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More MCQS-GAT-Subject-Management-Sciences PDF
More MCQS-GAT-Subject-Management-Sciences PDF
GAT
SUBJECT
MCQ’S
(Management Sciences – Accounting-
Management -Economics)
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Gat Subject (Management Sciences – Accounting-Management -Economics)
Table of Content
ACCOUNTING.................... 3-100
Management………………… 101-200
Economics........................ 200-298
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Gat Subject (Management Sciences – Accounting-Management -Economics)
A
C
C
O
U
N
T
I
N
G
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Gat Subject (Management Sciences – Accounting-Management -Economics)
Question: 924 direct wages should always be classified
1. as variable costs
2. as fixed costs
3. as semi-fixed
4. according to their actual behavior
5.
Question: 928 The First in First out (FIFO) materials pricing system charges issues at
Question: 943 Unit costs are extensively used in the public sector. This is because
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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. a car manufacturer
2. a sugar refinery
3. a builder
4. a departmental store
5.
Question: 956 which of the following firms would be most likely to use job costing
1. a paint manufacturer
2. a sugar refinery
3. a firm of architects
4. a car manufacturers
5.
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 948 . A 952 . B 956 .
C
1. Number of leavers
2. Number replaced
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Gat Subject (Management Sciences – Accounting-Management -Economics)
3. Numbers of employees at the end
4. Number of leavers in a period
5.
1. common costs are shared among cost centres,in portion to the benefit received
2. The total amount of overheads for the firm can be calculated
3. The total overheads for a cost centre can be calculated
4. Each unit of the product carries a share of overheads
5.
Question: 998 Expenditure on steel used in the product would be classified into which of the following
categories
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Gat Subject (Management Sciences – Accounting-Management -Economics)
2. direct material/production overheads
3. in direct material/cost unit
4. prime cost/production overhead
5.
Question: 1005 A firms’ uses direct labor a basis for overhead absorption if large fluctuations in labor house are
experiences
Question: 1043 the costing associated with a typical site based contract
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 998 . A 1005 . A 1039
.D 1043 . D
Question: 1046 Using process costing the amount of cost transferred to finished goods stock is the cost of
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Gat Subject (Management Sciences – Accounting-Management -Economics)
3. is information passed up two layers of the organization
4. is information that is double checked for accuracy
5.
Question: 1069 which of the following are possible causes of the changes in the graph at activity level Z
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. maximize profits
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Gat Subject (Management Sciences – Accounting-Management -Economics)
2. help in inventory valuation
3. provide information to management for decision-making
4. aid in the fixation of selling prices
5.
1. direct cost
2. budget
3. cost sheet
4. marginal costing
5.
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 1078 . B 1081 . C 1085 .
C 1086 . B 1088 . B
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Gat Subject (Management Sciences – Accounting-Management -Economics)
Question: 1093 Increase in total variable cost is due to
1. property taxes
2. interest on capital
3. direct material cost
4. depreciation of machinery
5.
1. Planning
2. controlling
3. profit sharing
4. product costing
5.
Question: 1104 the three major elements of product costs are all but
1. direct materials
2. Factory overhead
3. direct labor
4. indirect labor
5.
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Gat Subject (Management Sciences – Accounting-Management -Economics)
Question: 1117 Cost of goods sold includes
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 1102 . C 1104 . D 1111 .
B 1117 . B 1123 . D
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Gat Subject (Management Sciences – Accounting-Management -Economics)
Question: 1127 multiple costing methods is used in
1. oil refinery
2. car manufacturing company
3. sugar mill
4. multi-product company
5.
1. unit costing
2. job costing
3. batch costing
4. multiple costing
5.
1. unit costing
2. process costing
3. batch costing
4. multiple costing
5.
1. paper mills
2. chemical works
3. printing press
4. textile mill
5.
1. mining quarries
2. steel production
3. brick kilns
4. all of these
5.
1. ship-building
2. airplane industries
3. automobile industries
4. none of these
5.
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Gat Subject (Management Sciences – Accounting-Management -Economics)
Question: 1167 Direct material is a
1. Fixed cost
2. variable cost
3. semi variable cost
4.
5.
1. manufacturing cost
2. Administration
3. Selling and distribution cost
4. Any of the above
5.
1. Material
2. Labor
3. Overheads
4.
5.
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 1131 . D 1132 . An 1167
.B 1172 . An 1174 . A
1. Bill of Material
2. Bin card
3. stores ledger
4. All of these
5.
Question: 1180 which of the following documents is used for issuing materials to productions departments
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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
Question: 1186 According to which of the following methods of pricing, issues are close to current economic
values
1. Last-in-first-out price
2. First-in-first-out price
3. Highest-in-first-out price
4. Weighted average price
5.
Question: 1187 in which of the following methods of pricing costs lag behind the current economic values
1. Last-in-first-out price.
2. First-in -first-out price.
3. Replacement price.
4. Weighted average price.
5.
Question: 1192 which of the following methods of stock control aims at concentrating efforts on selected items
of materials
Question: 1193 in base stock method of pricing the material issues, the term base stock represents the
Question: 1194 which of the following items of cost should NOT be treated as NOT be treated as direct material
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Gat Subject (Management Sciences – Accounting-Management -Economics)
5.
1. Annual stock-taking
2. Perpetual inventory system
3. ABC analysis
4. periodic inventory system
5.
Question: 1197 the classification of items in ABC analysis is made on the basis of
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 1192 . D 1193 .
C 1194 . D 1195 . B 1197 . D
Question: 1202 in which of the following methods, issues of materials are priced at a pre-determined rate
Question: 1204 in which of the following methods, materials are issued at the price prevailing at the time of
issue
Question: 1205 the storekeeper should initiate a purchase requisition when stock reaches
1. Minimum leveled
2. maximum level
3. re-order level
4. overage level
5.
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Gat Subject (Management Sciences – Accounting-Management -Economics)
Question: 1207 which of the following material losses should be transferred to costing profit and loss account
1. Loss by evaporation
2. Loss due to improper storage of materials
3. Loss due to breaking the bulk
4. All of these
5.
Question: 1210 when material prices fluctuate widely, the method of pricing that gives absurd results is
Question: 1212 when prices fluctuate widely, the method that will smooth out the effect of fluctuations is
1. simple average
2. weighted average
3. FIFO
4. LIFO
5.
Question: 1213 in which of the following methods, the charge to production is at actual cost
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. 1,00,000 units
2. 5,ooo units
3. 10,000 units
4. 7,500 units
5.
Question: 1297 taking the data in Q.3.21 above, the estimated annual ordering cost is
1. RS.1,600
2. RS.10,000
3. RS.3,200
4. 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. 10
2. 50
3. 20
4. 100
5.
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 1212 . B 1213 . D 1294 .
B 1297 . A 1300 . B
Question: 1300 On the basis of data given in Q 3.21 above, number of orders to be placed in each year are
1. 10
2. 50
3. 20
4. 100
5.
Question: 1304 when material prices are showing a rising trend, which method of pricing will show lower cost
of production
1. FIFO
2. LIFO
3. Weighted average
4. Replacement price
5.
Question: 1307 in periods of rising prices, which method of pricing shows higher stock values
1. FIFO
2. LIFO
3. Weighted average
4. Replacement price
5.
Question: 1309 in which method, prices charged to production are at the current prices prevailing in the market
1. FIFO
2. LIFO
3. Weighted average
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Gat Subject (Management Sciences – Accounting-Management -Economics)
4. Replacement price
5.
