantial variances from standard variable manufacturing costs the one for which there is the strongest justification for allocation between inventories and cost of goods sold is the one attributable to 1. 2. 3. 4. 5. Question: 2119 controllable variances are best disposed of by transferring to 1. 2. cost of goods sold inventories of work-in progress and finished goods additional costs of raw materials acquired under a speculative purchase contract a breakdown of equipment increased labor rates won by the union as a result of strike during the year overestimates of production activity for the period resulting from failure to predict an unusual decline in the market for the company' s product

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Gat Subject (Management Sciences Accounting-Management -Economics)


3. 4. cost of goods sold and inventories costing profit and Loss A/c

55

Following list gives the correct choice for the answer of the accounting mcqs. 2107 . C 2109 . B 2110 . C 2111 . D 2112 . A 2113 . B 2114 . B C 2118 . C 2119 . D

2115 . C

2116 . D

2117 .

Question: 2120 Uncontrollable variances are best disposed of by transferring to 1. 2. 3. 4. 5. cost of goods sold inventories of work-in -progress and finished goods cost of goods sold and inventories costing profit and Loss A/c

Question: 2126 overhead cost variance may be analyzed into 1. 2. 3. 4. 5. two variances three variances four three variances any of the above

Question: 2127 Which of the following statement best explains the difference between standard costing and budgetary controls 1. 2. 3. 4. 5. Budget is a projection of financial accounts whereas standard cost is a projection of cost accounts variances are analyzed under standard costing but not under budgetary control The budget, as a statement of expected costs, is used for forecasting of finance, if certain performances are achieved Budgetary control is more intensive than standard costing

Question: 2128 Fixed overhead expenditure variance is the difference between 1. 2. 3. 4. 5. Budgeted overhead and actual overhead Standard overhead and actual overhead Absorbed overhead and budgeted overhead Absorbed overhead and standard overhead

Question: 2129 Variable overhead expenditure variance is the difference between 1. 2. 3. Budgeted overhead and actual overhead Standard overhead and actual overhead Absorbed overhead and budgeted overhead

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Gat Subject (Management Sciences Accounting-Management -Economics)


4. 5. Absorbed overhead and standard overhead

56

Question: 2130 Calendar variance is a sub-variance of 1. 2. 3. 4. 5. Expenditure variance Efficiency variance variable overhead cost variance volume variance

Question: 2131 Total sales margin variance is the difference between 1. 2. 3. 4. 5. Actual profit and standard profit Actual profit and budgeted profit Actual sales and budgeted sales None of these

Question: 2132 which of the following variance id always adverse 1. 2. 3. 4. 5. sales margin mix variance Fixed overhead capacity idle time variance None of these

Question: 2133 which of the following variances is always favorable 1. 2. 3. 4. 5. overhead volume variance sales value mix variance calendar variance None of these

Question: 2134 sales volume variance is RS 9,000(F)and sales value variance is RS 5,000(F). what are the sales price variance RS 5,000(F)what is the sales price variance 1. 2. 3. 4. 5. RS. 14,000(F) RS. 4,000(A) RS. 4,000(F) None of these

Following list gives the correct choice for the answer of the accounting mcqs. 2120 . C 2126 . D 2127 . C 2128 . A 2129 . B 2130 . D 2131 . B B

2132 . D

2133 . D

2134 .

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Gat Subject (Management Sciences Accounting-Management -Economics)


Question: 2135 Fixed overhead cost variance is expenditure variance is RS 200(A), calendar variance RS 500(F).what is the volume variance 1. 2. 3. 4. 5. RS. 2,700(A) RS. 1,900(A) Rs. 2,200(A), Rs. 2,500(f)

57

Question: 2136 what is the material price variance as per Q. 3.41 1. 2. 3. 4. 5. RS 400(F) RS 400(A) RS 440(F) RS 440(A)

Question: 2137 What is the material quantity variance in Q 3.41 1. 2. 3. 4. 5. RS 960(A) RS 960(f) RS 1,000(A) RS 1,000(F)

Question: 2138 The material price variance in Q 3.46 is 1. 2. 3. 4. 5. RS. 100(Adverse) RS. 100(Favorable) RS. 110(Adverse) RS. 110(Favorable) None of the preceding responses is correct

Question: 2139 Material mixture variance in Q 3,46 is 1. 2. 3. 4. 5. Rs 110(Adverse) RS. 100 (Favorable) RS. 210(Adverse) Rs. 408 (FAVOURABLE) cannot be computed from the given data

Question: 2140 Labor efficiency variance in Q 3,46 is 1. 2. 3. 4. 5. ES. 152(Adverse) RS. 560(Favorable) RS. 560(Adverse) RS 480(Favorable)

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Gat Subject (Management Sciences Accounting-Management -Economics)


Question: 2141 Labor rate variance in Q3.46 is 1. 2. 3. 4. 5. RS. 152(Adverse) Rs. 560(Favorable) RS. 560(Adverse) RS. 480(Favorable)

58

Question: 2142 Labor cost variance in Q 3.46 is 1. 2. 3. 4. 5. RS. 560(Favorable) RS. 560(Adverse) RS. 152(Adverse) RS. 408(Adverse) none of the preceding responses is correct

Question: 2143 in Q 3.53, what is the expenditure variance 1. 2. 3. 4. 5. RS. 2,000(A) RS 4,000(A) RS 2,000(F) RS 4,000(F)

Question: 2144 In Q 3.53, what is the volume variance 1. 2. 3. 4. RS 2,000(A) RS 4,000(A) RS6,000(A) RS 8,000(A)

Following list gives the correct choice for the answer of the accounting mcqs. 2135 . C 2136 . C 2137 . C 2138 . E 2139 . E 2140 . B 2141 . A C Question: 2145 Contribution margin is also known as 1. 2. 3. 4. 5. marginal income gross profit net income new profit

2142 . E

2143 . A

2144 .

Question: 2146 product costs under marginal costing include 1. 2. 3. prime costs only prime costs and variable overhead prime costs and fixed overhead

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Gat Subject (Management Sciences Accounting-Management -Economics)


4. 5. material cost and variable overhead

59

Question: 2147 Period costs are 1. 2. 3. 4. 5. variable costs fixed costs prime cost overhead costs

Question: 2148 One of the primary differences between marginal costing absorption costing is regarding the treatment of 1. 2. 3. 4. 5. direct materials variable overheads fixed overheads prime cost

Question: 2149 A costing method in which the fixed factory overheads are added to inventory valuation is 1. 2. 3. 4. 5. direct costing marginal costing absorption costing none of these

Question: 2150 Profit shown by absorption costing will tend to exceed profit shown by marginal costing method if 1. 2. 3. 4. 5. units produced exceed units sold variable manufacturing costs decreases units sold exceeds units produced fixed manufacturing costs decrease

Question: 2151 Absorption costing differs from marginal costing in the 1. 2. 3. 4. 5. fact that standard costs can be used with absorption costing but not with marginal costing amount of fixed costs that will be incurred kinds of activities for which each can be used amount of costs assigned to individual units of products

Question: 2152 Under the marginal costing concept, unit product cost would most likely be increased by 1. a decrease in the number of units produced

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2. 3. 4. 5. Question: 2153 Contribution margin is equal to 1. 2. 3. 4. 5. sales - fixed cost - profit profit + variable cost fixed cost - loss none of the above an increase in the number of units produced an increase in the commission paid to salesman for each unit sold an increase in the remaining useful life of factory machinery depreciated on written down value method

60

Question: 2154 Reporting under marginal costing is accomplished by 1. 2. 3. 4. 5. eliminating the work in progress inventory account including only variable costs in income statement matching variable costs against revenue and treating fixed costs as period costs treating all costs as period costs

Following list gives the correct choice for the answer of the accounting mcqs. C 2145 . A 2146 . B 2147 . B 2148 . C 2149 . C 2150 . A 2151 . D C 2154 . C Question: 2155 Profit / Volume ratio is an indicator of 1. 2. 3. 4. 5. the volume of sales the volume of profit the rate at which goods are sold the of profit all of these

2152 . C

2153 .

Question: 2156 There will be no difference in profit as shown by marginal costing and that of absorption costing when 1. 2. 3. 4. 5. opening and closing stock of finished goods remain constant closing stock of finished goods is more than it s opening stock opening stock of finished goods is more than its closing stock none of the above

Question: 2157 when fixed cost id Rs. 3,000 and sales RS.50,000, the P/V ratio will be 1. 2. 3. 14% 20% 25%

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Gat Subject (Management Sciences Accounting-Management -Economics)


4. 5. p/v ratio cannot be computed from the data given

61

Question: 2158 when p/v ratio is 40% and sales value RS 10,000 the variable cost will be 1. 2. 3. 4. 5. RS. 4,000 RS. 6000 RS. 10,000 variable cost cannot be calculated from the data given

Question: 2159 if net profit is 10% and p/v ratio is 50%, the margin of safety will be 1. 2. 3. 4. 5. 10% 20% 50% margin of safety cannot be computed

Question: 2160 The margin of safety may be improved by 1. 2. 3. 4. 5. increasing sales volume increasing selling price lowering variable cost lowering fixed costs All of these

Question: 2161 an item whose entire amount is usually a differential cost is 1. 2. 3. 4. 5. factory overhead period cost direct cost conversion cost

Question: 2162 As part of the data presented on support of a proposal to increase the production of car radios, the sales manager of XYZ Electronics reported the total additional cost required for the proposed increased level of production the increase in total cost is known as 1. 2. 3. 4. 5. opportunity out-of-pocket cost controllable cost differential cost

Question: 2163 Alto palo company has temporary unused production capacity. the idle plant facilities can be used to manufacture a low margin item. the low margin item should be produced, if it can sold for more than its

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1. 2. 3. 4. 5. fixed costs variable costs prime costs indirect costs

62

Question: 2164 Cost-volume-profit analysis is most important for the determination of the 1. 2. 3. 4. 5. volume of operations necessary to break even variable revenues necessary to equal fixed costs relationship between revenues and costs at various level of operations sales revenue necessary to equal fixed costs

Following list gives the correct choice for the answer of the accounting mcqs. 2155 . D 2156 . A 2157 . B 2158 . B 2159 . B 2160 . E 2161 . C C

2162 . D

2163 . B

2164 .

question: 2165 if net profit is 10% and p/v ratio is 50%, the margin of safety will be 1. 2. 3. 4. 5. 10% 20% 50% margin of safety cannot be computed

Question: 2166 The alternative that would decrease the contribution margin per unit t he most is a 20% 1. 2. 3. 4. 5. decrease in selling price increase in selling price increase in variable costs decrease in variable cost

Question: 2167 when referring to margin of safety, one has the following in mind 1. 2. 3. 4. 5. the excess of budgeted or actual sales over fixed costs the excess of actual sales over break-even sales the excess of actual sales over budgeted sales the excess of sales revenue over variable cost

Question: 2168 The conventional break-even analysis does not assume that 1. 2. 3. 4. selling price per unit will remain fixed total fixed costs remain the same variable cost per unit will vary productivity per worker will remain unchanged

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5.

63

Question: 2169 if fixed costs decrease while variable cost per unit remain constant, the new break-even point on relation to the old break-even point will be 1. 2. 3. 4. 5. indeterminate unchanged higher lower

Question: 2170 if fixed costs decrease while the variable cost per unit remain constant, the new contribution margin in relation to old contribution margin will be 1. 2. 3. 4. 5. indeterminate unchanged higher lower

Question: 2171 when margin of safety is 20% and contribution sales ratio is 60% the profit will be 1. 2. 3. 4. 5. 30% 33% 1/3% 12% cannot be computed

Question: 2172 when fixed cost is RS. 20,000 and margin of safety is RS.10,000, the p/v ratio will be 1. 2. 3. 4. 5. 200% 50% 33% cannot be computed

Question: 2173 when sales jumped from RS. 4,00,000 and profit increased by Rs. 40,000, the p/v ratio is 1. 2. 3. 4. 5. 7.5% 10% 40% cannot be computed

Question: 2174 when total fixed cost is RS. 50,000 and variable cost to sales is 75%, the break-even point id 1. 2. RS. 37,500 RS. 12,500

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3. 4. 5. RS. 2,00,000 cannot be determined

64

Following list gives the correct choice for the answer of the accounting mcqs. 2165 . B 2166 . A 2167 . B 2168 . C 2169 . D 2170 . B 2171 . C C

2172 . D

2173 . C

2174 .

Question: 2175 on sales of RS.2,00,000. fixed cost is RS. 30,000 and p/v ratio is 40% what is the profit 1. 2. 3. 4. 5. RS50,000 RS. 80,000 RS. 12000 None of these

Question: 2176 In the chart given in 3.32 above, the horizontal line OL represents 1. 2. 3. 4. 5. sales fixed cost total cost profit

Question: 2177 In break-even chart, x-axis represents 1. 2. 3. 4. 5. value of sales in rupee value volume of sales in units volume of production in units production capacity in percentage Any of these

Question: 2182 In break-even chart, Y-axis represents 1. 2. 3. 4. 5. volume of sales in units volume of sales in rupees cost and sales in rupees value of production in rupees Any of these

Question: 2187 when it is desired to read contribution margin in break-even chart, than 1. 2. 3. 4. 5. variable cost should be first plotted and fixed cost should be superimposed thereon fixed cost should not be first plotted and variable cost should be superimposed thereon fixed cost should not be plotted at all in the chart

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Question: 2206 when sales are RS. 8000 and P/V is 80% the amount of variable cost is 1. 2. 3. 4. 5. RS. 64,000 RS. 16,000 Rs. 48,000 cannot be known

65

Question: 2210 In order to earn a profit of RS. 10,000, when fixed cost is RS. 20,000 and P/v ratio 20% the amount of sales should be 1. 2. 3. 4. 5. RS. 40,000 RS. 30,000 RS. 1,00,000 RS. 1,50,000

Question: 2212 WHEN PROFIT CHANGES BY R.s. 20,000, The sales changes by RS. 25,000, the P/V ratio is 1. 2. 3. 4. 5. 20% 80% 25% cannot be calculated

Question: 2213 when sales volume increases 1. 2. 3. 4. 5. break-even point increases total profit will increase total loss will increase All of the above

Question: 2216 which of the following would cause the greatest increase in the unit contribution margin 1. 2. 3. 4. 5. 20% decrease in fixed cost 20% increase in selling price 20% decrease in variable cost

Following list gives the correct choice for the answer of the accounting mcqs. 2175 . A .B 2176 . A 2177 . E 2182 . C 2187 . A 2206 . C 2210 . D 2212 . B 2213 . B 2216

Question: 2217 what does area ALO represent in diagram in Q. 3.43

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1. 2. 3. 4. 5. profit Fixed cost variable cost contribution

66

Question: 2220 what does area ALO represent in diagram in Q. 3.43 1. 2. 3. 4. 5. profit Loss contribution

Question: 2224 what is represented by CD in diagram in Q. 3.43 1. 2. 3. 4. 5. key factors variable cost Contribution Margin of safety

Question: 2228 which of the following is NOT an assumption of break-even chart 1. 2. 3. 4. 5. Fixed cost does not change in total amount variable cost does not change in total amount selling price does not change per unit company has no stocks

Question: 2233 In calculating cash break-even point, which costs are taken into account 1. 2. 3. 4. 5. Fixed cost requiring cash variable costs requiring cash Both fixed and variable costs requiring cash cash fixed cost and all variable costs including credit

Question: 2237 which of the following is not depicted on a break-even chart 1. 2. 3. 4. 5. profit/Loss at different level of output sales to earn given profit contribution P/V ratio

Question: 2239 In a break-even chart, angle of incidence is formed by the inter-section of

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1. 2. 3. 4. 5. sale line and variable cost line sale line and total cost line variable costs and fixed cost lines variable cost and total cost lines

67

Question: 2271 who has the authority to investigate and regulate all matters of account connected with the police, and all persons concerned shall be bound to give reasonable aid and facilities to conducting such investigations and to confirm to his orders consequent thereto 1. 2. 3. 4. 5. provincial police officer capital city police officer city police officer All of these

Question: 2544 A harmonium enclosed in a sheath is called 1. 2. 3. 4. 5. hormocyst hormogonium trichome trichogyne

Question: 3807 A debit balance on Amitie's account in your sales ledger means that 1. 2. 3. 4. 5. Amitabh owes you the money you owe Amitabh the money Amitabh has just paid you that amount of money Amitabh has returned that amount of goods to you

Following list gives the correct choice for the answer of the accounting mcqs. 2217 . A 2220 . B 2224 . D 2228 . B 2233 . C 2237 . D 2239 . B A

2271 . D

2544 . A

3807 .

Question: 3811 A debit balance on the rates account after the yearly transfer to the profit and loss account indicates 1. 2. 3. 4. 5. an asset and an accrual an asset and a prepayment a liability and an accrual a liability and a prepayment

Question: 3820 which one of the following normally has a debit balance? 1. The capital account

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2. 3. 4. 5. A creditor's account The motor vehicles account A loan account

68

Question: 3822 which one of the following normally has a debit balance? 1. 2. 3. 4. 5. The capital account A creditor's account The motor vehicles account A loan account

Question: 3823 Which of the following normally has a credit balance? 1. 2. 3. 4. 5. The machinery account The purchases account The stock account The sales account

Question: 3830 which one of the following statement is correct? 1. 2. 3. 4. 5. Question: 3832 Gross profit equals 1. 2. 3. 4. 5. sales minus closing stock purchases minus closing stock nit profit minus expenses sales minus cost of goods sold A proprietor's will remain constant if he only withdraws this Net profit each year and does not introduce any new capital. A proprietor's capital will increase if his drawings are higher than his Net profit and he does not introduce any new capital. A proprietor's capital will decrease if his Net profit is greater than his drawings and does not introduce any new capital A proprietor's capital will remain constant if he only withdraws his Net profit each year, but also introduces new capital.

Question: 3835 Cost of sales equals 1. 2. 3. 4. 5. sales minus purchases purchases minus returns out plus closing stock sales plus opening stock minus (purchases plus closing stock) opening stock minus closing stock minus returns out

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Question: 3836 Net profit equals 1. 2. 3. 4. 5. gross profit minus expenses sales minus cost of sales sales minus expenses capital minus expenses

69

Question: 3837 A man buys Rs. 40,000 worth of goods and sells of them for R.s. 50,000. His gross profit is 1. 2. 3. 4. 5. Rs. 10,000 Rs. 20,000 Rs. 30,000 Rs. 40,000

Question: 3839 If sales are Rs. 10,000, expenses Rs. 2,000 and net profit is 10% of sales, the gross profit is 1. 2. 3. 4. 5. Rs. 3,000 Rs. 9,000 Rs. 10,100 Rs. 11,000

Following list gives the correct choice for the answer of the accounting mcqs. 3811 . B 3820 . C 3822 . C 3823 . D 3830 . A 3832 . D 3835 . D A

3836 . A

3837 . B

3839 .

Question: 3840 If the gross profit is Rs. 5000 and the net profit is 25% of the gross profit ,the expenses must be 1. 2. 3. 4. 5. Rs. 1,250 Rs. 3,750 Rs. 4,150 Rs. 6,250

Question: 3841 If sales are Rs. 6,000, gross profit is 20% of sales and net profit is 10% of sales the expenses are 1. 2. 3. 4. 5. Rs. 600 Rs. 1,200 Rs. 2,400 Rs. 4,800

Question: 3842 An operating statement is similar to a 1. 2. trial balance balance sheet

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3. 4. 5. trading profit and loss account bank reconciliation statement

70

Question: 3843 Net sales equals sales minus 1. 2. 3. 4. 5. returns outwards cost of goods sold returns inwards carriage on sales

Question: 3844 The turnover is 1. 2. 3. 4. 5. Rs. 99,000 Rs. 99,500 Rs. 1,00.500 Rs. 1,01,000

Question: 3845 The gross profit as a percentage of net sales is approximately 1. 2. 3. 4. 5. 10% 20% 30% 40%

Question: 3846 The net cost of purchases for the year was 1. 2. 3. 4. 5. Rs. 69,000 Rs. 70.000 Rs.71,000 Rs.73,000

Question: 3847 Returns outwards amounted to 1. 2. 3. 4. 5. Rs. 500 Rs. 1,000 Rs. 1,500 Rs. 2,000

Question: 3848 If the purchases had been under cast by Rs. 10,000 the gross profit would be 1. 2. Rs. 31,500 Rs. 41,500

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3. 4. 5. Rs. 51,500 Rs. 61,500

71

Question: 3849 The cost of goods sold is 1. 2. 3. 4. 5. Rs. 59,000 Rs. 69,000 Rs. 71,000 Rs. 89,000

Following list gives the correct choice for the answer of the accounting mcqs. 3840 . B 3841 . A 3842 . C 3843 . C 3844 . C 3845 . D 3846 . A A Question: 3850 Net profit as a percentage of net sales is approximately 1. 2. 3. 4. 5. 5% 10% 15% 20%

3847 . D

3848 . A

3849 .

Question: 3851 Expenses for the year total 1. 2. 3. 4. 5. Rs. 29,000 Rs. 30,000 Rs. 31,000 Rs. 32,000

Question: 3852 A balance sheet is a 1. 2. 3. 4. 5. statement of debtors and creditors statement of income and expenditure the year statement of cash received and paid throughout the year Financial statement of a business' wealth on a particular scale

Question: 3853 which one of the following is fixed asset for a builder's merchant? 1. 2. 3. 4. 5. Cash Stock Debtors Type wirer

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Question: 3854 Which one of the following is garage's current asset? 1. 2. 3. 4. 5. A breakdown van The managing director's private car The condense in the saleroom A customer's car in for repair

72

Question: 3855 Net current assets are the same as 1. 2. 3. 4. 5. working capital total assets minus current liabilities fixed assets minus current liabilities capital minus current liabilities

Question: 3856 A proprietor's capital of 1. 2. 3. 4. 5. opening capital plus drawing minus net profit total assets minus external liabilities current assets minus working capital opening capital plus net profit plus creditors

Question: 3857 which one of the following is usually a current liability? 1. 2. 3. 4. 5. Mortgage Bank loan Bank over drat Rent Paid in advance

Question: 3858 The percentage return on the owner's opening capital for the past year was 1. 2. 3. 4. 5. 15% 20% 25% 30%

Question: 3859 The working capital is 1. 2. 3. 4. 5. Rs. 20,000 Rs. 30,000 Rs. 50,000 Rs. 1,70,000

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Following list gives the correct choice for the answer of the accounting mcqs. 3850 . B 3851 . D 3852 . D 3853 . D 3854 . C 3855 . A 3856 . B A 3857 . C 3858 . C

73

3859 .

Question: 3860 The owner's capital employed in the business at the date of the balance sheet is 1. 2. 3. 4. 5. Rs. 1,20,000 Rs. 1,40,000 RS. 1,90,000 Rs. 2,13,500

Question: 3861 The business' external liabilities are 1. 2. 3. 4. 5. Rs. 50,000 Rs. 73,500 Rs. 1,20,000 Rs. 1,40,000

Question: 3862 The interest on the loan paid during the year was 1. 2. 3. 4. 5. Rs. 2,500 RS. 5,000 Rs. 7,500 Rs. 10,000

Question: 3863 The book value of the fixed assets is 1. 2. 3. 4. 5. RS. 50,000 RS. 1,70,000 RS. 2,20,000 RS. 2,70,000

Question: 3864 The net assets figure is 1. 2. 3. 4. 5. RS. 73,500 RS. 1,40,000 RS, 1,90,000 RS. 2,13,500

Question: 3865 The years' rent for the business is 1. 2. RS. 1000 RS. 2000

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3. 4. 5. RS. 3000 RS. 4000

74

Question: 3887 The percentage return on total assets employed was approximately 1. 2. 3. 4. 5. 9% 14% 20% 25%

Question: 3888 select your answer by means of the following code 1. 2. 3. 4. 5. if 1, 2 and 3 are correct if 1 and 2 only are correct if only 1 is correct if only 3 is correct

Question: 3890 In a balance sheet the balance of the fixed assets accounts are usually included at 1. 2. 3. 4. 5. cost book value scarp value replacement value

Question: 3892 which one of the following would usually be regarded as a current liability? 1. 2. 3. 4. A liability due for payment within 12 months A liability due for payment within 24 months A liability due for payment within 36 months A liability due for payment within 48 months

Following list gives the correct choice for the answer of the accounting mcqs. 3860 . B 3861 . B 3862 . B 3863 . B 3864 . C 3865 . D 3887 . B A Question: 3894 Net assets equals 1. 2. 3. 4. 5. current assets minus current liabilities fixed assets minus current liabilities total assets minus current liabilities fictitious assets minus current liabilities

3888 . D

3890 . B

3892 .

Question: 3903 which one of the following not a book of original entry

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1. 2. 3. 4. 5. The cash book The journal The ledger The sales day of book

75

Question: 3904 Day books are used 1. 2. 3. 4. 5. because of the requirements of the law to avoid numerous entries in the general ledger because the double entry system would not work with- out you must because the Institute of Charters Account states that you must

Question: 3905 which one of the following is book of original entry and is also part of the ledger? 1. 2. 3. 4. 5. The cash book The journal The sales day book The purchase day book

Question: 3906 The main source of information for the sales day book is obtained from 1. 2. 3. 4. 5. invoices received credit notes sent out invoices sent out credit notes sent the till roll

Question: 3907 The main source of information for the purchase day book is obtained from 1. 2. 3. 4. 5. invoice received invoices sent out credit notes received debit notes sent out

Question: 3908 The main source of information for the sales returns day book is obtained from 1. 2. 3. 4. 5. invoices received invoices sent out credit notes received debit notes received

Question: 3910 The main source of information for the purchase returns day book is obtained from

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1. 2. 3. 4. 5. invoices received invoices sent credit notes received debit notes sent out

76

Question: 3912 The totals of the sales day book are transferred to the 1. 2. 3. 4. 5. debit side of the sales account credit side of the sales account debit side of the sales control account journal proper

Question: 3914 The totals of the purchase returns day books are transferred to the 1. 2. 3. 4. 5. debit side of the returns inwards account debit side of the returns out wards account credit side of the returns inwards account credit side of the returns outwards account

Following list gives the correct choice for the answer of the accounting mcqs. 3894 . C 3903 . C 3904 . B 3905 . A 3906 . B 3907 . A 3908 . C D Question: 3916 which one of the following is centered in the journal proper? 1. 2. 3. 4. 5. purchases and returns of stock sales and returns of stock cash transactions opening entries of a new business

3910 . C

3912 . B

3914 .

Question: 4032 which one of the following is entered in the journal proper? 1. 2. 3. 4. 5. purchase of fixed assets for cash purchase of fixed assets on credit purchase of stock on credit purchase of stock for cash

Question: 4035 which one of the following is entered in the journal proper? 1. 2. 3. 4. The sale of an asset for cash The withdrawal of cash for private use cash discount given to a customer The correction of errors made in the ledger

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5. Question: 4037 An entry in the journal should include 1. 2. 3. 4. 5. the name of the account to be debited the name of the account to be credited A description of the transaction

77

Question: 4040 A trial balance is 1. 2. 3. 4. 5. a balance of the bank account The balance of the bank account a rough draft of the final accounts a list of the balances in the ledger

Question: 4043 The main purposes of a trial balance is to 1. 2. 3. 4. 5. help balance the bank account check the arithmetical accuracy of the double entry help check the arithmetical accuracy of the double entry help check the bank account with the bank statement

Question: 4046 select your answer by means of the following code 1. 2. 3. 4. 5. if 1, 2 and 3 are correct if 1 and 2 only are correct if only 1 is correct if only 3 is correct

Question: 4051 which of the following errors would normally be revealed by a trial balance? 1. 2. 3. 4. 5. A transaction is completely omitted from the books A sale to smith brothers is entered in smith and Co.Ltd. account A purchase of stock for resale has been entered in an asset account The sale of an asset has only been entered on one side of the books

Question: 4055 A suspense account is opined when the 1. 2. 3. 4. trading account does not balance profit and loss account does not balance trial balance does not balance bank account does not balance

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5. Question: 4059 select your answer by means of the following code 1. 2. 3. 4. 5. if 1, 2 and 3 are correct if 1 and 2 only are correct if only 1 is correct if only 3 is correct

78

Following list gives the correct choice for the answer of the accounting mcqs. 3916 . D 4032 . B 4035 . D 4037 . A 4040 . D 4043 . C 4046 . A .D

4051 . D

4055 . C

4059

Question: 4066 if the straight line method of depreciation is used the depreciation charge is 1. 2. 3. 4. 5. a fixed percentage of the cost of the asset each year a percentage of the book value of the asset each year always 10% of the cost of the asset each year a fluctuating percentage of the cost of the asset each year

Question: 4069 Firms charge depreciation each year 1. 2. 3. 4. 5. to ensure there is enough money in the firm to replace the asset to spread the cost of the asset over its working life to reduce the profit and thus reduce the dividends they can pay to shareholders because the law states they must

Question: 4071 which of the following assets is most likely to appreciate rather than depreciate 1. 2. 3. 4. 5. plant and machinery Land and buildings Motor vehicles Fixtures and fittings

Question: 4073 Depreciation is caused by 1. 2. 3. 4. 5. obsolescence wear and tear passage of time

Question: 4085 which of the following methods can be used to calculate depreciation?

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1. 2. 3. 4. 5. straight line Reducing balance revaluation

79

Question: 4092 The companies Acts state that companies' Final published Accounts must show 1. 2. 3. 4. 5. depreciation charged during past year the balance on the provision for depreciation account the method of calculating depreciation

Question: 4094 Another name for the Equal Installment method of depreciation is the 1. 2. 3. 4. 5. reducing balance method sinking fund method straight line method revaluation method

Question: 4098 An asset is purchased for Rs. 11000. The scrap value is Rs. 1,000 and it is expected to last ten years. The amount of straight depreciation charged each year would be 1. 2. 3. 4. 5. RS. 900 RS. 1,000 RS. 1,100 RS. 1,200

Question: 4104 A firm buys an asset for RS. 10,000 and depreciates it using the diminishing balance method. which of the following amounts world be the second years depreciation charge at 10% per annum 1. 2. 3. 4. 5. RS. 800 RS. 810 RS. 900 RS. 1,000

Question: 4107 On 1st January a firms loose tools are valued at RS. 4,500. A year later they are revalued at RS. 3000. The depreciation charge for the year is 1. 2. 3. 4. RS. 500 RS. 1,000 RS. 1,500 RS. 3,OOO

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Following list gives the correct choice for the answer of the accounting mcqs. 4066 . A 4069 . B 4071 . B 4073 . A 4085 . A 4092 . B 4094 . C C 4098 . B 4104 . C

80

4107 .

Question: 4110 The book value of a motor van on 1st January is RS. 20,000.Two years later the book value is Rs. 10,000.. The straight line depreciation rate of charge each years is 1. 2. 3. 4. 5. 12% 25% 33% 50%

Question: 4114 The vehicles in a company's feet usually last three years. it would probably charge depreciation on a fixed installment basis at a rate of 1. 2. 3. 4. 5. 25% per annum 33% per annum 50% per annum 665% per annum

Question: 4116 A firm buys a lathe for Rs. 20,000 on 1st January and another one for RS.24,000 on 1st July. Deprecation is charged at the rate of 10% per annum or cost, using the basis of one month's ownership needs one month's depreciation. The total depreciation charge on the 31 December should be 1. 2. 3. 4. 5. RS. 2,200 RS. 3,200 RS. 3,600 RS.4,400

Question: 4119 An asset cost RS. 12,000 and is expected to last ten years, so depreciation is charged at RS. 1,200 per year. How-ever, after ten years the asset is still in use. Which of the following would be the future charge for depreciation? 1. 2. 3. 4. 5. Continue to charge RS. 1,200per year depreciation Credit profit and loss account with RS. 1,200 every year the asset continues to be in use. Stop charging depreciation after the ten years Reduce the depreciation charge on another asset

Question: 4121 A firm's assets at total RS. 1,00,000. The total depreciation charged to date is RS.45,000. The book value of the assets is 1. 2. 3. RS. 45,000 RS. 55,000 RS. 1,00,000

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4. 5. RS. 1,45,000

81

Question: 4125 A firm's assets at cost total Rs.1,00,000 .The total depreciation.2,40,000. charged to date is Rs.2,40000. Depreciation was charged at the rate of 10% annum by the straight line method. It decided to change its method to diminishing balance at 10% per annum, with retrospective effect. The total difference in the profits over the three years would be 1. 2. 3. 4. 5. RS, 6,690 Rs, 6,960 RS. 9,660 RS. 9,690

Question: 4174 If the provision for bad debts account is adjusted at the end of this financial year to equal 5% of the debtors. the balance on the total debtors account at 31st December must have been 1. 2. 3. 4. 5. RS. 10,000 RS. 25,000 RS. 40,000 RS. 50,000

Question: 4175 The nit figure for debtors which appeared in the balance sheet at the end of the previous year was 1. 2. 3. 4. 5. RS. 47,500 RS. 48,000 RS. 51,500 RS. 52,500

Question: 4176 If the RS. 1,000 bad debts had not been written off, the overall effect on the profit for the year of all the entries relating to debtors, debts and provision for bad debts is 1. 2. 3. 4. 5. a decrease of TS. 1,500 a decrease of RS. 1,500 an increase of RS. 500 an increase of RS. 1,500

Question: 4183 If the Rs. 1,000 bad debts had not been written off, the overall effect on the profit for the year of all the entries relating to debtors, bad provision for bad debts would have been 1. 2. 3. 4. nil a decrease of Rs. 500 an increase of RS. 500 an increase of RS. 1,500

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Following list gives the correct choice for the answer of the accounting mcqs. 4110 . B 4114 . B 4116 . B 4119 . C 4121 . B 4125 . B 4174 . C C 4175 . A 4176 . B

82

4183 .

