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PK FOUNDATIONS

P K TECHNICAL CAMPUS, CHAKAN-PUNE


Dept. of M.B.A.
Accounting For Business Decision -101
Mid Term Examination September 2015.
Max. Marks: 30.

Sem. I

Duration: 1.00 Hrs.

Instructions: (20 Objective type questions of 20 marks and 10 questions answer in one
sentence 10 marks)
1. The main objective of book keeping is
a) To have permanent record of all business transactions
b) To find out the result of business operation.
c) To analyze the result of business operation
d) To interpret the result of business operation
2. The main objective of accounting is
a) To record all the business transactions
b) To maintain the accounting records
c) To know the amount due from customers and due to suppliers
d) To ascertain, analyze and interpret the result of business operations
3. The work of book keeper is. In nature
a) Analytical
b) Clerical
c) Executive
d) Non recurring
4. The aim of financial accounting is ascertaining the ..
a) Cost of products manufactured
b) Cost of services produced
c) Profit & loss of the concern over a specific period
d) Providing necessary accounting information to the management
5. The aim of cost accounting is
a) Ascertaining the cost incurred for producing a product, process or service.
b) Ascertaining the trading results of the business concern
c) Analyzing the financial statements
d) Providing necessary accounting information to the management
6. The following system records only the actual cash receipts and payments.
a) Cash basis
b) Accrual basis
c) Mercantile basis
d) Single entry system

7. In accounts recording is made of..


a) Only financial transaction
b) Only non financial transaction
c) Financial and non financial transaction
d) Personal transaction of the proprietor
8. Which of the following is not of financial character?
a) Purchase of asset on credit
b) Purchase of goods for cash
c) Withdrawing of money by proprietor from business
d) Strike by employee
9. Internal users of accounting information are
a)a Owners
b. creditors c. Management
d government
10. Which of the following is not the internal user of financial statements.
a.) Owners b.) Managers c) lenders d) Employees
11. Which of the following is not the limitation of accounting
a. Based on accounting conventions
b. Incomplete information
c. Evidence in legal matters
d. Mission of qualitative information
12. Which of the following is/are sub fields of accounting?
a. Financial accounting
b. Cost accounting
c. Management accounting
d. All the above
13. Cost accounting is related to..
a. Recording of financial transactions
b. Ascertaining the cost of goods produced or services rendered
c. Management information system
d. None of the above
14. Current assets include.
a. Bills receivable
b. Prepaid expenses
c. Cash
d. All of the above
15. Owner of business is called
a. Proprietor
b. Creditor
c. Debtor
d. Investor

16. Goodwill is one of the assets


a. Tangible
b. Intangible
c. Current
d. Liquid
17. Salary is one of the expenses
a. Capital
b. revenue c. direct
d. non cash
18. Depreciation is one of the .. expenses
a. Non cash
b. capital
c. non recurring
d. direct
19. All the transactions pertaining to an account are collected at one place in
the
a. Journal
b. ledger
c. trial balance
d. balance sheet
20. Wages is one of the .. expenses
a. Direct
b. indirect c. capital
d. non cash
Answer the following in one or two sentence:
1. Define financial accounting.
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2. Relevant cost is
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3. Fixed cost can be stated as.
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4. Cash budget can be defined as..
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5. Define material variance

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6. State the formula for material mix variance
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7. Define labour variance.
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8. State the formula for labour efficiency variance and idle time.
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9. Define variable cost
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10. Define flexible budget.


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Best of Luck
Marks obtained:-__________.

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