Question: 1312 when prices are showing a falling tendency, which method of pricing of material issues will
show higher closing stock value
1. FIFO
2. LIFO
3. Weighted average
4. Specific price method
5.
Question: 1313 When production is below standard specification or quality and cannot be rectified by incurring
additional cost, it is called
1. Defectives
2. Spoilage
3. Waste
4. Scrap
5.
Question: 1315 Materials losses are due to some of the following reasons
1. Fore accident
2. Theft
3. Breaking the bulk
4. Evaporation
5. pilferage
Question: 1319 Documents used in a material control system include the following
Question: 1321 at what amount materials issued on 8-1-1997 will be charged if FIFO method is used
1. RS.1,550
2. RS.1,575
3. RS1,700
4. RS1,750
5.
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. RS.1,575
3. RS.1,700
4. RS.1,750
5.
Question: 1325 at what amount materials issued will be charged if simple average price is used
1. RS.1,550
2. RS1,575
3. RS.1,610
4. RS.1,700
5.
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 1315 . A 1319 . D 1321
.B 1323 . C 1325 . B
Question: 1329 at what amount materials issued will be charged if weighted average price is used
1. RS.1,575
2. RS.1,610
3. RS.1,625
4. None of these
5.
Question: 1330 at what amount materials issued will be charged if replacement price method is used
1. RS.1,400
2. RS.1,700
3. RS.2,100
4. RS. 1,750
5.
Question: 1335 what will be the value of closing stock under FIFO method
1. RS 600
2. RS 675
3. RS 700
4. None of these
5.
Question: 1336 what will be the value of closing under LIFO method
1. RS.600
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Gat Subject (Management Sciences – Accounting-Management -Economics)
2. RS.675
3. RS.690
4. RS.750
5.
Question: 1337 what will be the value of closing stock under simple average method
1. RS.600
2. RS.690
3. RS.725
4. RS.750
5.
Question: 1339 what will be the value of closing stock if weighted average method is applied
1. RS.600
2. RS.690
3. RS.725
4. RS.750
5.
Question: 1340 what will be the value of closing stock if replacement price method if used
1. RS.100
2. RS.300
3. RS.200
4. None of these
5.
Question: 1344 in which of following incentive plans of wages payment, wages on time basis are NOT
guaranteed
1. Halsey plan
2. Rowan plan
3. Taylors differential piece rate system
4. Gantt's task and bonus system
5.
Question: 1427 in which of the following incentive plan of wages payment, wages on time basis are NOT
guaranteed?
1. Halsey plan
2. Rowan plan
3. Taylor's differential piece rate system
4. Gantt's task and bonus system
5.
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Gat Subject (Management Sciences – Accounting-Management -Economics)
Question: 1429 which of the following methods of wage payment is most suitable where quality and accuracy
of work is of primary importance?
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 1339 . B 1340 . B 1344 .
C 1427 . C 1429 . B
Question: 1430 Cost of idle time arising due to non-availability of raw material is
Question: 1432 when overtime is required for meeting urgent orders, overtime premium should be
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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. 80%
2. 120%
3. 100%
4. none of these
5.
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. Rs 18
2. Rs 14
3. Rs 16
4. Rs12
5.
Question: 1449 using data as given in Q. 314 above, what will be the amount of wages under time rate system
1. RS. 12
2. RS.14
3. 16
4. 18.
5.
Question: 1451 using data as given in Q. 314 above, what will be the amount of bonus under rowan plan
1.
2. RS. 2
3. RS. 3
4. RS. 4
5. 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. RS. 2
2. RS.3
3. RS.4
4. Nil
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Gat Subject (Management Sciences – Accounting-Management -Economics)
5.
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 1438 . C 1443 . C 1449 .
A 1451 . B 1453 . A
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. RS.14.00
2. RS.14.25
3. 18.50
4. 19.00
5.
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. RS.15.15
2. RS.20.00
3. 20.15
4. 20.20
5.
Question: 1460 Comparing Rowan and Halsey premium plans, it is seen that when the time saved is less than
50% of the time saved,
Question: 1461 when time saved is 40% of the standard time, Halsey plan allows
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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Gat Subject (Management Sciences – Accounting-Management -Economics)
1. RS.24.00
2. RS.26.80
3. RS.17.28
4. RS.20.40
5.
1. priestman plan
2. Badaux plan
3. Halsey weir plan
4. All of these
5.
1. production cost
2. selling cost
3. distribution cost
4. It may be any of the above
5.
1. production overhead
2. selling overhead
3. administration overhead
4. distribution overhead
5.
1. fixed overhead
2. variable overhead
3. semi-fixed or semi-variable overhead
4.
5.
Question: 1472 Charging to a cost centre those overheads that result soleoy from existence of that cost centre
is known as
1. allocation
2. apportionment
3. absorption
4. allotment
5.
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 1459 . D 1460 . A 1461 . B 1463 . C 1464 . A 1466 . D 1468 .
B 1471 . C 1472 . A
1. direct materials
2. direct wages
3. prime cost
4. works cost
5.
Question: 1488 which method of absorption of factory overheads do you suggest in a concern which produced
only one uniform type of product
Question: 1490 When the amount of under-or over-absorption is significant, it should be disposed of by
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Gat Subject (Management Sciences – Accounting-Management -Economics)
3. practical capacity and capacity based on sales expectancy
4. maximum capacity and actual capacity
5.
Question: 1496 Maximum possible productive capacity of a plant, when no operating time is lost, is its
1. practical capacity
2. Theoretical capacity
3. Normal capacity
4. Capacity based on sales expectancy
5.
Question: 1499 the capacity which is based on the long term average of the sales expectancy level is known as
1. practical capacity
2. Actual capacity
3. Normal capacity
4. None of these
5.
Question: 1502 when the amount of overhead absorbed is less than the amount of overhead incurred, it is
called
1. under-absorption of overhead
2. over-absorption of overhead
3. proper absorption of overhead
4.
5.
1. production overhead
2. Administration overhead
3. selling overhead
4. 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 1493 . C 1496 . C 1499 .
C 1502 . A 1506 . C
Question: 1508 Number of workers employed is used as a basis for the apportionment of
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Gat Subject (Management Sciences – Accounting-Management -Economics)
Question: 1518 in which of the following methods of providing depreciation, the amount of depreciation goes
on decreasing with the age of the asset
Question: 1544 Selling and distribution overheads are absorbed on the basis of
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. normal capacity
2. maximum capacity
3. direct labor hours
4. machine hours
5. none of the above
Question: 1553 A monopolies will shut down its plant in the short run if
1. It is making a loss.
2. Marginal revenue is less than marginal cost.
3. Marginal revenue less than average variable cost at all levels of output.
4. Average revenue is less than average variable cost at all levels of output.
5. 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 pre-
determined 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
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Gat Subject (Management Sciences – Accounting-Management -Economics)
3. fixed factory costs not allocated to unit produced
4. cost that cannot be controlled
5. 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
1. remain unchanged for fixed costs and increase for variable costs
2. increase for fixed cost and remain unchanged for variable costs
3. increase for fixed costs and decrease for variable costs
4. decrease for fixed costs and decrease for variable costs
5.
1. materials consumed
2. direct labor cost
3. direct labor hours
4. machine hours
5.
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 1567 . B 1569 . A 1571 .
B
Question: 1573 the concept of ideal capacity of plant as used in cost accounting is its
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Gat Subject (Management Sciences – Accounting-Management -Economics)
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 over-
absorption of overhead
1. RS.20000 over-absorption
2. RS. 20,000 over-absorption
3. RS.5000 under-absorption
4. RS.5,000 over-absorption
5.