Question: 4186 If the Rs. 1,000 bad debts had not been written off, the overall effect on the profit for the year of all the entries relating to debtors, bad provision for bad debts would have been 1. 2. 3. 4. 5. nil a decrease of Rs. 500 an increase of RS. 500 an increase of RS. 1,500

Question: 4190 Which one of the following statements about debtors, bad debts and provisions for bad debts in the incorrect? 1. 2. 3. 4. 5. Debtors usually appear as a current asset in the balance in the balance sheet provisions for bad debts usually have a debit balance in ledger The bad debts account usually has a debit balance in the ledger An increase in the provision for bad debts account will reduce the profit of the firm

Question: 4191 which one of the following types of business is likely to have the largest amount of 'bad debts' ? 1. 2. 3. 4. 5. A Chinese take away A newsagent A bank A supermarket

Question: 4193 If the sales ledger control has a debit balance of RS. 39,400 it means that 1. 2. 3. 4. 5. there is RS. 39,400 in the bank account customers owe you RS. 39,500 you owe supplies R.s. 39500 you owe expenses totaling RS. 39,400

Question: 4197 If the purchase ledger control has a credit balance of RS. 48,000 it means that 1. 2. 3. 4. 5. your bank account is overdrawn by RS. 48,000 customers customers owe you RS. 48,000 you owe suppliers RS. 48,000 you owe expenses totaling RS. 48,000

Question: 4200 The total of the returns out wards for the month should be entered on the

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1. 2. 3. 4. 5. debit side of the purchase control account credit side of the purchase control account credit side of the sales control account debit side of the sales control account

83

Question: 4201 Additional freight costs charged control account 1. 2. 3. 4. 5. credit side of the purchase control account credit side of the purchase control account credit side of the sales control account debit side of the sales control account

Question: 4202 Cash discounts received should be entered on the 1. 2. 3. 4. 5. debit side of the purchase control account credit side of the purchase control account credit side of the sales control account debit side of the sales control account

Question: 4207 At the end of the financial year, once the balances on the control account are agreed with the total balances from their respective ledgers, they should appear in the balance sheet as 1. 2. 3. 4. 5. fictitious assets and debentures debtors' and creditors' balance fixed assets and long term liabilities fixed assets and share capital

Question: 4210 A cherub received which has now been dishonored should be entered on the 1. 2. 3. 4. debit side of the purchase control account credit side of the purchase control account credit side of the sales control account debit side of the sales control account

Following list gives the correct choice for the answer of the accounting mcqs. 4186 . C .D 4190 . B 4191 . D 4193 . B 4197 . C 4200 . A 4201 . D 4202 . C 4207 . B 4210

Question: 4217 Assuming that it reconciles with the cash book, a credit balance on a bank statement on the 31st December would appear in the balance sheet as a 1. 2. current asset current liability

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3. 4. 5. fixed asset long term liability

84

Question: 4220 when the monthly bank statement is out which one of the following would appear? 1. 2. 3. 4. 5. cherubs written but not yet presented for payment credit transfer received from customers payment into the band not yet credited A sales ledger balance written off as a bad debt

Question: 4224 which one of the following be entered in the cash book and not on the bank statement ? 1. 2. 3. 4. 5. Bank charges A dishonored cherub payments into the bank but not yet credited A credit transfer received from a customer

Question: 4225 when drawing up a bank reconciliation statement, if you start with a debit balance as per the bank statement, the unrepresented cherubs should be 1. 2. 3. 4. 5. added subtracted multiplied divided

Question: 4228 when drawing up a bank reconciliation statement, if you start with a debit balance in the cash book , bank charges should be 1. 2. 3. 4. 5. added subtracted multiplied divided

Question: 4233 The petty cash is kept on the IMPREST system and the balance at the start of the month is Rs. 1,000. If petty cash expenses during the month of Rs.720 are incurred, the amount received from the cashier at the start of the next month should be 1. 2. 3. 4. 5. Rs.280 Rs.720 Rs.1,000 Rs.1,720

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Question: 4234 The main purpose of petty cash is 1. 2. 3. 4. 5. to pay employees wages to pay suppliers for their goods as change for the till to pay small day to day business expenses

85

Question: 4236 Under the immprest system the petty cash is 1. 2. 3. 4. 5. increased every week reduced every week always restored to the original amount used up completely before being restored

Question: 4237 A receipts and payments account is similar to 1. 2. 3. 4. 5. an income and expenditure account a statement of affairs a cash or bank account a profit and loss account

Question: 4238 A club's income and expenditure account performs the same function as a firm's 1. 2. 3. 4. 5. trading profit and loss account balance sheet bank account petty cash book

Following list gives the correct choice for the answer of the accounting mcqs. 4217 . A 4220 . B 4224 . C 4225 . A 4228 . B 4233 . B 4234 . D A Question: 4239 A club's balance sheet may be referred to as its 1. 2. 3. 4. 5. income and expenditure account receipts and payments account accumulated fund statement of affairs

4236 . C

4237 . C

4238 .

Question: 4240 A club's loss is often referred to as 1. 2. a balance a deficit

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3. 4. 5. a surplus drawing

86

Question: 4241 The amount of member's subscriptions paid advance is 1. 2. 3. 4. 5. as asset an expense a liability a surplus

Question: 4242 If a club owned a bar, the amount of profit or made by the bar in a financial year would be shown in the 1. 2. 3. 4. 5. receipts and payments account income and expenditure account balance sheet bank account

Question: 4243 A club's capital may be referred to as its 1. 2. 3. 4. 5. bank balance assets accumulated fund surplus

Question: 4244 A club has 100 members and the subscription is Rs.10 per year. All have paid the right amount except three members who paid Rs.20 each because they owed for the previous year, and one member who also paid for next year . The income from subscriptions for the year in the income and expenditure account should be 1. 2. 3. 4. 5. Rs.960 Rs.1,000 Rs.1,030 Rs.1,040

Question: 4245 Depreciation written off the snooker table should be entered in the 1. 2. 3. 4. 5. receipts and payments account only receipts and payments account and the income and expenditure account receipts and payments account and the statement of affairs income and expenditure account and the statement

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Question: 4246 Rs.4,000 spent on a snooker table should be entered in the 1. 2. 3. 4. 5. receipts and payments account only receipts and payments account and the income and expenditure account receipts and payments account and the statement affairs income and expenditure account and the statement of affairs

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Question: 4247 The rate of turnover of stock is the 1. 2. 3. 4. 5. total value of turnover average stock divided by the cost of sales numbers of times the average stock is sold average of the opening and closing stock

Question: 4248 The cost of goods sold is the 1. 2. 3. 4. average stock divided by the rate of turnover of stock average stock multiplied by the turnover rate of turnover of stock divided by the average stock average stock multiplied by the rate of turnover of stock

Following list gives the correct choice for the answer of the accounting mcqs. 4239 . D 4240 . B 4241 . C 4242 . B 4243 . C 4244 . B 4245 . D D

4246 . C

4247 . C

4248 .

Question: 4249 Which one of the following is most likely to have the lowest rate of stock turn? 1. 2. 3. 4. 5. a super market a greengrocer a newsagent a jeweler

Question: 4250 If a supermarket marks up its goods for resale by 10% on cost, the gross profit made on Rs. 1,000 worth of purchased should be 1. 2. 3. 4. 5. Rs.100 Rs.900 Rs.1,000 Rs.1,100

Question: 4252 During a year a store makes a gross profit of Rs.80,000 which is 20% of the cost of goods sold. The sales mast therefore be 1. Rs. 4,00,000

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2. 3. 4. 5. Rs. 4,80,000 Rs. 4,00,000 Rs. 1,00,000

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Question: 4253 During a year a store's sales are Rs.5,00,000 and expenses are 20% of the gross profit. If 25% is added to the cost price of goods to obtain the selling price, the net profit is 1. 2. 3. 4. 5. Rs. 25,000 Rs. 55,000 Rs. 80,000 Rs. 1,00,000

Question: 4254 A trader starts a business with Rs.10000 cash and a van worth Rs.5000. At the end of his first year he has Rs.2000 in the bank, stock worth Rs.5,000, debtors valued Rs.2,000 and the van which is now worth Rs.Rs.4,000. If he has withdrawn Rs.2,000 from the business during the year for private expenses, he has made 1. 2. 3. 4. 5. a loss of Rs.1,000 neither a profit nor a loss a profit of Rs.1,000 a profit of Rs.2,000

Question: 4257 A store's make up is the 1. 2. 3. 4. 5. gross profit expressed as a percentage of the cost of goods sold gross profit expressed as a percentage of the sales not profit expressed as a percentage of the cost of goods sold net profit expressed as a percentage of the sales

Question: 4258 A store's margin is the 1. 2. 3. 4. 5. gross profit expressed as a percentage of the cost goods sold gross profit expressed as a percentage of the sales net profit expressed as a percentage of the cost goods sold net profit expressed as a percentage of the sales

Question: 4259 A trader uses his business bank account and writes cherubs totaling Rs 25,000 for his private use. He also takes stock valued at Rs.9,000 from the shelves for his own use, and decides to give his daughter one of the firm's typewriters valued at Rs.1,200 as she is starting a secretarial course at the local college. His drawings for the year total 1. 2. 3. 4. Rs. 25,000 Rs. 26,200 Rs. 34,000 Rs. 35,200

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5. Question: 4260 if a store's mark up is 25% the margin must be 1. 2. 3. 4. 5. 5% 10% 15% 20%

89

Question: 4261 Ten people formed a partnership and contributed Rs.100 each to the venture. The total capital was used to purchase goods which were resold at a markup of 100% on cost. If expenses were 25% of sales and the net profit was distributed equally to the partners, each partner has increased his initial capital by 1. 2. 3. 4. 5. 25% 50% 75% 100%

Following list gives the correct choice for the answer of the accounting mcqs. 4249 . D 4250 . A 4252 . B 4253 . C 4254 . B 4257 . A 4258 . B B

4259 . D

4260 . D

4261 .

Question: 4266 A firm owes Rs. 200 to trade creditors at the start in the year and Rs.300 at the end. Purchases on credit during the year totaled Rs.10,000. If suppliers allowed a total of Rs. 500 cash discount during the year, the amount paid so the creditors have been 1. 2. 3. 4. 5. Rs. 9,200 Rs. 9,400 Rs. 9,600 Rs. 9,200

Question: 4267 A firm's debtors fell from Rs.1,000 at the start of the year to Rs.900 at the end. the total of the sales day book was Rs.7,900 and the cash book showed that Rs. 7,700 was received from debtors during the year. Assuming a bad debt of Rs. 100 was written off, the cash discount allowed to credit customers during the year must have amounted to 1. 2. 3. 4. 5. Rs. 200 Rs. 400 Rs. 700 Rs. 900

Question: 4268 the main purpose of a manufacturing account is to find the 1. cost of overheads

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2. 3. 4. 5. cost of raw materials used cost of production gross profit

90

Question: 4270 Which one of the following is not an overhead? 1. 2. 3. 4. 5. cost of raw materials depreciation of plant and machinery rent and rates of the factory foreman's wages

Question: 4272 An alternative expression for indirect expenses is 1. 2. 3. 4. 5. prime cost production cost work in progress overheads

Question: 4273 Which one of the following would not be included in the prime cost? 1. 2. 3. 4. 5. manufacturing wages direct power direct factory expenses heating and lighting of the factory

Question: 4275 The prime cost consists of 1. 2. 3. 4. 5. wages plus overheads materials plus overheads all direct factory expenses indirect factory expense

Question: 4286 A bank reconciliation statement reconciles the 1. 2. 3. 4. 5. ledger with the journals petty cash book with the bank account bank statement with the cash book day books with the bank statement

Question: 4287 Assuming that it reconciles with the cash book, a credit balance on a bank statement on the 31st December would appear in the balance sheet as a

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1. 2. 3. 4. 5. current asset current liability fixed asset long term liability

91

Question: 4288 when the monthly bank statement is sent out which one of the following would appear? 1. 2. 3. 4. cherubs written but not yet presented for payment credit transfer received from customers payment into the bank not yet credited A sales ledger balance written off as a bad debt

Following list gives the correct choice for the answer of the accounting mcqs. 4266 . B 4267 . A 4268 . C 4270 . A 4272 . D 4273 . D 4275 . C B Question: 4289 work in progress at the end of the financial year is 1. 2. 3. 4. 5. included in the present year's production cost not included in the present year's production cost included in the previous year's production cost added to the cost of raw materials

4286 . C

4287 . A

4288 .

Question: 4290 work in progress at the end of the financial year is 1. 2. 3. 4. 5. included in the present year's production cost not included in the present year's production cost included in the previous year's production cost added to the cost of raw materials

Question: 4291 If the prime cost is Rs. 40,000 overheads R.s. 60,000, work in progress at 1st January Rs. 10,000 and work in progress at 31st December RS. 20,000 the cost of the year's production of finished goods is 1. 2. 3. 4. 5. RS. 90,000 RS. 1, 00,000 RS. 1,10,000 RS. 1,30,000

Question: 4292 Depreciation of plant and machinery is usually classified as 1. 2. a financial cost an overhead cost

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3. 4. 5. a selling cost an administration cost

92

Question: 4293 If a manufacturing company gas to pay a royalty for every unit it produces, this would probably be classified as 1. 2. 3. 4. 5. an indirect cost a direct cost an overhead a cost of materials

Question: 4294 Which one of the following is usually classified as a variable cost in the short term? 1. 2. 3. 4. 5. cost of materials used factory rates factory rent foreman's wages

Question: 4295 which one of the following is usually classified as a fixed cost in the short term? 1. 2. 3. 4. 5. Direct labor costs power for the factory machinery cost of materials used factory rent and rates

Question: 4296 In a manufacturing firm's trading account the cost of production figure replaces the 1. 2. 3. 4. 5. cost of goods sold closing stock of finished goods purchase of finished goods gross profit

Question: 4297 The cost of raw materials used is 1. 2. 3. 4. 5. Rs. 5,00,000 Rs. 6,00,000 RS. 6,50,000 RS. 6,70,000

Question: 4298 The prime cost is 1. RS. 6,00,000

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2. 3. 4. 5. RS. 670,000 RS. 11,00,000 RS. 14,20,000

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Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 4289 . B 4290 . B 4291 . A 4292 . B 4293 . B 4294 . A 4295 . D C Question: 4299 The total factory overheads are 1. 2. 3. 4. 5. RS.2,30,000 RS. 3,20,000 RS. 14,10,000 RS. 14,20,000

4296 . C

4297 . B

4298 .

Question: 4300 The cost of the year's production of finished goods is 1. 2. 3. 4. 5. RS. 11,00,000 RS. 14,10,000 RS. 14,20,000 RS. 14,60,000

Question: 4301 The work in progress at the start of the year was 1. 2. 3. 4. 5. RS. 10,000 RS. 30,000 RS. 40,000 RS. 50,000

Question: 4302 The indirect wages for the year totaled 1. 2. 3. 4. 5. RS. 10,000 RS. 20,000 RS. 30,000 RS. 40,000

Question: 4303 If the accountant had forgotten to take in to account that RS. 5,000 paid for forgotten to take into account that RS. 5,000 paid for factory rates was for the following year, the production cost would have been 1. RS. 14,05,000

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2. 3. 4. 5. RS. 14,10,000 RS. 15,000 RS. 14,20,000

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Question: 4304 At the end of the financial year a partner's drawing current account are transferred to the 1. 2. 3. 4. 5. credit side of the partner's capital account credit side of the partner's current account debit side of the partnership bank account debit side of the partner's

Question: 4305 After the final accounts have been prepared, a debit balance on a partner's current account means that the 1. 2. 3. 4. 5. partner is owed that amount by partnership partnership's bank account is overdrawn partner is in debt to the partnership for that amount partnership has no working capital

Question: 4306 If one partner received a salary which is credited to him at the end of the year, the share of the profit available for distribution will be 1. 2. 3. 4. 5. increased decreased unchanged non-existent

Question: 4314 which one of the following would be entered in the cash book and not on the bank statement 1. 2. 3. 4. 5. Bank charges A dishonored cherub payment into the bank but not yet credited A credit transfer received from a customer

Question: 4315 when drawing up a bank reconciliation statement, if you start with a debit balance as per the bank statement, the unprecedented cheques should be 1. 2. 3. 4. added subtracted multiplied divided

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Following list gives the correct choice for the answer of the accounting mcqs. 4299 . B 4300 . B 4301 . C 4302 . C 4303 . A 4304 . D 4305 . C A 4306 . B 4314 . C

95

4315 .

Question: 4316 when drawing up a bank reconciliation statement, if you start with a debit balance in the cash book, the bank charges should be 1. 2. 3. 4. 5. added subtracted multiplied divided

Question: 4317 when the monthly bank statement is sent out which one of the following would not appear 1. 2. 3. 4. 5. Interest charged by the bank A dishonored cheque A direct debit A payment from petty cash

Question: 4318 The petty cash is kept on the Imprest system and the balance at the start of the month is RS. 1,000. If petty cash expenses during the month of RS. 720 are incurred, the amount received from the cashier at the start of the next month should be 1. 2. 3. 4. 5. RS. 280 RS. 720 RS. 1,000 RS. 1,720

Question: 4319 The main purpose of petty 1. 2. 3. 4. 5. to pay employees, wages to pay suppliers for their goods as change for the till to pay small day to day business expenses

Question: 4351 An analytical petty cash book 1. 2. 3. 4. 5. Lists different petty expenses under their relevant headings is used instead of three column cash book is not part of the double entry system is always run on the imprest system

Question: 4353 Under the Imprest system the cash is

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1. 2. 3. 4. 5. increased every week reduced every week always restored to the original amount used op completely before being restored

96

Question: 4355 A receipts and payments account is similar to 1. 2. 3. 4. 5. an income and expenditure account a statement of affairs a cash or bank account a profit and loss account

Question: 4358 A club's income and expenditure account performs the same function as a firm's 1. 2. 3. 4. 5. trading, profit and loss account balance sheet bank account petty cash book

Question: 4359 A club's balance sheet may be referred to as its 1. 2. 3. 4. 5. income and expenditure account receipts and payments account accumulated fund statement of affairs

Question: 4360 A club's capital may be referred to as its 1. 2. 3. 4. 5. bank balance assets accumulated fund surplus

Following list gives the correct choice for the answer of the accounting mcqs. 4316 . B 4317 . D 4318 . B 4319 . D 4351 . A 4353 . C 4355 . C C Question: 4362 A club's loss is often referred to as 1. 2. 3. 4. a balance a deficit a surplus drawings

4358 . A

4359 . D

4360 .

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5. Question: 4366 The amount of member's subscriptions paid in advance is 1. 2. 3. 4. 5. an asset an expense a liability a surplus

97

Question: 4368 I a club owned a bar, the amount of profit or loss made by the bar in a financial year would be shown in the 1. 2. 3. 4. 5. receipts and payments account income and expenditure account balance sheet bank account

Question: 4372 A club has 100 members and the subscription is RS. 10 per year. All have paid the right amount except three members who paid RS. 20each because they owed for the previous year, and one member who also paid for next year. The income from subscriptions for the year in the income and expenditure account should be 1. 2. 3. 4. 5. RS. 960 RS. 1,000 RS. 1,030 RS. 1,040

Question: 4373 RS. 4,000 spent on a snooker table should be entered in the 1. 2. 3. 4. 5. receipts and payments account only receipts and payments account and the income and expenditure account receipts and payments account and the statement of affairs income and expenditure account and the statement of affairs

Question: 4374 Depreciation written off the snooker table should be entered on the 1. 2. 3. 4. 5. receipts and payments account only receipts and payments account and the income and expenditure account receipts and payments account and the statement of affairs income and expenditure account and the statement of affairs

Question: 4375 During the year the cash figure has increased by

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1. 2. 3. 4. 5. RS. 820 RS. 1,000 RS.1,820 RS.2,790

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Question: 4376 The accumulated fund at the beginning of the club's second year amounted to 1. 2. 3. 4. 5. RS. 820 RS.1,000 RS. 1,820 RS. 2,790

Question: 4377 Rent owing at the end of the year amounted to 1. 2. 3. 4. 5. nil RS. 50 RS. 350 RS. 400

Question: 4378 Rates owing at the end of the year amounted to 1. 2. 3. 4. 5. nil RS. 30 RS. 100 RS. 130

Following list gives the correct choice for the answer of the accounting mcqs. 4362 . B 4366 . C 4368 . B 4372 . B 4373 . C 4374 . D 4375 . B A

4376 . A

4377 . B

4378 .

Question: 4379 The amount owed to creditors for supplies of sweets at 31 December was 1. 2. 3. 4. 5. RS. 30 RS. 210 RS. 420 RS. 600

Question: 4381 The book value of fixed assets at 31st December amounted to 1. 2. 3. 4. RS. 20 RS. 70 RS.90 RS. 110

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5. Question: 4382 If the donations had been 'capitalized,' the accumulated fund at 31st December would have been 1. 2. 3. 4. 5. RS. 700 RS. 820 RS. 1,520 RS. 1,740

99

Question: 4383 If the donations had been 'capitalized,' the surplus would have been 1. 2. 3. 4. 5. RS. 120 RS. 700 RS.820 RS.1,520

Question: 4384 The current assets at 31st December amounted to 1. 2. 3. 4. 5. RS. 1,000 RS. 1,040 RS. 1,070 RS. 1,110

Question: 4386 The rate of turnover of stock is the 1. 2. 3. 4. 5. total value of turnover average stock divide by the cost of sales number of times the average stock is sold average of the opening and closing stock

Question: 4389 The cost of goods sold is the 1. 2. 3. 4. 5. average stock divided by the rate of turnover of stock average stock multiplied by the turnover rate of turnover of stock divided by the average stock average stock multiplied by the rate of turnover of stock

Question: 4392 which one of the following is most likely to have the lowest rate of stock turn? 1. 2. 3. A super market A greengrocer A news agent

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4. 5. A jeweler

100

Question: 4398 If a supermarket marks up its goods for resale by 10% on cost, the gross profit made on RS. 1,000 worth of purchased should be 1. 2. 3. 4. 5. RS. 100 RS. 900 RS. 1,000 RS. 1,100

Question: 4399 which one of the following is most likely to have the lowest rate of stock turn? 1. 2. 3. 4. 5. A super market A greengrocer A news agent A jeweler

Following list gives the correct choice for the answer of the accounting mcqs. 4379 . B 4381 . C 4382 . B 4383 . A 4384 . C 4386 . C 4389 . D D

4392 . D

4398 . A

4399 .

Question: 4401 The amount owed to creditors for supplies of sweets at 31 December was 1. 2. 3. 4. 5. RS. 30 RS. 210 RS. 420 RS. 600

Question: 4404 During a year a store makes a gross profit of RS. 80,000 which is 20% of the cost of goods sold The sales mast therefore be 1. 2. 3. 4. 5. RS. 4,000,000 4,80,000 RS. 5,20,000 RS. 1,00,000

Question: 4411 During a year a store's sales are R.s. 5,00,000 and expenses are 20% of the gross profit. If 25% is added to the cost price of goods to obtain the selling price, the net profit is 1. 2. 3. 4. RS. 25,000 RS. 55,000 RS. 80,000 RS. 1,00.000

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Following list gives the correct choice for the answer of the accounting mcqs. 4398 . A 4399 . D 4401 . B 4404 . B 4411 . C

101

M A N A
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102

G E M E N T
Question: 924 Direct wages should always be classified 6. 7. 8. 9. 10. as variable costs as fixed costs as semi-fixed according to their actual behavior

Question: 928 The First in First Out (FIFO) materials pricing system charges issues at 6. 7. 8. 9. 10. the price of the most recent batch in stock the price of the first component used in the period the average price of goods in stock the price of the oldest batch in stock

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Question: 933 The Last in First Out (LIFO) system will 6. 7. 8. 9. 10. value stocks at current values understate product in times of rising prices tend to produce realistic product costs make cost comparisons between jobs easier

103

Question: 940 When Activity Based Costing is used it is probable the 6. 7. 8. 9. 10. all products will cost more high volume product will tend to be costed lower direct costs will be a smaller proportion of total costs more costs will be charghed to products which are produced for stock

Question: 942 the use of backflush accounting means that 6. 7. 8. 9. 10. conversion costs cannot be carried forward in stock values stocks cannot occur raw material costs will be reduced costs are attributed to stock and cost of sales when the finished goods are made

Question: 943 Unit costs are extensively used in the public sector. This is because 6. 7. 8. 9. 10. they are a rough and ready guide to efficiency they are a good measure of the quality of service provided they allow for regional differences they enable public sector organizations to stay within the set cash limits

Question: 944 which of the following firms are most likely to use process costing 6. 7. 8. 9. 10. a car manufacturer a sugar refinery a builder a departmental store

Question: 946 Activity Based Costing absorbs overheads into products 6. 7. 8. 9. 10. by treating most of them as long-term variable costs by ignoring the volume of production according to the usage of support overheads by only producing on demand

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Question: 948 Significant Digit Codes are 6. 7. 8. 9. 10. where some of the digits are part of the description only used for raw materials to enable a code to be self-checking a means of combing expenditure and location codes

104

Question: 952 Check digit variations is 6. 7. 8. 9. 10. the process of checking invoices for correct calculations a method of making code numbers self checking to enable codes to be self-indexing the encoding of invoices with internal codes

Question: 956 which of the following firms would be most likely to use job costing 6. 7. 8. 9. 10. a paint manufacturer a sugar refinery a firm of architects a car manufacturers

Following list gives the correct choice for the answer of the accounting mcqs. 924 . D 928 . D 933 . C 940 . B 942 . D 943 . A 944 . B 946 . C C Question: 960 Labor turnovers can be expressed as a ratio as follows 6. 7. 8. 9. 10. Number of leavers Number replaced Numbers of employees at the end Number of leavers in a period

948 . A

952 . B

956 .

Question: 965 A cost drivers is 6. 7. 8. 9. 10. the amount of overhead caused by an activity a unit of activity which causes costs a long term variable costs equivalent to a cost centre

Question: 969 Prime cost includes 6. 7. Direct labour,direct materials and direct expenses All direct costs plus factory overheads

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8. Direct materials plus total overheads 9. Direct labor plus factory overheads 10. Question: 974 A cost center is 6. 7. 8. 9. 10. A unit of production in relation to which costs are ascertained A location which is responsible for controlling direct costs Part of the overhead system by which costs are gathered together Any location or department which incurs cost

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Question: 981 Cost apportionments is carried out by 6. 7. 8. 9. 10. Charging each cost unit a realistic proportion of overheads charging whole items of cost to centers Ensuring that each period carries its amount of cost by making accruals or prepayment s Dividing common costs among centers in proportion to the benefit received

Question: 990 Overhead absorption is done so that 6. 7. 8. 9. 10. common costs are shared among cost centres,in portion to the benefit received The total amount of overheads for the firm can be calculated The total overheads for a cost centre can be calculated Each unit of the product carries a share of overheads

Question: 998 Expenditure on steel used in the product would be classified into which of the following categories 6. 7. 8. 9. 10. Direct material/cost unit direct material/production overheads in direct material/cost unit prime cost/production overhead

Question: 1005 A firms uses direct labor a basis for overhead absorption if large fluctuations in labor house are experiences 6. 7. 8. 9. 10. this is a reason to use predetermined overhead rate this will mean that overheads will be under or over absorbed for the year different amounts of overhead will be charged to jobs with the same labor hours it will be better to use a machine hour rate

Question: 1039 A predetermined overhead rate using machine hours as a basis

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6. 7. 8. 9. 10. is calculated by dividing actual overhead by budgeted machine hours results in the over absorption of overhead is inferior to a rate based on labor hours results in charging similar overheads to jobs with similar machine hours

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Question: 1043 the costing associated with a typical site based contract 6. 7. 8. 9. 10. means that more costs can be identified as direct requires some estimate to be made of interim profits means that the contract account will be credited with materials at the end of thee contract includes all of these

Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 952 . B 956 . C 960 . B 965 . B 969 . A 974 . C 981 . D 990 . D .D 1043 . D

998 . A

1005 . A

1039

Question: 1046 Using process costing the amount of cost transferred to finished goods stock is the cost of 6. 7. 8. 9. 10. the equivalent production for the period the units completed during the period the units started and completed during the period the units in the opening Finished Goods stocks

Question: 1054 Double loop feedback 6. 7. 8. 9. 10. is information designed to ensures that operations conform to plans is designed to assess how well the control system operates and how relevant current pains are is information passed up two layers of the organization is information that is double checked for accuracy

Question: 1057 the distance A represents 6. 7. 8. 9. 10. contribution at activity level X profit at activity level X the amount of variable costs at activity level X the margin of safety

Question: 1061 the distance represents 6. 7. contribution at activity level Y the amount of variable costs at activity level Y

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8. the level of sales at activity level Y 9. the amount of variable costs at activity level Y 10. Question: 1069 which of the following are possible causes of the changes in the graph at activity level Z 6. 7. 8. 9. 10. an increase in sales value causing an increase in contribution a decrease in fixed costs causing an increase in variable costs an increase in total fixed costs and a decrease in variable costs per unit an increase in total variable costs and a decrease in fixed costs per unit

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Question: 1078 what do the lines C and D represent 6. 7. 8. 9. 10. Fixed costs and variable costs respectively Total costs and variable costs respectively Variable cost and fixed costs respectively Sales revenue and total costs respectively

Question: 1081 if the total expenditure on cost type X was expressed as a cost per unit of the product X would be classified as variable if 6. 7. 8. 9. 10. the cost per unit changed with the level of activity the cost per unit was affected by inflation the cost per unit remained constant with changes in the level of activity the total expenditure on X remained the same

Question: 1085 the main purpose of cost accounting is to 6. 7. 8. 9. 10. maximize profits help in inventory valuation provide information to management for decision-making aid in the fixation of selling prices

Question: 1086 one of the most important tools in cost planning is 6. 7. 8. 9. 10. direct cost budget cost sheet marginal costing

Question: 1088 the purpose of cost accounting is to provide information for 6. preparing costing P& L A/c

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7. cost control 8. locating factors leading to wastages and losses 9. assessing the profitability and financial position of the firm 10. Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 1039 . D 1043 . D 1046 . C 1054 . A 1057 . A 1061 . D 1069 . C C 1086 . B 1088 . B

108

1078 . B

1081 . C

1085 .

Question: 1089 Fixed cost per unit increases when 6. 7. 8. 9. 10. variable cost per unit increases variable cost per unit decreases Production volume increases production volume decreases

Question: 1091 Variable cost per unit 6. 7. 8. 9. 10. varies when output varies remains constant increases when output increases decreases when output decreases

Question: 1093 Increase in total variable cost is due to 6. 7. 8. 9. 10. increase in fixed cost increase in sales increase in production increase in total cost

Question: 1095 an example of variable cost is 6. 7. 8. 9. 10. property taxes interest on capital direct material cost depreciation of machinery

Question: 1100 an example of fixed cost is 6. direct material cost

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7. works managers salary 8. depreciation of machinery 9. chargeable expenses 10. Question: 1102 Cost accounting concepts include all of following except 6. 7. 8. 9. 10. Planning controlling profit sharing product costing

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Question: 1104 the three major elements of product costs are all but 6. 7. 8. 9. 10. direct materials Factory overhead direct labor indirect labor

Question: 1111 Cost of goods produced includes 6. production cost and finished goods inventory 7. production cost and work-in-progress 8. production cost, work-in-progress and finished goods inventory 9. 10. Question: 1117 Cost of goods sold includes 6. cost of production and work-in-progress 7. cost of production and finished goods inventory 8. cost production, work-in-progress and finished goods inventory 9. 10. Question: 1123 an overstatement of work-in-progress at the end of a period will 6. 7. 8. 9. 10. overstate cost of goods produced understate current assets understate gross profit overstate net profit

Answers to the questions of accounting on this page

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Following list gives the correct choice for the answer of the accounting mcqs. 1086 . B 1088 . B 1089 . D 1091 . B 1093 . C 1095 . C 1100 . B B 1117 . B 1123 . D 1102 . C 1104 . D

110

1111 .

Question: 1117 Cost of goods sold includes 6. cost of production and work-in-progress 7. cost of production and finished goods inventory 8. cost production, work-in-progress and finished goods inventory 9. 10. Question: 1123 an overstatement of work-in-progress at the end of a period will 6. 7. 8. 9. 10. overstate cost of goods produced understate current assets understate gross profit overstate net profit

Question: 1126 Conversion cost is equal to the total of 6. 7. 8. 9. 10. material cost and indirect wages material cost and indirect wages direct wages and factory overhead material cost and factory overhead

Question: 1127 multiple costing methods is used in 6. 7. 8. 9. 10. oil refinery car manufacturing company sugar mill multi-product company

Question: 1128 Toy manufacturing company should use 6. 7. 8. 9. 10. unit costing job costing batch costing multiple costing

Question: 1129 Electricity generating company should use

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6. 7. 8. 9. 10. unit costing process costing batch costing multiple costing

111

Question: 1130 Job costing is used in 6. 7. 8. 9. 10. paper mills chemical works printing press textile mill

Question: 1131 Output costing is employed in 6. 7. 8. 9. 10. mining quarries steel production brick kilns all of these

Question: 1132 Contract costing is used in 6. 7. 8. 9. 10. ship-building airplane industries automobile industries none of these

Question: 1167 Direct material is a 6. Fixed cost 7. variable cost 8. semi variable cost 9. 10. Question: 1172 Direct material is a 6. 7. 8. 9. 10. manufacturing cost Administration Selling and distribution cost Any of the above

Question: 1174 in manufacturing industries, the most important element of cost is

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6. Material 7. Labor 8. Overheads 9. 10. Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 1117 . B 1123 . D 1126 . C 1127 . B 1128 . C 1129 . D 1130 . C .B 1172 . An 1174 . A

112

1131 . D

1132 . An

1167

Question: 1176 which of the following is an accounting record 6. 7. 8. 9. 10. Bill of Material Bin card stores ledger All of these

Question: 1180 which of the following documents is used for issuing materials to productions departments 6. 7. 8. 9. 10. purchase Requisition Note stores Requisition note Goods Received Note stores Credit Note

Question: 1183 which of following is considered to be a normal loss of materials 6. 7. 8. 9. 10. Loss due to accidents pilferage Loss due to breaking the bulk Loss due to careless handling of materials All of these

Question: 1186 According to which of the following methods of pricing, issues are close to current economic values 6. 7. 8. 9. 10. Last-in-first-out price First-in-first-out price Highest-in-first-out price Weighted average price

Question: 1187 in which of the following methods of pricing costs lag behind the current economic values

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6. 7. 8. 9. 10. Last-in-first-out price. First-in -first-out price. Replacement price. Weighted average price.

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Question: 1192 which of the following methods of stock control aims at concentrating efforts on selected items of materials 6. 7. 8. 9. 10. perpetual inventory system Materials turnover Maximum, minimum and re-order level setting ABC analysis

Question: 1193 in base stock method of pricing the material issues, the term base stock represents the 6. 7. 8. 9. 10. Quantity of stock being issued stock in balance Minimum stock Maximum stock

Question: 1194 which of the following items of cost should NOT be treated as NOT be treated as direct material 6. 7. 8. 9. 10. Electricity representing 90% of the total cost Sand paper used in production Thread used in stitching garments All of the above

Question: 1195 Continuous stock-taking is a part of 6. 7. 8. 9. 10. Annual stock-taking Perpetual inventory system ABC analysis periodic inventory system

Question: 1197 the classification of items in ABC analysis is made on the basis of 5. 6. 7. 8. Investment value of materials Consumption value of materials Quantity of materials consumed All of these

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Following list gives the correct choice for the answer of the accounting mcqs. 1172 . An 1174 . An 1176 . C 1180 . B 1183 . C 1186 . An 1187 . B C 1194 . D 1195 . B 1197 . D 1192 . D 1193 .

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Question: 1202 in which of the following methods, issues of materials are priced at a pre-determined rate 6. 7. 8. 9. 10. Inflated price method Standard price method Replacement price method Specific price method

Question: 1204 in which of the following methods, materials are issued at the price prevailing at the time of issue 6. 7. 8. 9. 10. Inflated price method Standard price method Replacement price method Specific price method

Question: 1205 the storekeeper should initiate a purchase requisition when stock reaches 6. 7. 8. 9. 10. Minimum leveled maximum level re-order level overage level

Question: 1207 which of the following material losses should be transferred to costing profit and loss account 6. 7. 8. 9. 10. Loss by evaporation Loss due to improper storage of materials Loss due to breaking the bulk All of these

Question: 1210 when material prices fluctuate widely, the method of pricing that gives absurd results is 6. 7. 8. 9. 10. Simple average price Weighted average price Moving average price Inflated price

Question: 1212 when prices fluctuate widely, the method that will smooth out the effect of fluctuations is 6. simple average

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7. weighted average 8. FIFO 9. LIFO 10. Question: 1213 in which of the following methods, the charge to production is at actual cost 6. 7. 8. 9. 10. Weighted average price standard price Replacement price FIFO

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Question: 1294 Expected annual usage of a particular raw material is 2,00,000 units and the economic order quantity is 10,000 units The invoice cost of each unit is RS.500 and the cost to place one order is RS.80. The average inventory is 6. 7. 8. 9. 10. 1,00,000 units 5,ooo units 10,000 units 7,500 units

Question: 1297 taking the data in Q.3.21 above, the estimated annual ordering cost is 6. 7. 8. 9. 10. RS.1,600 RS.10,000 RS.3,200 RS.5,000

Question: 1300 On the basis of data given in Q 3.21 above, number of orders to be placed in each year are 6. 7. 8. 9. 10. 10 50 20 100

Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 1195 . B 1197 . D 1202 . B 1204 . C 1205 . B 1207 . B 1210 . A B 1297 . A 1300 . B

1212 . B

1213 . D

1294 .