1. RS.1,50,000
2.
3. rs.1,65,000
4. cannot be computed
5. None of these
1. RS. 1,50,000
2. RS. 1,65,000
3. RS. 15,000
4. RS 20,000
5.
Question: 1592 In Q 3,37, which method should be used to treat under/over absorbed amount in cost accounts
1. 16,000
2. 12,000
3. Cannot be known
4. None of these
5.
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
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4. Either(b)or(c)
5.
Question: 1603 the principal factors to be considered on designing a cost system include
1. Manufacturing process
2. desires of management
3. nature of business
4. company organization structure
5. 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. job costing
2. Batch costing
3. operating costing
4. None of these
5.
1. job costing
2. Batch costing
3. Contract costing
4. None of these
5.
Following list gives the correct choice for the answer of the accounting mcqs.
1573 . A 1580 . C 1583 . A 1585 . B 1592 . B 1594 . B 1599 . B 1603 . E 1606 . A 1609 .
B
Question: 1606 the most suitable cost system where the products differ in type of materials used and work
performed is
1. job costing
2. Batch costing
3. operating costing
4. None of these
5.
1. job costing
2. Batch costing
3. Contract costing
4. None of these
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5.
1. Repair shops
2. printing presses
3. Furniture making
4. Automobile garages
5. All of these
1. job costing
2. batch costing
3. contract costing
4. All of these
5.
Question: 1616 when a contract is not completed at the end of the accounting year, profit on incomplete
contract is
Question: 1618 when a contract is not completed at the end of the year, loss on incomplete contract is
Question: 1622 when contract id 40% complete, the amount of profit to be taken credit for is usually
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4. (a) and(B) above
5. (a)(b) and(C)
1. Cost-plus contracts
2. Escalation clause
3. De-escalation clause
4. All of the above
5.
1. Cost-plus contracts
2. Escalation clause
3. De-escalation clause
4. All of the above
5.
Question: 1633 Cost plus contract is useful from the point view of
1. contractor
2. contracted
3. both contractor and contractee
4.
5.
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 1627 . E 1630 . B 1631 .
D 1632 . D 1633 . C
Question: 1633 Cost plus contract is useful from the point view of
1. contractor
2. contractee
3. both contractor and contractee
4.
5.
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1. contractor
2. contractee
3. both by contractor and contractee
4.
5.
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. RS.15,000
2. RS. 12,000
3. RS. 8,000
4.
5.
Question: 1636 Economic batch quantity is that size of the batch of production where
Question: 1638 In contract costing, valuation of which of the following does not include an element of profit
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
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Question: 1652 Direct cost chargeable to contract does not include
1. Materials
2. Labor
3. Supervision
4. Storage lost
5. both(c)and (d)
Question: 1655 Which of the following items is not written on the credit side of the contract account
Question: 1659 The type of process loss that should not affect the cost of inventories is
1. abnormal loss
2. normal loss
3. seasonal loss
4. standard loss
5.
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. RS.18
2. RS.16.36
3. RS.12
4. 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 1655 . C 1659 . A 1663
.C
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
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. RS. 1.25
2. RS.8.00
3. RS.8.75
4. RS.8.88.
5.
Question: 1676 Given the data in Q.3.5 above, the normal cost of unit is
1. RS.0.25
2. RS.1.60
3. RS.1.78
4. RS.1.75
5.
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. 8,900 units
2. 9,100 units
3. 9,300 units
4. 9,500 units
5.
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. 6,750
2. 6,850
3. 7,050
4. 7,150
5.
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Question: 1689 When units are lost at end of the production process, the cost is charged to
1. factory overhead
2. selling expense
3. work-in-progress
4. completed units
5.
1. Operating costing
2. Batch costing
3. process costing
4. Unit costing
5.
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
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 1689 . D 1691 . B 1698 .
B
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. RS.3,800
2. RS. 4,000
3. RS. 200
4. None of these
5.
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. RS.280
2. RS.200
3. RS.80
4. RS.360
5.
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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. 5,000
2. 4,700
3. 5,200
4. 5,800
5.
Question: 1706 Classification and accumulation of costs by fixed and variable costs is of special importance in
1. process costing
2. unit costing
3. operation costing
4. operating costing
5. none of these
1. automobile industry
2. oil refineries
3. engineering company
4. All of the above
5.
Question: 1709 Individual products, each of a significant sales value, produced simultaneously from the same
raw material, should be known as
1. by-products
2. main products
3. joint products
4. common products
5.
Question: 1712 Total manufacturing costs are divided by the total number of units produced to obtain a cost
per unit under the
Question: 1714 which of the following are virtually always subsequent costs
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3. selling and distribution cost
4. None of these
5.
Question: 1720 When by-products are of small total value, its accounting should by
Question: 1723 Net realizable value of by-products at the split off point should be calculated by reverse cost
method when
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 1714 . C 1720 . B 1723 .
C
Question: 1723 Net realizable value of by-products at the split off point should be calculated by reverse cost
method when
1. Job costing
2. Operating costing
3. Multiple costing
4. Contract costing
5.
1. waste
2. scrap
3. by-product
4. joint product
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5.
Question: 1735 Which of the following methods of accounting of by-products should be applied when the by-
product is to be utilized in the undertaking itself as material for some other process
Question: 1737 Credit is given to the process account at a pre-determined value of the by-product under the
Question: 1742 The primary purpose of apportioning joint costs of a processing centre to various products
produced is to
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. Rs. 2.18
2. Rs. 2.05
3. Rs. 2
4. RS. 1.89
5.
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. 2,700
2. 3,000
3. 3,200
4. 3,500
5.
1.
2. 2700 units
3. 300 units
4. 350 units
5. 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. 16,000 units
2. 17,000 units
3. 19,000 units
4. 20,000 units
5.
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 1828 . B 1842 . D 1843
.C
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. 5,000
2. 300
3. 15,000
4. 150
5.
1. Integral system
2. Non-integral system
3. Under both (a)and (b)
4. None of these
5.
Question: 1852 Which of the following accounts make the cost ledger self-balancing
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3. Cost Ledger control account
4. None of the above
5.
Question: 1855 Costing profit and Loss account does not record the
Question: 1874 Which of the following items is not included in cost accounts
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. RS.6,000
3. RS. 5,200
4.
5.
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. RS. 5,000
2. RS. 3,700
3. RS. 6,300
4.
5.
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 1879 . C 1885 . B 1889 .
C
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. RS. 72,000
2. RS.70,500
3. RS. 69,500
4.
5.
Question: 1895 Which of the following items is not included in financial books
1. Heavy donations
2. Loss on the sale of fixed assets
3. Notional rent
4. Interest on borrowed capital
5. all of these
Question: 1897 Which of the following items shall be added to costing profit to arrive at financial profit
Question: 1913 Which of the following account will always have debit balance
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4. Factory overhead control account
5.
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. RS. 40,000
2. RS. 33,000
3. RS. 41,000
4. RS. 55,000
5. RS. 30,000
Question: 1918 The January 31 balance of work in progress control account should be
1. RS. 36,000
2. RS. 75,000
3. RS.76,000
4. RS. 77,000
5. RS. 35,000
Question: 1919 The January 31 balance of finish Goods Control Account should be
1. RS. 25,000
2. RS. 20,000
3. RS. 5,000
4. RS. 10,000
5. RS. 30,000
1. RS. 40,000
2. RS. 10,000
3. RS. 20,000
4. RS. 30,000
5. RS. 50,000
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3. reporting dates vary according to the activity level reported upon
4. planned activity level is adjusted to the actual activity level before the budget comparison report is
prepared
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 1932 . C 1943 . B 1955 .
D
Question: 1963 The fixed-variable cost classification has a special significance in the preparation of
1. Flexible budget
2. Master budget
3. cash budget
4. capital budget
5.
Question: 1966 If a company wishes to establish a factory overhead budget system in levels, it should prepare a
1. Flexible budget
2. Master budget
3. cash budget
4. Fixed budget
5.
1. Flexible budget
2. Flexed budget
3. difference between planned and actual results
4. planning and control of activities
5.
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. the cost is variable and actual production was 80% of budgeted production
2. the cost is variable and actual production was 90% of budgeted production
3. the cost is variable and actual production equaled budgeted production
4.
5.
Question: 1997 THE budget that is set first and all the other budgets are subordinate to it, is
1. Cash budget
2. Master budget
3. capital expenditure budget
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4. Budget for the key factor
5. sales budget
Question: 1999 The success of a flexible budget depends upends upon careful study and classification of
expenses into
1. cost sheet
2. unit cost
3. direct cost
4. budget
5.
Question: 2001 A is a prediction of what will happen as a result of a given set of circumstances
1. Forecast
2. Budget
3. Marginal cost
4. None of these
5.
1. operating budget
2. responsibility budget
3. flexible budget
4. financial budget
5.
1. Sales budget
2. cash budget
3. capital expenditure budget
4. 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 2001 . A 2002 . B 2003
.C
Question: 2004 A budget representing fixed assets expenditure during the budget period is
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1. Fixed budget
2. Capital expenditure budget
3. Long term cash budget
4. Master budget
5.
1. RS. 30,000
2. RS. 40,000
3. RS. 50,000
4. RS. 80,000
5.
Question: 2006 The standard volume per month on which the budgeted overhead rate is based is
1. 3,000 tons
2. 5,000 tons
3. RS. 5,500 tons
4. 7,000 tons
5.
1. RS. 10
2. RS. 20
3. RS.21.36
4. RS. 17.14
5.
1. RS. 80,000
2. RS. 1,20,000
3. RS. 1,10,000
4. RS. 1,17,500
5.
1. RS. 7,500(A)
2. RS.12,500(A)
3. RS. 10,000(A)
4. Nil
5.
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1. RS. 7,500
2. RS. 12,500
3. RS. 10,000
4. RS. 20,000
5.
Question: 2012 What is the raw material cost per unit at the actual production level
1. RS. 10.08
2. RS. 16.80
3. RS. 8.40
4. None of these
5.
Question: 2013 What is the total cost of direct labor at actual production level
1. RS. 3,00.000
2. RS. 2,40,000
3. None of these
4.
5.
Question: 2014 What is the fixed works overhead total amount when output of 1,00,000 units
1. RS. 4,00,000
2. RS. 2,40,000
3. RS. 6,00,000
4. 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 2012 . A 2013 . C 2014 .
B
Question: 2015 What is the fixed works overhead per unit when output is 60,000 units
1. RS. 6
2. RS. 7
3. RS. 8
4. None of these
5.
Question: 2016 What is the variable works overhead per unit at actual production level
1. RS. 4
2. RS. 3
3. RS. 2
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4. None of these
5.
Question: 2017 what is the total administrative overhead per unit at actual production level
1. RS. 2.45
2. RS 1.90
3. RS. 1,60
4. None of these
5.
Question: 2018 what is the total selling overhead per unit at 60,000 output
1. RS 0.80
2. RS 0.90
3. RS 1.07
4. None of these
5.
1. RS 13.58
2. RS 13.48
3. RS.18.00
4. None of these
5.
1. 1,100 units
2. 1,150 units
3. 1,350 units
4. None of the above
5.
1. 1,100 units
2. 1,150 units
3. 1,350 units
4. None of these
5.
1. 1,400 units
2. 1,150 units
3. 1,850 units
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4. None of these
5.
1. 1,800 units
2. 2,000 units
3. 2,200 units
4. None of these
5.
1. 1,800 units
2. 2,200 units
3. 2,400 units
4. 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 2048 . B 2049 . C 2051
.C
1. 1,800 units
2. 2,200 units
3. 2,400 units
4. None of these
5.
Question: 2054 production required for the six months ending December 1996 is
1. 11,000 units
2. 2,200 units
3. 2,400 units
4. None of these
5.
1. 1,000 units
2. 1,100 units
3. 1,150 units
4. None of these
5.
Question: 2060 The cost of product as determined under standard cost system is
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1. fixed cost
2. historical cost
3. direct cost
4. pre-determined cost
5.
Question: 2061 In evaluating deviations of actual from standard cost, the probable technique used is
1. variable regression
2. variance analysis
3. trend analysis
4. linear progression
5.
Question: 2063 The type of standard that is best suited from cost control point of views is
1. Theoretical standard
2. Expected standard
3. Normal standard
4. Basic standard
5.
Question: 2069 which of the following standards can be attained under the most favorable conditions possible
1. Theoretical standard
2. Expected standard
3. Normal standard
4. Basic standard
5.
Question: 2072 A company using theoretical standard cost system should expect that
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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
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 2071 . C 2072 . A 2077 .
C
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
Question: 2080 In standard costing system, labor rate variance is obtained by multiplying the
1. actual rate by the difference between actual hours and standard hours
2. actual hours by the difference between actual rate and standard rate
3. standard rate by the difference between standard hours and actual hours
4.
5.
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. Rs. 20(Favorable)
2. RS.25(FAVOURABLE)
3. RS. 100(Adverse)
4. RS. 95 (Adverse)
5. None of these
1. RS. 20(Favorable)
2. RS. 25(Favorable)
3. RS. 100 (unfavorable)
4. RS. 95 (unfavorable)
5. None of these
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Question: 2092 in standard costing, the material price variance is obtained by multiplying the
1. actual price by the difference between actual quantity purchased and standard quantity allowed
2. actual quantity consumed by the difference between actual price and standard price
3. standard price by the difference between standard quantity purchased and standard quantity allowed
4. standard quantity by the difference between actual price and standard price
5.
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. RS. 600(Favorable)
2. RS. 1,200(Adverse)
3. RS. 1,800(Adverse)
4. RS. 2,400(Favorable)
5.
1. RS.600(Favorable)
2. Rs. 1,000(Adverse)
3. RS. 1,800(Adverse)
4. R.s. 2,400(Favorable)
5.
Question: 2106 standard costing will produce the same financial statement results as actual or conventional
costing when standard cost variances are distributed to
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5.
Question: 2109 Material cost variance is RS. 550(A) and material price variance RS. 150(F), the material usage
variance should be
1. RS. 400(A)
2. RS. 700(A)
3. RS. 400(F)
4. 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 2102 . C 2103 . A 2106 .
C 2107 . C 2109 . B
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. RS. 400(A)
2. RS. 450(A)
3. RS. 500(A)
4. cannot be computed
5.
1. RS. 50(A)
2. RS. 100(A)
3. RS. 300(A)
4. RS. 250(A)
5.
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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. RS. 1,000(F)
2. RS. 400(A)
3. RS. 400(F)
4. RS. 1,000(A)
5.
Question: 2115 The type of variance not computed for factory overhead is
1. controllable
2. volume
3. equivalent production
4. idle capacity
5.