Question: 1300 On the basis of data given in Q 3.21 above, number of orders to be placed in each year are

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6. 7. 8. 9. 10. 10 50 20 100

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Question: 1304 when material prices are showing a rising trend, which method of pricing will show lower cost of production 6. 7. 8. 9. 10. FIFO LIFO Weighted average Replacement price

Question: 1307 in periods of rising prices, which method of pricing shows higher stock values 6. 7. 8. 9. 10. FIFO LIFO Weighted average Replacement price

Question: 1309 in which method, prices charged to production are at the current prices prevailing in the market 6. 7. 8. 9. 10. FIFO LIFO Weighted average Replacement price

Question: 1312 when prices are showing a falling tendency, which method of pricing of material issues will show higher closing stock value 6. 7. 8. 9. 10. FIFO LIFO Weighted average Specific price method

Question: 1313 When production is below standard specification or quality and cannot be rectified by incurring additional cost, it is called 6. 7. 8. 9. 10. Defectives Spoilage Waste Scrap

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Question: 1315 Materials losses are due to some of the following reasons 6. 7. 8. 9. 10. Fore accident Theft Breaking the bulk Evaporation pilferage

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Question: 1319 Documents used in a material control system include the following 6. 7. 8. 9. 10. Purchase Requisition Note Stores Requisition Note Bill of Materials Goods Received Note Purchase order

Question: 1321 at what amount materials issued on 8-1-1997 will be charged if FIFO method is used 6. 7. 8. 9. 10. RS.1,550 RS.1,575 RS1,700 RS1,750

Question: 1323 at what amount materials issued will be charged igloo method is used 6. 7. 8. 9. 10. RS.1,550 RS.1,575 RS.1,700 RS.1,750

Question: 1325 at what amount materials issued will be charged if simple average price is used 6. 7. 8. 9. 10. RS.1,550 RS1,575 RS.1,610 RS.1,700

Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 1297 . A 1300 . B 1304 . A 1307 . A 1309 . D 1312 . B 1313 . B .B 1323 . C 1325 . B

1315 . A

1319 . D

1321

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Question: 1329 at what amount materials issued will be charged if weighted average price is used 6. 7. 8. 9. 10. RS.1,575 RS.1,610 RS.1,625 None of these

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Question: 1330 at what amount materials issued will be charged if replacement price method is used 6. 7. 8. 9. 10. RS.1,400 RS.1,700 RS.2,100 RS. 1,750

Question: 1335 what will be the value of closing stock under FIFO method 6. 7. 8. 9. 10. RS 600 RS 675 RS 700 None of these

Question: 1336 what will be the value of closing under LIFO method 6. 7. 8. 9. 10. RS.600 RS.675 RS.690 RS.750

Question: 1337 what will be the value of closing stock under simple average method 6. 7. 8. 9. 10. RS.600 RS.690 RS.725 RS.750

Question: 1339 what will be the value of closing stock if weighted average method is applied 6. 7. 8. 9. 10. RS.600 RS.690 RS.725 RS.750

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Question: 1340 what will be the value of closing stock if replacement price method if used 6. 7. 8. 9. 10. RS.100 RS.300 RS.200 None of these

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Question: 1344 in which of following incentive plans of wages payment, wages on time basis are NOT guaranteed 6. 7. 8. 9. 10. Halsey plan Rowan plan Taylors differential piece rate system Gantt's task and bonus system

Question: 1427 in which of the following incentive plan of wages payment, wages on time basis are NOT guaranteed? 6. 7. 8. 9. 10. Halsey plan Rowan plan Taylor's differential piece rate system Gantt's task and bonus system

Question: 1429 which of the following methods of wage payment is most suitable where quality and accuracy of work is of primary importance? 6. 7. 8. 9. 10. piece rate system differential piece work system time rate system Halsey premium system

Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 1323 . C 1325 . B 1329 . B 1330 . C 1335 . D 1336 . A 1337 . C C 1427 . C 1429 . B Question: 1430 Cost of idle time arising due to non-availability of raw material is 6. 7. 8. 9. 10. charged to costing profit and loss A/C charged to factory overheads recovered by inflating the wage rate all of these

1339 . B

1340 . B

1344 .

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Question: 1432 when overtime is required for meeting urgent orders, overtime premium should be 6. 7. 8. 9. 10. charged to costing profit and loss A/c charged to overhead costs charged to respective jobs all of these

120

Question: 1433 Time and motion study is conducted by the 6. 7. 8. 9. 10. time keeping department payroll department personnel department engineering department

Question: 1435 Labor productivity is measured by comparing 6. 7. 8. 9. 10. actual time with standard time total output with total man hours added value for the product with total wage cost none of the above

Question: 1436 when standard outputs is 10 units per hour and actual output is 12 units per hour , the efficiency is 6. 7. 8. 9. 10. 80% 120% 100% none of these

Question: 1438 Wages sheet is prepared by 6. 7. 8. 9. 10. time keeping department payroll department personnel department cost accounting department

Question: 1443 given that for a job, standard time is 8 hours, actual 6 hour and the time rate is Rs 2per hour what is the total wages under halsey premium plan 6. 7. 8. 9. Rs 18 Rs 14 Rs 16 Rs12

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10.

121

Question: 1449 using data as given in Q. 314 above, what will be the amount of wages under time rate system 6. 7. 8. 9. 10. RS. 12 RS.14 16 18.

Question: 1451 using data as given in Q. 314 above, what will be the amount of bonus under rowan plan 6. 7. 8. 9. 10.

RS. 2 RS. 3 RS. 4 None of the above

Question: 1453 using data as given in Q 3.14 above, what is the amount of bonus under Halsey plan 6. 7. 8. 9. 10. RS. 2 RS.3 RS.4 Nil

Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 1427 . C 1429 . B 1430 . A 1432 . C 1433 . D 1435 . D 1436 . C A 1451 . B 1453 . A

1438 . C

1443 . C

1449 .

Question: 1457 Standard output is 100 units per day of 8 hours and the piece rates are 20 piece per unit under Taylor's differential piece rate system, what will be amount of wages if a worker produces 95 unit in a day 6. 7. 8. 9. 10. RS.14.00 RS.14.25 18.50 19.00

Question: 1459 given the data in 3.19 above, what will be the amount of wages under Taylor's differential piece rate system, if a worker produces 101 units ohm a day 6. 7. RS.15.15 RS.20.00

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8. 20.15 9. 20.20 10.

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Question: 1460 Comparing Rowan and Halsey premium plans, it is seen that when the time saved is less than 50% of the time saved, 6. Rowan plan allows more wages to a worker than Halsey plan 7. Rowan plan allows less wages to a worker than Halsey plan 8. Rowan and Halsey plan allow equal wages to a worker 9. 10. Question: 1461 when time saved is 40% of the standard time, Halsey plan allows 6. more wages than Rowan plan 7. less wages than Rowan plan 8. equal wages as compared to Rowan plan 9. 10. Question: 1463 Standard time is 60 hours and guaranteed time rate is 30 paisa per hour what is the amount of wages if job is completed n 48 hours? Rowan plan is in use 6. 7. 8. 9. 10. RS.24.00 RS.26.80 RS.17.28 RS.20.40

Question: 1464 which of the following a group incentive plans 6. 7. 8. 9. 10. priestman plan Badaux plan Halsey weir plan All of these

Question: 1466 Packing cost is 6. 7. 8. 9. 10. production cost selling cost distribution cost It may be any of the above

Question: 1468 Directors' remuneration and expenses from a part of

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6. 7. 8. 9. 10. production overhead selling overhead administration overhead distribution overhead

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Question: 1471 Salary of a foreman should be classified as a 6. fixed overhead 7. variable overhead 8. semi-fixed or semi-variable overhead 9. 10. Question: 1472 Charging to a cost centre those overheads that result soleoy from existence of that cost centre is known as 6. 7. 8. 9. 10. allocation apportionment absorption allotment

Following list gives the correct choice for the answer of the accounting mcqs. 1451 . B 1453 . A 1457 . B B 1471 . C 1472 . A Question: 1476 Absorption means 6. charging of overheads to cost centers 7. charging of overheads to cost units 8. charging of overheads to cost centers or cost units 9. 10. Question: 1481 Administration overheads are recovered as a percentage of 6. 7. 8. 9. 10. direct materials direct wages prime cost works cost 1459 . D 1460 . A 1461 . B 1463 . C 1464 . A 1466 . D 1468 .

Question: 1484 which of the following is NOT is selling overhead 6. 7. Insurance to cover sold goods while in transit Royalty on sales

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8. Legal costs for debt realization 9. Distribution of samples 10.

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Question: 1488 which method of absorption of factory overheads do you suggest in a concern which produced only one uniform type of product 6. 7. 8. 9. 10. percentage of direct wages basis Direct labor hour rate Machine hour rate A rate per unit of output Any of the above

Question: 1490 When the amount of under-or over-absorption is significant, it should be disposed of by 6. Transferring to Costing profit and Loss A/C. 7. the use of supplementary rates 8. carrying over as a deferred charge to the next accounting year 9. 10. Question: 1493 idle capacity of a plant refers to the difference between 6. 7. 8. 9. 10. maximum capacity and practical capacity practical capacity and normal capacity practical capacity and capacity based on sales expectancy maximum capacity and actual capacity

Question: 1496 Maximum possible productive capacity of a plant, when no operating time is lost, is its 6. 7. 8. 9. 10. practical capacity Theoretical capacity Normal capacity Capacity based on sales expectancy

Question: 1499 the capacity which is based on the long term average of the sales expectancy level is known as 6. 7. 8. 9. 10. practical capacity Actual capacity Normal capacity None of these

Question: 1502 when the amount of overhead absorbed is less than the amount of overhead incurred, it is called

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6. under-absorption of overhead 7. over-absorption of overhead 8. proper absorption of overhead 9. 10. Question: 1506 Bad debt is an example of 5. 6. 7. 8. production overhead Administration overhead selling overhead Distribution overhead

125

Following list gives the correct choice for the answer of the accounting mcqs. 1471 . C 1472 . A 1476 . B 1481 . D 1484 . A 1488 . D 1490 . B C 1502 . A 1506 . C

1493 . C

1496 . C

1499 .

Question: 1508 Number of workers employed is used as a basis for the apportionment of 6. 7. 8. 9. 10. time office costs canteen expenses personnel department expenses any of these

Question: 1518 in which of the following methods of providing depreciation, the amount of depreciation goes on decreasing with the age of the asset 6. 7. 8. 9. 10. Reducing balance method sum of digits method Annuity method (a) and (b) above

Question: 1544 Selling and distribution overheads are absorbed on the basis of 6. Rate per unit 7. percentage on selling price of each unit 8. Any of these 9. 10. Question: 1549 the difference over a period of time, between actual factory overhead and absorbed factory will usually be minimum when the predetermined overhead rate is based on 6. 7. 8. normal capacity maximum capacity direct labor hours

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9. machine hours 10. none of the above Question: 1553 A monopolies will shut down its plant in the short run if 6. 7. 8. 9. 10. It is making a loss. Marginal revenue is less than marginal cost. Marginal revenue less than average variable cost at all levels of output. Average revenue is less than average variable cost at all levels of output. Average revenue is less than marginal cost at all levels of output.

126

Question: 1555 A company found that the differences in product costs resulting from the application of predetermined overhead rates rather than actual overhead rates were immaterial even though actual production was substantially less than planned production the most likely explanation is that 6. 7. 8. 9. 10. factory overhead was mainly composed of variable costs several products were produced simultaneously fixed factory overhead was a significant cost costs of factory overhead items were substantially larger than anticipated

Question: 1560 Under-absorbed factory overhead costs are 6. 7. 8. 9. 10. excess variable factory overhead costs factory cost not allocated to units produced fixed factory costs not allocated to unit produced cost that cannot be controlled None of the above

Question: 1567 if a per-determined factory overhead rate is not employed and the volume of production is reduced from the level planned, the cost per unit would be expected to 6. 7. 8. 9. 10. remain unchanged for fixed costs and increase for variable costs increase for fixed cost and remain unchanged for variable costs increase for fixed costs and decrease for variable costs decrease for fixed costs and decrease for variable costs

Question: 1569 the least suitable basis for applying overhead is 6. 7. 8. 9. 10. materials consumed direct labor cost direct labor hours machine hours

Question: 1571 Excess plant capacity means

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5. 6. 7. 8. temporary idleness of plant greater production capacity than a company can use the difference between theoretical capacity and actual capacity

127

Following list gives the correct choice for the answer of the accounting mcqs. 1508 . D 1518 . D 1544 . D 1549 . A 1553 . D 1555 . C 1560 . E B Question: 1571 Excess plant capacity means 6. temporary idleness of plant 7. greater production capacity than a company can use 8. the difference between theoretical capacity and actual capacity 9. 10.

1567 . B

1569 . A

1571 .

Question: 1573 the concept of ideal capacity of plant as used in cost accounting is its 6. 7. 8. 9. 10. theoretical maximum capacity Best capacity for normal production. Capacity used for standard setting. Capacity below which production should not fall.

Question: 1580 pre-determined overhead recovery rate is Rs 3 per hour and pre-determined hours are 50,000 Actual hours worked are 55,000 and actual overhead Rs 1,70,000. What is the amount of under or overabsorption of overhead 6. 7. 8. 9. 10. RS.20000 over-absorption RS. 20,000 over-absorption RS.5000 under-absorption RS.5,000 over-absorption

Question: 1583 in Q. 3.34, what is the amount of pre-determined overhead 6. 7. 8. 9. 10. RS.1,50,000 rs.1,65,000 cannot be computed None of these

Question: 1585 what is the amount of absorbed overhead in Q 3.34 6. 7. 8. RS. 1,50,000 RS. 1,65,000 RS. 15,000

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9. RS 20,000 10.

128

Question: 1592 In Q 3,37, which method should be used to treat under/over absorbed amount in cost accounts 6. 7. 8. 9. 10. Tr. to costing P& L A/c Use of supplementary rate Carry over to next year Any of the above

Question: 1594 In Q 3.37, what is the predetermined number of machine hours 6. 7. 8. 9. 10. 16,000 12,000 Cannot be known None of these

Question: 1599 A machine purchased for Rs 20,000 is discarded because of obsolescence and sold for Rs 5,000 after three years of service, resulting in a loss of Rs 3,000.This loss should be 6. 7. 8. 9. 10. treated as production cost transferred to costing P& L A/c in the year of sale spread over the years of the remaining expected life of the machine Either(b)or(c)

Question: 1603 the principal factors to be considered on designing a cost system include 6. 7. 8. 9. 10. Manufacturing process desires of management nature of business company organization structure all of the above

Question: 1606 the most suitable cost system where the products differ in type of materials used and work performed is 6. 7. 8. 9. 10. job costing Batch costing operating costing None of these

Question: 1609 in shoe manufacture, the most suitable cost system is 6. job costing

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7. Batch costing 8. Contract costing 9. None of these 10. Following list gives the correct choice for the answer of the accounting mcqs. 1573 . A B 1580 . C 1583 . A 1585 . B 1592 . B 1594 . B 1599 . B 1603 . E 1606 . A

129

1609 .

Question: 1606 the most suitable cost system where the products differ in type of materials used and work performed is 6. 7. 8. 9. 10. job costing Batch costing operating costing None of these

Question: 1609 in shoe manufacture, the most suitable cost system is 6. 7. 8. 9. 10. job costing Batch costing Contract costing None of these

Question: 1611 job costing is used in 6. 7. 8. 9. 10. Repair shops printing presses Furniture making Automobile garages All of these

Question: 1613 Most of the expenses are direct in 6. 7. 8. 9. 10. job costing batch costing contract costing All of these

Question: 1616 when a contract is not completed at the end of the accounting year, profit on incomplete contract is 6. 7. transferred to profit and loss Account transferred to reserve

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8. transferred profit to profit and loss Account and partly to reserve 9. 10. Question: 1618 when a contract is not completed at the end of the year, loss on incomplete contract is 6. transferred to profit and loss Account 7. transferred to work-in-progress 8. transferred partly to profit and Loss Account and partly to work-in progress 9. 10. Question: 1622 when contract id 40% complete, the amount of profit to be taken credit for is usually 6. the amount of profit estimated 7. 40% the estimated profit 8. 1/3of the estimate profit multiplied by cash ratio 9. 10. Question: 1627 in contract accounts, the amount of work-in-progress consists of 6. 7. 8. 9. 10. cost of work uncompleted cost of work uncompleted the amount of profit not transferred to profit and Loss Account (a) and(B) above (a)(b) and(C)

130

Question: 1630 cost-plus contract is usually entered in to those where 6. cost can be easily estimated 7. it is not possible to compute the cost in advance with a reasonable degree of accuracy 8. contractor wants to earn a higher amount of profit 9. 10. Question: 1631 Contract price is not fixed in case of 6. 7. 8. 9. 10. Cost-plus contracts Escalation clause De-escalation clause All of the above

Question: 1632 Contract price is not fixed in case of 6. 7. Cost-plus contracts Escalation clause

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8. De-escalation clause 9. All of the above 10. Question: 1633 Cost plus contract is useful from the point view of 6. contractor 7. contracted 8. both contractor and contractee 9. 10. Following list gives the correct choice for the answer of the accounting mcqs. 1606 . A 1609 . B 1611 . E 1613 . C 1616 . C 1618 . A 1622 . C D 1632 . D 1633 . C Question: 1633 Cost plus contract is useful from the point view of 6. contractor 7. contractee 8. both contractor and contractee 9. 10. Question: 1634 In contract costing, contract account is prepared by the 6. contractor 7. contractee 8. both by contractor and contractee 9. 10.

131

1627 . E

1630 . B

1631 .

Question: 1635 In a building contract of Rs. 2,40,000, at the end of the work certified is Rs. 1,60,000 and estimated profit is Rs. 15,000. what is the amount of profit to be credited to profit and LOSS Account assuming cash ratio is 80% 6. RS.15,000 7. RS. 12,000 8. RS. 8,000 9. 10. Question: 1636 Economic batch quantity is that size of the batch of production where 6. 7. 8. 9. average cost is minimum total cost is minimum set-up cost of machine is minimum carrying cost is minimum

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10. Question: 1637 Production order means 6. an order received from a customer for the production of a specific item 7. instructions to the shops to proceed with the production of the product 8. an order to the store-keeper to issue necessary materials for production 9. 10.

132

Question: 1638 In contract costing, valuation of which of the following does not include an element of profit 6. 7. 8. 9. 10. work in progress certified work in progress uncertified Both(a) and(b) Neither(a)nor(b)

Question: 1641 A contract of RS.5,00,000 is 55% complete as certified it shows a notional loss of RS 20,000. Accounting treatment of this loss is 6. 7. 8. 9. 10. Transfer 2/3 of this loss to P&L A/c Transfer 2/3 X cash ratio of this loss to P&L A/c Transfer 55% of this loss to P&L A/c Transfer entire amount of loss to P&L A/c

Question: 1652 Direct cost chargeable to contract does not include 6. 7. 8. 9. 10. Materials Labor Supervision Storage lost both(c)and (d)

Question: 1655 Which of the following items is not written on the credit side of the contract account 6. 7. 8. 9. 10. work in progress-certified and uncertified Materials returned Cash received from contractee plant at site

Question: 1659 The type of process loss that should not affect the cost of inventories is 6. 7. 8. abnormal loss normal loss seasonal loss

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9. standard loss 10. Question: 1663 During Jan. 1997, Marconi L.t.d. had total manufacturing cost of Rs.1,80,000. The business completed 14,000 units of product, of which 4,000 units were half completed in Dec 1996 and started production on an additional 6,000 units that production cost per unit was 5. 6. 7. 8. RS.18 RS.16.36 RS.12 RS.9

133

Following list gives the correct choice for the answer of the accounting mcqs. 1634 . A 1635 . C 1636 . B 1637 . B 1638 . B 1641 . D 1652 . D .C

1655 . C

1659 . A

1663

Question: 1668 100 units are introduced in a process in which normal loss is 15 units If actual output is also 100 units, than there is 6. no abnormal loss or abnormal gain 7. an abnormal loss 8. an abnormal gain 9. 10. Question: 1670 50 units are processed at a total cost of RS.80, normal loss being 10% Each unit carries a scrap value of 25 paisa. If output is 40 units, the value of abnormal loss will be 6. 7. 8. 9. 10. RS. 1.25 RS.8.00 RS.8.75 RS.8.88.

Question: 1676 Given the data in Q.3.5 above, the normal cost of unit is 6. 7. 8. 9. 10. RS.0.25 RS.1.60 RS.1.78 RS.1.75

Question: 1678 A factories transferred out 8,800 completed and closing stock was 800 units 50% completed. Assuming FIFO method, the equivalent production during the period was 6. 7. 8. 8,900 units 9,100 units 9,300 units

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9. 9,500 units 10.

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Question: 1682 in a factory, the equivalent production (using FIFO method) was 7,500 units during a period which had 500 units 60% complete on hand at the start and 600 units 75% complete at the end of the period. How many units were introduced during the period 6. 7. 8. 9. 10. 6,750 6,850 7,050 7,150

Question: 1685 An under-statement of ending work-in-progress inventory will 6. 7. 8. 9. 10. understate cost of goods produced understate net profit overstate gross profit overstate current assets

Question: 1688 An over-statement of beginning work-in-progress inventory will 6. 7. 8. 9. 10. understate cost of goods sold understate the profit overstate net profit overstate gross profit

Question: 1689 When units are lost at end of the production process, the cost is charged to 6. 7. 8. 9. 10. factory overhead selling expense work-in-progress completed units

Question: 1691 The term Economic Batch Quantity is used in relation to 6. 7. 8. 9. 10. Operating costing Batch costing process costing Unit costing

Question: 1698 Input in a process is 4,000 units and normal loss is 20%. When finished output in the process is only 3240 units, there is an

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6. abnormal loss of 40 units 7. abnormal gain of 40 units 8. neither abnormal loss nor abnormal gain 9. 10.

135

Following list gives the correct choice for the answer of the accounting mcqs. 1668 . C 1670 . C 1676 . D 1678 . A 1682 . B 1685 . B 1688 . B B

1689 . D

1691 . B

1698 .

Question: 1700 In Q.3.14 further assuming scrap value of loss is RS.5 per unit, the amount of sales from scrap is 6. 7. 8. 9. 10. RS.3,800 RS. 4,000 RS. 200 None of these

Question: 1704 Further assuming (in Q. 3.14 and Q 3.15) the cost assigned to abnormal gain of 40 units is RS. 280, the amount to be transferred to costing profit and loss account 6. 7. 8. 9. 10. RS.280 RS.200 RS.80 RS.360

Question: 1705 Hopeless Company, which uses FIFO method in process costing, began the current year with 300 units 50% completed, transferred out 5,000 completed units during the year ended with 500 units 70% completed Equivalent production for the period was 6. 7. 8. 9. 10. 5,000 4,700 5,200 5,800

Question: 1706 Classification and accumulation of costs by fixed and variable costs is of special importance in 6. 7. 8. 9. 10. process costing unit costing operation costing operating costing none of these

Question: 1708 Joint product manufacturing is fundamental in

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6. 7. 8. 9. 10. automobile industry oil refineries engineering company All of the above

136

Question: 1709 Individual products, each of a significant sales value, produced simultaneously from the same raw material, should be known as 6. 7. 8. 9. 10. by-products main products joint products common products

Question: 1712 Total manufacturing costs are divided by the total number of units produced to obtain a cost per unit under the 6. average unit cost method 7. sales value method 8. physical unit measurement method 9. 10. Question: 1714 which of the following are virtually always subsequent costs 6. 7. 8. 9. 10. raw material costs direct labor costs selling and distribution cost None of these

Question: 1720 When by-products are of small total value, its accounting should by 6. 7. 8. 9. 10. apportioning a part of joint cost to by-products realizable value of by-products should be treated as miscellaneous income and transferred to P&L A/c realizable value of by-products should be apportioned over the main products Any of these

Question: 1723 Net realizable value of by-products at the split off point should be calculated by reverse cost method when 6. BY products are of small total value 7. BY-products are of considerable sales value 8. BY-products require further processing for their sale 9. 10.

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Following list gives the correct choice for the answer of the accounting mcqs. 1700 . A 1704 . C 1705 . C 1706 . D 1708 . B 1709 . C 1712 . A C 1714 . C 1720 . B

137

1723 .

Question: 1723 Net realizable value of by-products at the split off point should be calculated by reverse cost method when 6. BY products are of small total value 7. BY-products are of considerable sales value 8. BY-products require further processing for their sale 9. 10. Question: 1729 Cost per unit is the average cost is applicable in 6. 7. 8. 9. 10. Job costing Operating costing Multiple costing Contract costing

Question: 1732 Trimmings in timber industry should be treated as a 6. 7. 8. 9. 10. waste scrap by-product joint product

Question: 1735 Which of the following methods of accounting of by-products should be applied when the byproduct is to be utilized in the undertaking itself as material for some other process 6. 7. 8. 9. 10. sales value method Other income method Opportunity cost method Reverse cost method

Question: 1737 Credit is given to the process account at a pre-determined value of the by-product under the 6. 7. 8. 9. 10. Standard cost method opportunity cost method Reserve cost method sales value method

Question: 1742 The primary purpose of apportioning joint costs of a processing centre to various products produced is to

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6. 7. 8. 9. 10. develop accurate processing cost variances product-wise report more correct standard product costs for comparative analysis establish inventor cost assigned to unsold units record accurate cost of sales by product lines None of the above

138

Question: 1823 Given: input 1,000 units, Cost production RS 1,850 per Normal loss 10% of input, Actual loss 50 units, Scrap value Rs 0.50 per unit. What is the abnormal loss/gain 6. 7. 8. 9. 10. 50 units abnormal loss 50 units abnormal gain 100 units abnormal gain 100 units abnormal loss

Question: 1826 In Q3.35,what is the cost per unit 6. 7. 8. 9. 10. Rs. 2.18 Rs. 2.05 Rs. 2 RS. 1.89

Question: 1828 Output of a process was 2,500 units, normal loss is 10% of input and abnormal loss 200 units. How many units were introduced in the process 6. 7. 8. 9. 10. 2,700 3,000 3,200 3,500

Question: 1842 In Q 3.37, What is the quantity of total loss 6. 7. 8. 9. 10.

2700 units 300 units 350 units 500 units

Question: 1843 when quantity sold is 18,000 units, opening stock 2,000 units and closing stock 3,000 units, what is the quantity produced 6. 7. 8. 9. 10. 16,000 units 17,000 units 19,000 units 20,000 units

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Following list gives the correct choice for the answer of the accounting mcqs. 1729 . B 1732 . B 1735 . C 1737 . A 1742 . D 1823 . An 1826 . C .C 1828 . B 1842 . D

139

1843

Question: 1845 A transport company is running 3 bases with 50 passengers each, covering a distance of 100 km daily. what is the number of passenger km. per day 6. 7. 8. 9. 10. 5,000 300 15,000 150

Question: 1847 Cost and financial accounts are reconciled under 6. 7. 8. 9. 10. Integral system Non-integral system Under both (a)and (b) None of these

Question: 1852 Which of the following accounts make the cost ledger self-balancing 6. 7. 8. 9. 10. overhead adjustment account Costing P.& L. account Cost Ledger control account None of the above

Question: 1855 Costing profit and Loss account does not record the 6. 7. 8. 9. 10. sales value of goods balance of overhead adjustment account balance of cost of sales account balance of stores ledger control account

Question: 1866 Purchases for special jobs is debited to 6. Work-in-progress ledger control account 7. Cost ledger control account 8. Stores ledger control 9. 10. Question: 1871 Integral accounts eliminate the necessity of operating 6. Cost Ledger Control account

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7. stores ledger control account 8. Overhead adjustment account 9. All of these 10. Question: 1874 Which of the following items is not included in cost accounts 6. 7. 8. 9. 10. Interest received on bank deposits Dividend paid on share capital Damages payable at law Debenture interest all of these

140

Question: 1879 Which following items is included in cost accounts 6. 7. 8. 9. 10. Transfer to general reserve Notional rent Rent receivable None of the above

Question: 1885 When costing loss is RS. 5,600, administrative overhead under-absorbed being RS. 400, the loss as per financial accounts should be 6. RS. 5,600 7. RS.6,000 8. RS. 5,200 9. 10. Question: 1889 Depreciation charged in costing is RS.12,500 and in financial books is RS.11,200.What will be the financial profit when costing profit is RS.5,000 6. RS. 5,000 7. RS. 3,700 8. RS. 6,300 9. 10. Following list gives the correct choice for the answer of the accounting mcqs. 1845 . B 1847 . B 1852 . C 1855 . D 1866 . A 1871 . A 1874 . E C

1879 . C

1885 . B

1889 .

Question: 1891 Profit as per financial books is Rs. 72,000.What will be the profit as per costing books when selling and distribution expenses, actual as well as predetermined, are RS. 2,500 6. 7. RS. 72,000 RS.70,500

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8. RS. 69,500 9. 10. Question: 1895 Which of the following items is not included in financial books 6. 7. 8. 9. 10. Heavy donations Loss on the sale of fixed assets Notional rent Interest on borrowed capital all of these

141

Question: 1897 Which of the following items shall be added to costing profit to arrive at financial profit 6. 7. 8. 9. 10. Under-absorption of words overhead Interest on debentures paid Rent receivable Income tax paid All of the above

Question: 1913 Which of the following account will always have debit balance 6. 7. 8. 9. 10. Overhead adjustment account work in progress ledger control account Cost ledger control account. Factory overhead control account

Question: 1916 The amount of total direct labor cost that should have been charged to all the individual production orders worked on during January should be 6. 7. 8. 9. 10. RS. 40,000 RS. 33,000 RS. 41,000 RS. 55,000 RS. 30,000

Question: 1918 The January 31 balance of work in progress control account should be 6. 7. 8. 9. 10. RS. 36,000 RS. 75,000 RS.76,000 RS. 77,000 RS. 35,000

Question: 1919 The January 31 balance of finish Goods Control Account should be 6. RS. 25,000

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7. 8. 9. 10. RS. 20,000 RS. 5,000 RS. 10,000 RS. 30,000

142

Question: 1932 The cost of goods sold during January was 6. 7. 8. 9. 10. RS. 40,000 RS. 10,000 RS. 20,000 RS. 30,000 RS. 50,000

Question: 1943 The amount of under-applied or over-applied cost for January 6. 7. 8. 9. 10. Under-applied by RS. 1,000 under-applied by rs. 2,000 over-applied by RS. 1,000 Over-applied by RS. 2,000 Neither under-applied nor over-applied

Question: 1955 in flexible budgeting 6. 7. 8. 9. 10. Following list gives the correct choice for the answer of the accounting mcqs. 1891 . A 1895 . C 1897 . C 1913 . B 1916 . B 1918 . A 1919 . E D statements included in the budget report vary from period to period budget standards may be adjusted at will reporting dates vary according to the activity level reported upon planned activity level is adjusted to the actual activity level before the budget comparison report is prepared

1932 . C

1943 . B

1955 .

Question: 1963 The fixed-variable cost classification has a special significance in the preparation of 6. 7. 8. 9. 10. Flexible budget Master budget cash budget capital budget

Question: 1966 If a company wishes to establish a factory overhead budget system in levels, it should prepare a 6. 7. 8. 9. Flexible budget Master budget cash budget Fixed budget

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10. Question: 1968 Of little or no relevance in evaluating the performance of an activity would be 6. 7. 8. 9. 10. Flexible budget Flexed budget difference between planned and actual results planning and control of activities

143

Question: 1994 The budget for a specific activity level during a year was Rs. 50,000, while actual costs for the same period was Rs. 45,000. Considering these facts, it can be said that the plant manager has done a better than expected job in controlling the costs if 6. the cost is variable and actual production was 80% of budgeted production 7. the cost is variable and actual production was 90% of budgeted production 8. the cost is variable and actual production equaled budgeted production 9. 10. Question: 1997 THE budget that is set first and all the other budgets are subordinate to it, is 6. 7. 8. 9. 10. Cash budget Master budget capital expenditure budget Budget for the key factor sales budget

Question: 1999 The success of a flexible budget depends upends upon careful study and classification of expenses into 6. historical and predetermined 7. manufacturing, administrative and selling is 8. fixed, variable and semi-variable 9. 10. Question: 2000 one of the most important tools of cost planning is 6. 7. 8. 9. 10. cost sheet unit cost direct cost budget

Question: 2001 A is a prediction of what will happen as a result of a given set of circumstances 6. Forecast

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7. Budget 8. Marginal cost 9. None of these 10. Question: 2002 A budget which lays more stress on control aspect is a an 6. 7. 8. 9. 10. operating budget responsibility budget flexible budget financial budget

144

Question: 2003 which of the following is usually a long-term budget 5. 6. 7. 8. Sales budget cash budget capital expenditure budget fixed budget

Following list gives the correct choice for the answer of the accounting mcqs. 1963 . A 1966 . A 1968 . D 1994 . C 1997 . D 1999 . C 2000 . D .C

2001 . A

2002 . B

2003

Question: 2004 A budget representing fixed assets expenditure during the budget period is 6. 7. 8. 9. 10. Fixed budget Capital expenditure budget Long term cash budget Master budget

Question: 2005 The budgeted fixed cost is 6. 7. 8. 9. 10. RS. 30,000 RS. 40,000 RS. 50,000 RS. 80,000

Question: 2006 The standard volume per month on which the budgeted overhead rate is based is 6. 7. 8. 9. 10. 3,000 tons 5,000 tons RS. 5,500 tons 7,000 tons

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Question: 2008 The budgeted fixed overhead cost per ton is 6. 7. 8. 9. 10. RS. 10 RS. 20 RS.21.36 RS. 17.14

145

Question: 2009 The amount of overhead absorbed in March is 6. 7. 8. 9. 10. RS. 80,000 RS. 1,20,000 RS. 1,10,000 RS. 1,17,500

Question: 2010 The expenditure variance in March is 6. 7. 8. 9. 10. RS. 7,500(A) RS.12,500(A) RS. 10,000(A) Nil

Question: 2011 Total overhead variance in March is 6. 7. 8. 9. 10. RS. 7,500 RS. 12,500 RS. 10,000 RS. 20,000

Question: 2012 What is the raw material cost per unit at the actual production level 6. 7. 8. 9. 10. RS. 10.08 RS. 16.80 RS. 8.40 None of these

Question: 2013 What is the total cost of direct labor at actual production level 6. RS. 3,00.000 7. RS. 2,40,000 8. None of these 9. 10.

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Question: 2014 What is the fixed works overhead total amount when output of 1,00,000 units 5. 6. 7. 8. RS. 4,00,000 RS. 2,40,000 RS. 6,00,000 None of these

146

Following list gives the correct choice for the answer of the accounting mcqs. 2004 . B 2005 . C 2006 . B 2008 . A 2009 . C 2010 . B 2011 . A B

2012 . A

2013 . C

2014 .