1. Marginal costing
2. Absorption costing
3. job and process costing
4. All of the above
5.
Question: 2117 standard cost are useful in all of the following except
1. reducing costs
2. speeding up preparation of operating reports
3. establishing records
4. costing inventories
5.
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
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Gat Subject (Management Sciences – Accounting-Management -Economics)
3. cost of goods sold and inventories
4. costing profit and Loss A/c
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 2115 . C 2116 . D 2117 .
C 2118 . C 2119 . D
1. two variances
2. three variances
3. four three variances
4. any of the above
5.
Question: 2127 Which of the following statement best explains the difference between standard costing and
budgetary controls
1. Budget is a projection of financial accounts whereas standard cost is a projection of cost accounts
2. variances are analyzed under standard costing but not under budgetary control
3. The budget, as a statement of expected costs, is used for forecasting of finance, if certain performances
are achieved
4. Budgetary control is more intensive than standard costing
5.
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4. Absorbed overhead and standard overhead
5.
1. Expenditure variance
2. Efficiency variance
3. variable overhead cost variance
4. volume variance
5.
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. RS. 14,000(F)
2. RS. 4,000(A)
3. RS. 4,000(F)
4. None of these
5.
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 2132 . D 2133 . D 2134 .
B
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Question: 2135 Fixed overhead cost variance is expenditure variance is RS 200(A), calendar variance RS
500(F).what is the volume variance
1. RS. 2,700(A)
2. RS. 1,900(A)
3. Rs. 2,200(A),
4. Rs. 2,500(f)
5.
1. RS 400(F)
2. RS 400(A)
3. RS 440(F)
4. RS 440(A)
5.
1. RS 960(A)
2. RS 960(f)
3. RS 1,000(A)
4. RS 1,000(F)
5.
1. RS. 100(Adverse)
2. RS. 100(Favorable)
3. RS. 110(Adverse)
4. RS. 110(Favorable)
5. None of the preceding responses is correct
1. Rs 110(Adverse)
2. RS. 100 (Favorable)
3. RS. 210(Adverse)
4. Rs. 408 (FAVOURABLE)
5. cannot be computed from the given data
1. ES. 152(Adverse)
2. RS. 560(Favorable)
3. RS. 560(Adverse)
4. RS 480(Favorable)
5.
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Question: 2141 Labor rate variance in Q3.46 is
1. RS. 152(Adverse)
2. Rs. 560(Favorable)
3. RS. 560(Adverse)
4. RS. 480(Favorable)
5.
1. RS. 560(Favorable)
2. RS. 560(Adverse)
3. RS. 152(Adverse)
4. RS. 408(Adverse)
5. none of the preceding responses is correct
1. RS. 2,000(A)
2. RS 4,000(A)
3. RS 2,000(F)
4. RS 4,000(F)
5.
1. RS 2,000(A)
2. RS 4,000(A)
3. RS6,000(A)
4. 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 2142 . E 2143 . A 2144 .
C
1. marginal income
2. gross profit
3. net income
4. new profit
5.
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4. material cost and variable overhead
5.
1. variable costs
2. fixed costs
3. prime cost
4. overhead costs
5.
Question: 2148 One of the primary differences between marginal costing absorption costing is regarding the
treatment of
1. direct materials
2. variable overheads
3. fixed overheads
4. prime cost
5.
Question: 2149 A costing method in which the fixed factory overheads are added to inventory valuation is
1. direct costing
2. marginal costing
3. absorption costing
4. none of these
5.
Question: 2150 Profit shown by absorption costing will tend to exceed profit shown by marginal costing
method if
1. fact that standard costs can be used with absorption costing but not with marginal costing
2. amount of fixed costs that will be incurred
3. kinds of activities for which each can be used
4. amount of costs assigned to individual units of products
5.
Question: 2152 Under the marginal costing concept, unit product cost would most likely be increased by
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2. an increase in the number of units produced
3. an increase in the commission paid to salesman for each unit sold
4. an increase in the remaining useful life of factory machinery depreciated on written down value
method
5.
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 2152 . C 2153 .
C 2154 . C
Question: 2156 There will be no difference in profit as shown by marginal costing and that of absorption
costing when
Question: 2157 when fixed cost id Rs. 3,000 and sales RS.50,000, the P/V ratio will be
1. 14%
2. 20%
3. 25%
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Gat Subject (Management Sciences – Accounting-Management -Economics)
4. p/v ratio cannot be computed from the data given
5.
Question: 2158 when p/v ratio is 40% and sales value RS 10,000 the variable cost will be
1. RS. 4,000
2. RS. 6000
3. RS. 10,000
4. variable cost cannot be calculated from the data given
5.
Question: 2159 if net profit is 10% and p/v ratio is 50%, the margin of safety will be
1. 10%
2. 20%
3. 50%
4. margin of safety cannot be computed
5.
1. factory overhead
2. period cost
3. direct cost
4. conversion cost
5.
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. opportunity
2. out-of-pocket cost
3. controllable cost
4. differential cost
5.
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 it’s
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1. fixed costs
2. variable costs
3. prime costs
4. indirect costs
5.
Question: 2164 Cost-volume-profit analysis is most important for the determination of the
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 2162 . D 2163 . B 2164 .
C
question: 2165 if net profit is 10% and p/v ratio is 50%, the margin of safety will be
1. 10%
2. 20%
3. 50%
4. margin of safety cannot be computed
5.
Question: 2166 The alternative that would decrease the contribution margin per unit t he most is a 20%
Question: 2167 when referring to margin of safety, one has the following in mind
Question: 2168 The conventional break-even analysis does not assume that
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5.
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. indeterminate
2. unchanged
3. higher
4. lower
5.
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. indeterminate
2. unchanged
3. higher
4. lower
5.
Question: 2171 when margin of safety is 20% and contribution sales ratio is 60% the profit will be
1. 30%
2. 33% 1/3%
3. 12%
4. cannot be computed
5.
Question: 2172 when fixed cost is RS. 20,000 and margin of safety is RS.10,000, the p/v ratio will be
1. 200%
2. 50%
3. 33%
4. cannot be computed
5.
Question: 2173 when sales jumped from RS. 4,00,000 and profit increased by Rs. 40,000, the p/v ratio is
1. 7.5%
2. 10%
3. 40%
4. cannot be computed
5.
Question: 2174 when total fixed cost is RS. 50,000 and variable cost to sales is 75%, the break-even point id
1. RS. 37,500
2. RS. 12,500
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3. RS. 2,00,000
4. cannot be determined
5.
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 2172 . D 2173 . C 2174 .
C
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. RS50,000
2. RS. 80,000
3. RS. 12000
4. None of these
5.
Question: 2176 In the chart given in 3.32 above, the horizontal line OL represents
1. sales
2. fixed cost
3. total cost
4. profit
5.
Question: 2187 when it is desired to read contribution margin in break-even chart, than
1. variable cost should be first plotted and fixed cost should be superimposed thereon
2. fixed cost should not be first plotted and variable cost should be superimposed thereon
3. fixed cost should not be plotted at all in the chart
4.
5.
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Question: 2206 when sales are RS. 8000 and P/V is 80% the amount of variable cost is
1. RS. 64,000
2. RS. 16,000
3. Rs. 48,000
4. cannot be known
5.
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. RS. 40,000
2. RS. 30,000
3. RS. 1,00,000
4. RS. 1,50,000
5.
Question: 2212 WHEN PROFIT CHANGES BY R.s. 20,000, The sales changes by RS. 25,000, the P/V ratio is
1. 20%
2. 80%
3. 25%
4. cannot be calculated
5.
Question: 2216 which of the following would cause the greatest increase in the unit contribution margin
Following list gives the correct choice for the answer of the accounting mcqs.
2175 . A 2176 . A 2177 . E 2182 . C 2187 . A 2206 . C 2210 . D 2212 . B 2213 . B 2216
.B
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Gat Subject (Management Sciences – Accounting-Management -Economics)
1. profit
2. Fixed cost
3. variable cost
4. contribution
5.
1. profit
2. Loss
3. contribution
4.
5.
1. key factors
2. variable cost
3. Contribution
4. Margin of safety
5.
Question: 2233 In calculating cash break-even point, which costs are taken into account
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Gat Subject (Management Sciences – Accounting-Management -Economics)
1. sale line and variable cost line
2. sale line and total cost line
3. variable costs and fixed cost lines
4. variable cost and total cost lines
5.
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. hormocyst
2. hormogonium
3. trichome
4. trichogyne
5.
Question: 3807 A debit balance on Amitie's account in your sales ledger means that
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 2271 . D 2544 . A 3807 .
A
Question: 3811 A debit balance on the rates account after the yearly transfer to the profit and loss account
indicates
Question: 3820 which one of the following normally has a debit balance?
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2. A creditor's account
3. The motor vehicles account
4. A loan account
5.
Question: 3822 which one of the following normally has a debit balance?
1. A proprietor's will remain constant if he only withdraws this Net profit each year and does not
introduce any new capital.
2. A proprietor's capital will increase if his drawings are higher than his Net profit and he does not
introduce any new capital.
3. A proprietor's capital will decrease if his Net profit is greater than his drawings and does not introduce
any new capital
4. A proprietor's capital will remain constant if he only withdraws his Net profit each year, but also
introduces new capital.
5.
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Question: 3836 Net profit equals
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. Rs. 10,000
2. Rs. 20,000
3. Rs. 30,000
4. Rs. 40,000
5.
Question: 3839 If sales are Rs. 10,000, expenses Rs. 2,000 and net profit is 10% of sales, the gross profit is
1. Rs. 3,000
2. Rs. 9,000
3. Rs. 10,100
4. Rs. 11,000
5.
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 3836 . A 3837 . B 3839 .
A
Question: 3840 If the gross profit is Rs. 5000 and the net profit is 25% of the gross profit ,the expenses must be
1. Rs. 1,250
2. Rs. 3,750
3. Rs. 4,150
4. Rs. 6,250
5.
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. Rs. 600
2. Rs. 1,200
3. Rs. 2,400
4. Rs. 4,800
5.
1. trial balance
2. balance sheet
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3. trading profit and loss account
4. bank reconciliation statement
5.
1. returns outwards
2. cost of goods sold
3. returns inwards
4. carriage on sales
5.
1. Rs. 99,000
2. Rs. 99,500
3. Rs. 1,00.500
4. Rs. 1,01,000
5.
1. 10%
2. 20%
3. 30%
4. 40%
5.
Question: 3846 The net cost of purchases for the year was
1. Rs. 69,000
2. Rs. 70.000
3. Rs.71,000
4. Rs.73,000
5.
1. Rs. 500
2. Rs. 1,000
3. Rs. 1,500
4. Rs. 2,000
5.
Question: 3848 If the purchases had been under cast by Rs. 10,000 the gross profit would be
1. Rs. 31,500
2. Rs. 41,500
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3. Rs. 51,500
4. Rs. 61,500
5.
1. Rs. 59,000
2. Rs. 69,000
3. Rs. 71,000
4. Rs. 89,000
5.
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 3847 . D 3848 . A 3849 .
A
1. 5%
2. 10%
3. 15%
4. 20%
5.
1. Rs. 29,000
2. Rs. 30,000
3. Rs. 31,000
4. Rs. 32,000
5.
Question: 3853 which one of the following is fixed asset for a builder's merchant?
1. Cash
2. Stock
3. Debtors
4. Type wirer
5.
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Question: 3854 Which one of the following is garage's current asset?
1. A breakdown van
2. The managing director's private car
3. The condense in the saleroom
4. A customer's car in for repair
5.
1. working capital
2. total assets minus current liabilities
3. fixed assets minus current liabilities
4. capital minus current liabilities
5.
1. Mortgage
2. Bank loan
3. Bank over drat
4. Rent Paid in advance
5.
Question: 3858 The percentage return on the owner's opening capital for the past year was
1. 15%
2. 20%
3. 25%
4. 30%
5.
1. Rs. 20,000
2. Rs. 30,000
3. Rs. 50,000
4. Rs. 1,70,000
5.
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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 3857 . C 3858 . C 3859 .
A
Question: 3860 The owner's capital employed in the business at the date of the balance sheet is
1. Rs. 1,20,000
2. Rs. 1,40,000
3. RS. 1,90,000
4. Rs. 2,13,500
5.
1. Rs. 50,000
2. Rs. 73,500
3. Rs. 1,20,000
4. Rs. 1,40,000
5.
Question: 3862 The interest on the loan paid during the year was
1. Rs. 2,500
2. RS. 5,000
3. Rs. 7,500
4. Rs. 10,000
5.
1. RS. 50,000
2. RS. 1,70,000
3. RS. 2,20,000
4. RS. 2,70,000
5.
1. RS. 73,500
2. RS. 1,40,000
3. RS, 1,90,000
4. RS. 2,13,500
5.
1. RS. 1000
2. RS. 2000
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3. RS. 3000
4. RS. 4000
5.
Question: 3887 The percentage return on total assets employed was approximately
1. 9%
2. 14%
3. 20%
4. 25%
5.
Question: 3890 In a balance sheet the balance of the fixed assets accounts are usually included at
1. cost
2. book value
3. scarp value
4. replacement value
5.
Question: 3892 which one of the following would usually be regarded as a current liability?
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 3888 . D 3890 . B 3892 .
A
Question: 3903 which one of the following not a book of original entry
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1. The cash book
2. The journal
3. The ledger
4. The sales day of book
5.
Question: 3905 which one of the following is book of original entry and is also part of the ledger?
Question: 3906 The main source of information for the sales day book is obtained from
1. invoices received
2. credit notes sent out
3. invoices sent out
4. credit notes sent
5. the till roll
Question: 3907 The main source of information for the purchase day book is obtained from
1. invoice received
2. invoices sent out
3. credit notes received
4. debit notes sent out
5.
Question: 3908 The main source of information for the sales returns day book is obtained from
1. invoices received
2. invoices sent out
3. credit notes received
4. debit notes received
5.
Question: 3910 The main source of information for the purchase returns day book is obtained from
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1. invoices received
2. invoices sent
3. credit notes received
4. debit notes sent out
5.
Question: 3912 The totals of the sales day book are transferred to the
Question: 3914 The totals of the purchase returns day books are transferred to the
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 3910 . C 3912 . B 3914 .
D
Question: 3916 which one of the following is centered in the journal proper?
Question: 4032 which one of the following is entered in the journal proper?
Question: 4035 which one of the following is entered in the journal proper?
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5.
Question: 4051 which of the following errors would normally be revealed by a trial balance?
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78
Gat Subject (Management Sciences – Accounting-Management -Economics)
5.
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 4051 . D 4055 . C 4059
.D
Question: 4066 if the straight line method of depreciation is used the depreciation charge is
Question: 4071 which of the following assets is most likely to appreciate rather than depreciate
1. obsolescence
2. wear and tear
3. passage of time
4.