Question: 2015 What is the fixed works overhead per unit when output is 60,000 units 6. 7. 8. 9. 10. RS. 6 RS. 7 RS. 8 None of these

Question: 2016 What is the variable works overhead per unit at actual production level 6. 7. 8. 9. 10. RS. 4 RS. 3 RS. 2 None of these

Question: 2017 what is the total administrative overhead per unit at actual production level 6. 7. 8. 9. 10. RS. 2.45 RS 1.90 RS. 1,60 None of these

Question: 2018 what is the total selling overhead per unit at 60,000 output 6. 7. 8. 9. 10. RS 0.80 RS 0.90 RS 1.07 None of these

Question: 2019 what is the prime cost at 60,000 output level 6. RS 13.58

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7. RS 13.48 8. RS.18.00 9. None of these 10. Question: 2042 production required in the month of July 1996 is 6. 7. 8. 9. 10. 1,100 units 1,150 units 1,350 units None of the above

147

Question: 2045 production required in the month of August 1996 is 6. 7. 8. 9. 10. 1,100 units 1,150 units 1,350 units None of these

Question: 2048 production required in the month of September 1996 is 6. 7. 8. 9. 10. 1,400 units 1,150 units 1,850 units None of these

Question: 2049 production required in the month of October 1996 is 6. 7. 8. 9. 10. 1,800 units 2,000 units 2,200 units None of these

Question: 2051 production required in the month of November 1996 is 5. 6. 7. 8. 1,800 units 2,200 units 2,400 units None of these

Following list gives the correct choice for the answer of the accounting mcqs. 2015 . D 2016 . A 2017 . A 2018 . C 2019 . B 2042 . A 2045 . D .C

2048 . B

2049 . C

2051

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Question: 2052 production required in the month of December 1996 is 6. 7. 8. 9. 10. 1,800 units 2,200 units 2,400 units None of these

148

Question: 2054 production required for the six months ending December 1996 is 6. 7. 8. 9. 10. 11,000 units 2,200 units 2,400 units None of these

Question: 2057 Closing stock at the end of December will be 6. 7. 8. 9. 10. 1,000 units 1,100 units 1,150 units None of these

Question: 2060 The cost of product as determined under standard cost system is 6. 7. 8. 9. 10. fixed cost historical cost direct cost pre-determined cost

Question: 2061 In evaluating deviations of actual from standard cost, the probable technique used is 6. 7. 8. 9. 10. variable regression variance analysis trend analysis linear progression

Question: 2063 The type of standard that is best suited from cost control point of views is 6. 7. 8. 9. 10. Theoretical standard Expected standard Normal standard Basic standard

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149

Question: 2069 which of the following standards can be attained under the most favorable conditions possible 6. 7. 8. 9. 10. Theoretical standard Expected standard Normal standard Basic standard

Question: 2071 one purpose of standard costs may be described as 6. 7. 8. 9. 10. promoting and measuring performance setting costs of manufacture controlling and reducing costs simplifying production operations

Question: 2072 A company using theoretical standard cost system should expect that 6. 7. 8. 9. 10. most variances will be strongly motivated to attain the standards employees will be strongly motivated to attain the standards a large incentive bonus will be paid costs will be controlled better if lower standards were used

Question: 2077 A company controls its production costs by comparing its actual monthly production cost with the expected levels. Any significant deviations from these expected levels are investigated and evaluated as a basis for corrective action. The quantitative technique that is most probably being used is 5. 6. 7. 8. time series or trend regression analysis differential calculus standard cost variance analysis correlation analysis

Following list gives the correct choice for the answer of the accounting mcqs. 2052 . D 2054 . B 2057 . A 2060 . D 2061 . B 2063 . B 2069 . A C

2071 . C

2072 . A

2077 .

Question: 2077 A company controls its production costs by comparing its actual monthly production cost with the expected levels. Any significant deviations from these expected levels are investigated and evaluated as a basis for corrective action. The quantitative technique that is most probably being used is 6. 7. 8. 9. 10. time series or trend regression analysis differential calculus standard cost variance analysis correlation analysis

Question: 2080 In standard costing system, labor rate variance is obtained by multiplying the

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6. actual rate by the difference between actual hours and standard hours 7. actual hours by the difference between actual rate and standard rate 8. standard rate by the difference between standard hours and actual hours 9. 10. Question: 2082 if standard hours are 400 @Re 1 per hour and actual hours are 380 @ Rs. 1.25 per hour, the labor rate variance is 6. 7. 8. 9. 10. Rs. 20(Favorable) RS.25(FAVOURABLE) RS. 100(Adverse) RS. 95 (Adverse) None of these

150

Question: 2084 Labor efficiency variance in the above Q.3.10 is 6. 7. 8. 9. 10. RS. 20(Favorable) RS. 25(Favorable) RS. 100 (unfavorable) RS. 95 (unfavorable) None of these

Question: 2092 in standard costing, the material price variance is obtained by multiplying the 6. 7. 8. 9. 10. actual price by the difference between actual quantity purchased and standard quantity allowed actual quantity consumed by the difference between actual price and standard price standard price by the difference between standard quantity purchased and standard quantity allowed standard quantity by the difference between actual price and standard price

Question: 2101 if actual material cost is 900 units at Rs. 8 per unit and standard material cost in 1,000 units at RS. 6 per unit, the material cost variance is 6. 7. 8. 9. 10. RS. 2,400 (Favorable) RS. 2,400(Adverse) R.s. 1,200 (Favorable) RS. 1,200 (Adverse)

Question: 2102 The material price variance in the above Q. 3.13 is 6. 7. 8. 9. 10. RS. 600(Favorable) RS. 1,200(Adverse) RS. 1,800(Adverse) RS. 2,400(Favorable)

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Question: 2103 Material usage variance in the above Q. 3.13 is 6. 7. 8. 9. 10. RS.600(Favorable) Rs. 1,000(Adverse) RS. 1,800(Adverse) R.s. 2,400(Favorable)

151

Question: 2106 standard costing will produce the same financial statement results as actual or conventional costing when standard cost variances are distributed to 6. 7. 8. 9. 10. cost of goods sold income or Expense account cost of goods sold and inventory a balance sheet account

Question: 2107 Material mix variance is a sun-variance of 6. 7. 8. 9. 10. Material cost variance Material price variance Material quantity variance Material yield variance

Question: 2109 Material cost variance is RS. 550(A) and material price variance RS. 150(F), the material usage variance should be 5. 6. 7. 8. RS. 400(A) RS. 700(A) RS. 400(F) RS. 700(F)

Following list gives the correct choice for the answer of the accounting mcqs. 2072 . A 2077 . C 2080 . B 2082 . D 2084 . A 2092 . B 2101 . D C 2107 . C 2109 . B

2102 . C

2103 . A

2106 .

Question: 2110 Overhead Budget variance is a sub-variance of 6. 7. 8. 9. 10. overhead volume variance overhead efficiency variance overhead cost variance None of these

Question: 2111 idle time a variance is a sub-variance of

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6. 7. 8. 9. 10. overhead efficiency variance Labor cost variance Labor time variance Labor efficiency variance

152

Question: 2112 Material price variance is Rs. 300(A), material mix variance RS. 150(A) and material sub-usage variance is RS. 50(A). The material cost variance is 6. 7. 8. 9. 10. RS. 400(A) RS. 450(A) RS. 500(A) cannot be computed

Question: 2113 in Q.322 above, the material quantity variance is 6. 7. 8. 9. 10. RS. 50(A) RS. 100(A) RS. 300(A) RS. 250(A)

Question: 2114 Overhead budget variance is RS. 700(A), overhead efficiency variance is RS. 300(F).what is the amount of variable overhead cost variance 6. 7. 8. 9. 10. RS. 1,000(F) RS. 400(A) RS. 400(F) RS. 1,000(A)

Question: 2115 The type of variance not computed for factory overhead is 6. 7. 8. 9. 10. controllable volume equivalent production idle capacity

Question: 2116 standard costing can be used along with 6. 7. 8. 9. 10. Marginal costing Absorption costing job and process costing All of the above

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Question: 2117 standard cost are useful in all of the following except 6. 7. 8. 9. 10. reducing costs speeding up preparation of operating reports establishing records costing inventories

153

Question: 2118 At the end of a financial year Hot shot company had several substantial variances from standard variable manufacturing costs the one for which there is the strongest justification for allocation between inventories and cost of goods sold is the one attributable to 6. 7. 8. 9. 10. Question: 2119 controllable variances are best disposed of by transferring to 5. 6. 7. 8. cost of goods sold inventories of work-in progress and finished goods cost of goods sold and inventories costing profit and Loss A/c additional costs of raw materials acquired under a speculative purchase contract a breakdown of equipment increased labor rates won by the union as a result of strike during the year overestimates of production activity for the period resulting from failure to predict an unusual decline in the market for the company' s product

Following list gives the correct choice for the answer of the accounting mcqs. 2107 . C 2109 . B 2110 . C 2111 . D 2112 . A 2113 . B 2114 . B C 2118 . C 2119 . D

2115 . C

2116 . D

2117 .

Question: 2120 Uncontrollable variances are best disposed of by transferring to 6. 7. 8. 9. 10. cost of goods sold inventories of work-in -progress and finished goods cost of goods sold and inventories costing profit and Loss A/c

Question: 2126 overhead cost variance may be analyzed into 6. 7. 8. 9. 10. two variances three variances four three variances any of the above

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154

Question: 2127 Which of the following statement best explains the difference between standard costing and budgetary controls 6. 7. 8. 9. 10. Budget is a projection of financial accounts whereas standard cost is a projection of cost accounts variances are analyzed under standard costing but not under budgetary control The budget, as a statement of expected costs, is used for forecasting of finance, if certain performances are achieved Budgetary control is more intensive than standard costing

Question: 2128 Fixed overhead expenditure variance is the difference between 6. 7. 8. 9. 10. Budgeted overhead and actual overhead Standard overhead and actual overhead Absorbed overhead and budgeted overhead Absorbed overhead and standard overhead

Question: 2129 Variable overhead expenditure variance is the difference between 6. 7. 8. 9. 10. Budgeted overhead and actual overhead Standard overhead and actual overhead Absorbed overhead and budgeted overhead Absorbed overhead and standard overhead

Question: 2130 Calendar variance is a sub-variance of 6. 7. 8. 9. 10. Expenditure variance Efficiency variance variable overhead cost variance volume variance

Question: 2131 Total sales margin variance is the difference between 6. 7. 8. 9. 10. Actual profit and standard profit Actual profit and budgeted profit Actual sales and budgeted sales None of these

Question: 2132 which of the following variance id always adverse 6. 7. 8. 9. sales margin mix variance Fixed overhead capacity idle time variance None of these

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10. Question: 2133 which of the following variances is always favorable 6. 7. 8. 9. 10. overhead volume variance sales value mix variance calendar variance None of these

155

Question: 2134 sales volume variance is RS 9,000(F)and sales value variance is RS 5,000(F). what are the sales price variance RS 5,000(F)what is the sales price variance 6. 7. 8. 9. 10. RS. 14,000(F) RS. 4,000(A) RS. 4,000(F) None of these

Following list gives the correct choice for the answer of the accounting mcqs. 2120 . C 2126 . D 2127 . C 2128 . A 2129 . B 2130 . D 2131 . B B

2132 . D

2133 . D

2134 .

Question: 2135 Fixed overhead cost variance is expenditure variance is RS 200(A), calendar variance RS 500(F).what is the volume variance 6. 7. 8. 9. 10. RS. 2,700(A) RS. 1,900(A) Rs. 2,200(A), Rs. 2,500(f)

Question: 2136 what is the material price variance as per Q. 3.41 6. 7. 8. 9. 10. RS 400(F) RS 400(A) RS 440(F) RS 440(A)

Question: 2137 What is the material quantity variance in Q 3.41 6. 7. 8. 9. 10. RS 960(A) RS 960(f) RS 1,000(A) RS 1,000(F)

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Question: 2138 The material price variance in Q 3.46 is 6. 7. 8. 9. 10. RS. 100(Adverse) RS. 100(Favorable) RS. 110(Adverse) RS. 110(Favorable) None of the preceding responses is correct

156

Question: 2139 Material mixture variance in Q 3,46 is 6. 7. 8. 9. 10. Rs 110(Adverse) RS. 100 (Favorable) RS. 210(Adverse) Rs. 408 (FAVOURABLE) cannot be computed from the given data

Question: 2140 Labor efficiency variance in Q 3,46 is 6. 7. 8. 9. 10. ES. 152(Adverse) RS. 560(Favorable) RS. 560(Adverse) RS 480(Favorable)

Question: 2141 Labor rate variance in Q3.46 is 6. 7. 8. 9. 10. RS. 152(Adverse) Rs. 560(Favorable) RS. 560(Adverse) RS. 480(Favorable)

Question: 2142 Labor cost variance in Q 3.46 is 6. 7. 8. 9. 10. RS. 560(Favorable) RS. 560(Adverse) RS. 152(Adverse) RS. 408(Adverse) none of the preceding responses is correct

Question: 2143 in Q 3.53, what is the expenditure variance 6. 7. 8. 9. 10. RS. 2,000(A) RS 4,000(A) RS 2,000(F) RS 4,000(F)

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Question: 2144 In Q 3.53, what is the volume variance 5. 6. 7. 8. RS 2,000(A) RS 4,000(A) RS6,000(A) RS 8,000(A)

157

Following list gives the correct choice for the answer of the accounting mcqs. 2135 . C 2136 . C 2137 . C 2138 . E 2139 . E 2140 . B 2141 . A C Question: 2145 Contribution margin is also known as 6. 7. 8. 9. 10. marginal income gross profit net income new profit

2142 . E

2143 . A

2144 .

Question: 2146 product costs under marginal costing include 6. 7. 8. 9. 10. prime costs only prime costs and variable overhead prime costs and fixed overhead material cost and variable overhead

Question: 2147 Period costs are 6. 7. 8. 9. 10. variable costs fixed costs prime cost overhead costs

Question: 2148 One of the primary differences between marginal costing absorption costing is regarding the treatment of 6. 7. 8. 9. 10. direct materials variable overheads fixed overheads prime cost

Question: 2149 A costing method in which the fixed factory overheads are added to inventory valuation is 6. 7. direct costing marginal costing

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8. absorption costing 9. none of these 10. Question: 2150 Profit shown by absorption costing will tend to exceed profit shown by marginal costing method if 6. 7. 8. 9. 10. units produced exceed units sold variable manufacturing costs decreases units sold exceeds units produced fixed manufacturing costs decrease

158

Question: 2151 Absorption costing differs from marginal costing in the 6. 7. 8. 9. 10. fact that standard costs can be used with absorption costing but not with marginal costing amount of fixed costs that will be incurred kinds of activities for which each can be used amount of costs assigned to individual units of products

Question: 2152 Under the marginal costing concept, unit product cost would most likely be increased by 6. 7. 8. 9. 10. Question: 2153 Contribution margin is equal to 6. 7. 8. 9. 10. sales - fixed cost - profit profit + variable cost fixed cost - loss none of the above a decrease in the number of units produced an increase in the number of units produced an increase in the commission paid to salesman for each unit sold an increase in the remaining useful life of factory machinery depreciated on written down value method

Question: 2154 Reporting under marginal costing is accomplished by 6. 7. 8. 9. 10. eliminating the work in progress inventory account including only variable costs in income statement matching variable costs against revenue and treating fixed costs as period costs treating all costs as period costs

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Following list gives the correct choice for the answer of the accounting mcqs. C 2145 . A 2146 . B 2147 . B 2148 . C 2149 . C 2150 . A 2151 . D C 2154 . C Question: 2155 Profit / Volume ratio is an indicator of 6. 7. 8. 9. 10. the volume of sales the volume of profit the rate at which goods are sold the of profit all of these 2152 . C 2153 .

159

Question: 2156 There will be no difference in profit as shown by marginal costing and that of absorption costing when 6. 7. 8. 9. 10. opening and closing stock of finished goods remain constant closing stock of finished goods is more than it s opening stock opening stock of finished goods is more than its closing stock none of the above

Question: 2157 when fixed cost id Rs. 3,000 and sales RS.50,000, the P/V ratio will be 6. 7. 8. 9. 10. 14% 20% 25% p/v ratio cannot be computed from the data given

Question: 2158 when p/v ratio is 40% and sales value RS 10,000 the variable cost will be 6. 7. 8. 9. 10. RS. 4,000 RS. 6000 RS. 10,000 variable cost cannot be calculated from the data given

Question: 2159 if net profit is 10% and p/v ratio is 50%, the margin of safety will be 6. 7. 8. 9. 10. 10% 20% 50% margin of safety cannot be computed

Question: 2160 The margin of safety may be improved by 6. increasing sales volume

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7. 8. 9. 10. increasing selling price lowering variable cost lowering fixed costs All of these

160

Question: 2161 an item whose entire amount is usually a differential cost is 6. 7. 8. 9. 10. factory overhead period cost direct cost conversion cost

Question: 2162 As part of the data presented on support of a proposal to increase the production of car radios, the sales manager of XYZ Electronics reported the total additional cost required for the proposed increased level of production the increase in total cost is known as 6. 7. 8. 9. 10. opportunity out-of-pocket cost controllable cost differential cost

Question: 2163 Alto palo company has temporary unused production capacity. the idle plant facilities can be used to manufacture a low margin item. the low margin item should be produced, if it can sold for more than its 6. 7. 8. 9. 10. fixed costs variable costs prime costs indirect costs

Question: 2164 Cost-volume-profit analysis is most important for the determination of the 6. 7. 8. 9. 10. volume of operations necessary to break even variable revenues necessary to equal fixed costs relationship between revenues and costs at various level of operations sales revenue necessary to equal fixed costs

Following list gives the correct choice for the answer of the accounting mcqs. 2155 . D 2156 . A 2157 . B 2158 . B 2159 . B 2160 . E 2161 . C C

2162 . D

2163 . B

2164 .

question: 2165 if net profit is 10% and p/v ratio is 50%, the margin of safety will be 6. 7. 10% 20%

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8. 50% 9. margin of safety cannot be computed 10. Question: 2166 The alternative that would decrease the contribution margin per unit t he most is a 20% 6. 7. 8. 9. 10. decrease in selling price increase in selling price increase in variable costs decrease in variable cost

161

Question: 2167 when referring to margin of safety, one has the following in mind 6. 7. 8. 9. 10. the excess of budgeted or actual sales over fixed costs the excess of actual sales over break-even sales the excess of actual sales over budgeted sales the excess of sales revenue over variable cost

Question: 2168 The conventional break-even analysis does not assume that 6. 7. 8. 9. 10. selling price per unit will remain fixed total fixed costs remain the same variable cost per unit will vary productivity per worker will remain unchanged

Question: 2169 if fixed costs decrease while variable cost per unit remain constant, the new break-even point on relation to the old break-even point will be 6. 7. 8. 9. 10. indeterminate unchanged higher lower

Question: 2170 if fixed costs decrease while the variable cost per unit remain constant, the new contribution margin in relation to old contribution margin will be 6. 7. 8. 9. 10. indeterminate unchanged higher lower

Question: 2171 when margin of safety is 20% and contribution sales ratio is 60% the profit will be

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6. 7. 8. 9. 10. 30% 33% 1/3% 12% cannot be computed

162

Question: 2172 when fixed cost is RS. 20,000 and margin of safety is RS.10,000, the p/v ratio will be 6. 7. 8. 9. 10. 200% 50% 33% cannot be computed

Question: 2173 when sales jumped from RS. 4,00,000 and profit increased by Rs. 40,000, the p/v ratio is 6. 7. 8. 9. 10. 7.5% 10% 40% cannot be computed

Question: 2174 when total fixed cost is RS. 50,000 and variable cost to sales is 75%, the break-even point id 6. 7. 8. 9. 10. RS. 37,500 RS. 12,500 RS. 2,00,000 cannot be determined

Following list gives the correct choice for the answer of the accounting mcqs. 2165 . B 2166 . A 2167 . B 2168 . C 2169 . D 2170 . B 2171 . C C

2172 . D

2173 . C

2174 .

Question: 2175 on sales of RS.2,00,000. fixed cost is RS. 30,000 and p/v ratio is 40% what is the profit 6. 7. 8. 9. 10. RS50,000 RS. 80,000 RS. 12000 None of these

Question: 2176 In the chart given in 3.32 above, the horizontal line OL represents 6. 7. 8. 9. sales fixed cost total cost profit

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10. Question: 2177 In break-even chart, x-axis represents 6. 7. 8. 9. 10. value of sales in rupee value volume of sales in units volume of production in units production capacity in percentage Any of these

163

Question: 2182 In break-even chart, Y-axis represents 6. 7. 8. 9. 10. volume of sales in units volume of sales in rupees cost and sales in rupees value of production in rupees Any of these

Question: 2187 when it is desired to read contribution margin in break-even chart, than 6. variable cost should be first plotted and fixed cost should be superimposed thereon 7. fixed cost should not be first plotted and variable cost should be superimposed thereon 8. fixed cost should not be plotted at all in the chart 9. 10. Question: 2206 when sales are RS. 8000 and P/V is 80% the amount of variable cost is 6. 7. 8. 9. 10. RS. 64,000 RS. 16,000 Rs. 48,000 cannot be known

Question: 2210 In order to earn a profit of RS. 10,000, when fixed cost is RS. 20,000 and P/v ratio 20% the amount of sales should be 6. 7. 8. 9. 10. RS. 40,000 RS. 30,000 RS. 1,00,000 RS. 1,50,000

Question: 2212 WHEN PROFIT CHANGES BY R.s. 20,000, The sales changes by RS. 25,000, the P/V ratio is 6. 7. 8. 20% 80% 25%

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9. cannot be calculated 10. Question: 2213 when sales volume increases 6. 7. 8. 9. 10. break-even point increases total profit will increase total loss will increase All of the above

164

Question: 2216 which of the following would cause the greatest increase in the unit contribution margin 6. 20% decrease in fixed cost 7. 20% increase in selling price 8. 20% decrease in variable cost 9. 10. Following list gives the correct choice for the answer of the accounting mcqs. 2175 . A .B 2176 . A 2177 . E 2182 . C 2187 . A 2206 . C 2210 . D 2212 . B 2213 . B 2216

Question: 2217 what does area ALO represent in diagram in Q. 3.43 6. 7. 8. 9. 10. profit Fixed cost variable cost contribution

Question: 2220 what does area ALO represent in diagram in Q. 3.43 6. profit 7. Loss 8. contribution 9. 10. Question: 2224 what is represented by CD in diagram in Q. 3.43 6. 7. 8. 9. 10. key factors variable cost Contribution Margin of safety

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Question: 2228 which of the following is NOT an assumption of break-even chart 6. 7. 8. 9. 10. Fixed cost does not change in total amount variable cost does not change in total amount selling price does not change per unit company has no stocks

165

Question: 2233 In calculating cash break-even point, which costs are taken into account 6. 7. 8. 9. 10. Fixed cost requiring cash variable costs requiring cash Both fixed and variable costs requiring cash cash fixed cost and all variable costs including credit

Question: 2237 which of the following is not depicted on a break-even chart 6. 7. 8. 9. 10. profit/Loss at different level of output sales to earn given profit contribution P/V ratio

Question: 2239 In a break-even chart, angle of incidence is formed by the inter-section of 6. 7. 8. 9. 10. sale line and variable cost line sale line and total cost line variable costs and fixed cost lines variable cost and total cost lines

Question: 2271 who has the authority to investigate and regulate all matters of account connected with the police, and all persons concerned shall be bound to give reasonable aid and facilities to conducting such investigations and to confirm to his orders consequent thereto 6. 7. 8. 9. 10. provincial police officer capital city police officer city police officer All of these

Question: 2544 A harmonium enclosed in a sheath is called 6. 7. 8. 9. hormocyst hormogonium trichome trichogyne

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10. Question: 3807 A debit balance on Amitie's account in your sales ledger means that 6. 7. 8. 9. 10. Amitabh owes you the money you owe Amitabh the money Amitabh has just paid you that amount of money Amitabh has returned that amount of goods to you

166

Following list gives the correct choice for the answer of the accounting mcqs. 2217 . A 2220 . B 2224 . D 2228 . B 2233 . C 2237 . D 2239 . B A

2271 . D

2544 . A

3807 .

Question: 3811 A debit balance on the rates account after the yearly transfer to the profit and loss account indicates 6. 7. 8. 9. 10. an asset and an accrual an asset and a prepayment a liability and an accrual a liability and a prepayment

Question: 3820 which one of the following normally has a debit balance? 6. 7. 8. 9. 10. The capital account A creditor's account The motor vehicles account A loan account

Question: 3822 which one of the following normally has a debit balance? 6. 7. 8. 9. 10. The capital account A creditor's account The motor vehicles account A loan account

Question: 3823 Which of the following normally has a credit balance? 6. 7. 8. 9. 10. The machinery account The purchases account The stock account The sales account

Question: 3830 which one of the following statement is correct?

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6. 7. 8. 9. 10. Question: 3832 Gross profit equals 6. 7. 8. 9. 10. sales minus closing stock purchases minus closing stock nit profit minus expenses sales minus cost of goods sold

167

A proprietor's will remain constant if he only withdraws this Net profit each year and does not introduce any new capital. A proprietor's capital will increase if his drawings are higher than his Net profit and he does not introduce any new capital. A proprietor's capital will decrease if his Net profit is greater than his drawings and does not introduce any new capital A proprietor's capital will remain constant if he only withdraws his Net profit each year, but also introduces new capital.

Question: 3835 Cost of sales equals 6. 7. 8. 9. 10. sales minus purchases purchases minus returns out plus closing stock sales plus opening stock minus (purchases plus closing stock) opening stock minus closing stock minus returns out

Question: 3836 Net profit equals 6. 7. 8. 9. 10. gross profit minus expenses sales minus cost of sales sales minus expenses capital minus expenses

Question: 3837 A man buys Rs. 40,000 worth of goods and sells of them for R.s. 50,000. His gross profit is 6. 7. 8. 9. 10. Rs. 10,000 Rs. 20,000 Rs. 30,000 Rs. 40,000

Question: 3839 If sales are Rs. 10,000, expenses Rs. 2,000 and net profit is 10% of sales, the gross profit is 6. 7. 8. 9. 10. Rs. 3,000 Rs. 9,000 Rs. 10,100 Rs. 11,000

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Following list gives the correct choice for the answer of the accounting mcqs. 3811 . B 3820 . C 3822 . C 3823 . D 3830 . A 3832 . D 3835 . D A 3836 . A 3837 . B

168

3839 .

Question: 3840 If the gross profit is Rs. 5000 and the net profit is 25% of the gross profit ,the expenses must be 6. 7. 8. 9. 10. Rs. 1,250 Rs. 3,750 Rs. 4,150 Rs. 6,250

Question: 3841 If sales are Rs. 6,000, gross profit is 20% of sales and net profit is 10% of sales the expenses are 6. 7. 8. 9. 10. Rs. 600 Rs. 1,200 Rs. 2,400 Rs. 4,800

Question: 3842 An operating statement is similar to a 6. 7. 8. 9. 10. trial balance balance sheet trading profit and loss account bank reconciliation statement

Question: 3843 Net sales equals sales minus 6. 7. 8. 9. 10. returns outwards cost of goods sold returns inwards carriage on sales

Question: 3844 The turnover is 6. 7. 8. 9. 10. Rs. 99,000 Rs. 99,500 Rs. 1,00.500 Rs. 1,01,000

Question: 3845 The gross profit as a percentage of net sales is approximately 6. 7. 10% 20%

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8. 30% 9. 40% 10. Question: 3846 The net cost of purchases for the year was 6. 7. 8. 9. 10. Rs. 69,000 Rs. 70.000 Rs.71,000 Rs.73,000

169

Question: 3847 Returns outwards amounted to 6. 7. 8. 9. 10. Rs. 500 Rs. 1,000 Rs. 1,500 Rs. 2,000

Question: 3848 If the purchases had been under cast by Rs. 10,000 the gross profit would be 6. 7. 8. 9. 10. Rs. 31,500 Rs. 41,500 Rs. 51,500 Rs. 61,500

Question: 3849 The cost of goods sold is 6. 7. 8. 9. 10. Rs. 59,000 Rs. 69,000 Rs. 71,000 Rs. 89,000

Following list gives the correct choice for the answer of the accounting mcqs. 3840 . B 3841 . A 3842 . C 3843 . C 3844 . C 3845 . D 3846 . A A Question: 3850 Net profit as a percentage of net sales is approximately 6. 7. 8. 9. 10. 5% 10% 15% 20%

3847 . D

3848 . A

3849 .

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Question: 3851 Expenses for the year total 6. 7. 8. 9. 10. Rs. 29,000 Rs. 30,000 Rs. 31,000 Rs. 32,000

170

Question: 3852 A balance sheet is a 6. 7. 8. 9. 10. statement of debtors and creditors statement of income and expenditure the year statement of cash received and paid throughout the year Financial statement of a business' wealth on a particular scale

Question: 3853 which one of the following is fixed asset for a builder's merchant? 6. 7. 8. 9. 10. Cash Stock Debtors Type wirer

Question: 3854 Which one of the following is garage's current asset? 6. 7. 8. 9. 10. A breakdown van The managing director's private car The condense in the saleroom A customer's car in for repair

Question: 3855 Net current assets are the same as 6. 7. 8. 9. 10. working capital total assets minus current liabilities fixed assets minus current liabilities capital minus current liabilities

Question: 3856 A proprietor's capital of 6. 7. 8. 9. 10. opening capital plus drawing minus net profit total assets minus external liabilities current assets minus working capital opening capital plus net profit plus creditors

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Question: 3857 which one of the following is usually a current liability? 6. 7. 8. 9. 10. Mortgage Bank loan Bank over drat Rent Paid in advance

171

Question: 3858 The percentage return on the owner's opening capital for the past year was 6. 7. 8. 9. 10. 15% 20% 25% 30%

Question: 3859 The working capital is 6. 7. 8. 9. 10. Rs. 20,000 Rs. 30,000 Rs. 50,000 Rs. 1,70,000

Following list gives the correct choice for the answer of the accounting mcqs. 3850 . B 3851 . D 3852 . D 3853 . D 3854 . C 3855 . A 3856 . B A

3857 . C

3858 . C

3859 .

Question: 3860 The owner's capital employed in the business at the date of the balance sheet is 6. 7. 8. 9. 10. Rs. 1,20,000 Rs. 1,40,000 RS. 1,90,000 Rs. 2,13,500

Question: 3861 The business' external liabilities are 6. 7. 8. 9. 10. Rs. 50,000 Rs. 73,500 Rs. 1,20,000 Rs. 1,40,000

Question: 3862 The interest on the loan paid during the year was 6. 7. Rs. 2,500 RS. 5,000

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8. Rs. 7,500 9. Rs. 10,000 10. Question: 3863 The book value of the fixed assets is 6. 7. 8. 9. 10. RS. 50,000 RS. 1,70,000 RS. 2,20,000 RS. 2,70,000

172

Question: 3864 The net assets figure is 6. 7. 8. 9. 10. RS. 73,500 RS. 1,40,000 RS, 1,90,000 RS. 2,13,500

Question: 3865 The years' rent for the business is 6. 7. 8. 9. 10. RS. 1000 RS. 2000 RS. 3000 RS. 4000

Question: 3887 The percentage return on total assets employed was approximately 6. 7. 8. 9. 10. 9% 14% 20% 25%

Question: 3888 select your answer by means of the following code 6. 7. 8. 9. 10. if 1, 2 and 3 are correct if 1 and 2 only are correct if only 1 is correct if only 3 is correct

Question: 3890 In a balance sheet the balance of the fixed assets accounts are usually included at 6. 7. cost book value

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8. scarp value 9. replacement value 10. Question: 3892 which one of the following would usually be regarded as a current liability? 5. 6. 7. 8. A liability due for payment within 12 months A liability due for payment within 24 months A liability due for payment within 36 months A liability due for payment within 48 months

173

Following list gives the correct choice for the answer of the accounting mcqs. 3860 . B 3861 . B 3862 . B 3863 . B 3864 . C 3865 . D 3887 . B A Question: 3894 Net assets equals 6. 7. 8. 9. 10. current assets minus current liabilities fixed assets minus current liabilities total assets minus current liabilities fictitious assets minus current liabilities

3888 . D

3890 . B

3892 .

Question: 3903 which one of the following not a book of original entry 6. 7. 8. 9. 10. The cash book The journal The ledger The sales day of book

Question: 3904 Day books are used 6. 7. 8. 9. 10. because of the requirements of the law to avoid numerous entries in the general ledger because the double entry system would not work with- out you must because the Institute of Charters Account states that you must

Question: 3905 which one of the following is book of original entry and is also part of the ledger? 6. 7. 8. 9. 10. The cash book The journal The sales day book The purchase day book

Question: 3906 The main source of information for the sales day book is obtained from

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6. 7. 8. 9. 10. invoices received credit notes sent out invoices sent out credit notes sent the till roll

174

Question: 3907 The main source of information for the purchase day book is obtained from 6. 7. 8. 9. 10. invoice received invoices sent out credit notes received debit notes sent out

Question: 3908 The main source of information for the sales returns day book is obtained from 6. 7. 8. 9. 10. invoices received invoices sent out credit notes received debit notes received

Question: 3910 The main source of information for the purchase returns day book is obtained from 6. 7. 8. 9. 10. invoices received invoices sent credit notes received debit notes sent out

Question: 3912 The totals of the sales day book are transferred to the 6. 7. 8. 9. 10. debit side of the sales account credit side of the sales account debit side of the sales control account journal proper

Question: 3914 The totals of the purchase returns day books are transferred to the 6. 7. 8. 9. 10. debit side of the returns inwards account debit side of the returns out wards account credit side of the returns inwards account credit side of the returns outwards account

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Following list gives the correct choice for the answer of the accounting mcqs. 3894 . C 3903 . C 3904 . B 3905 . A 3906 . B 3907 . A 3908 . C D Question: 3916 which one of the following is centered in the journal proper? 6. 7. 8. 9. 10. purchases and returns of stock sales and returns of stock cash transactions opening entries of a new business 3910 . C 3912 . B

175

3914 .

Question: 4032 which one of the following is entered in the journal proper? 6. 7. 8. 9. 10. purchase of fixed assets for cash purchase of fixed assets on credit purchase of stock on credit purchase of stock for cash

Question: 4035 which one of the following is entered in the journal proper? 6. 7. 8. 9. 10. The sale of an asset for cash The withdrawal of cash for private use cash discount given to a customer The correction of errors made in the ledger

Question: 4037 An entry in the journal should include 6. the name of the account to be debited 7. the name of the account to be credited 8. A description of the transaction 9. 10. Question: 4040 A trial balance is 6. 7. 8. 9. 10. a balance of the bank account The balance of the bank account a rough draft of the final accounts a list of the balances in the ledger

Question: 4043 The main purposes of a trial balance is to 6. 7. help balance the bank account check the arithmetical accuracy of the double entry

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8. help check the arithmetical accuracy of the double entry 9. help check the bank account with the bank statement 10. Question: 4046 select your answer by means of the following code 6. 7. 8. 9. 10. if 1, 2 and 3 are correct if 1 and 2 only are correct if only 1 is correct if only 3 is correct

176

Question: 4051 which of the following errors would normally be revealed by a trial balance? 6. 7. 8. 9. 10. A transaction is completely omitted from the books A sale to smith brothers is entered in smith and Co.Ltd. account A purchase of stock for resale has been entered in an asset account The sale of an asset has only been entered on one side of the books

Question: 4055 A suspense account is opined when the 6. 7. 8. 9. 10. trading account does not balance profit and loss account does not balance trial balance does not balance bank account does not balance

Question: 4059 select your answer by means of the following code 6. 7. 8. 9. 10. if 1, 2 and 3 are correct if 1 and 2 only are correct if only 1 is correct if only 3 is correct

Following list gives the correct choice for the answer of the accounting mcqs. 3916 . D 4032 . B 4035 . D 4037 . A 4040 . D 4043 . C 4046 . A .D

4051 . D

4055 . C

4059

Question: 4066 if the straight line method of depreciation is used the depreciation charge is 6. 7. 8. 9. 10. a fixed percentage of the cost of the asset each year a percentage of the book value of the asset each year always 10% of the cost of the asset each year a fluctuating percentage of the cost of the asset each year

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Question: 4069 Firms charge depreciation each year 6. 7. 8. 9. 10. to ensure there is enough money in the firm to replace the asset to spread the cost of the asset over its working life to reduce the profit and thus reduce the dividends they can pay to shareholders because the law states they must

177

Question: 4071 which of the following assets is most likely to appreciate rather than depreciate 6. 7. 8. 9. 10. plant and machinery Land and buildings Motor vehicles Fixtures and fittings

Question: 4073 Depreciation is caused by 6. obsolescence 7. wear and tear 8. passage of time 9. 10. Question: 4085 which of the following methods can be used to calculate depreciation? 6. straight line 7. Reducing balance 8. revaluation 9. 10. Question: 4092 The companies Acts state that companies' Final published Accounts must show 6. depreciation charged during past year 7. the balance on the provision for depreciation account 8. the method of calculating depreciation 9. 10. Question: 4094 Another name for the Equal Installment method of depreciation is the 6. 7. 8. 9. 10. reducing balance method sinking fund method straight line method revaluation method

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178

Question: 4098 An asset is purchased for Rs. 11000. The scrap value is Rs. 1,000 and it is expected to last ten years. The amount of straight depreciation charged each year would be 6. 7. 8. 9. 10. RS. 900 RS. 1,000 RS. 1,100 RS. 1,200

Question: 4104 A firm buys an asset for RS. 10,000 and depreciates it using the diminishing balance method. which of the following amounts world be the second years depreciation charge at 10% per annum 6. 7. 8. 9. 10. RS. 800 RS. 810 RS. 900 RS. 1,000

Question: 4107 On 1st January a firms loose tools are valued at RS. 4,500. A year later they are revalued at RS. 3000. The depreciation charge for the year is 5. 6. 7. 8. RS. 500 RS. 1,000 RS. 1,500 RS. 3,OOO

Following list gives the correct choice for the answer of the accounting mcqs. 4066 . A 4069 . B 4071 . B 4073 . A 4085 . A 4092 . B 4094 . C C

4098 . B

4104 . C

4107 .

Question: 4110 The book value of a motor van on 1st January is RS. 20,000.Two years later the book value is Rs. 10,000.. The straight line depreciation rate of charge each years is 6. 7. 8. 9. 10. 12% 25% 33% 50%

Question: 4114 The vehicles in a company's feet usually last three years. it would probably charge depreciation on a fixed installment basis at a rate of 6. 7. 8. 9. 10. 25% per annum 33% per annum 50% per annum 665% per annum

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179

Question: 4116 A firm buys a lathe for Rs. 20,000 on 1st January and another one for RS.24,000 on 1st July. Deprecation is charged at the rate of 10% per annum or cost, using the basis of one month's ownership needs one month's depreciation. The total depreciation charge on the 31 December should be 6. 7. 8. 9. 10. RS. 2,200 RS. 3,200 RS. 3,600 RS.4,400

Question: 4119 An asset cost RS. 12,000 and is expected to last ten years, so depreciation is charged at RS. 1,200 per year. How-ever, after ten years the asset is still in use. Which of the following would be the future charge for depreciation? 6. 7. 8. 9. 10. Continue to charge RS. 1,200per year depreciation Credit profit and loss account with RS. 1,200 every year the asset continues to be in use. Stop charging depreciation after the ten years Reduce the depreciation charge on another asset

Question: 4121 A firm's assets at total RS. 1,00,000. The total depreciation charged to date is RS.45,000. The book value of the assets is 6. 7. 8. 9. 10. RS. 45,000 RS. 55,000 RS. 1,00,000 RS. 1,45,000

Question: 4125 A firm's assets at cost total Rs.1,00,000 .The total depreciation.2,40,000. charged to date is Rs.2,40000. Depreciation was charged at the rate of 10% annum by the straight line method. It decided to change its method to diminishing balance at 10% per annum, with retrospective effect. The total difference in the profits over the three years would be 6. 7. 8. 9. 10. RS, 6,690 Rs, 6,960 RS. 9,660 RS. 9,690

Question: 4174 If the provision for bad debts account is adjusted at the end of this financial year to equal 5% of the debtors. the balance on the total debtors account at 31st December must have been 6. 7. 8. 9. 10. RS. 10,000 RS. 25,000 RS. 40,000 RS. 50,000

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180

Question: 4175 The nit figure for debtors which appeared in the balance sheet at the end of the previous year was 6. 7. 8. 9. 10. RS. 47,500 RS. 48,000 RS. 51,500 RS. 52,500

Question: 4176 If the RS. 1,000 bad debts had not been written off, the overall effect on the profit for the year of all the entries relating to debtors, debts and provision for bad debts is 6. 7. 8. 9. 10. a decrease of TS. 1,500 a decrease of RS. 1,500 an increase of RS. 500 an increase of RS. 1,500

Question: 4183 If the Rs. 1,000 bad debts had not been written off, the overall effect on the profit for the year of all the entries relating to debtors, bad provision for bad debts would have been 5. 6. 7. 8. nil a decrease of Rs. 500 an increase of RS. 500 an increase of RS. 1,500

Following list gives the correct choice for the answer of the accounting mcqs. 4110 . B 4114 . B 4116 . B 4119 . C 4121 . B 4125 . B 4174 . C C

4175 . A

4176 . B

4183 .

Question: 4186 If the Rs. 1,000 bad debts had not been written off, the overall effect on the profit for the year of all the entries relating to debtors, bad provision for bad debts would have been 6. 7. 8. 9. 10. nil a decrease of Rs. 500 an increase of RS. 500 an increase of RS. 1,500

Question: 4190 Which one of the following statements about debtors, bad debts and provisions for bad debts in the incorrect? 6. 7. 8. 9. 10. Debtors usually appear as a current asset in the balance in the balance sheet provisions for bad debts usually have a debit balance in ledger The bad debts account usually has a debit balance in the ledger An increase in the provision for bad debts account will reduce the profit of the firm

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181

Question: 4191 which one of the following types of business is likely to have the largest amount of 'bad debts' ? 6. 7. 8. 9. 10. A Chinese take away A newsagent A bank A supermarket

Question: 4193 If the sales ledger control has a debit balance of RS. 39,400 it means that 6. 7. 8. 9. 10. there is RS. 39,400 in the bank account customers owe you RS. 39,500 you owe supplies R.s. 39500 you owe expenses totaling RS. 39,400

Question: 4197 If the purchase ledger control has a credit balance of RS. 48,000 it means that 6. 7. 8. 9. 10. your bank account is overdrawn by RS. 48,000 customers customers owe you RS. 48,000 you owe suppliers RS. 48,000 you owe expenses totaling RS. 48,000

Question: 4200 The total of the returns out wards for the month should be entered on the 6. 7. 8. 9. 10. debit side of the purchase control account credit side of the purchase control account credit side of the sales control account debit side of the sales control account

Question: 4201 Additional freight costs charged control account 6. 7. 8. 9. 10. credit side of the purchase control account credit side of the purchase control account credit side of the sales control account debit side of the sales control account

Question: 4202 Cash discounts received should be entered on the 6. 7. 8. 9. 10. debit side of the purchase control account credit side of the purchase control account credit side of the sales control account debit side of the sales control account

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182

Question: 4207 At the end of the financial year, once the balances on the control account are agreed with the total balances from their respective ledgers, they should appear in the balance sheet as 6. 7. 8. 9. 10. fictitious assets and debentures debtors' and creditors' balance fixed assets and long term liabilities fixed assets and share capital

Question: 4210 A cherub received which has now been dishonored should be entered on the 5. 6. 7. 8. debit side of the purchase control account credit side of the purchase control account credit side of the sales control account debit side of the sales control account

Following list gives the correct choice for the answer of the accounting mcqs. 4186 . C .D 4190 . B 4191 . D 4193 . B 4197 . C 4200 . A 4201 . D 4202 . C 4207 . B 4210

Question: 4217 Assuming that it reconciles with the cash book, a credit balance on a bank statement on the 31st December would appear in the balance sheet as a 6. 7. 8. 9. 10. current asset current liability fixed asset long term liability

Question: 4220 when the monthly bank statement is out which one of the following would appear? 6. 7. 8. 9. 10. cherubs written but not yet presented for payment credit transfer received from customers payment into the band not yet credited A sales ledger balance written off as a bad debt

Question: 4224 which one of the following be entered in the cash book and not on the bank statement ? 6. 7. 8. 9. 10. Bank charges A dishonored cherub payments into the bank but not yet credited A credit transfer received from a customer

Question: 4225 when drawing up a bank reconciliation statement, if you start with a debit balance as per the bank statement, the unrepresented cherubs should be

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6. 7. 8. 9. 10. added subtracted multiplied divided

183

Question: 4228 when drawing up a bank reconciliation statement, if you start with a debit balance in the cash book , bank charges should be 6. 7. 8. 9. 10. added subtracted multiplied divided

Question: 4233 The petty cash is kept on the IMPREST system and the balance at the start of the month is Rs. 1,000. If petty cash expenses during the month of Rs.720 are incurred, the amount received from the cashier at the start of the next month should be 6. 7. 8. 9. 10. Rs.280 Rs.720 Rs.1,000 Rs.1,720

Question: 4234 The main purpose of petty cash is 6. 7. 8. 9. 10. to pay employees wages to pay suppliers for their goods as change for the till to pay small day to day business expenses

Question: 4236 Under the immprest system the petty cash is 6. 7. 8. 9. 10. increased every week reduced every week always restored to the original amount used up completely before being restored

Question: 4237 A receipts and payments account is similar to 6. 7. 8. 9. 10. an income and expenditure account a statement of affairs a cash or bank account a profit and loss account

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Question: 4238 A club's income and expenditure account performs the same function as a firm's 6. 7. 8. 9. 10. trading profit and loss account balance sheet bank account petty cash book

184

Following list gives the correct choice for the answer of the accounting mcqs. 4217 . A 4220 . B 4224 . C 4225 . A 4228 . B 4233 . B 4234 . D A Question: 4239 A club's balance sheet may be referred to as its 6. 7. 8. 9. 10. income and expenditure account receipts and payments account accumulated fund statement of affairs

4236 . C

4237 . C

4238 .

Question: 4240 A club's loss is often referred to as 6. 7. 8. 9. 10. a balance a deficit a surplus drawing

Question: 4241 The amount of member's subscriptions paid advance is 6. 7. 8. 9. 10. as asset an expense a liability a surplus

Question: 4242 If a club owned a bar, the amount of profit or made by the bar in a financial year would be shown in the 6. 7. 8. 9. 10. receipts and payments account income and expenditure account balance sheet bank account

Question: 4243 A club's capital may be referred to as its 6. bank balance

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7. assets 8. accumulated fund 9. surplus 10.

185

Question: 4244 A club has 100 members and the subscription is Rs.10 per year. All have paid the right amount except three members who paid Rs.20 each because they owed for the previous year, and one member who also paid for next year . The income from subscriptions for the year in the income and expenditure account should be 6. 7. 8. 9. 10. Rs.960 Rs.1,000 Rs.1,030 Rs.1,040

Question: 4245 Depreciation written off the snooker table should be entered in the 6. 7. 8. 9. 10. receipts and payments account only receipts and payments account and the income and expenditure account receipts and payments account and the statement of affairs income and expenditure account and the statement

Question: 4246 Rs.4,000 spent on a snooker table should be entered in the 6. 7. 8. 9. 10. receipts and payments account only receipts and payments account and the income and expenditure account receipts and payments account and the statement affairs income and expenditure account and the statement of affairs

Question: 4247 The rate of turnover of stock is the 6. 7. 8. 9. 10. total value of turnover average stock divided by the cost of sales numbers of times the average stock is sold average of the opening and closing stock

Question: 4248 The cost of goods sold is the 5. 6. 7. 8. average stock divided by the rate of turnover of stock average stock multiplied by the turnover rate of turnover of stock divided by the average stock average stock multiplied by the rate of turnover of stock

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Following list gives the correct choice for the answer of the accounting mcqs. 4239 . D 4240 . B 4241 . C 4242 . B 4243 . C 4244 . B 4245 . D D 4246 . C 4247 . C

186

4248 .

Question: 4249 Which one of the following is most likely to have the lowest rate of stock turn? 6. 7. 8. 9. 10. a super market a greengrocer a newsagent a jeweler

Question: 4250 If a supermarket marks up its goods for resale by 10% on cost, the gross profit made on Rs. 1,000 worth of purchased should be 6. 7. 8. 9. 10. Rs.100 Rs.900 Rs.1,000 Rs.1,100

Question: 4252 During a year a store makes a gross profit of Rs.80,000 which is 20% of the cost of goods sold. The sales mast therefore be 6. 7. 8. 9. 10. Rs. 4,00,000 Rs. 4,80,000 Rs. 4,00,000 Rs. 1,00,000

Question: 4253 During a year a store's sales are Rs.5,00,000 and expenses are 20% of the gross profit. If 25% is added to the cost price of goods to obtain the selling price, the net profit is 6. 7. 8. 9. 10. Rs. 25,000 Rs. 55,000 Rs. 80,000 Rs. 1,00,000

Question: 4254 A trader starts a business with Rs.10000 cash and a van worth Rs.5000. At the end of his first year he has Rs.2000 in the bank, stock worth Rs.5,000, debtors valued Rs.2,000 and the van which is now worth Rs.Rs.4,000. If he has withdrawn Rs.2,000 from the business during the year for private expenses, he has made 6. 7. 8. 9. 10. a loss of Rs.1,000 neither a profit nor a loss a profit of Rs.1,000 a profit of Rs.2,000

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Question: 4257 A store's make up is the 6. 7. 8. 9. 10. gross profit expressed as a percentage of the cost of goods sold gross profit expressed as a percentage of the sales not profit expressed as a percentage of the cost of goods sold net profit expressed as a percentage of the sales

187

Question: 4258 A store's margin is the 6. 7. 8. 9. 10. gross profit expressed as a percentage of the cost goods sold gross profit expressed as a percentage of the sales net profit expressed as a percentage of the cost goods sold net profit expressed as a percentage of the sales

Question: 4259 A trader uses his business bank account and writes cherubs totaling Rs 25,000 for his private use. He also takes stock valued at Rs.9,000 from the shelves for his own use, and decides to give his daughter one of the firm's typewriters valued at Rs.1,200 as she is starting a secretarial course at the local college. His drawings for the year total 6. 7. 8. 9. 10. Rs. 25,000 Rs. 26,200 Rs. 34,000 Rs. 35,200

Question: 4260 if a store's mark up is 25% the margin must be 6. 7. 8. 9. 10. 5% 10% 15% 20%

Question: 4261 Ten people formed a partnership and contributed Rs.100 each to the venture. The total capital was used to purchase goods which were resold at a markup of 100% on cost. If expenses were 25% of sales and the net profit was distributed equally to the partners, each partner has increased his initial capital by 6. 7. 8. 9. 10. 25% 50% 75% 100%

Following list gives the correct choice for the answer of the accounting mcqs. 4249 . D 4250 . A 4252 . B 4253 . C 4254 . B 4257 . A 4258 . B B

4259 . D

4260 . D

4261 .

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188

Question: 4266 A firm owes Rs. 200 to trade creditors at the start in the year and Rs.300 at the end. Purchases on credit during the year totaled Rs.10,000. If suppliers allowed a total of Rs. 500 cash discount during the year, the amount paid so the creditors have been 6. 7. 8. 9. 10. Rs. 9,200 Rs. 9,400 Rs. 9,600 Rs. 9,200

Question: 4267 A firm's debtors fell from Rs.1,000 at the start of the year to Rs.900 at the end. the total of the sales day book was Rs.7,900 and the cash book showed that Rs. 7,700 was received from debtors during the year. Assuming a bad debt of Rs. 100 was written off, the cash discount allowed to credit customers during the year must have amounted to 6. 7. 8. 9. 10. Rs. 200 Rs. 400 Rs. 700 Rs. 900

Question: 4268 the main purpose of a manufacturing account is to find the 6. 7. 8. 9. 10. cost of overheads cost of raw materials used cost of production gross profit

Question: 4270 Which one of the following is not an overhead? 6. 7. 8. 9. 10. cost of raw materials depreciation of plant and machinery rent and rates of the factory foreman's wages

Question: 4272 An alternative expression for indirect expenses is 6. 7. 8. 9. 10. prime cost production cost work in progress overheads

Question: 4273 Which one of the following would not be included in the prime cost? 6. manufacturing wages

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7. direct power 8. direct factory expenses 9. heating and lighting of the factory 10. Question: 4275 The prime cost consists of 6. 7. 8. 9. 10. wages plus overheads materials plus overheads all direct factory expenses indirect factory expense

189

Question: 4286 A bank reconciliation statement reconciles the 6. 7. 8. 9. 10. ledger with the journals petty cash book with the bank account bank statement with the cash book day books with the bank statement

Question: 4287 Assuming that it reconciles with the cash book, a credit balance on a bank statement on the 31st December would appear in the balance sheet as a 6. 7. 8. 9. 10. current asset current liability fixed asset long term liability

Question: 4288 when the monthly bank statement is sent out which one of the following would appear? 5. 6. 7. 8. cherubs written but not yet presented for payment credit transfer received from customers payment into the bank not yet credited A sales ledger balance written off as a bad debt

Following list gives the correct choice for the answer of the accounting mcqs. 4266 . B 4267 . A 4268 . C 4270 . A 4272 . D 4273 . D 4275 . C B Question: 4289 work in progress at the end of the financial year is 6. 7. 8. included in the present year's production cost not included in the present year's production cost included in the previous year's production cost

4286 . C

4287 . A

4288 .

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9. added to the cost of raw materials 10. Question: 4290 work in progress at the end of the financial year is 6. 7. 8. 9. 10. included in the present year's production cost not included in the present year's production cost included in the previous year's production cost added to the cost of raw materials

190

Question: 4291 If the prime cost is Rs. 40,000 overheads R.s. 60,000, work in progress at 1st January Rs. 10,000 and work in progress at 31st December RS. 20,000 the cost of the year's production of finished goods is 6. 7. 8. 9. 10. RS. 90,000 RS. 1, 00,000 RS. 1,10,000 RS. 1,30,000

Question: 4292 Depreciation of plant and machinery is usually classified as 6. 7. 8. 9. 10. a financial cost an overhead cost a selling cost an administration cost

Question: 4293 If a manufacturing company gas to pay a royalty for every unit it produces, this would probably be classified as 6. 7. 8. 9. 10. an indirect cost a direct cost an overhead a cost of materials

Question: 4294 Which one of the following is usually classified as a variable cost in the short term? 6. 7. 8. 9. 10. cost of materials used factory rates factory rent foreman's wages

Question: 4295 which one of the following is usually classified as a fixed cost in the short term? 6. Direct labor costs

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7. power for the factory machinery 8. cost of materials used 9. factory rent and rates 10. Question: 4296 In a manufacturing firm's trading account the cost of production figure replaces the 6. 7. 8. 9. 10. cost of goods sold closing stock of finished goods purchase of finished goods gross profit

191

Question: 4297 The cost of raw materials used is 6. 7. 8. 9. 10. Rs. 5,00,000 Rs. 6,00,000 RS. 6,50,000 RS. 6,70,000

Question: 4298 The prime cost is 6. 7. 8. 9. 10. RS. 6,00,000 RS. 670,000 RS. 11,00,000 RS. 14,20,000

Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 4289 . B 4290 . B 4291 . A 4292 . B 4293 . B 4294 . A 4295 . D C Question: 4299 The total factory overheads are 6. 7. 8. 9. 10. RS.2,30,000 RS. 3,20,000 RS. 14,10,000 RS. 14,20,000

4296 . C

4297 . B

4298 .

Question: 4300 The cost of the year's production of finished goods is 6. 7. 8. RS. 11,00,000 RS. 14,10,000 RS. 14,20,000

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9. RS. 14,60,000 10. Question: 4301 The work in progress at the start of the year was 6. 7. 8. 9. 10. RS. 10,000 RS. 30,000 RS. 40,000 RS. 50,000

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Question: 4302 The indirect wages for the year totaled 6. 7. 8. 9. 10. RS. 10,000 RS. 20,000 RS. 30,000 RS. 40,000

Question: 4303 If the accountant had forgotten to take in to account that RS. 5,000 paid for forgotten to take into account that RS. 5,000 paid for factory rates was for the following year, the production cost would have been 6. 7. 8. 9. 10. RS. 14,05,000 RS. 14,10,000 RS. 15,000 RS. 14,20,000

Question: 4304 At the end of the financial year a partner's drawing current account are transferred to the 6. 7. 8. 9. 10. credit side of the partner's capital account credit side of the partner's current account debit side of the partnership bank account debit side of the partner's

Question: 4305 After the final accounts have been prepared, a debit balance on a partner's current account means that the 6. 7. 8. 9. 10. partner is owed that amount by partnership partnership's bank account is overdrawn partner is in debt to the partnership for that amount partnership has no working capital

Question: 4306 If one partner received a salary which is credited to him at the end of the year, the share of the profit available for distribution will be

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6. 7. 8. 9. 10. increased decreased unchanged non-existent

193

Question: 4314 which one of the following would be entered in the cash book and not on the bank statement 6. 7. 8. 9. 10. Bank charges A dishonored cherub payment into the bank but not yet credited A credit transfer received from a customer

Question: 4315 when drawing up a bank reconciliation statement, if you start with a debit balance as per the bank statement, the unprecedented cheques should be 5. 6. 7. 8. added subtracted multiplied divided

Following list gives the correct choice for the answer of the accounting mcqs. 4299 . B 4300 . B 4301 . C 4302 . C 4303 . A 4304 . D 4305 . C A

4306 . B

4314 . C

4315 .

Question: 4316 when drawing up a bank reconciliation statement, if you start with a debit balance in the cash book, the bank charges should be 6. 7. 8. 9. 10. added subtracted multiplied divided

Question: 4317 when the monthly bank statement is sent out which one of the following would not appear 6. 7. 8. 9. 10. Interest charged by the bank A dishonored cheque A direct debit A payment from petty cash

Question: 4318 The petty cash is kept on the Imprest system and the balance at the start of the month is RS. 1,000. If petty cash expenses during the month of RS. 720 are incurred, the amount received from the cashier at the start of the next month should be 6. RS. 280

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7. RS. 720 8. RS. 1,000 9. RS. 1,720 10. Question: 4319 The main purpose of petty 6. 7. 8. 9. 10. to pay employees, wages to pay suppliers for their goods as change for the till to pay small day to day business expenses

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Question: 4351 An analytical petty cash book 6. 7. 8. 9. 10. Lists different petty expenses under their relevant headings is used instead of three column cash book is not part of the double entry system is always run on the imprest system

Question: 4353 Under the Imprest system the cash is 6. 7. 8. 9. 10. increased every week reduced every week always restored to the original amount used op completely before being restored

Question: 4355 A receipts and payments account is similar to 6. 7. 8. 9. 10. an income and expenditure account a statement of affairs a cash or bank account a profit and loss account

Question: 4358 A club's income and expenditure account performs the same function as a firm's 6. 7. 8. 9. 10. trading, profit and loss account balance sheet bank account petty cash book

Question: 4359 A club's balance sheet may be referred to as its 6. income and expenditure account

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7. receipts and payments account 8. accumulated fund 9. statement of affairs 10. Question: 4360 A club's capital may be referred to as its 6. 7. 8. 9. 10. bank balance assets accumulated fund surplus

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Following list gives the correct choice for the answer of the accounting mcqs. 4316 . B 4317 . D 4318 . B 4319 . D 4351 . A 4353 . C 4355 . C C Question: 4362 A club's loss is often referred to as 6. 7. 8. 9. 10. a balance a deficit a surplus drawings

4358 . A

4359 . D

4360 .

Question: 4366 The amount of member's subscriptions paid in advance is 6. 7. 8. 9. 10. an asset an expense a liability a surplus

Question: 4368 I a club owned a bar, the amount of profit or loss made by the bar in a financial year would be shown in the 6. 7. 8. 9. 10. receipts and payments account income and expenditure account balance sheet bank account

Question: 4372 A club has 100 members and the subscription is RS. 10 per year. All have paid the right amount except three members who paid RS. 20each because they owed for the previous year, and one member who also paid for next year. The income from subscriptions for the year in the income and expenditure account should be 6. RS. 960

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7. RS. 1,000 8. RS. 1,030 9. RS. 1,040 10. Question: 4373 RS. 4,000 spent on a snooker table should be entered in the 6. 7. 8. 9. 10. receipts and payments account only receipts and payments account and the income and expenditure account receipts and payments account and the statement of affairs income and expenditure account and the statement of affairs

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Question: 4374 Depreciation written off the snooker table should be entered on the 6. 7. 8. 9. 10. receipts and payments account only receipts and payments account and the income and expenditure account receipts and payments account and the statement of affairs income and expenditure account and the statement of affairs

Question: 4375 During the year the cash figure has increased by 6. 7. 8. 9. 10. RS. 820 RS. 1,000 RS.1,820 RS.2,790

Question: 4376 The accumulated fund at the beginning of the club's second year amounted to 6. 7. 8. 9. 10. RS. 820 RS.1,000 RS. 1,820 RS. 2,790

Question: 4377 Rent owing at the end of the year amounted to 6. 7. 8. 9. 10. nil RS. 50 RS. 350 RS. 400

Question: 4378 Rates owing at the end of the year amounted to 6. nil

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7. RS. 30 8. RS. 100 9. RS. 130 10. Following list gives the correct choice for the answer of the accounting mcqs. 4362 . B 4366 . C 4368 . B 4372 . B 4373 . C 4374 . D 4375 . B A

197

4376 . A

4377 . B

4378 .

Question: 4379 The amount owed to creditors for supplies of sweets at 31 December was 6. 7. 8. 9. 10. RS. 30 RS. 210 RS. 420 RS. 600

Question: 4381 The book value of fixed assets at 31st December amounted to 6. 7. 8. 9. 10. RS. 20 RS. 70 RS.90 RS. 110

Question: 4382 If the donations had been 'capitalized,' the accumulated fund at 31st December would have been 6. 7. 8. 9. 10. RS. 700 RS. 820 RS. 1,520 RS. 1,740

Question: 4383 If the donations had been 'capitalized,' the surplus would have been 6. 7. 8. 9. 10. RS. 120 RS. 700 RS.820 RS.1,520

Question: 4384 The current assets at 31st December amounted to 6. 7. 8. 9. RS. 1,000 RS. 1,040 RS. 1,070 RS. 1,110

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10. Question: 4386 The rate of turnover of stock is the 6. 7. 8. 9. 10. total value of turnover average stock divide by the cost of sales number of times the average stock is sold average of the opening and closing stock

198

Question: 4389 The cost of goods sold is the 6. 7. 8. 9. 10. average stock divided by the rate of turnover of stock average stock multiplied by the turnover rate of turnover of stock divided by the average stock average stock multiplied by the rate of turnover of stock

Question: 4392 which one of the following is most likely to have the lowest rate of stock turn? 6. 7. 8. 9. 10. A super market A greengrocer A news agent A jeweler

Question: 4398 If a supermarket marks up its goods for resale by 10% on cost, the gross profit made on RS. 1,000 worth of purchased should be 6. 7. 8. 9. 10. RS. 100 RS. 900 RS. 1,000 RS. 1,100

Question: 4399 which one of the following is most likely to have the lowest rate of stock turn? 6. 7. 8. 9. 10. A super market A greengrocer A news agent A jeweler

Following list gives the correct choice for the answer of the accounting mcqs. 4379 . B 4381 . C 4382 . B 4383 . A 4384 . C 4386 . C 4389 . D D

4392 . D

4398 . A

4399 .

Question: 4401 The amount owed to creditors for supplies of sweets at 31 December was

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6. 7. 8. 9. 10. RS. 30 RS. 210 RS. 420 RS. 600

199

Question: 4404 During a year a store makes a gross profit of RS. 80,000 which is 20% of the cost of goods sold The sales mast therefore be 6. 7. 8. 9. 10. RS. 4,000,000 4,80,000 RS. 5,20,000 RS. 1,00,000

Question: 4411 During a year a store's sales are R.s. 5,00,000 and expenses are 20% of the gross profit. If 25% is added to the cost price of goods to obtain the selling price, the net profit is 5. 6. 7. 8. RS. 25,000 RS. 55,000 RS. 80,000 RS. 1,00.000

Following list gives the correct choice for the answer of the accounting mcqs. 4398 . A 4399 . D 4401 . B 4404 . B 4411 . C

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200

E C O N O M
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201

I C S

Question: 924 Direct wages should always be classified 11. 12. 13. 14. 15. as variable costs as fixed costs as semi-fixed according to their actual behavior

Question: 928 The First in First Out (FIFO) materials pricing system charges issues at 11. 12. 13. 14. 15. the price of the most recent batch in stock the price of the first component used in the period the average price of goods in stock the price of the oldest batch in stock

Question: 933 The Last in First Out (LIFO) system will 11. 12. 13. 14. 15. value stocks at current values understate product in times of rising prices tend to produce realistic product costs make cost comparisons between jobs easier

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Question: 940 When Activity Based Costing is used it is probable the 11. 12. 13. 14. 15. all products will cost more high volume product will tend to be costed lower direct costs will be a smaller proportion of total costs more costs will be charghed to products which are produced for stock

202

Question: 942 the use of backflush accounting means that 11. 12. 13. 14. 15. conversion costs cannot be carried forward in stock values stocks cannot occur raw material costs will be reduced costs are attributed to stock and cost of sales when the finished goods are made

Question: 943 Unit costs are extensively used in the public sector. This is because 11. 12. 13. 14. 15. they are a rough and ready guide to efficiency they are a good measure of the quality of service provided they allow for regional differences they enable public sector organizations to stay within the set cash limits

Question: 944 which of the following firms are most likely to use process costing 11. 12. 13. 14. 15. a car manufacturer a sugar refinery a builder a departmental store

Question: 946 Activity Based Costing absorbs overheads into products 11. 12. 13. 14. 15. by treating most of them as long-term variable costs by ignoring the volume of production according to the usage of support overheads by only producing on demand

Question: 948 Significant Digit Codes are 11. 12. 13. 14. 15. where some of the digits are part of the description only used for raw materials to enable a code to be self-checking a means of combing expenditure and location codes

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Question: 952 Check digit variations is 11. 12. 13. 14. 15. the process of checking invoices for correct calculations a method of making code numbers self checking to enable codes to be self-indexing the encoding of invoices with internal codes

203

Question: 956 which of the following firms would be most likely to use job costing 11. 12. 13. 14. 15. a paint manufacturer a sugar refinery a firm of architects a car manufacturers

Following list gives the correct choice for the answer of the accounting mcqs. 924 . D 928 . D 933 . C 940 . B 942 . D 943 . A 944 . B 946 . C C Question: 960 Labor turnovers can be expressed as a ratio as follows 11. 12. 13. 14. 15. Number of leavers Number replaced Numbers of employees at the end Number of leavers in a period

948 . A

952 . B

956 .

Question: 965 A cost drivers is 11. 12. 13. 14. 15. the amount of overhead caused by an activity a unit of activity which causes costs a long term variable costs equivalent to a cost centre

Question: 969 Prime cost includes 11. 12. 13. 14. 15. Direct labour,direct materials and direct expenses All direct costs plus factory overheads Direct materials plus total overheads Direct labor plus factory overheads

Question: 974 A cost center is 11. A unit of production in relation to which costs are ascertained 12. A location which is responsible for controlling direct costs

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13. Part of the overhead system by which costs are gathered together 14. Any location or department which incurs cost 15. Question: 981 Cost apportionments is carried out by 11. 12. 13. 14. 15. Charging each cost unit a realistic proportion of overheads charging whole items of cost to centers Ensuring that each period carries its amount of cost by making accruals or prepayment s Dividing common costs among centers in proportion to the benefit received

204

Question: 990 Overhead absorption is done so that 11. 12. 13. 14. 15. common costs are shared among cost centres,in portion to the benefit received The total amount of overheads for the firm can be calculated The total overheads for a cost centre can be calculated Each unit of the product carries a share of overheads

Question: 998 Expenditure on steel used in the product would be classified into which of the following categories 11. 12. 13. 14. 15. Direct material/cost unit direct material/production overheads in direct material/cost unit prime cost/production overhead

Question: 1005 A firms uses direct labor a basis for overhead absorption if large fluctuations in labor house are experiences 11. 12. 13. 14. 15. this is a reason to use predetermined overhead rate this will mean that overheads will be under or over absorbed for the year different amounts of overhead will be charged to jobs with the same labor hours it will be better to use a machine hour rate

Question: 1039 A predetermined overhead rate using machine hours as a basis 11. 12. 13. 14. 15. is calculated by dividing actual overhead by budgeted machine hours results in the over absorption of overhead is inferior to a rate based on labor hours results in charging similar overheads to jobs with similar machine hours

Question: 1043 the costing associated with a typical site based contract

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11. 12. 13. 14. 15. means that more costs can be identified as direct requires some estimate to be made of interim profits means that the contract account will be credited with materials at the end of thee contract includes all of these

205

Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 952 . B 956 . C 960 . B 965 . B 969 . A 974 . C 981 . D 990 . D .D 1043 . D

998 . A

1005 . A

1039

Question: 1046 Using process costing the amount of cost transferred to finished goods stock is the cost of 11. 12. 13. 14. 15. the equivalent production for the period the units completed during the period the units started and completed during the period the units in the opening Finished Goods stocks

Question: 1054 Double loop feedback 11. 12. 13. 14. 15. is information designed to ensures that operations conform to plans is designed to assess how well the control system operates and how relevant current pains are is information passed up two layers of the organization is information that is double checked for accuracy

Question: 1057 the distance A represents 11. 12. 13. 14. 15. contribution at activity level X profit at activity level X the amount of variable costs at activity level X the margin of safety

Question: 1061 the distance represents 11. 12. 13. 14. 15. contribution at activity level Y the amount of variable costs at activity level Y the level of sales at activity level Y the amount of variable costs at activity level Y

Question: 1069 which of the following are possible causes of the changes in the graph at activity level Z 11. an increase in sales value causing an increase in contribution 12. a decrease in fixed costs causing an increase in variable costs

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13. an increase in total fixed costs and a decrease in variable costs per unit 14. an increase in total variable costs and a decrease in fixed costs per unit 15. Question: 1078 what do the lines C and D represent 11. 12. 13. 14. 15. Fixed costs and variable costs respectively Total costs and variable costs respectively Variable cost and fixed costs respectively Sales revenue and total costs respectively

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Question: 1081 if the total expenditure on cost type X was expressed as a cost per unit of the product X would be classified as variable if 11. 12. 13. 14. 15. the cost per unit changed with the level of activity the cost per unit was affected by inflation the cost per unit remained constant with changes in the level of activity the total expenditure on X remained the same

Question: 1085 the main purpose of cost accounting is to 11. 12. 13. 14. 15. maximize profits help in inventory valuation provide information to management for decision-making aid in the fixation of selling prices

Question: 1086 one of the most important tools in cost planning is 11. 12. 13. 14. 15. direct cost budget cost sheet marginal costing

Question: 1088 the purpose of cost accounting is to provide information for 11. 12. 13. 14. 15. preparing costing P& L A/c cost control locating factors leading to wastages and losses assessing the profitability and financial position of the firm

Answers to the questions of accounting on this page

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Following list gives the correct choice for the answer of the accounting mcqs. 1039 . D 1043 . D 1046 . C 1054 . A 1057 . A 1061 . D 1069 . C C 1086 . B 1088 . B 1078 . B 1081 . C

207

1085 .

Question: 1089 Fixed cost per unit increases when 11. 12. 13. 14. 15. variable cost per unit increases variable cost per unit decreases Production volume increases production volume decreases

Question: 1091 Variable cost per unit 11. 12. 13. 14. 15. varies when output varies remains constant increases when output increases decreases when output decreases

Question: 1093 Increase in total variable cost is due to 11. 12. 13. 14. 15. increase in fixed cost increase in sales increase in production increase in total cost

Question: 1095 an example of variable cost is 11. 12. 13. 14. 15. property taxes interest on capital direct material cost depreciation of machinery

Question: 1100 an example of fixed cost is 11. 12. 13. 14. 15. direct material cost works managers salary depreciation of machinery chargeable expenses

Question: 1102 Cost accounting concepts include all of following except

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11. 12. 13. 14. 15. Planning controlling profit sharing product costing

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Question: 1104 the three major elements of product costs are all but 11. 12. 13. 14. 15. direct materials Factory overhead direct labor indirect labor

Question: 1111 Cost of goods produced includes 11. production cost and finished goods inventory 12. production cost and work-in-progress 13. production cost, work-in-progress and finished goods inventory 14. 15. Question: 1117 Cost of goods sold includes 11. cost of production and work-in-progress 12. cost of production and finished goods inventory 13. cost production, work-in-progress and finished goods inventory 14. 15. Question: 1123 an overstatement of work-in-progress at the end of a period will 11. 12. 13. 14. 15. overstate cost of goods produced understate current assets understate gross profit overstate net profit

Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 1086 . B 1088 . B 1089 . D 1091 . B 1093 . C 1095 . C 1100 . B B 1117 . B 1123 . D

1102 . C

1104 . D

1111 .