5.
Question: 4085 which of the following methods can be used to calculate depreciation?
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Gat Subject (Management Sciences – Accounting-Management -Economics)
1. straight line
2. Reducing balance
3. revaluation
4.
5.
Question: 4092 The companies Acts state that companies' Final published Accounts must show
Question: 4094 Another name for the Equal Installment method of depreciation is the
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. RS. 900
2. RS. 1,000
3. RS. 1,100
4. RS. 1,200
5.
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 year’s depreciation charge at 10% per annum
1. RS. 800
2. RS. 810
3. RS. 900
4. RS. 1,000
5.
Question: 4107 On 1st January a firm’s 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. RS. 500
2. RS. 1,000
3. RS. 1,500
4. RS. 3,OOO
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Gat Subject (Management Sciences – Accounting-Management -Economics)
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 4098 . B 4104 . C 4107 .
C
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. 12%
2. 25%
3. 33%
4. 50%
5.
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
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. RS. 2,200
2. RS. 3,200
3. RS. 3,600
4. RS.4,400
5.
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?
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. RS. 45,000
2. RS. 55,000
3. RS. 1,00,000
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Gat Subject (Management Sciences – Accounting-Management -Economics)
4. RS. 1,45,000
5.
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. RS, 6,690
2. Rs, 6,960
3. RS. 9,660
4. RS. 9,690
5.
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. RS. 10,000
2. RS. 25,000
3. RS. 40,000
4. RS. 50,000
5.
Question: 4175 The nit figure for debtors which appeared in the balance sheet at the end of the previous year
was
1. RS. 47,500
2. RS. 48,000
3. RS. 51,500
4. RS. 52,500
5.
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
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. nil
2. a decrease of Rs. 500
3. an increase of RS. 500
4. an increase of RS. 1,500
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Gat Subject (Management Sciences – Accounting-Management -Economics)
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 4175 . A 4176 . B 4183 .
C
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. nil
2. a decrease of Rs. 500
3. an increase of RS. 500
4. an increase of RS. 1,500
5.
Question: 4190 Which one of the following statements about debtors, bad debts and provisions for bad debts
in the incorrect?
1. Debtors usually appear as a current asset in the balance in the balance sheet
2. provisions for bad debts usually have a debit balance in ledger
3. The bad debts account usually has a debit balance in the ledger
4. An increase in the provision for bad debts account will reduce the profit of the firm
5.
Question: 4191 which one of the following types of business is likely to have the largest amount of 'bad debts' ?
Question: 4193 If the sales ledger control has a debit balance of RS. 39,400 it means that
Question: 4197 If the purchase ledger control has a credit balance of RS. 48,000 it means that
Question: 4200 The total of the returns out wards for the month should be entered on the
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Gat Subject (Management Sciences – Accounting-Management -Economics)
1. debit side of the purchase control account
2. credit side of the purchase control account
3. credit side of the sales control account
4. debit side of the sales control account
5.
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
Question: 4210 A cherub received which has now been dishonored should be entered on the
Following list gives the correct choice for the answer of the accounting mcqs.
4186 . C 4190 . B 4191 . D 4193 . B 4197 . C 4200 . A 4201 . D 4202 . C 4207 . B 4210
.D
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. current asset
2. current liability
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Gat Subject (Management Sciences – Accounting-Management -Economics)
3. fixed asset
4. long term liability
5.
Question: 4220 when the monthly bank statement is out which one of the following would appear?
Question: 4224 which one of the following be entered in the cash book and not on the bank statement ?
1. Bank charges
2. A dishonored cherub
3. payments into the bank but not yet credited
4. A credit transfer received from a customer
5.
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. added
2. subtracted
3. multiplied
4. divided
5.
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. added
2. subtracted
3. multiplied
4. divided
5.
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. Rs.280
2. Rs.720
3. Rs.1,000
4. Rs.1,720
5.
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85
Gat Subject (Management Sciences – Accounting-Management -Economics)
Question: 4234 The main purpose of petty cash is
Question: 4238 A club's income and expenditure account performs the same function as a firm's
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 4236 . C 4237 . C 4238 .
A
1. a balance
2. a deficit
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3. a surplus
4. drawing
5.
1. as asset
2. an expense
3. a liability
4. a surplus
5.
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. bank balance
2. assets
3. accumulated fund
4. surplus
5.
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. Rs.960
2. Rs.1,000
3. Rs.1,030
4. Rs.1,040
5.
Question: 4245 Depreciation written off the snooker table should be entered in the
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Gat Subject (Management Sciences – Accounting-Management -Economics)
Question: 4246 Rs.4,000 spent on a snooker table should be entered in the
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 4246 . C 4247 . C 4248 .
D
Question: 4249 Which one of the following is most likely to have the lowest rate of stock turn?
1. a super market
2. a greengrocer
3. a newsagent
4. a jeweler
5.
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. Rs.100
2. Rs.900
3. Rs.1,000
4. Rs.1,100
5.
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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Gat Subject (Management Sciences – Accounting-Management -Economics)
2. Rs. 4,80,000
3. Rs. 4,00,000
4. Rs. 1,00,000
5.
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. Rs. 25,000
2. Rs. 55,000
3. Rs. 80,000
4. Rs. 1,00,000
5.
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. a loss of Rs.1,000
2. neither a profit nor a loss
3. a profit of Rs.1,000
4. a profit of Rs.2,000
5.
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. Rs. 25,000
2. Rs. 26,200
3. Rs. 34,000
4. Rs. 35,200
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Gat Subject (Management Sciences – Accounting-Management -Economics)
5.
1. 5%
2. 10%
3. 15%
4. 20%
5.
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. 25%
2. 50%
3. 75%
4. 100%
5.
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 4259 . D 4260 . D 4261 .
B
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. Rs. 9,200
2. Rs. 9,400
3. Rs. 9,600
4. Rs. 9,200
5.
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. Rs. 200
2. Rs. 400
3. Rs. 700
4. Rs. 900
5.
1. cost of overheads
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Gat Subject (Management Sciences – Accounting-Management -Economics)
2. cost of raw materials used
3. cost of production
4. gross profit
5.
1. prime cost
2. production cost
3. work in progress
4. overheads
5.
Question: 4273 Which one of the following would not be included in the prime cost?
1. manufacturing wages
2. direct power
3. direct factory expenses
4. heating and lighting of the factory
5.
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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Gat Subject (Management Sciences – Accounting-Management -Economics)
1. current asset
2. current liability
3. fixed asset
4. long term liability
5.
Question: 4288 when the monthly bank statement is sent out which one of the following would appear?
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 4286 . C 4287 . A 4288 .
B
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. RS. 90,000
2. RS. 1, 00,000
3. RS. 1,10,000
4. RS. 1,30,000
5.
1. a financial cost
2. an overhead cost
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Gat Subject (Management Sciences – Accounting-Management -Economics)
3. a selling cost
4. an administration cost
5.
Question: 4293 If a manufacturing company gas to pay a royalty for every unit it produces, this would probably
be classified as
1. an indirect cost
2. a direct cost
3. an overhead
4. a cost of materials
5.
Question: 4294 Which one of the following is usually classified as a variable cost in the short term?
Question: 4295 which one of the following is usually classified as a fixed cost in the short term?
Question: 4296 In a manufacturing firm's trading account the cost of production figure replaces the
1. Rs. 5,00,000
2. Rs. 6,00,000
3. RS. 6,50,000
4. RS. 6,70,000
5.