Question: 1117 Cost of goods sold includes

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11. cost of production and work-in-progress 12. cost of production and finished goods inventory 13. cost production, work-in-progress and finished goods inventory 14. 15. Question: 1123 an overstatement of work-in-progress at the end of a period will 11. 12. 13. 14. 15. overstate cost of goods produced understate current assets understate gross profit overstate net profit

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Question: 1126 Conversion cost is equal to the total of 11. 12. 13. 14. 15. material cost and indirect wages material cost and indirect wages direct wages and factory overhead material cost and factory overhead

Question: 1127 multiple costing methods is used in 11. 12. 13. 14. 15. oil refinery car manufacturing company sugar mill multi-product company

Question: 1128 Toy manufacturing company should use 11. 12. 13. 14. 15. unit costing job costing batch costing multiple costing

Question: 1129 Electricity generating company should use 11. 12. 13. 14. 15. unit costing process costing batch costing multiple costing

Question: 1130 Job costing is used in

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11. 12. 13. 14. 15. paper mills chemical works printing press textile mill

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Question: 1131 Output costing is employed in 11. 12. 13. 14. 15. mining quarries steel production brick kilns all of these

Question: 1132 Contract costing is used in 11. 12. 13. 14. 15. ship-building airplane industries automobile industries none of these

Question: 1167 Direct material is a 11. Fixed cost 12. variable cost 13. semi variable cost 14. 15. Question: 1172 Direct material is a 11. 12. 13. 14. 15. manufacturing cost Administration Selling and distribution cost Any of the above

Question: 1174 in manufacturing industries, the most important element of cost is 11. Material 12. Labor 13. Overheads 14. 15. Answers to the questions of accounting on this page

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Following list gives the correct choice for the answer of the accounting mcqs. 1117 . B 1123 . D 1126 . C 1127 . B 1128 . C 1129 . D 1130 . C .B 1172 . An 1174 . A 1131 . D 1132 . An

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1167

Question: 1176 which of the following is an accounting record 11. 12. 13. 14. 15. Bill of Material Bin card stores ledger All of these

Question: 1180 which of the following documents is used for issuing materials to productions departments 11. 12. 13. 14. 15. purchase Requisition Note stores Requisition note Goods Received Note stores Credit Note

Question: 1183 which of following is considered to be a normal loss of materials 11. 12. 13. 14. 15. Loss due to accidents pilferage Loss due to breaking the bulk Loss due to careless handling of materials All of these

Question: 1186 According to which of the following methods of pricing, issues are close to current economic values 11. 12. 13. 14. 15. Last-in-first-out price First-in-first-out price Highest-in-first-out price Weighted average price

Question: 1187 in which of the following methods of pricing costs lag behind the current economic values 11. 12. 13. 14. 15. Last-in-first-out price. First-in -first-out price. Replacement price. Weighted average price.

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Question: 1192 which of the following methods of stock control aims at concentrating efforts on selected items of materials 11. 12. 13. 14. 15. perpetual inventory system Materials turnover Maximum, minimum and re-order level setting ABC analysis

Question: 1193 in base stock method of pricing the material issues, the term base stock represents the 11. 12. 13. 14. 15. Quantity of stock being issued stock in balance Minimum stock Maximum stock

Question: 1194 which of the following items of cost should NOT be treated as NOT be treated as direct material 11. 12. 13. 14. 15. Electricity representing 90% of the total cost Sand paper used in production Thread used in stitching garments All of the above

Question: 1195 Continuous stock-taking is a part of 11. 12. 13. 14. 15. Annual stock-taking Perpetual inventory system ABC analysis periodic inventory system

Question: 1197 the classification of items in ABC analysis is made on the basis of 9. 10. 11. 12. Investment value of materials Consumption value of materials Quantity of materials consumed All of these

Following list gives the correct choice for the answer of the accounting mcqs. 1172 . An 1174 . An 1176 . C 1180 . B 1183 . C 1186 . An 1187 . B C 1194 . D 1195 . B 1197 . D

1192 . D

1193 .

Question: 1202 in which of the following methods, issues of materials are priced at a pre-determined rate

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11. 12. 13. 14. 15. Inflated price method Standard price method Replacement price method Specific price method

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Question: 1204 in which of the following methods, materials are issued at the price prevailing at the time of issue 11. 12. 13. 14. 15. Inflated price method Standard price method Replacement price method Specific price method

Question: 1205 the storekeeper should initiate a purchase requisition when stock reaches 11. 12. 13. 14. 15. Minimum leveled maximum level re-order level overage level

Question: 1207 which of the following material losses should be transferred to costing profit and loss account 11. 12. 13. 14. 15. Loss by evaporation Loss due to improper storage of materials Loss due to breaking the bulk All of these

Question: 1210 when material prices fluctuate widely, the method of pricing that gives absurd results is 11. 12. 13. 14. 15. Simple average price Weighted average price Moving average price Inflated price

Question: 1212 when prices fluctuate widely, the method that will smooth out the effect of fluctuations is 11. 12. 13. 14. 15. simple average weighted average FIFO LIFO

Question: 1213 in which of the following methods, the charge to production is at actual cost

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11. 12. 13. 14. 15. Weighted average price standard price Replacement price FIFO

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Question: 1294 Expected annual usage of a particular raw material is 2,00,000 units and the economic order quantity is 10,000 units The invoice cost of each unit is RS.500 and the cost to place one order is RS.80. The average inventory is 11. 12. 13. 14. 15. 1,00,000 units 5,ooo units 10,000 units 7,500 units

Question: 1297 taking the data in Q.3.21 above, the estimated annual ordering cost is 11. 12. 13. 14. 15. RS.1,600 RS.10,000 RS.3,200 RS.5,000

Question: 1300 On the basis of data given in Q 3.21 above, number of orders to be placed in each year are 11. 12. 13. 14. 15. 10 50 20 100

Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 1195 . B 1197 . D 1202 . B 1204 . C 1205 . B 1207 . B 1210 . A B 1297 . A 1300 . B

1212 . B

1213 . D

1294 .

Question: 1300 On the basis of data given in Q 3.21 above, number of orders to be placed in each year are 11. 12. 13. 14. 15. 10 50 20 100

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Question: 1304 when material prices are showing a rising trend, which method of pricing will show lower cost of production 11. 12. 13. 14. 15. FIFO LIFO Weighted average Replacement price

Question: 1307 in periods of rising prices, which method of pricing shows higher stock values 11. 12. 13. 14. 15. FIFO LIFO Weighted average Replacement price

Question: 1309 in which method, prices charged to production are at the current prices prevailing in the market 11. 12. 13. 14. 15. FIFO LIFO Weighted average Replacement price

Question: 1312 when prices are showing a falling tendency, which method of pricing of material issues will show higher closing stock value 11. 12. 13. 14. 15. FIFO LIFO Weighted average Specific price method

Question: 1313 When production is below standard specification or quality and cannot be rectified by incurring additional cost, it is called 11. 12. 13. 14. 15. Defectives Spoilage Waste Scrap

Question: 1315 Materials losses are due to some of the following reasons 11. Fore accident 12. Theft 13. Breaking the bulk

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14. Evaporation 15. pilferage Question: 1319 Documents used in a material control system include the following 11. 12. 13. 14. 15. Purchase Requisition Note Stores Requisition Note Bill of Materials Goods Received Note Purchase order

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Question: 1321 at what amount materials issued on 8-1-1997 will be charged if FIFO method is used 11. 12. 13. 14. 15. RS.1,550 RS.1,575 RS1,700 RS1,750

Question: 1323 at what amount materials issued will be charged igloo method is used 11. 12. 13. 14. 15. RS.1,550 RS.1,575 RS.1,700 RS.1,750

Question: 1325 at what amount materials issued will be charged if simple average price is used 11. 12. 13. 14. 15. RS.1,550 RS1,575 RS.1,610 RS.1,700

Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 1297 . A 1300 . B 1304 . A 1307 . A 1309 . D 1312 . B 1313 . B .B 1323 . C 1325 . B

1315 . A

1319 . D

1321

Question: 1329 at what amount materials issued will be charged if weighted average price is used 11. RS.1,575 12. RS.1,610 13. RS.1,625

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14. None of these 15. Question: 1330 at what amount materials issued will be charged if replacement price method is used 11. 12. 13. 14. 15. RS.1,400 RS.1,700 RS.2,100 RS. 1,750

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Question: 1335 what will be the value of closing stock under FIFO method 11. 12. 13. 14. 15. RS 600 RS 675 RS 700 None of these

Question: 1336 what will be the value of closing under LIFO method 11. 12. 13. 14. 15. RS.600 RS.675 RS.690 RS.750

Question: 1337 what will be the value of closing stock under simple average method 11. 12. 13. 14. 15. RS.600 RS.690 RS.725 RS.750

Question: 1339 what will be the value of closing stock if weighted average method is applied 11. 12. 13. 14. 15. RS.600 RS.690 RS.725 RS.750

Question: 1340 what will be the value of closing stock if replacement price method if used 11. RS.100 12. RS.300 13. RS.200

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14. None of these 15. Question: 1344 in which of following incentive plans of wages payment, wages on time basis are NOT guaranteed 11. 12. 13. 14. 15. Halsey plan Rowan plan Taylors differential piece rate system Gantt's task and bonus system

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Question: 1427 in which of the following incentive plan of wages payment, wages on time basis are NOT guaranteed? 11. 12. 13. 14. 15. Halsey plan Rowan plan Taylor's differential piece rate system Gantt's task and bonus system

Question: 1429 which of the following methods of wage payment is most suitable where quality and accuracy of work is of primary importance? 11. 12. 13. 14. 15. piece rate system differential piece work system time rate system Halsey premium system

Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 1323 . C 1325 . B 1329 . B 1330 . C 1335 . D 1336 . A 1337 . C C 1427 . C 1429 . B Question: 1430 Cost of idle time arising due to non-availability of raw material is 11. 12. 13. 14. 15. charged to costing profit and loss A/C charged to factory overheads recovered by inflating the wage rate all of these

1339 . B

1340 . B

1344 .

Question: 1432 when overtime is required for meeting urgent orders, overtime premium should be 11. charged to costing profit and loss A/c 12. charged to overhead costs

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13. charged to respective jobs 14. all of these 15. Question: 1433 Time and motion study is conducted by the 11. 12. 13. 14. 15. time keeping department payroll department personnel department engineering department

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Question: 1435 Labor productivity is measured by comparing 11. 12. 13. 14. 15. actual time with standard time total output with total man hours added value for the product with total wage cost none of the above

Question: 1436 when standard outputs is 10 units per hour and actual output is 12 units per hour , the efficiency is 11. 12. 13. 14. 15. 80% 120% 100% none of these

Question: 1438 Wages sheet is prepared by 11. 12. 13. 14. 15. time keeping department payroll department personnel department cost accounting department

Question: 1443 given that for a job, standard time is 8 hours, actual 6 hour and the time rate is Rs 2per hour what is the total wages under halsey premium plan 11. 12. 13. 14. 15. Rs 18 Rs 14 Rs 16 Rs12

Question: 1449 using data as given in Q. 314 above, what will be the amount of wages under time rate system

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11. 12. 13. 14. 15. RS. 12 RS.14 16 18.

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Question: 1451 using data as given in Q. 314 above, what will be the amount of bonus under rowan plan 11. 12. 13. 14. 15.

RS. 2 RS. 3 RS. 4 None of the above

Question: 1453 using data as given in Q 3.14 above, what is the amount of bonus under Halsey plan 11. 12. 13. 14. 15. RS. 2 RS.3 RS.4 Nil

Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 1427 . C 1429 . B 1430 . A 1432 . C 1433 . D 1435 . D 1436 . C A 1451 . B 1453 . A

1438 . C

1443 . C

1449 .

Question: 1457 Standard output is 100 units per day of 8 hours and the piece rates are 20 piece per unit under Taylor's differential piece rate system, what will be amount of wages if a worker produces 95 unit in a day 11. 12. 13. 14. 15. RS.14.00 RS.14.25 18.50 19.00

Question: 1459 given the data in 3.19 above, what will be the amount of wages under Taylor's differential piece rate system, if a worker produces 101 units ohm a day 11. 12. 13. 14. 15. RS.15.15 RS.20.00 20.15 20.20

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Question: 1460 Comparing Rowan and Halsey premium plans, it is seen that when the time saved is less than 50% of the time saved, 11. Rowan plan allows more wages to a worker than Halsey plan 12. Rowan plan allows less wages to a worker than Halsey plan 13. Rowan and Halsey plan allow equal wages to a worker 14. 15. Question: 1461 when time saved is 40% of the standard time, Halsey plan allows 11. more wages than Rowan plan 12. less wages than Rowan plan 13. equal wages as compared to Rowan plan 14. 15. Question: 1463 Standard time is 60 hours and guaranteed time rate is 30 paisa per hour what is the amount of wages if job is completed n 48 hours? Rowan plan is in use 11. 12. 13. 14. 15. RS.24.00 RS.26.80 RS.17.28 RS.20.40

Question: 1464 which of the following a group incentive plans 11. 12. 13. 14. 15. priestman plan Badaux plan Halsey weir plan All of these

Question: 1466 Packing cost is 11. 12. 13. 14. 15. production cost selling cost distribution cost It may be any of the above

Question: 1468 Directors' remuneration and expenses from a part of 11. 12. 13. 14. production overhead selling overhead administration overhead distribution overhead

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15. Question: 1471 Salary of a foreman should be classified as a 11. fixed overhead 12. variable overhead 13. semi-fixed or semi-variable overhead 14. 15.

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Question: 1472 Charging to a cost centre those overheads that result soleoy from existence of that cost centre is known as 11. 12. 13. 14. 15. allocation apportionment absorption allotment

Following list gives the correct choice for the answer of the accounting mcqs. 1451 . B 1453 . A 1457 . B B 1471 . C 1472 . A Question: 1476 Absorption means 11. charging of overheads to cost centers 12. charging of overheads to cost units 13. charging of overheads to cost centers or cost units 14. 15. Question: 1481 Administration overheads are recovered as a percentage of 11. 12. 13. 14. 15. direct materials direct wages prime cost works cost 1459 . D 1460 . A 1461 . B 1463 . C 1464 . A 1466 . D 1468 .

Question: 1484 which of the following is NOT is selling overhead 11. 12. 13. 14. 15. Insurance to cover sold goods while in transit Royalty on sales Legal costs for debt realization Distribution of samples

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Question: 1488 which method of absorption of factory overheads do you suggest in a concern which produced only one uniform type of product 11. 12. 13. 14. 15. percentage of direct wages basis Direct labor hour rate Machine hour rate A rate per unit of output Any of the above

Question: 1490 When the amount of under-or over-absorption is significant, it should be disposed of by 11. Transferring to Costing profit and Loss A/C. 12. the use of supplementary rates 13. carrying over as a deferred charge to the next accounting year 14. 15. Question: 1493 idle capacity of a plant refers to the difference between 11. 12. 13. 14. 15. maximum capacity and practical capacity practical capacity and normal capacity practical capacity and capacity based on sales expectancy maximum capacity and actual capacity

Question: 1496 Maximum possible productive capacity of a plant, when no operating time is lost, is its 11. 12. 13. 14. 15. practical capacity Theoretical capacity Normal capacity Capacity based on sales expectancy

Question: 1499 the capacity which is based on the long term average of the sales expectancy level is known as 11. 12. 13. 14. 15. practical capacity Actual capacity Normal capacity None of these

Question: 1502 when the amount of overhead absorbed is less than the amount of overhead incurred, it is called 11. under-absorption of overhead 12. over-absorption of overhead 13. proper absorption of overhead 14.

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15. Question: 1506 Bad debt is an example of 9. 10. 11. 12. production overhead Administration overhead selling overhead Distribution overhead

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Following list gives the correct choice for the answer of the accounting mcqs. 1471 . C 1472 . A 1476 . B 1481 . D 1484 . A 1488 . D 1490 . B C 1502 . A 1506 . C

1493 . C

1496 . C

1499 .

Question: 1508 Number of workers employed is used as a basis for the apportionment of 11. 12. 13. 14. 15. time office costs canteen expenses personnel department expenses any of these

Question: 1518 in which of the following methods of providing depreciation, the amount of depreciation goes on decreasing with the age of the asset 11. 12. 13. 14. 15. Reducing balance method sum of digits method Annuity method (a) and (b) above

Question: 1544 Selling and distribution overheads are absorbed on the basis of 11. Rate per unit 12. percentage on selling price of each unit 13. Any of these 14. 15. Question: 1549 the difference over a period of time, between actual factory overhead and absorbed factory will usually be minimum when the predetermined overhead rate is based on 11. 12. 13. 14. 15. normal capacity maximum capacity direct labor hours machine hours none of the above

Question: 1553 A monopolies will shut down its plant in the short run if

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11. 12. 13. 14. 15. It is making a loss. Marginal revenue is less than marginal cost. Marginal revenue less than average variable cost at all levels of output. Average revenue is less than average variable cost at all levels of output. Average revenue is less than marginal cost at all levels of output.

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Question: 1555 A company found that the differences in product costs resulting from the application of predetermined overhead rates rather than actual overhead rates were immaterial even though actual production was substantially less than planned production the most likely explanation is that 11. 12. 13. 14. 15. factory overhead was mainly composed of variable costs several products were produced simultaneously fixed factory overhead was a significant cost costs of factory overhead items were substantially larger than anticipated

Question: 1560 Under-absorbed factory overhead costs are 11. 12. 13. 14. 15. excess variable factory overhead costs factory cost not allocated to units produced fixed factory costs not allocated to unit produced cost that cannot be controlled None of the above

Question: 1567 if a per-determined factory overhead rate is not employed and the volume of production is reduced from the level planned, the cost per unit would be expected to 11. 12. 13. 14. 15. remain unchanged for fixed costs and increase for variable costs increase for fixed cost and remain unchanged for variable costs increase for fixed costs and decrease for variable costs decrease for fixed costs and decrease for variable costs

Question: 1569 the least suitable basis for applying overhead is 11. 12. 13. 14. 15. materials consumed direct labor cost direct labor hours machine hours

Question: 1571 Excess plant capacity means 9. temporary idleness of plant 10. greater production capacity than a company can use 11. the difference between theoretical capacity and actual capacity 12.

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Following list gives the correct choice for the answer of the accounting mcqs. 1508 . D 1518 . D 1544 . D 1549 . A 1553 . D 1555 . C 1560 . E B Question: 1571 Excess plant capacity means 11. temporary idleness of plant 12. greater production capacity than a company can use 13. the difference between theoretical capacity and actual capacity 14. 15. Question: 1573 the concept of ideal capacity of plant as used in cost accounting is its 11. 12. 13. 14. 15. theoretical maximum capacity Best capacity for normal production. Capacity used for standard setting. Capacity below which production should not fall. 1567 . B 1569 . A

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1571 .

Question: 1580 pre-determined overhead recovery rate is Rs 3 per hour and pre-determined hours are 50,000 Actual hours worked are 55,000 and actual overhead Rs 1,70,000. What is the amount of under or overabsorption of overhead 11. 12. 13. 14. 15. RS.20000 over-absorption RS. 20,000 over-absorption RS.5000 under-absorption RS.5,000 over-absorption

Question: 1583 in Q. 3.34, what is the amount of pre-determined overhead 11. 12. 13. 14. 15. RS.1,50,000 rs.1,65,000 cannot be computed None of these

Question: 1585 what is the amount of absorbed overhead in Q 3.34 11. 12. 13. 14. 15. RS. 1,50,000 RS. 1,65,000 RS. 15,000 RS 20,000

Question: 1592 In Q 3,37, which method should be used to treat under/over absorbed amount in cost accounts

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11. 12. 13. 14. 15. Tr. to costing P& L A/c Use of supplementary rate Carry over to next year Any of the above

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Question: 1594 In Q 3.37, what is the predetermined number of machine hours 11. 12. 13. 14. 15. 16,000 12,000 Cannot be known None of these

Question: 1599 A machine purchased for Rs 20,000 is discarded because of obsolescence and sold for Rs 5,000 after three years of service, resulting in a loss of Rs 3,000.This loss should be 11. 12. 13. 14. 15. treated as production cost transferred to costing P& L A/c in the year of sale spread over the years of the remaining expected life of the machine Either(b)or(c)

Question: 1603 the principal factors to be considered on designing a cost system include 11. 12. 13. 14. 15. Manufacturing process desires of management nature of business company organization structure all of the above

Question: 1606 the most suitable cost system where the products differ in type of materials used and work performed is 11. 12. 13. 14. 15. job costing Batch costing operating costing None of these

Question: 1609 in shoe manufacture, the most suitable cost system is 11. 12. 13. 14. 15. job costing Batch costing Contract costing None of these

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Following list gives the correct choice for the answer of the accounting mcqs. 1573 . A B 1580 . C 1583 . A 1585 . B 1592 . B 1594 . B 1599 . B 1603 . E 1606 . A

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1609 .

Question: 1606 the most suitable cost system where the products differ in type of materials used and work performed is 11. 12. 13. 14. 15. job costing Batch costing operating costing None of these

Question: 1609 in shoe manufacture, the most suitable cost system is 11. 12. 13. 14. 15. job costing Batch costing Contract costing None of these

Question: 1611 job costing is used in 11. 12. 13. 14. 15. Repair shops printing presses Furniture making Automobile garages All of these

Question: 1613 Most of the expenses are direct in 11. 12. 13. 14. 15. job costing batch costing contract costing All of these

Question: 1616 when a contract is not completed at the end of the accounting year, profit on incomplete contract is 11. transferred to profit and loss Account 12. transferred to reserve 13. transferred profit to profit and loss Account and partly to reserve 14. 15. Question: 1618 when a contract is not completed at the end of the year, loss on incomplete contract is

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11. transferred to profit and loss Account 12. transferred to work-in-progress 13. transferred partly to profit and Loss Account and partly to work-in progress 14. 15. Question: 1622 when contract id 40% complete, the amount of profit to be taken credit for is usually 11. the amount of profit estimated 12. 40% the estimated profit 13. 1/3of the estimate profit multiplied by cash ratio 14. 15. Question: 1627 in contract accounts, the amount of work-in-progress consists of 11. 12. 13. 14. 15. cost of work uncompleted cost of work uncompleted the amount of profit not transferred to profit and Loss Account (a) and(B) above (a)(b) and(C)

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Question: 1630 cost-plus contract is usually entered in to those where 11. cost can be easily estimated 12. it is not possible to compute the cost in advance with a reasonable degree of accuracy 13. contractor wants to earn a higher amount of profit 14. 15. Question: 1631 Contract price is not fixed in case of 11. 12. 13. 14. 15. Cost-plus contracts Escalation clause De-escalation clause All of the above

Question: 1632 Contract price is not fixed in case of 11. 12. 13. 14. 15. Cost-plus contracts Escalation clause De-escalation clause All of the above

Question: 1633 Cost plus contract is useful from the point view of

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11. contractor 12. contracted 13. both contractor and contractee 14. 15. Following list gives the correct choice for the answer of the accounting mcqs. 1606 . A 1609 . B 1611 . E 1613 . C 1616 . C 1618 . A 1622 . C D 1632 . D 1633 . C Question: 1633 Cost plus contract is useful from the point view of 11. contractor 12. contractee 13. both contractor and contractee 14. 15. Question: 1634 In contract costing, contract account is prepared by the 11. contractor 12. contractee 13. both by contractor and contractee 14. 15.

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1627 . E

1630 . B

1631 .

Question: 1635 In a building contract of Rs. 2,40,000, at the end of the work certified is Rs. 1,60,000 and estimated profit is Rs. 15,000. what is the amount of profit to be credited to profit and LOSS Account assuming cash ratio is 80% 11. RS.15,000 12. RS. 12,000 13. RS. 8,000 14. 15. Question: 1636 Economic batch quantity is that size of the batch of production where 11. 12. 13. 14. 15. average cost is minimum total cost is minimum set-up cost of machine is minimum carrying cost is minimum

Question: 1637 Production order means 11. an order received from a customer for the production of a specific item 12. instructions to the shops to proceed with the production of the product

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13. an order to the store-keeper to issue necessary materials for production 14. 15.

231

Question: 1638 In contract costing, valuation of which of the following does not include an element of profit 11. 12. 13. 14. 15. work in progress certified work in progress uncertified Both(a) and(b) Neither(a)nor(b)

Question: 1641 A contract of RS.5,00,000 is 55% complete as certified it shows a notional loss of RS 20,000. Accounting treatment of this loss is 11. 12. 13. 14. 15. Transfer 2/3 of this loss to P&L A/c Transfer 2/3 X cash ratio of this loss to P&L A/c Transfer 55% of this loss to P&L A/c Transfer entire amount of loss to P&L A/c

Question: 1652 Direct cost chargeable to contract does not include 11. 12. 13. 14. 15. Materials Labor Supervision Storage lost both(c)and (d)

Question: 1655 Which of the following items is not written on the credit side of the contract account 11. 12. 13. 14. 15. work in progress-certified and uncertified Materials returned Cash received from contractee plant at site

Question: 1659 The type of process loss that should not affect the cost of inventories is 11. 12. 13. 14. 15. abnormal loss normal loss seasonal loss standard loss

Question: 1663 During Jan. 1997, Marconi L.t.d. had total manufacturing cost of Rs.1,80,000. The business completed 14,000 units of product, of which 4,000 units were half completed in Dec 1996 and started production on an additional 6,000 units that production cost per unit was

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9. 10. 11. 12. RS.18 RS.16.36 RS.12 RS.9

232

Following list gives the correct choice for the answer of the accounting mcqs. 1634 . A 1635 . C 1636 . B 1637 . B 1638 . B 1641 . D 1652 . D .C

1655 . C

1659 . A

1663

Question: 1668 100 units are introduced in a process in which normal loss is 15 units If actual output is also 100 units, than there is 11. no abnormal loss or abnormal gain 12. an abnormal loss 13. an abnormal gain 14. 15. Question: 1670 50 units are processed at a total cost of RS.80, normal loss being 10% Each unit carries a scrap value of 25 paisa. If output is 40 units, the value of abnormal loss will be 11. 12. 13. 14. 15. RS. 1.25 RS.8.00 RS.8.75 RS.8.88.

Question: 1676 Given the data in Q.3.5 above, the normal cost of unit is 11. 12. 13. 14. 15. RS.0.25 RS.1.60 RS.1.78 RS.1.75

Question: 1678 A factories transferred out 8,800 completed and closing stock was 800 units 50% completed. Assuming FIFO method, the equivalent production during the period was 11. 12. 13. 14. 15. 8,900 units 9,100 units 9,300 units 9,500 units

Question: 1682 in a factory, the equivalent production (using FIFO method) was 7,500 units during a period which had 500 units 60% complete on hand at the start and 600 units 75% complete at the end of the period. How many units were introduced during the period

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11. 12. 13. 14. 15. 6,750 6,850 7,050 7,150

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Question: 1685 An under-statement of ending work-in-progress inventory will 11. 12. 13. 14. 15. understate cost of goods produced understate net profit overstate gross profit overstate current assets

Question: 1688 An over-statement of beginning work-in-progress inventory will 11. 12. 13. 14. 15. understate cost of goods sold understate the profit overstate net profit overstate gross profit

Question: 1689 When units are lost at end of the production process, the cost is charged to 11. 12. 13. 14. 15. factory overhead selling expense work-in-progress completed units

Question: 1691 The term Economic Batch Quantity is used in relation to 11. 12. 13. 14. 15. Operating costing Batch costing process costing Unit costing

Question: 1698 Input in a process is 4,000 units and normal loss is 20%. When finished output in the process is only 3240 units, there is an 11. abnormal loss of 40 units 12. abnormal gain of 40 units 13. neither abnormal loss nor abnormal gain 14. 15.

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Following list gives the correct choice for the answer of the accounting mcqs. 1668 . C 1670 . C 1676 . D 1678 . A 1682 . B 1685 . B 1688 . B B 1689 . D 1691 . B

234

1698 .

Question: 1700 In Q.3.14 further assuming scrap value of loss is RS.5 per unit, the amount of sales from scrap is 11. 12. 13. 14. 15. RS.3,800 RS. 4,000 RS. 200 None of these

Question: 1704 Further assuming (in Q. 3.14 and Q 3.15) the cost assigned to abnormal gain of 40 units is RS. 280, the amount to be transferred to costing profit and loss account 11. 12. 13. 14. 15. RS.280 RS.200 RS.80 RS.360

Question: 1705 Hopeless Company, which uses FIFO method in process costing, began the current year with 300 units 50% completed, transferred out 5,000 completed units during the year ended with 500 units 70% completed Equivalent production for the period was 11. 12. 13. 14. 15. 5,000 4,700 5,200 5,800

Question: 1706 Classification and accumulation of costs by fixed and variable costs is of special importance in 11. 12. 13. 14. 15. process costing unit costing operation costing operating costing none of these

Question: 1708 Joint product manufacturing is fundamental in 11. 12. 13. 14. 15. automobile industry oil refineries engineering company All of the above

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235

Question: 1709 Individual products, each of a significant sales value, produced simultaneously from the same raw material, should be known as 11. 12. 13. 14. 15. by-products main products joint products common products

Question: 1712 Total manufacturing costs are divided by the total number of units produced to obtain a cost per unit under the 11. average unit cost method 12. sales value method 13. physical unit measurement method 14. 15. Question: 1714 which of the following are virtually always subsequent costs 11. 12. 13. 14. 15. raw material costs direct labor costs selling and distribution cost None of these

Question: 1720 When by-products are of small total value, its accounting should by 11. 12. 13. 14. 15. apportioning a part of joint cost to by-products realizable value of by-products should be treated as miscellaneous income and transferred to P&L A/c realizable value of by-products should be apportioned over the main products Any of these

Question: 1723 Net realizable value of by-products at the split off point should be calculated by reverse cost method when 11. BY products are of small total value 12. BY-products are of considerable sales value 13. BY-products require further processing for their sale 14. 15. Following list gives the correct choice for the answer of the accounting mcqs. 1700 . A 1704 . C 1705 . C 1706 . D 1708 . B 1709 . C 1712 . A C

1714 . C

1720 . B

1723 .

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236

Question: 1723 Net realizable value of by-products at the split off point should be calculated by reverse cost method when 11. BY products are of small total value 12. BY-products are of considerable sales value 13. BY-products require further processing for their sale 14. 15. Question: 1729 Cost per unit is the average cost is applicable in 11. 12. 13. 14. 15. Job costing Operating costing Multiple costing Contract costing

Question: 1732 Trimmings in timber industry should be treated as a 11. 12. 13. 14. 15. waste scrap by-product joint product

Question: 1735 Which of the following methods of accounting of by-products should be applied when the byproduct is to be utilized in the undertaking itself as material for some other process 11. 12. 13. 14. 15. sales value method Other income method Opportunity cost method Reverse cost method

Question: 1737 Credit is given to the process account at a pre-determined value of the by-product under the 11. 12. 13. 14. 15. Standard cost method opportunity cost method Reserve cost method sales value method

Question: 1742 The primary purpose of apportioning joint costs of a processing centre to various products produced is to 11. develop accurate processing cost variances product-wise 12. report more correct standard product costs for comparative analysis 13. establish inventor cost assigned to unsold units

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14. record accurate cost of sales by product lines 15. None of the above

237

Question: 1823 Given: input 1,000 units, Cost production RS 1,850 per Normal loss 10% of input, Actual loss 50 units, Scrap value Rs 0.50 per unit. What is the abnormal loss/gain 11. 12. 13. 14. 15. 50 units abnormal loss 50 units abnormal gain 100 units abnormal gain 100 units abnormal loss

Question: 1826 In Q3.35,what is the cost per unit 11. 12. 13. 14. 15. Rs. 2.18 Rs. 2.05 Rs. 2 RS. 1.89

Question: 1828 Output of a process was 2,500 units, normal loss is 10% of input and abnormal loss 200 units. How many units were introduced in the process 11. 12. 13. 14. 15. 2,700 3,000 3,200 3,500

Question: 1842 In Q 3.37, What is the quantity of total loss 11. 12. 13. 14. 15.

2700 units 300 units 350 units 500 units

Question: 1843 when quantity sold is 18,000 units, opening stock 2,000 units and closing stock 3,000 units, what is the quantity produced 11. 12. 13. 14. 15. 16,000 units 17,000 units 19,000 units 20,000 units

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Following list gives the correct choice for the answer of the accounting mcqs. 1729 . B 1732 . B 1735 . C 1737 . A 1742 . D 1823 . An 1826 . C .C 1828 . B 1842 . D

238

1843

Question: 1845 A transport company is running 3 bases with 50 passengers each, covering a distance of 100 km daily. what is the number of passenger km. per day 11. 12. 13. 14. 15. 5,000 300 15,000 150

Question: 1847 Cost and financial accounts are reconciled under 11. 12. 13. 14. 15. Integral system Non-integral system Under both (a)and (b) None of these

Question: 1852 Which of the following accounts make the cost ledger self-balancing 11. 12. 13. 14. 15. overhead adjustment account Costing P.& L. account Cost Ledger control account None of the above

Question: 1855 Costing profit and Loss account does not record the 11. 12. 13. 14. 15. sales value of goods balance of overhead adjustment account balance of cost of sales account balance of stores ledger control account

Question: 1866 Purchases for special jobs is debited to 11. Work-in-progress ledger control account 12. Cost ledger control account 13. Stores ledger control 14. 15. Question: 1871 Integral accounts eliminate the necessity of operating 11. Cost Ledger Control account

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12. stores ledger control account 13. Overhead adjustment account 14. All of these 15. Question: 1874 Which of the following items is not included in cost accounts 11. 12. 13. 14. 15. Interest received on bank deposits Dividend paid on share capital Damages payable at law Debenture interest all of these

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Question: 1879 Which following items is included in cost accounts 11. 12. 13. 14. 15. Transfer to general reserve Notional rent Rent receivable None of the above

Question: 1885 When costing loss is RS. 5,600, administrative overhead under-absorbed being RS. 400, the loss as per financial accounts should be 11. RS. 5,600 12. RS.6,000 13. RS. 5,200 14. 15. Question: 1889 Depreciation charged in costing is RS.12,500 and in financial books is RS.11,200.What will be the financial profit when costing profit is RS.5,000 11. RS. 5,000 12. RS. 3,700 13. RS. 6,300 14. 15. Following list gives the correct choice for the answer of the accounting mcqs. 1845 . B 1847 . B 1852 . C 1855 . D 1866 . A 1871 . A 1874 . E C

1879 . C

1885 . B

1889 .

Question: 1891 Profit as per financial books is Rs. 72,000.What will be the profit as per costing books when selling and distribution expenses, actual as well as predetermined, are RS. 2,500 11. RS. 72,000 12. RS.70,500

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13. RS. 69,500 14. 15. Question: 1895 Which of the following items is not included in financial books 11. 12. 13. 14. 15. Heavy donations Loss on the sale of fixed assets Notional rent Interest on borrowed capital all of these

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Question: 1897 Which of the following items shall be added to costing profit to arrive at financial profit 11. 12. 13. 14. 15. Under-absorption of words overhead Interest on debentures paid Rent receivable Income tax paid All of the above

Question: 1913 Which of the following account will always have debit balance 11. 12. 13. 14. 15. Overhead adjustment account work in progress ledger control account Cost ledger control account. Factory overhead control account

Question: 1916 The amount of total direct labor cost that should have been charged to all the individual production orders worked on during January should be 11. 12. 13. 14. 15. RS. 40,000 RS. 33,000 RS. 41,000 RS. 55,000 RS. 30,000

Question: 1918 The January 31 balance of work in progress control account should be 11. 12. 13. 14. 15. RS. 36,000 RS. 75,000 RS.76,000 RS. 77,000 RS. 35,000

Question: 1919 The January 31 balance of finish Goods Control Account should be 11. RS. 25,000

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12. 13. 14. 15. RS. 20,000 RS. 5,000 RS. 10,000 RS. 30,000

241

Question: 1932 The cost of goods sold during January was 11. 12. 13. 14. 15. RS. 40,000 RS. 10,000 RS. 20,000 RS. 30,000 RS. 50,000

Question: 1943 The amount of under-applied or over-applied cost for January 11. 12. 13. 14. 15. Under-applied by RS. 1,000 under-applied by rs. 2,000 over-applied by RS. 1,000 Over-applied by RS. 2,000 Neither under-applied nor over-applied

Question: 1955 in flexible budgeting 11. 12. 13. 14. 15. Following list gives the correct choice for the answer of the accounting mcqs. 1891 . A 1895 . C 1897 . C 1913 . B 1916 . B 1918 . A 1919 . E D statements included in the budget report vary from period to period budget standards may be adjusted at will reporting dates vary according to the activity level reported upon planned activity level is adjusted to the actual activity level before the budget comparison report is prepared

1932 . C

1943 . B

1955 .

Question: 1963 The fixed-variable cost classification has a special significance in the preparation of 11. 12. 13. 14. 15. Flexible budget Master budget cash budget capital budget

Question: 1966 If a company wishes to establish a factory overhead budget system in levels, it should prepare a 11. 12. 13. 14. Flexible budget Master budget cash budget Fixed budget

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15. Question: 1968 Of little or no relevance in evaluating the performance of an activity would be 11. 12. 13. 14. 15. Flexible budget Flexed budget difference between planned and actual results planning and control of activities

242

Question: 1994 The budget for a specific activity level during a year was Rs. 50,000, while actual costs for the same period was Rs. 45,000. Considering these facts, it can be said that the plant manager has done a better than expected job in controlling the costs if 11. the cost is variable and actual production was 80% of budgeted production 12. the cost is variable and actual production was 90% of budgeted production 13. the cost is variable and actual production equaled budgeted production 14. 15. Question: 1997 THE budget that is set first and all the other budgets are subordinate to it, is 11. 12. 13. 14. 15. Cash budget Master budget capital expenditure budget Budget for the key factor sales budget

Question: 1999 The success of a flexible budget depends upends upon careful study and classification of expenses into 11. historical and predetermined 12. manufacturing, administrative and selling is 13. fixed, variable and semi-variable 14. 15. Question: 2000 one of the most important tools of cost planning is 11. 12. 13. 14. 15. cost sheet unit cost direct cost budget

Question: 2001 A is a prediction of what will happen as a result of a given set of circumstances 11. Forecast

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12. Budget 13. Marginal cost 14. None of these 15. Question: 2002 A budget which lays more stress on control aspect is a an 11. 12. 13. 14. 15. operating budget responsibility budget flexible budget financial budget

243

Question: 2003 which of the following is usually a long-term budget 9. 10. 11. 12. Sales budget cash budget capital expenditure budget fixed budget

Following list gives the correct choice for the answer of the accounting mcqs. 1963 . A 1966 . A 1968 . D 1994 . C 1997 . D 1999 . C 2000 . D .C

2001 . A

2002 . B

2003

Question: 2004 A budget representing fixed assets expenditure during the budget period is 11. 12. 13. 14. 15. Fixed budget Capital expenditure budget Long term cash budget Master budget

Question: 2005 The budgeted fixed cost is 11. 12. 13. 14. 15. RS. 30,000 RS. 40,000 RS. 50,000 RS. 80,000

Question: 2006 The standard volume per month on which the budgeted overhead rate is based is 11. 12. 13. 14. 15. 3,000 tons 5,000 tons RS. 5,500 tons 7,000 tons

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Question: 2008 The budgeted fixed overhead cost per ton is 11. 12. 13. 14. 15. RS. 10 RS. 20 RS.21.36 RS. 17.14

244

Question: 2009 The amount of overhead absorbed in March is 11. 12. 13. 14. 15. RS. 80,000 RS. 1,20,000 RS. 1,10,000 RS. 1,17,500

Question: 2010 The expenditure variance in March is 11. 12. 13. 14. 15. RS. 7,500(A) RS.12,500(A) RS. 10,000(A) Nil

Question: 2011 Total overhead variance in March is 11. 12. 13. 14. 15. RS. 7,500 RS. 12,500 RS. 10,000 RS. 20,000

Question: 2012 What is the raw material cost per unit at the actual production level 11. 12. 13. 14. 15. RS. 10.08 RS. 16.80 RS. 8.40 None of these

Question: 2013 What is the total cost of direct labor at actual production level 11. RS. 3,00.000 12. RS. 2,40,000 13. None of these 14. 15.

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Question: 2014 What is the fixed works overhead total amount when output of 1,00,000 units 9. 10. 11. 12. RS. 4,00,000 RS. 2,40,000 RS. 6,00,000 None of these

245

Following list gives the correct choice for the answer of the accounting mcqs. 2004 . B 2005 . C 2006 . B 2008 . A 2009 . C 2010 . B 2011 . A B

2012 . A

2013 . C

2014 .

Question: 2015 What is the fixed works overhead per unit when output is 60,000 units 11. 12. 13. 14. 15. RS. 6 RS. 7 RS. 8 None of these

Question: 2016 What is the variable works overhead per unit at actual production level 11. 12. 13. 14. 15. RS. 4 RS. 3 RS. 2 None of these

Question: 2017 what is the total administrative overhead per unit at actual production level 11. 12. 13. 14. 15. RS. 2.45 RS 1.90 RS. 1,60 None of these

Question: 2018 what is the total selling overhead per unit at 60,000 output 11. 12. 13. 14. 15. RS 0.80 RS 0.90 RS 1.07 None of these

Question: 2019 what is the prime cost at 60,000 output level 11. RS 13.58

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12. RS 13.48 13. RS.18.00 14. None of these 15. Question: 2042 production required in the month of July 1996 is 11. 12. 13. 14. 15. 1,100 units 1,150 units 1,350 units None of the above

246

Question: 2045 production required in the month of August 1996 is 11. 12. 13. 14. 15. 1,100 units 1,150 units 1,350 units None of these

Question: 2048 production required in the month of September 1996 is 11. 12. 13. 14. 15. 1,400 units 1,150 units 1,850 units None of these

Question: 2049 production required in the month of October 1996 is 11. 12. 13. 14. 15. 1,800 units 2,000 units 2,200 units None of these

Question: 2051 production required in the month of November 1996 is 9. 10. 11. 12. 1,800 units 2,200 units 2,400 units None of these

Following list gives the correct choice for the answer of the accounting mcqs. 2015 . D 2016 . A 2017 . A 2018 . C 2019 . B 2042 . A 2045 . D .C

2048 . B

2049 . C

2051

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Question: 2052 production required in the month of December 1996 is 11. 12. 13. 14. 15. 1,800 units 2,200 units 2,400 units None of these

247

Question: 2054 production required for the six months ending December 1996 is 11. 12. 13. 14. 15. 11,000 units 2,200 units 2,400 units None of these

Question: 2057 Closing stock at the end of December will be 11. 12. 13. 14. 15. 1,000 units 1,100 units 1,150 units None of these

Question: 2060 The cost of product as determined under standard cost system is 11. 12. 13. 14. 15. fixed cost historical cost direct cost pre-determined cost

Question: 2061 In evaluating deviations of actual from standard cost, the probable technique used is 11. 12. 13. 14. 15. variable regression variance analysis trend analysis linear progression

Question: 2063 The type of standard that is best suited from cost control point of views is 11. 12. 13. 14. 15. Theoretical standard Expected standard Normal standard Basic standard

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248

Question: 2069 which of the following standards can be attained under the most favorable conditions possible 11. 12. 13. 14. 15. Theoretical standard Expected standard Normal standard Basic standard

Question: 2071 one purpose of standard costs may be described as 11. 12. 13. 14. 15. promoting and measuring performance setting costs of manufacture controlling and reducing costs simplifying production operations

Question: 2072 A company using theoretical standard cost system should expect that 11. 12. 13. 14. 15. most variances will be strongly motivated to attain the standards employees will be strongly motivated to attain the standards a large incentive bonus will be paid costs will be controlled better if lower standards were used

Question: 2077 A company controls its production costs by comparing its actual monthly production cost with the expected levels. Any significant deviations from these expected levels are investigated and evaluated as a basis for corrective action. The quantitative technique that is most probably being used is 9. 10. 11. 12. time series or trend regression analysis differential calculus standard cost variance analysis correlation analysis

Following list gives the correct choice for the answer of the accounting mcqs. 2052 . D 2054 . B 2057 . A 2060 . D 2061 . B 2063 . B 2069 . A C

2071 . C

2072 . A

2077 .

Question: 2077 A company controls its production costs by comparing its actual monthly production cost with the expected levels. Any significant deviations from these expected levels are investigated and evaluated as a basis for corrective action. The quantitative technique that is most probably being used is 11. 12. 13. 14. 15. time series or trend regression analysis differential calculus standard cost variance analysis correlation analysis

Question: 2080 In standard costing system, labor rate variance is obtained by multiplying the

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11. actual rate by the difference between actual hours and standard hours 12. actual hours by the difference between actual rate and standard rate 13. standard rate by the difference between standard hours and actual hours 14. 15. Question: 2082 if standard hours are 400 @Re 1 per hour and actual hours are 380 @ Rs. 1.25 per hour, the labor rate variance is 11. 12. 13. 14. 15. Rs. 20(Favorable) RS.25(FAVOURABLE) RS. 100(Adverse) RS. 95 (Adverse) None of these

249

Question: 2084 Labor efficiency variance in the above Q.3.10 is 11. 12. 13. 14. 15. RS. 20(Favorable) RS. 25(Favorable) RS. 100 (unfavorable) RS. 95 (unfavorable) None of these

Question: 2092 in standard costing, the material price variance is obtained by multiplying the 11. 12. 13. 14. 15. actual price by the difference between actual quantity purchased and standard quantity allowed actual quantity consumed by the difference between actual price and standard price standard price by the difference between standard quantity purchased and standard quantity allowed standard quantity by the difference between actual price and standard price

Question: 2101 if actual material cost is 900 units at Rs. 8 per unit and standard material cost in 1,000 units at RS. 6 per unit, the material cost variance is 11. 12. 13. 14. 15. RS. 2,400 (Favorable) RS. 2,400(Adverse) R.s. 1,200 (Favorable) RS. 1,200 (Adverse)

Question: 2102 The material price variance in the above Q. 3.13 is 11. 12. 13. 14. 15. RS. 600(Favorable) RS. 1,200(Adverse) RS. 1,800(Adverse) RS. 2,400(Favorable)

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Question: 2103 Material usage variance in the above Q. 3.13 is 11. 12. 13. 14. 15. RS.600(Favorable) Rs. 1,000(Adverse) RS. 1,800(Adverse) R.s. 2,400(Favorable)

250

Question: 2106 standard costing will produce the same financial statement results as actual or conventional costing when standard cost variances are distributed to 11. 12. 13. 14. 15. cost of goods sold income or Expense account cost of goods sold and inventory a balance sheet account

Question: 2107 Material mix variance is a sun-variance of 11. 12. 13. 14. 15. Material cost variance Material price variance Material quantity variance Material yield variance

Question: 2109 Material cost variance is RS. 550(A) and material price variance RS. 150(F), the material usage variance should be 9. 10. 11. 12. RS. 400(A) RS. 700(A) RS. 400(F) RS. 700(F)

Following list gives the correct choice for the answer of the accounting mcqs. 2072 . A 2077 . C 2080 . B 2082 . D 2084 . A 2092 . B 2101 . D C 2107 . C 2109 . B

2102 . C

2103 . A

2106 .

Question: 2110 Overhead Budget variance is a sub-variance of 11. 12. 13. 14. 15. overhead volume variance overhead efficiency variance overhead cost variance None of these

Question: 2111 idle time a variance is a sub-variance of

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11. 12. 13. 14. 15. overhead efficiency variance Labor cost variance Labor time variance Labor efficiency variance

251

Question: 2112 Material price variance is Rs. 300(A), material mix variance RS. 150(A) and material sub-usage variance is RS. 50(A). The material cost variance is 11. 12. 13. 14. 15. RS. 400(A) RS. 450(A) RS. 500(A) cannot be computed

Question: 2113 in Q.322 above, the material quantity variance is 11. 12. 13. 14. 15. RS. 50(A) RS. 100(A) RS. 300(A) RS. 250(A)

Question: 2114 Overhead budget variance is RS. 700(A), overhead efficiency variance is RS. 300(F).what is the amount of variable overhead cost variance 11. 12. 13. 14. 15. RS. 1,000(F) RS. 400(A) RS. 400(F) RS. 1,000(A)

Question: 2115 The type of variance not computed for factory overhead is 11. 12. 13. 14. 15. controllable volume equivalent production idle capacity

Question: 2116 standard costing can be used along with 11. 12. 13. 14. 15. Marginal costing Absorption costing job and process costing All of the above

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Question: 2117 standard cost are useful in all of the following except 11. 12. 13. 14. 15. reducing costs speeding up preparation of operating reports establishing records costing inventories

252

Question: 2118 At the end of a financial year Hot shot company had several substantial variances from standard variable manufacturing costs the one for which there is the strongest justification for allocation between inventories and cost of goods sold is the one attributable to 11. 12. 13. 14. 15. Question: 2119 controllable variances are best disposed of by transferring to 9. 10. 11. 12. cost of goods sold inventories of work-in progress and finished goods cost of goods sold and inventories costing profit and Loss A/c additional costs of raw materials acquired under a speculative purchase contract a breakdown of equipment increased labor rates won by the union as a result of strike during the year overestimates of production activity for the period resulting from failure to predict an unusual decline in the market for the company' s product

Following list gives the correct choice for the answer of the accounting mcqs. 2107 . C 2109 . B 2110 . C 2111 . D 2112 . A 2113 . B 2114 . B C 2118 . C 2119 . D

2115 . C

2116 . D

2117 .

Question: 2120 Uncontrollable variances are best disposed of by transferring to 11. 12. 13. 14. 15. cost of goods sold inventories of work-in -progress and finished goods cost of goods sold and inventories costing profit and Loss A/c

Question: 2126 overhead cost variance may be analyzed into 11. 12. 13. 14. 15. two variances three variances four three variances any of the above

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253

Question: 2127 Which of the following statement best explains the difference between standard costing and budgetary controls 11. Budget is a projection of financial accounts whereas standard cost is a projection of cost accounts 12. variances are analyzed under standard costing but not under budgetary control 13. The budget, as a statement of expected costs, is used for forecasting of finance, if certain performances are achieved 14. Budgetary control is more intensive than standard costing 15. Question: 2128 Fixed overhead expenditure variance is the difference between 11. 12. 13. 14. 15. Budgeted overhead and actual overhead Standard overhead and actual overhead Absorbed overhead and budgeted overhead Absorbed overhead and standard overhead

Question: 2129 Variable overhead expenditure variance is the difference between 11. 12. 13. 14. 15. Budgeted overhead and actual overhead Standard overhead and actual overhead Absorbed overhead and budgeted overhead Absorbed overhead and standard overhead

Question: 2130 Calendar variance is a sub-variance of 11. 12. 13. 14. 15. Expenditure variance Efficiency variance variable overhead cost variance volume variance

Question: 2131 Total sales margin variance is the difference between 11. 12. 13. 14. 15. Actual profit and standard profit Actual profit and budgeted profit Actual sales and budgeted sales None of these

Question: 2132 which of the following variance id always adverse 11. 12. 13. 14. sales margin mix variance Fixed overhead capacity idle time variance None of these

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15. Question: 2133 which of the following variances is always favorable 11. 12. 13. 14. 15. overhead volume variance sales value mix variance calendar variance None of these

254

Question: 2134 sales volume variance is RS 9,000(F)and sales value variance is RS 5,000(F). what are the sales price variance RS 5,000(F)what is the sales price variance 11. 12. 13. 14. 15. RS. 14,000(F) RS. 4,000(A) RS. 4,000(F) None of these

Following list gives the correct choice for the answer of the accounting mcqs. 2120 . C 2126 . D 2127 . C 2128 . A 2129 . B 2130 . D 2131 . B B

2132 . D

2133 . D

2134 .

Question: 2135 Fixed overhead cost variance is expenditure variance is RS 200(A), calendar variance RS 500(F).what is the volume variance 11. 12. 13. 14. 15. RS. 2,700(A) RS. 1,900(A) Rs. 2,200(A), Rs. 2,500(f)

Question: 2136 what is the material price variance as per Q. 3.41 11. 12. 13. 14. 15. RS 400(F) RS 400(A) RS 440(F) RS 440(A)

Question: 2137 What is the material quantity variance in Q 3.41 11. 12. 13. 14. 15. RS 960(A) RS 960(f) RS 1,000(A) RS 1,000(F)

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Question: 2138 The material price variance in Q 3.46 is 11. 12. 13. 14. 15. RS. 100(Adverse) RS. 100(Favorable) RS. 110(Adverse) RS. 110(Favorable) None of the preceding responses is correct

255

Question: 2139 Material mixture variance in Q 3,46 is 11. 12. 13. 14. 15. Rs 110(Adverse) RS. 100 (Favorable) RS. 210(Adverse) Rs. 408 (FAVOURABLE) cannot be computed from the given data

Question: 2140 Labor efficiency variance in Q 3,46 is 11. 12. 13. 14. 15. ES. 152(Adverse) RS. 560(Favorable) RS. 560(Adverse) RS 480(Favorable)

Question: 2141 Labor rate variance in Q3.46 is 11. 12. 13. 14. 15. RS. 152(Adverse) Rs. 560(Favorable) RS. 560(Adverse) RS. 480(Favorable)

Question: 2142 Labor cost variance in Q 3.46 is 11. 12. 13. 14. 15. RS. 560(Favorable) RS. 560(Adverse) RS. 152(Adverse) RS. 408(Adverse) none of the preceding responses is correct

Question: 2143 in Q 3.53, what is the expenditure variance 11. 12. 13. 14. 15. RS. 2,000(A) RS 4,000(A) RS 2,000(F) RS 4,000(F)

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Question: 2144 In Q 3.53, what is the volume variance 9. 10. 11. 12. RS 2,000(A) RS 4,000(A) RS6,000(A) RS 8,000(A)

256

Following list gives the correct choice for the answer of the accounting mcqs. 2135 . C 2136 . C 2137 . C 2138 . E 2139 . E 2140 . B 2141 . A C Question: 2145 Contribution margin is also known as 11. 12. 13. 14. 15. marginal income gross profit net income new profit

2142 . E

2143 . A

2144 .

Question: 2146 product costs under marginal costing include 11. 12. 13. 14. 15. prime costs only prime costs and variable overhead prime costs and fixed overhead material cost and variable overhead

Question: 2147 Period costs are 11. 12. 13. 14. 15. variable costs fixed costs prime cost overhead costs

Question: 2148 One of the primary differences between marginal costing absorption costing is regarding the treatment of 11. 12. 13. 14. 15. direct materials variable overheads fixed overheads prime cost

Question: 2149 A costing method in which the fixed factory overheads are added to inventory valuation is 11. direct costing 12. marginal costing

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13. absorption costing 14. none of these 15. Question: 2150 Profit shown by absorption costing will tend to exceed profit shown by marginal costing method if 11. 12. 13. 14. 15. units produced exceed units sold variable manufacturing costs decreases units sold exceeds units produced fixed manufacturing costs decrease

257

Question: 2151 Absorption costing differs from marginal costing in the 11. 12. 13. 14. 15. fact that standard costs can be used with absorption costing but not with marginal costing amount of fixed costs that will be incurred kinds of activities for which each can be used amount of costs assigned to individual units of products

Question: 2152 Under the marginal costing concept, unit product cost would most likely be increased by 11. 12. 13. 14. 15. Question: 2153 Contribution margin is equal to 11. 12. 13. 14. 15. sales - fixed cost - profit profit + variable cost fixed cost - loss none of the above a decrease in the number of units produced an increase in the number of units produced an increase in the commission paid to salesman for each unit sold an increase in the remaining useful life of factory machinery depreciated on written down value method

Question: 2154 Reporting under marginal costing is accomplished by 11. 12. 13. 14. 15. eliminating the work in progress inventory account including only variable costs in income statement matching variable costs against revenue and treating fixed costs as period costs treating all costs as period costs

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Following list gives the correct choice for the answer of the accounting mcqs. C 2145 . A 2146 . B 2147 . B 2148 . C 2149 . C 2150 . A 2151 . D C 2154 . C Question: 2155 Profit / Volume ratio is an indicator of 11. 12. 13. 14. 15. the volume of sales the volume of profit the rate at which goods are sold the of profit all of these 2152 . C 2153 .

258

Question: 2156 There will be no difference in profit as shown by marginal costing and that of absorption costing when 11. 12. 13. 14. 15. opening and closing stock of finished goods remain constant closing stock of finished goods is more than it s opening stock opening stock of finished goods is more than its closing stock none of the above

Question: 2157 when fixed cost id Rs. 3,000 and sales RS.50,000, the P/V ratio will be 11. 12. 13. 14. 15. 14% 20% 25% p/v ratio cannot be computed from the data given

Question: 2158 when p/v ratio is 40% and sales value RS 10,000 the variable cost will be 11. 12. 13. 14. 15. RS. 4,000 RS. 6000 RS. 10,000 variable cost cannot be calculated from the data given

Question: 2159 if net profit is 10% and p/v ratio is 50%, the margin of safety will be 11. 12. 13. 14. 15. 10% 20% 50% margin of safety cannot be computed

Question: 2160 The margin of safety may be improved by 11. increasing sales volume

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12. 13. 14. 15. increasing selling price lowering variable cost lowering fixed costs All of these

259

Question: 2161 an item whose entire amount is usually a differential cost is 11. 12. 13. 14. 15. factory overhead period cost direct cost conversion cost

Question: 2162 As part of the data presented on support of a proposal to increase the production of car radios, the sales manager of XYZ Electronics reported the total additional cost required for the proposed increased level of production the increase in total cost is known as 11. 12. 13. 14. 15. opportunity out-of-pocket cost controllable cost differential cost

Question: 2163 Alto palo company has temporary unused production capacity. the idle plant facilities can be used to manufacture a low margin item. the low margin item should be produced, if it can sold for more than its 11. 12. 13. 14. 15. fixed costs variable costs prime costs indirect costs

Question: 2164 Cost-volume-profit analysis is most important for the determination of the 11. 12. 13. 14. 15. volume of operations necessary to break even variable revenues necessary to equal fixed costs relationship between revenues and costs at various level of operations sales revenue necessary to equal fixed costs

Following list gives the correct choice for the answer of the accounting mcqs. 2155 . D 2156 . A 2157 . B 2158 . B 2159 . B 2160 . E 2161 . C C

2162 . D

2163 . B

2164 .

question: 2165 if net profit is 10% and p/v ratio is 50%, the margin of safety will be 11. 10% 12. 20%

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13. 50% 14. margin of safety cannot be computed 15. Question: 2166 The alternative that would decrease the contribution margin per unit t he most is a 20% 11. 12. 13. 14. 15. decrease in selling price increase in selling price increase in variable costs decrease in variable cost

260

Question: 2167 when referring to margin of safety, one has the following in mind 11. 12. 13. 14. 15. the excess of budgeted or actual sales over fixed costs the excess of actual sales over break-even sales the excess of actual sales over budgeted sales the excess of sales revenue over variable cost

Question: 2168 The conventional break-even analysis does not assume that 11. 12. 13. 14. 15. selling price per unit will remain fixed total fixed costs remain the same variable cost per unit will vary productivity per worker will remain unchanged

Question: 2169 if fixed costs decrease while variable cost per unit remain constant, the new break-even point on relation to the old break-even point will be 11. 12. 13. 14. 15. indeterminate unchanged higher lower

Question: 2170 if fixed costs decrease while the variable cost per unit remain constant, the new contribution margin in relation to old contribution margin will be 11. 12. 13. 14. 15. indeterminate unchanged higher lower

Question: 2171 when margin of safety is 20% and contribution sales ratio is 60% the profit will be

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11. 12. 13. 14. 15. 30% 33% 1/3% 12% cannot be computed

261

Question: 2172 when fixed cost is RS. 20,000 and margin of safety is RS.10,000, the p/v ratio will be 11. 12. 13. 14. 15. 200% 50% 33% cannot be computed

Question: 2173 when sales jumped from RS. 4,00,000 and profit increased by Rs. 40,000, the p/v ratio is 11. 12. 13. 14. 15. 7.5% 10% 40% cannot be computed

Question: 2174 when total fixed cost is RS. 50,000 and variable cost to sales is 75%, the break-even point id 11. 12. 13. 14. 15. RS. 37,500 RS. 12,500 RS. 2,00,000 cannot be determined

Following list gives the correct choice for the answer of the accounting mcqs. 2165 . B 2166 . A 2167 . B 2168 . C 2169 . D 2170 . B 2171 . C C

2172 . D

2173 . C

2174 .

Question: 2175 on sales of RS.2,00,000. fixed cost is RS. 30,000 and p/v ratio is 40% what is the profit 11. 12. 13. 14. 15. RS50,000 RS. 80,000 RS. 12000 None of these

Question: 2176 In the chart given in 3.32 above, the horizontal line OL represents 11. 12. 13. 14. sales fixed cost total cost profit

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15. Question: 2177 In break-even chart, x-axis represents 11. 12. 13. 14. 15. value of sales in rupee value volume of sales in units volume of production in units production capacity in percentage Any of these

262

Question: 2182 In break-even chart, Y-axis represents 11. 12. 13. 14. 15. volume of sales in units volume of sales in rupees cost and sales in rupees value of production in rupees Any of these

Question: 2187 when it is desired to read contribution margin in break-even chart, than 11. variable cost should be first plotted and fixed cost should be superimposed thereon 12. fixed cost should not be first plotted and variable cost should be superimposed thereon 13. fixed cost should not be plotted at all in the chart 14. 15. Question: 2206 when sales are RS. 8000 and P/V is 80% the amount of variable cost is 11. 12. 13. 14. 15. RS. 64,000 RS. 16,000 Rs. 48,000 cannot be known

Question: 2210 In order to earn a profit of RS. 10,000, when fixed cost is RS. 20,000 and P/v ratio 20% the amount of sales should be 11. 12. 13. 14. 15. RS. 40,000 RS. 30,000 RS. 1,00,000 RS. 1,50,000

Question: 2212 WHEN PROFIT CHANGES BY R.s. 20,000, The sales changes by RS. 25,000, the P/V ratio is 11. 20% 12. 80% 13. 25%

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14. cannot be calculated 15. Question: 2213 when sales volume increases 11. 12. 13. 14. 15. break-even point increases total profit will increase total loss will increase All of the above

263

Question: 2216 which of the following would cause the greatest increase in the unit contribution margin 11. 20% decrease in fixed cost 12. 20% increase in selling price 13. 20% decrease in variable cost 14. 15. Following list gives the correct choice for the answer of the accounting mcqs. 2175 . A .B 2176 . A 2177 . E 2182 . C 2187 . A 2206 . C 2210 . D 2212 . B 2213 . B 2216

Question: 2217 what does area ALO represent in diagram in Q. 3.43 11. 12. 13. 14. 15. profit Fixed cost variable cost contribution

Question: 2220 what does area ALO represent in diagram in Q. 3.43 11. profit 12. Loss 13. contribution 14. 15. Question: 2224 what is represented by CD in diagram in Q. 3.43 11. 12. 13. 14. 15. key factors variable cost Contribution Margin of safety

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Question: 2228 which of the following is NOT an assumption of break-even chart 11. 12. 13. 14. 15. Fixed cost does not change in total amount variable cost does not change in total amount selling price does not change per unit company has no stocks

264

Question: 2233 In calculating cash break-even point, which costs are taken into account 11. 12. 13. 14. 15. Fixed cost requiring cash variable costs requiring cash Both fixed and variable costs requiring cash cash fixed cost and all variable costs including credit

Question: 2237 which of the following is not depicted on a break-even chart 11. 12. 13. 14. 15. profit/Loss at different level of output sales to earn given profit contribution P/V ratio

Question: 2239 In a break-even chart, angle of incidence is formed by the inter-section of 11. 12. 13. 14. 15. sale line and variable cost line sale line and total cost line variable costs and fixed cost lines variable cost and total cost lines

Question: 2271 who has the authority to investigate and regulate all matters of account connected with the police, and all persons concerned shall be bound to give reasonable aid and facilities to conducting such investigations and to confirm to his orders consequent thereto 11. 12. 13. 14. 15. provincial police officer capital city police officer city police officer All of these

Question: 2544 A harmonium enclosed in a sheath is called 11. 12. 13. 14. hormocyst hormogonium trichome trichogyne

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15. Question: 3807 A debit balance on Amitie's account in your sales ledger means that 11. 12. 13. 14. 15. Amitabh owes you the money you owe Amitabh the money Amitabh has just paid you that amount of money Amitabh has returned that amount of goods to you

265

Following list gives the correct choice for the answer of the accounting mcqs. 2217 . A 2220 . B 2224 . D 2228 . B 2233 . C 2237 . D 2239 . B A

2271 . D

2544 . A

3807 .

Question: 3811 A debit balance on the rates account after the yearly transfer to the profit and loss account indicates 11. 12. 13. 14. 15. an asset and an accrual an asset and a prepayment a liability and an accrual a liability and a prepayment

Question: 3820 which one of the following normally has a debit balance? 11. 12. 13. 14. 15. The capital account A creditor's account The motor vehicles account A loan account

Question: 3822 which one of the following normally has a debit balance? 11. 12. 13. 14. 15. The capital account A creditor's account The motor vehicles account A loan account

Question: 3823 Which of the following normally has a credit balance? 11. 12. 13. 14. 15. The machinery account The purchases account The stock account The sales account

Question: 3830 which one of the following statement is correct?

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266

11. A proprietor's will remain constant if he only withdraws this Net profit each year and does not introduce any new capital. 12. A proprietor's capital will increase if his drawings are higher than his Net profit and he does not introduce any new capital. 13. A proprietor's capital will decrease if his Net profit is greater than his drawings and does not introduce any new capital 14. A proprietor's capital will remain constant if he only withdraws his Net profit each year, but also introduces new capital. 15. Question: 3832 Gross profit equals 11. 12. 13. 14. 15. sales minus closing stock purchases minus closing stock nit profit minus expenses sales minus cost of goods sold

Question: 3835 Cost of sales equals 11. 12. 13. 14. 15. sales minus purchases purchases minus returns out plus closing stock sales plus opening stock minus (purchases plus closing stock) opening stock minus closing stock minus returns out

Question: 3836 Net profit equals 11. 12. 13. 14. 15. gross profit minus expenses sales minus cost of sales sales minus expenses capital minus expenses

Question: 3837 A man buys Rs. 40,000 worth of goods and sells of them for R.s. 50,000. His gross profit is 11. 12. 13. 14. 15. Rs. 10,000 Rs. 20,000 Rs. 30,000 Rs. 40,000

Question: 3839 If sales are Rs. 10,000, expenses Rs. 2,000 and net profit is 10% of sales, the gross profit is 11. 12. 13. 14. 15. Rs. 3,000 Rs. 9,000 Rs. 10,100 Rs. 11,000

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Following list gives the correct choice for the answer of the accounting mcqs. 3811 . B 3820 . C 3822 . C 3823 . D 3830 . A 3832 . D 3835 . D A 3836 . A 3837 . B

267

3839 .

Question: 3840 If the gross profit is Rs. 5000 and the net profit is 25% of the gross profit ,the expenses must be 11. 12. 13. 14. 15. Rs. 1,250 Rs. 3,750 Rs. 4,150 Rs. 6,250

Question: 3841 If sales are Rs. 6,000, gross profit is 20% of sales and net profit is 10% of sales the expenses are 11. 12. 13. 14. 15. Rs. 600 Rs. 1,200 Rs. 2,400 Rs. 4,800

Question: 3842 An operating statement is similar to a 11. 12. 13. 14. 15. trial balance balance sheet trading profit and loss account bank reconciliation statement

Question: 3843 Net sales equals sales minus 11. 12. 13. 14. 15. returns outwards cost of goods sold returns inwards carriage on sales

Question: 3844 The turnover is 11. 12. 13. 14. 15. Rs. 99,000 Rs. 99,500 Rs. 1,00.500 Rs. 1,01,000

Question: 3845 The gross profit as a percentage of net sales is approximately 11. 10% 12. 20%

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13. 30% 14. 40% 15. Question: 3846 The net cost of purchases for the year was 11. 12. 13. 14. 15. Rs. 69,000 Rs. 70.000 Rs.71,000 Rs.73,000

268

Question: 3847 Returns outwards amounted to 11. 12. 13. 14. 15. Rs. 500 Rs. 1,000 Rs. 1,500 Rs. 2,000

Question: 3848 If the purchases had been under cast by Rs. 10,000 the gross profit would be 11. 12. 13. 14. 15. Rs. 31,500 Rs. 41,500 Rs. 51,500 Rs. 61,500

Question: 3849 The cost of goods sold is 11. 12. 13. 14. 15. Rs. 59,000 Rs. 69,000 Rs. 71,000 Rs. 89,000

Following list gives the correct choice for the answer of the accounting mcqs. 3840 . B 3841 . A 3842 . C 3843 . C 3844 . C 3845 . D 3846 . A A Question: 3850 Net profit as a percentage of net sales is approximately 11. 12. 13. 14. 15. 5% 10% 15% 20%

3847 . D

3848 . A

3849 .

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Question: 3851 Expenses for the year total 11. 12. 13. 14. 15. Rs. 29,000 Rs. 30,000 Rs. 31,000 Rs. 32,000

269

Question: 3852 A balance sheet is a 11. 12. 13. 14. 15. statement of debtors and creditors statement of income and expenditure the year statement of cash received and paid throughout the year Financial statement of a business' wealth on a particular scale

Question: 3853 which one of the following is fixed asset for a builder's merchant? 11. 12. 13. 14. 15. Cash Stock Debtors Type wirer

Question: 3854 Which one of the following is garage's current asset? 11. 12. 13. 14. 15. A breakdown van The managing director's private car The condense in the saleroom A customer's car in for repair

Question: 3855 Net current assets are the same as 11. 12. 13. 14. 15. working capital total assets minus current liabilities fixed assets minus current liabilities capital minus current liabilities

Question: 3856 A proprietor's capital of 11. 12. 13. 14. 15. opening capital plus drawing minus net profit total assets minus external liabilities current assets minus working capital opening capital plus net profit plus creditors

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Question: 3857 which one of the following is usually a current liability? 11. 12. 13. 14. 15. Mortgage Bank loan Bank over drat Rent Paid in advance

270

Question: 3858 The percentage return on the owner's opening capital for the past year was 11. 12. 13. 14. 15. 15% 20% 25% 30%

Question: 3859 The working capital is 11. 12. 13. 14. 15. Rs. 20,000 Rs. 30,000 Rs. 50,000 Rs. 1,70,000

Following list gives the correct choice for the answer of the accounting mcqs. 3850 . B 3851 . D 3852 . D 3853 . D 3854 . C 3855 . A 3856 . B A

3857 . C

3858 . C

3859 .

Question: 3860 The owner's capital employed in the business at the date of the balance sheet is 11. 12. 13. 14. 15. Rs. 1,20,000 Rs. 1,40,000 RS. 1,90,000 Rs. 2,13,500

Question: 3861 The business' external liabilities are 11. 12. 13. 14. 15. Rs. 50,000 Rs. 73,500 Rs. 1,20,000 Rs. 1,40,000

Question: 3862 The interest on the loan paid during the year was 11. Rs. 2,500 12. RS. 5,000

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13. Rs. 7,500 14. Rs. 10,000 15. Question: 3863 The book value of the fixed assets is 11. 12. 13. 14. 15. RS. 50,000 RS. 1,70,000 RS. 2,20,000 RS. 2,70,000

271

Question: 3864 The net assets figure is 11. 12. 13. 14. 15. RS. 73,500 RS. 1,40,000 RS, 1,90,000 RS. 2,13,500

Question: 3865 The years' rent for the business is 11. 12. 13. 14. 15. RS. 1000 RS. 2000 RS. 3000 RS. 4000

Question: 3887 The percentage return on total assets employed was approximately 11. 12. 13. 14. 15. 9% 14% 20% 25%

Question: 3888 select your answer by means of the following code 11. 12. 13. 14. 15. if 1, 2 and 3 are correct if 1 and 2 only are correct if only 1 is correct if only 3 is correct

Question: 3890 In a balance sheet the balance of the fixed assets accounts are usually included at 11. cost 12. book value

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13. scarp value 14. replacement value 15. Question: 3892 which one of the following would usually be regarded as a current liability? 9. 10. 11. 12. A liability due for payment within 12 months A liability due for payment within 24 months A liability due for payment within 36 months A liability due for payment within 48 months

272

Following list gives the correct choice for the answer of the accounting mcqs. 3860 . B 3861 . B 3862 . B 3863 . B 3864 . C 3865 . D 3887 . B A Question: 3894 Net assets equals 11. 12. 13. 14. 15. current assets minus current liabilities fixed assets minus current liabilities total assets minus current liabilities fictitious assets minus current liabilities

3888 . D

3890 . B

3892 .

Question: 3903 which one of the following not a book of original entry 11. 12. 13. 14. 15. The cash book The journal The ledger The sales day of book

Question: 3904 Day books are used 11. 12. 13. 14. 15. because of the requirements of the law to avoid numerous entries in the general ledger because the double entry system would not work with- out you must because the Institute of Charters Account states that you must

Question: 3905 which one of the following is book of original entry and is also part of the ledger? 11. 12. 13. 14. 15. The cash book The journal The sales day book The purchase day book

Question: 3906 The main source of information for the sales day book is obtained from

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11. 12. 13. 14. 15. invoices received credit notes sent out invoices sent out credit notes sent the till roll

273

Question: 3907 The main source of information for the purchase day book is obtained from 11. 12. 13. 14. 15. invoice received invoices sent out credit notes received debit notes sent out

Question: 3908 The main source of information for the sales returns day book is obtained from 11. 12. 13. 14. 15. invoices received invoices sent out credit notes received debit notes received

Question: 3910 The main source of information for the purchase returns day book is obtained from 11. 12. 13. 14. 15. invoices received invoices sent credit notes received debit notes sent out

Question: 3912 The totals of the sales day book are transferred to the 11. 12. 13. 14. 15. debit side of the sales account credit side of the sales account debit side of the sales control account journal proper

Question: 3914 The totals of the purchase returns day books are transferred to the 11. 12. 13. 14. 15. debit side of the returns inwards account debit side of the returns out wards account credit side of the returns inwards account credit side of the returns outwards account

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Following list gives the correct choice for the answer of the accounting mcqs. 3894 . C 3903 . C 3904 . B 3905 . A 3906 . B 3907 . A 3908 . C D Question: 3916 which one of the following is centered in the journal proper? 11. 12. 13. 14. 15. purchases and returns of stock sales and returns of stock cash transactions opening entries of a new business 3910 . C 3912 . B

274

3914 .

Question: 4032 which one of the following is entered in the journal proper? 11. 12. 13. 14. 15. purchase of fixed assets for cash purchase of fixed assets on credit purchase of stock on credit purchase of stock for cash

Question: 4035 which one of the following is entered in the journal proper? 11. 12. 13. 14. 15. The sale of an asset for cash The withdrawal of cash for private use cash discount given to a customer The correction of errors made in the ledger

Question: 4037 An entry in the journal should include 11. the name of the account to be debited 12. the name of the account to be credited 13. A description of the transaction 14. 15. Question: 4040 A trial balance is 11. 12. 13. 14. 15. a balance of the bank account The balance of the bank account a rough draft of the final accounts a list of the balances in the ledger

Question: 4043 The main purposes of a trial balance is to 11. help balance the bank account 12. check the arithmetical accuracy of the double entry

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13. help check the arithmetical accuracy of the double entry 14. help check the bank account with the bank statement 15. Question: 4046 select your answer by means of the following code 11. 12. 13. 14. 15. if 1, 2 and 3 are correct if 1 and 2 only are correct if only 1 is correct if only 3 is correct

275

Question: 4051 which of the following errors would normally be revealed by a trial balance? 11. 12. 13. 14. 15. A transaction is completely omitted from the books A sale to smith brothers is entered in smith and Co.Ltd. account A purchase of stock for resale has been entered in an asset account The sale of an asset has only been entered on one side of the books

Question: 4055 A suspense account is opined when the 11. 12. 13. 14. 15. trading account does not balance profit and loss account does not balance trial balance does not balance bank account does not balance

Question: 4059 select your answer by means of the following code 11. 12. 13. 14. 15. if 1, 2 and 3 are correct if 1 and 2 only are correct if only 1 is correct if only 3 is correct

Following list gives the correct choice for the answer of the accounting mcqs. 3916 . D 4032 . B 4035 . D 4037 . A 4040 . D 4043 . C 4046 . A .D

4051 . D

4055 . C

4059

Question: 4066 if the straight line method of depreciation is used the depreciation charge is 11. 12. 13. 14. 15. a fixed percentage of the cost of the asset each year a percentage of the book value of the asset each year always 10% of the cost of the asset each year a fluctuating percentage of the cost of the asset each year

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Question: 4069 Firms charge depreciation each year 11. 12. 13. 14. 15. to ensure there is enough money in the firm to replace the asset to spread the cost of the asset over its working life to reduce the profit and thus reduce the dividends they can pay to shareholders because the law states they must

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Question: 4071 which of the following assets is most likely to appreciate rather than depreciate 11. 12. 13. 14. 15. plant and machinery Land and buildings Motor vehicles Fixtures and fittings

Question: 4073 Depreciation is caused by 11. obsolescence 12. wear and tear 13. passage of time 14. 15. Question: 4085 which of the following methods can be used to calculate depreciation? 11. straight line 12. Reducing balance 13. revaluation 14. 15. Question: 4092 The companies Acts state that companies' Final published Accounts must show 11. depreciation charged during past year 12. the balance on the provision for depreciation account 13. the method of calculating depreciation 14. 15. Question: 4094 Another name for the Equal Installment method of depreciation is the 11. 12. 13. 14. 15. reducing balance method sinking fund method straight line method revaluation method

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Question: 4098 An asset is purchased for Rs. 11000. The scrap value is Rs. 1,000 and it is expected to last ten years. The amount of straight depreciation charged each year would be 11. 12. 13. 14. 15. RS. 900 RS. 1,000 RS. 1,100 RS. 1,200

Question: 4104 A firm buys an asset for RS. 10,000 and depreciates it using the diminishing balance method. which of the following amounts world be the second years depreciation charge at 10% per annum 11. 12. 13. 14. 15. RS. 800 RS. 810 RS. 900 RS. 1,000

Question: 4107 On 1st January a firms loose tools are valued at RS. 4,500. A year later they are revalued at RS. 3000. The depreciation charge for the year is 9. 10. 11. 12. RS. 500 RS. 1,000 RS. 1,500 RS. 3,OOO

Following list gives the correct choice for the answer of the accounting mcqs. 4066 . A 4069 . B 4071 . B 4073 . A 4085 . A 4092 . B 4094 . C C

4098 . B

4104 . C

4107 .

Question: 4110 The book value of a motor van on 1st January is RS. 20,000.Two years later the book value is Rs. 10,000.. The straight line depreciation rate of charge each years is 11. 12. 13. 14. 15. 12% 25% 33% 50%

Question: 4114 The vehicles in a company's feet usually last three years. it would probably charge depreciation on a fixed installment basis at a rate of 11. 12. 13. 14. 15. 25% per annum 33% per annum 50% per annum 665% per annum

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278

Question: 4116 A firm buys a lathe for Rs. 20,000 on 1st January and another one for RS.24,000 on 1st July. Deprecation is charged at the rate of 10% per annum or cost, using the basis of one month's ownership needs one month's depreciation. The total depreciation charge on the 31 December should be 11. 12. 13. 14. 15. RS. 2,200 RS. 3,200 RS. 3,600 RS.4,400

Question: 4119 An asset cost RS. 12,000 and is expected to last ten years, so depreciation is charged at RS. 1,200 per year. How-ever, after ten years the asset is still in use. Which of the following would be the future charge for depreciation? 11. 12. 13. 14. 15. Continue to charge RS. 1,200per year depreciation Credit profit and loss account with RS. 1,200 every year the asset continues to be in use. Stop charging depreciation after the ten years Reduce the depreciation charge on another asset

Question: 4121 A firm's assets at total RS. 1,00,000. The total depreciation charged to date is RS.45,000. The book value of the assets is 11. 12. 13. 14. 15. RS. 45,000 RS. 55,000 RS. 1,00,000 RS. 1,45,000

Question: 4125 A firm's assets at cost total Rs.1,00,000 .The total depreciation.2,40,000. charged to date is Rs.2,40000. Depreciation was charged at the rate of 10% annum by the straight line method. It decided to change its method to diminishing balance at 10% per annum, with retrospective effect. The total difference in the profits over the three years would be 11. 12. 13. 14. 15. RS, 6,690 Rs, 6,960 RS. 9,660 RS. 9,690

Question: 4174 If the provision for bad debts account is adjusted at the end of this financial year to equal 5% of the debtors. the balance on the total debtors account at 31st December must have been 11. 12. 13. 14. 15. RS. 10,000 RS. 25,000 RS. 40,000 RS. 50,000

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Question: 4175 The nit figure for debtors which appeared in the balance sheet at the end of the previous year was 11. 12. 13. 14. 15. RS. 47,500 RS. 48,000 RS. 51,500 RS. 52,500

Question: 4176 If the RS. 1,000 bad debts had not been written off, the overall effect on the profit for the year of all the entries relating to debtors, debts and provision for bad debts is 11. 12. 13. 14. 15. a decrease of TS. 1,500 a decrease of RS. 1,500 an increase of RS. 500 an increase of RS. 1,500

Question: 4183 If the Rs. 1,000 bad debts had not been written off, the overall effect on the profit for the year of all the entries relating to debtors, bad provision for bad debts would have been 9. 10. 11. 12. nil a decrease of Rs. 500 an increase of RS. 500 an increase of RS. 1,500

Following list gives the correct choice for the answer of the accounting mcqs. 4110 . B 4114 . B 4116 . B 4119 . C 4121 . B 4125 . B 4174 . C C

4175 . A

4176 . B

4183 .

Question: 4186 If the Rs. 1,000 bad debts had not been written off, the overall effect on the profit for the year of all the entries relating to debtors, bad provision for bad debts would have been 11. 12. 13. 14. 15. nil a decrease of Rs. 500 an increase of RS. 500 an increase of RS. 1,500

Question: 4190 Which one of the following statements about debtors, bad debts and provisions for bad debts in the incorrect? 11. 12. 13. 14. 15. Debtors usually appear as a current asset in the balance in the balance sheet provisions for bad debts usually have a debit balance in ledger The bad debts account usually has a debit balance in the ledger An increase in the provision for bad debts account will reduce the profit of the firm

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280

Question: 4191 which one of the following types of business is likely to have the largest amount of 'bad debts' ? 11. 12. 13. 14. 15. A Chinese take away A newsagent A bank A supermarket

Question: 4193 If the sales ledger control has a debit balance of RS. 39,400 it means that 11. 12. 13. 14. 15. there is RS. 39,400 in the bank account customers owe you RS. 39,500 you owe supplies R.s. 39500 you owe expenses totaling RS. 39,400

Question: 4197 If the purchase ledger control has a credit balance of RS. 48,000 it means that 11. 12. 13. 14. 15. your bank account is overdrawn by RS. 48,000 customers customers owe you RS. 48,000 you owe suppliers RS. 48,000 you owe expenses totaling RS. 48,000

Question: 4200 The total of the returns out wards for the month should be entered on the 11. 12. 13. 14. 15. debit side of the purchase control account credit side of the purchase control account credit side of the sales control account debit side of the sales control account

Question: 4201 Additional freight costs charged control account 11. 12. 13. 14. 15. credit side of the purchase control account credit side of the purchase control account credit side of the sales control account debit side of the sales control account

Question: 4202 Cash discounts received should be entered on the 11. 12. 13. 14. 15. debit side of the purchase control account credit side of the purchase control account credit side of the sales control account debit side of the sales control account

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281

Question: 4207 At the end of the financial year, once the balances on the control account are agreed with the total balances from their respective ledgers, they should appear in the balance sheet as 11. 12. 13. 14. 15. fictitious assets and debentures debtors' and creditors' balance fixed assets and long term liabilities fixed assets and share capital

Question: 4210 A cherub received which has now been dishonored should be entered on the 9. 10. 11. 12. debit side of the purchase control account credit side of the purchase control account credit side of the sales control account debit side of the sales control account

Following list gives the correct choice for the answer of the accounting mcqs. 4186 . C .D 4190 . B 4191 . D 4193 . B 4197 . C 4200 . A 4201 . D 4202 . C 4207 . B 4210

Question: 4217 Assuming that it reconciles with the cash book, a credit balance on a bank statement on the 31st December would appear in the balance sheet as a 11. 12. 13. 14. 15. current asset current liability fixed asset long term liability

Question: 4220 when the monthly bank statement is out which one of the following would appear? 11. 12. 13. 14. 15. cherubs written but not yet presented for payment credit transfer received from customers payment into the band not yet credited A sales ledger balance written off as a bad debt

Question: 4224 which one of the following be entered in the cash book and not on the bank statement ? 11. 12. 13. 14. 15. Bank charges A dishonored cherub payments into the bank but not yet credited A credit transfer received from a customer

Question: 4225 when drawing up a bank reconciliation statement, if you start with a debit balance as per the bank statement, the unrepresented cherubs should be

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11. 12. 13. 14. 15. added subtracted multiplied divided

282

Question: 4228 when drawing up a bank reconciliation statement, if you start with a debit balance in the cash book , bank charges should be 11. 12. 13. 14. 15. added subtracted multiplied divided

Question: 4233 The petty cash is kept on the IMPREST system and the balance at the start of the month is Rs. 1,000. If petty cash expenses during the month of Rs.720 are incurred, the amount received from the cashier at the start of the next month should be 11. 12. 13. 14. 15. Rs.280 Rs.720 Rs.1,000 Rs.1,720

Question: 4234 The main purpose of petty cash is 11. 12. 13. 14. 15. to pay employees wages to pay suppliers for their goods as change for the till to pay small day to day business expenses

Question: 4236 Under the immprest system the petty cash is 11. 12. 13. 14. 15. increased every week reduced every week always restored to the original amount used up completely before being restored

Question: 4237 A receipts and payments account is similar to 11. 12. 13. 14. 15. an income and expenditure account a statement of affairs a cash or bank account a profit and loss account

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Question: 4238 A club's income and expenditure account performs the same function as a firm's 11. 12. 13. 14. 15. trading profit and loss account balance sheet bank account petty cash book

283

Following list gives the correct choice for the answer of the accounting mcqs. 4217 . A 4220 . B 4224 . C 4225 . A 4228 . B 4233 . B 4234 . D A Question: 4239 A club's balance sheet may be referred to as its 11. 12. 13. 14. 15. income and expenditure account receipts and payments account accumulated fund statement of affairs

4236 . C

4237 . C

4238 .

Question: 4240 A club's loss is often referred to as 11. 12. 13. 14. 15. a balance a deficit a surplus drawing

Question: 4241 The amount of member's subscriptions paid advance is 11. 12. 13. 14. 15. as asset an expense a liability a surplus

Question: 4242 If a club owned a bar, the amount of profit or made by the bar in a financial year would be shown in the 11. 12. 13. 14. 15. receipts and payments account income and expenditure account balance sheet bank account

Question: 4243 A club's capital may be referred to as its 11. bank balance

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12. assets 13. accumulated fund 14. surplus 15.

284

Question: 4244 A club has 100 members and the subscription is Rs.10 per year. All have paid the right amount except three members who paid Rs.20 each because they owed for the previous year, and one member who also paid for next year . The income from subscriptions for the year in the income and expenditure account should be 11. 12. 13. 14. 15. Rs.960 Rs.1,000 Rs.1,030 Rs.1,040

Question: 4245 Depreciation written off the snooker table should be entered in the 11. 12. 13. 14. 15. receipts and payments account only receipts and payments account and the income and expenditure account receipts and payments account and the statement of affairs income and expenditure account and the statement

Question: 4246 Rs.4,000 spent on a snooker table should be entered in the 11. 12. 13. 14. 15. receipts and payments account only receipts and payments account and the income and expenditure account receipts and payments account and the statement affairs income and expenditure account and the statement of affairs

Question: 4247 The rate of turnover of stock is the 11. 12. 13. 14. 15. total value of turnover average stock divided by the cost of sales numbers of times the average stock is sold average of the opening and closing stock

Question: 4248 The cost of goods sold is the 9. 10. 11. 12. average stock divided by the rate of turnover of stock average stock multiplied by the turnover rate of turnover of stock divided by the average stock average stock multiplied by the rate of turnover of stock

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Following list gives the correct choice for the answer of the accounting mcqs. 4239 . D 4240 . B 4241 . C 4242 . B 4243 . C 4244 . B 4245 . D D 4246 . C 4247 . C

285

4248 .

Question: 4249 Which one of the following is most likely to have the lowest rate of stock turn? 11. 12. 13. 14. 15. a super market a greengrocer a newsagent a jeweler

Question: 4250 If a supermarket marks up its goods for resale by 10% on cost, the gross profit made on Rs. 1,000 worth of purchased should be 11. 12. 13. 14. 15. Rs.100 Rs.900 Rs.1,000 Rs.1,100

Question: 4252 During a year a store makes a gross profit of Rs.80,000 which is 20% of the cost of goods sold. The sales mast therefore be 11. 12. 13. 14. 15. Rs. 4,00,000 Rs. 4,80,000 Rs. 4,00,000 Rs. 1,00,000

Question: 4253 During a year a store's sales are Rs.5,00,000 and expenses are 20% of the gross profit. If 25% is added to the cost price of goods to obtain the selling price, the net profit is 11. 12. 13. 14. 15. Rs. 25,000 Rs. 55,000 Rs. 80,000 Rs. 1,00,000

Question: 4254 A trader starts a business with Rs.10000 cash and a van worth Rs.5000. At the end of his first year he has Rs.2000 in the bank, stock worth Rs.5,000, debtors valued Rs.2,000 and the van which is now worth Rs.Rs.4,000. If he has withdrawn Rs.2,000 from the business during the year for private expenses, he has made 11. 12. 13. 14. 15. a loss of Rs.1,000 neither a profit nor a loss a profit of Rs.1,000 a profit of Rs.2,000

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Question: 4257 A store's make up is the 11. 12. 13. 14. 15. gross profit expressed as a percentage of the cost of goods sold gross profit expressed as a percentage of the sales not profit expressed as a percentage of the cost of goods sold net profit expressed as a percentage of the sales

286

Question: 4258 A store's margin is the 11. 12. 13. 14. 15. gross profit expressed as a percentage of the cost goods sold gross profit expressed as a percentage of the sales net profit expressed as a percentage of the cost goods sold net profit expressed as a percentage of the sales

Question: 4259 A trader uses his business bank account and writes cherubs totaling Rs 25,000 for his private use. He also takes stock valued at Rs.9,000 from the shelves for his own use, and decides to give his daughter one of the firm's typewriters valued at Rs.1,200 as she is starting a secretarial course at the local college. His drawings for the year total 11. 12. 13. 14. 15. Rs. 25,000 Rs. 26,200 Rs. 34,000 Rs. 35,200

Question: 4260 if a store's mark up is 25% the margin must be 11. 12. 13. 14. 15. 5% 10% 15% 20%

Question: 4261 Ten people formed a partnership and contributed Rs.100 each to the venture. The total capital was used to purchase goods which were resold at a markup of 100% on cost. If expenses were 25% of sales and the net profit was distributed equally to the partners, each partner has increased his initial capital by 11. 12. 13. 14. 15. 25% 50% 75% 100%

Following list gives the correct choice for the answer of the accounting mcqs. 4249 . D 4250 . A 4252 . B 4253 . C 4254 . B 4257 . A 4258 . B B

4259 . D

4260 . D

4261 .

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Question: 4266 A firm owes Rs. 200 to trade creditors at the start in the year and Rs.300 at the end. Purchases on credit during the year totaled Rs.10,000. If suppliers allowed a total of Rs. 500 cash discount during the year, the amount paid so the creditors have been 11. 12. 13. 14. 15. Rs. 9,200 Rs. 9,400 Rs. 9,600 Rs. 9,200

Question: 4267 A firm's debtors fell from Rs.1,000 at the start of the year to Rs.900 at the end. the total of the sales day book was Rs.7,900 and the cash book showed that Rs. 7,700 was received from debtors during the year. Assuming a bad debt of Rs. 100 was written off, the cash discount allowed to credit customers during the year must have amounted to 11. 12. 13. 14. 15. Rs. 200 Rs. 400 Rs. 700 Rs. 900

Question: 4268 the main purpose of a manufacturing account is to find the 11. 12. 13. 14. 15. cost of overheads cost of raw materials used cost of production gross profit

Question: 4270 Which one of the following is not an overhead? 11. 12. 13. 14. 15. cost of raw materials depreciation of plant and machinery rent and rates of the factory foreman's wages

Question: 4272 An alternative expression for indirect expenses is 11. 12. 13. 14. 15. prime cost production cost work in progress overheads

Question: 4273 Which one of the following would not be included in the prime cost? 11. manufacturing wages

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12. direct power 13. direct factory expenses 14. heating and lighting of the factory 15. Question: 4275 The prime cost consists of 11. 12. 13. 14. 15. wages plus overheads materials plus overheads all direct factory expenses indirect factory expense

288

Question: 4286 A bank reconciliation statement reconciles the 11. 12. 13. 14. 15. ledger with the journals petty cash book with the bank account bank statement with the cash book day books with the bank statement

Question: 4287 Assuming that it reconciles with the cash book, a credit balance on a bank statement on the 31st December would appear in the balance sheet as a 11. 12. 13. 14. 15. current asset current liability fixed asset long term liability

Question: 4288 when the monthly bank statement is sent out which one of the following would appear? 9. 10. 11. 12. cherubs written but not yet presented for payment credit transfer received from customers payment into the bank not yet credited A sales ledger balance written off as a bad debt

Following list gives the correct choice for the answer of the accounting mcqs. 4266 . B 4267 . A 4268 . C 4270 . A 4272 . D 4273 . D 4275 . C B Question: 4289 work in progress at the end of the financial year is 11. included in the present year's production cost 12. not included in the present year's production cost 13. included in the previous year's production cost

4286 . C

4287 . A

4288 .

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14. added to the cost of raw materials 15. Question: 4290 work in progress at the end of the financial year is 11. 12. 13. 14. 15. included in the present year's production cost not included in the present year's production cost included in the previous year's production cost added to the cost of raw materials

289

Question: 4291 If the prime cost is Rs. 40,000 overheads R.s. 60,000, work in progress at 1st January Rs. 10,000 and work in progress at 31st December RS. 20,000 the cost of the year's production of finished goods is 11. 12. 13. 14. 15. RS. 90,000 RS. 1, 00,000 RS. 1,10,000 RS. 1,30,000

Question: 4292 Depreciation of plant and machinery is usually classified as 11. 12. 13. 14. 15. a financial cost an overhead cost a selling cost an administration cost

Question: 4293 If a manufacturing company gas to pay a royalty for every unit it produces, this would probably be classified as 11. 12. 13. 14. 15. an indirect cost a direct cost an overhead a cost of materials

Question: 4294 Which one of the following is usually classified as a variable cost in the short term? 11. 12. 13. 14. 15. cost of materials used factory rates factory rent foreman's wages

Question: 4295 which one of the following is usually classified as a fixed cost in the short term? 11. Direct labor costs

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12. power for the factory machinery 13. cost of materials used 14. factory rent and rates 15. Question: 4296 In a manufacturing firm's trading account the cost of production figure replaces the 11. 12. 13. 14. 15. cost of goods sold closing stock of finished goods purchase of finished goods gross profit

290

Question: 4297 The cost of raw materials used is 11. 12. 13. 14. 15. Rs. 5,00,000 Rs. 6,00,000 RS. 6,50,000 RS. 6,70,000

Question: 4298 The prime cost is 11. 12. 13. 14. 15. RS. 6,00,000 RS. 670,000 RS. 11,00,000 RS. 14,20,000

Answers to the questions of accounting on this page Following list gives the correct choice for the answer of the accounting mcqs. 4289 . B 4290 . B 4291 . A 4292 . B 4293 . B 4294 . A 4295 . D C Question: 4299 The total factory overheads are 11. 12. 13. 14. 15. RS.2,30,000 RS. 3,20,000 RS. 14,10,000 RS. 14,20,000

4296 . C

4297 . B

4298 .

Question: 4300 The cost of the year's production of finished goods is 11. RS. 11,00,000 12. RS. 14,10,000 13. RS. 14,20,000

Made By Farhan Qadeer (M.Sc. Management and Finance, Birmingham City University, UK) Lecturer (University of The Lahore) Email: qadeerfarhan@yahoo.com Cell: +92333-4881302

Gat Subject (Management Sciences Accounting-Management -Economics)


14. RS. 14,60,000 15. Question: 4301 The work in progress at the start of the year was 11. 12. 13. 14. 15. RS. 10,000 RS. 30,000 RS. 40,000 RS. 50,000

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Question: 4302 The indirect wages for the year totaled 11. 12. 13. 14. 15. RS. 10,000 RS. 20,000 RS. 30,000 RS. 40,000

Question: 4303 If the accountant had forgotten to take in to account that RS. 5,000 paid for forgotten to take into account that RS. 5,000 paid for factory rates was for the following year, the production cost would have been 11. 12. 13. 14. 15. RS. 14,05,000 RS. 14,10,000 RS. 15,000 RS. 14,20,000

Question: 4304 At the end of the financial year a partner's drawing current account are transferred to the 11. 12. 13. 14. 15. credit side of the partner's capital account credit side of the partner's current account debit side of the partnership bank account debit side of the partner's

Question: 4305 After the final accounts have been prepared, a debit balance on a partner's current account means that the 11. 12. 13. 14. 15. partner is owed that amount by partnership partnership's bank account is overdrawn partner is in debt to the partnership for that amount partnership has no working capital

Question: 4306 If one partner received a salary which is credited to him at the end of the year, the share of the profit available for distribution will be

Made By Farhan Qadeer (M.Sc. Management and Finance, Birmingham City University, UK) Lecturer (University of The Lahore) Email: qadeerfarhan@yahoo.com Cell: +92333-4881302

Gat Subject (Management Sciences Accounting-Management -Economics)


11. 12. 13. 14. 15. increased decreased unchanged non-existent

292

Question: 4314 which one of the following would be entered in the cash book and not on the bank statement 11. 12. 13. 14. 15. Bank charges A dishonored cherub payment into the bank but not yet credited A credit transfer received from a customer

Question: 4315 when drawing up a bank reconciliation statement, if you start with a debit balance as per the bank statement, the unprecedented cheques should be 9. 10. 11. 12. added subtracted multiplied divided

Following list gives the correct choice for the answer of the accounting mcqs. 4299 . B 4300 . B 4301 . C 4302 . C 4303 . A 4304 . D 4305 . C A

4306 . B

4314 . C

4315 .

Question: 4316 when drawing up a bank reconciliation statement, if you start with a debit balance in the cash book, the bank charges should be 11. 12. 13. 14. 15. added subtracted multiplied divided

Question: 4317 when the monthly bank statement is sent out which one of the following would not appear 11. 12. 13. 14. 15. Interest charged by the bank A dishonored cheque A direct debit A payment from petty cash

Question: 4318 The petty cash is kept on the Imprest system and the balance at the start of the month is RS. 1,000. If petty cash expenses during the month of RS. 720 are incurred, the amount received from the cashier at the start of the next month should be 11. RS. 280

Made By Farhan Qadeer (M.Sc. Management and Finance, Birmingham City University, UK) Lecturer (University of The Lahore) Email: qadeerfarhan@yahoo.com Cell: +92333-4881302

Gat Subject (Management Sciences Accounting-Management -Economics)


12. RS. 720 13. RS. 1,000 14. RS. 1,720 15. Question: 4319 The main purpose of petty 11. 12. 13. 14. 15. to pay employees, wages to pay suppliers for their goods as change for the till to pay small day to day business expenses

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Question: 4351 An analytical petty cash book 11. 12. 13. 14. 15. Lists different petty expenses under their relevant headings is used instead of three column cash book is not part of the double entry system is always run on the imprest system

Question: 4353 Under the Imprest system the cash is 11. 12. 13. 14. 15. increased every week reduced every week always restored to the original amount used op completely before being restored

Question: 4355 A receipts and payments account is similar to 11. 12. 13. 14. 15. an income and expenditure account a statement of affairs a cash or bank account a profit and loss account

Question: 4358 A club's income and expenditure account performs the same function as a firm's 11. 12. 13. 14. 15. trading, profit and loss account balance sheet bank account petty cash book

Question: 4359 A club's balance sheet may be referred to as its 11. income and expenditure account

Made By Farhan Qadeer (M.Sc. Management and Finance, Birmingham City University, UK) Lecturer (University of The Lahore) Email: qadeerfarhan@yahoo.com Cell: +92333-4881302

Gat Subject (Management Sciences Accounting-Management -Economics)


12. receipts and payments account 13. accumulated fund 14. statement of affairs 15. Question: 4360 A club's capital may be referred to as its 11. 12. 13. 14. 15. bank balance assets accumulated fund surplus

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Following list gives the correct choice for the answer of the accounting mcqs. 4316 . B 4317 . D 4318 . B 4319 . D 4351 . A 4353 . C 4355 . C C Question: 4362 A club's loss is often referred to as 11. 12. 13. 14. 15. a balance a deficit a surplus drawings

4358 . A

4359 . D

4360 .

Question: 4366 The amount of member's subscriptions paid in advance is 11. 12. 13. 14. 15. an asset an expense a liability a surplus

Question: 4368 I a club owned a bar, the amount of profit or loss made by the bar in a financial year would be shown in the 11. 12. 13. 14. 15. receipts and payments account income and expenditure account balance sheet bank account

Question: 4372 A club has 100 members and the subscription is RS. 10 per year. All have paid the right amount except three members who paid RS. 20each because they owed for the previous year, and one member who also paid for next year. The income from subscriptions for the year in the income and expenditure account should be 11. RS. 960

Made By Farhan Qadeer (M.Sc. Management and Finance, Birmingham City University, UK) Lecturer (University of The Lahore) Email: qadeerfarhan@yahoo.com Cell: +92333-4881302

Gat Subject (Management Sciences Accounting-Management -Economics)


12. RS. 1,000 13. RS. 1,030 14. RS. 1,040 15. Question: 4373 RS. 4,000 spent on a snooker table should be entered in the 11. 12. 13. 14. 15. receipts and payments account only receipts and payments account and the income and expenditure account receipts and payments account and the statement of affairs income and expenditure account and the statement of affairs

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Question: 4374 Depreciation written off the snooker table should be entered on the 11. 12. 13. 14. 15. receipts and payments account only receipts and payments account and the income and expenditure account receipts and payments account and the statement of affairs income and expenditure account and the statement of affairs

Question: 4375 During the year the cash figure has increased by 11. 12. 13. 14. 15. RS. 820 RS. 1,000 RS.1,820 RS.2,790

Question: 4376 The accumulated fund at the beginning of the club's second year amounted to 11. 12. 13. 14. 15. RS. 820 RS.1,000 RS. 1,820 RS. 2,790

Question: 4377 Rent owing at the end of the year amounted to 11. 12. 13. 14. 15. nil RS. 50 RS. 350 RS. 400

Question: 4378 Rates owing at the end of the year amounted to 11. nil

Made By Farhan Qadeer (M.Sc. Management and Finance, Birmingham City University, UK) Lecturer (University of The Lahore) Email: qadeerfarhan@yahoo.com Cell: +92333-4881302

Gat Subject (Management Sciences Accounting-Management -Economics)


12. RS. 30 13. RS. 100 14. RS. 130 15. Following list gives the correct choice for the answer of the accounting mcqs. 4362 . B 4366 . C 4368 . B 4372 . B 4373 . C 4374 . D 4375 . B A

296

4376 . A

4377 . B

4378 .

Question: 4379 The amount owed to creditors for supplies of sweets at 31 December was 11. 12. 13. 14. 15. RS. 30 RS. 210 RS. 420 RS. 600

Question: 4381 The book value of fixed assets at 31st December amounted to 11. 12. 13. 14. 15. RS. 20 RS. 70 RS.90 RS. 110

Question: 4382 If the donations had been 'capitalized,' the accumulated fund at 31st December would have been 11. 12. 13. 14. 15. RS. 700 RS. 820 RS. 1,520 RS. 1,740

Question: 4383 If the donations had been 'capitalized,' the surplus would have been 11. 12. 13. 14. 15. RS. 120 RS. 700 RS.820 RS.1,520

Question: 4384 The current assets at 31st December amounted to 11. 12. 13. 14. RS. 1,000 RS. 1,040 RS. 1,070 RS. 1,110

Made By Farhan Qadeer (M.Sc. Management and Finance, Birmingham City University, UK) Lecturer (University of The Lahore) Email: qadeerfarhan@yahoo.com Cell: +92333-4881302

Gat Subject (Management Sciences Accounting-Management -Economics)


15. Question: 4386 The rate of turnover of stock is the 11. 12. 13. 14. 15. total value of turnover average stock divide by the cost of sales number of times the average stock is sold average of the opening and closing stock

297

Question: 4389 The cost of goods sold is the 11. 12. 13. 14. 15. average stock divided by the rate of turnover of stock average stock multiplied by the turnover rate of turnover of stock divided by the average stock average stock multiplied by the rate of turnover of stock

Question: 4392 which one of the following is most likely to have the lowest rate of stock turn? 11. 12. 13. 14. 15. A super market A greengrocer A news agent A jeweler

Question: 4398 If a supermarket marks up its goods for resale by 10% on cost, the gross profit made on RS. 1,000 worth of purchased should be 11. 12. 13. 14. 15. RS. 100 RS. 900 RS. 1,000 RS. 1,100

Question: 4399 which one of the following is most likely to have the lowest rate of stock turn? 11. 12. 13. 14. 15. A super market A greengrocer A news agent A jeweler

Following list gives the correct choice for the answer of the accounting mcqs. 4379 . B 4381 . C 4382 . B 4383 . A 4384 . C 4386 . C 4389 . D D

4392 . D

4398 . A

4399 .

Question: 4401 The amount owed to creditors for supplies of sweets at 31 December was

Made By Farhan Qadeer (M.Sc. Management and Finance, Birmingham City University, UK) Lecturer (University of The Lahore) Email: qadeerfarhan@yahoo.com Cell: +92333-4881302

Gat Subject (Management Sciences Accounting-Management -Economics)


11. 12. 13. 14. 15. RS. 30 RS. 210 RS. 420 RS. 600

298

Question: 4404 During a year a store makes a gross profit of RS. 80,000 which is 20% of the cost of goods sold The sales mast therefore be 11. 12. 13. 14. 15. RS. 4,000,000 4,80,000 RS. 5,20,000 RS. 1,00,000

Question: 4411 During a year a store's sales are R.s. 5,00,000 and expenses are 20% of the gross profit. If 25% is added to the cost price of goods to obtain the selling price, the net profit is 9. 10. 11. 12. RS. 25,000 RS. 55,000 RS. 80,000 RS. 1,00.000

Following list gives the correct choice for the answer of the accounting mcqs. 4398 . A 4399 . D 4401 . B 4404 . B 4411 . C

Made By Farhan Qadeer (M.Sc. Management and Finance, Birmingham City University, UK) Lecturer (University of The Lahore) Email: qadeerfarhan@yahoo.com Cell: +92333-4881302