1. RS. 6,00,000
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Gat Subject (Management Sciences – Accounting-Management -Economics)
2. RS. 670,000
3. RS. 11,00,000
4. RS. 14,20,000
5.
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 4296 . C 4297 . B 4298 .
C
1. RS.2,30,000
2. RS. 3,20,000
3. RS. 14,10,000
4. RS. 14,20,000
5.
1. RS. 11,00,000
2. RS. 14,10,000
3. RS. 14,20,000
4. RS. 14,60,000
5.
Question: 4301 The work in progress at the start of the year was
1. RS. 10,000
2. RS. 30,000
3. RS. 40,000
4. RS. 50,000
5.
1. RS. 10,000
2. RS. 20,000
3. RS. 30,000
4. RS. 40,000
5.
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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Gat Subject (Management Sciences – Accounting-Management -Economics)
2. RS. 14,10,000
3. RS. 15,000
4. RS. 14,20,000
5.
Question: 4304 At the end of the financial year a partner's drawing current account are transferred to the
Question: 4305 After the final accounts have been prepared, a debit balance on a partner's current account
means that the
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. increased
2. decreased
3. unchanged
4. non-existent
5.
Question: 4314 which one of the following would be entered in the cash book and not on the bank statement
1. Bank charges
2. A dishonored cherub
3. payment into the bank but not yet credited
4. A credit transfer received from a customer
5.
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. added
2. subtracted
3. multiplied
4. divided
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Gat Subject (Management Sciences – Accounting-Management -Economics)
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 4306 . B 4314 . C 4315 .
A
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. added
2. subtracted
3. multiplied
4. divided
5.
Question: 4317 when the monthly bank statement is sent out which one of the following would not appear
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. RS. 280
2. RS. 720
3. RS. 1,000
4. RS. 1,720
5.
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Gat Subject (Management Sciences – Accounting-Management -Economics)
1. increased every week
2. reduced every week
3. always restored to the original amount
4. used op completely before being restored
5.
Question: 4358 A club's income and expenditure account performs the same function as a firm's
1. bank balance
2. assets
3. accumulated fund
4. surplus
5.
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 4358 . A 4359 . D 4360 .
C
1. a balance
2. a deficit
3. a surplus
4. drawings
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Gat Subject (Management Sciences – Accounting-Management -Economics)
5.
1. an asset
2. an expense
3. a liability
4. a surplus
5.
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
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. RS. 960
2. RS. 1,000
3. RS. 1,030
4. RS. 1,040
5.
Question: 4373 RS. 4,000 spent on a snooker table should be entered in the
Question: 4374 Depreciation written off the snooker table should be entered on the
Question: 4375 During the year the cash figure has increased by
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Gat Subject (Management Sciences – Accounting-Management -Economics)
1. RS. 820
2. RS. 1,000
3. RS.1,820
4. RS.2,790
5.
Question: 4376 The accumulated fund at the beginning of the club's second year amounted to
1. RS. 820
2. RS.1,000
3. RS. 1,820
4. RS. 2,790
5.
1. nil
2. RS. 50
3. RS. 350
4. RS. 400
5.
1. nil
2. RS. 30
3. RS. 100
4. RS. 130
5.
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 4376 . A 4377 . B 4378 .
A
Question: 4379 The amount owed to creditors for supplies of sweets at 31 December was
1. RS. 30
2. RS. 210
3. RS. 420
4. RS. 600
5.
Question: 4381 The book value of fixed assets at 31st December amounted to
1. RS. 20
2. RS. 70
3. RS.90
4. RS. 110
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Gat Subject (Management Sciences – Accounting-Management -Economics)
5.
Question: 4382 If the donations had been 'capitalized,' the accumulated fund at 31st December would have
been
1. RS. 700
2. RS. 820
3. RS. 1,520
4. RS. 1,740
5.
Question: 4383 If the donations had been 'capitalized,' the surplus would have been
1. RS. 120
2. RS. 700
3. RS.820
4. RS.1,520
5.
1. RS. 1,000
2. RS. 1,040
3. RS. 1,070
4. RS. 1,110
5.
Question: 4392 which one of the following is most likely to have the lowest rate of stock turn?
1. A super market
2. A greengrocer
3. A news agent
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Gat Subject (Management Sciences – Accounting-Management -Economics)
4. A jeweler
5.
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. RS. 100
2. RS. 900
3. RS. 1,000
4. RS. 1,100
5.
Question: 4399 which one of the following is most likely to have the lowest rate of stock turn?
1. A super market
2. A greengrocer
3. A news agent
4. A jeweler
5.
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 4392 . D 4398 . A 4399 .
D
Question: 4401 The amount owed to creditors for supplies of sweets at 31 December was
1. RS. 30
2. RS. 210
3. RS. 420
4. RS. 600
5.
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. RS. 4,000,000
2. 4,80,000
3. RS. 5,20,000
4. RS. 1,00,000
5.
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. RS. 25,000
2. RS. 55,000
3. RS. 80,000
4. 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
M
A
N
A
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G
E
M
E
N
T
6. as variable costs
7. as fixed costs
8. as semi-fixed
9. according to their actual behavior
10.
Question: 928 The First in First Out (FIFO) materials pricing system charges issues at
Question: 943 Unit costs are extensively used in the public sector. This is because
Question: 944 which of the following firms are most likely to use process costing
6. a car manufacturer
7. a sugar refinery
8. a builder
9. a departmental store
10.
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Question: 948 Significant Digit Codes are
Question: 956 which of the following firms would be most likely to use job costing
6. a paint manufacturer
7. a sugar refinery
8. a firm of architects
9. a car manufacturers
10.
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 948 . A 952 . B 956 .
C
6. Number of leavers
7. Number replaced
8. Numbers of employees at the end
9. Number of leavers in a period
10.
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Gat Subject (Management Sciences – Accounting-Management -Economics)
8. Direct materials plus total overheads
9. Direct labor plus factory overheads
10.
6. common costs are shared among cost centres,in portion to the benefit received
7. The total amount of overheads for the firm can be calculated
8. The total overheads for a cost centre can be calculated
9. Each unit of the product carries a share of overheads
10.
Question: 998 Expenditure on steel used in the product would be classified into which of the following
categories
Question: 1005 A firms’ uses direct labor a basis for overhead absorption if large fluctuations in labor house are
experiences
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6. is calculated by dividing actual overhead by budgeted machine hours
7. results in the over absorption of overhead
8. is inferior to a rate based on labor hours
9. results in charging similar overheads to jobs with similar machine hours
10.
Question: 1043 the costing associated with a typical site based contract
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 998 . A 1005 . A 1039
.D 1043 . D
Question: 1046 Using process costing the amount of cost transferred to finished goods stock is the cost of
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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
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. maximize profits
7. help in inventory valuation
8. provide information to management for decision-making
9. aid in the fixation of selling prices
10.
6. direct cost
7. budget
8. cost sheet
9. marginal costing
10.
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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.
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 1078 . B 1081 . C 1085 .
C 1086 . B 1088 . B
6. property taxes
7. interest on capital
8. direct material cost
9. depreciation of machinery
10.
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7. works managers salary
8. depreciation of machinery
9. chargeable expenses
10.
6. Planning
7. controlling
8. profit sharing
9. product costing
10.
Question: 1104 the three major elements of product costs are all but
6. direct materials
7. Factory overhead
8. direct labor
9. indirect labor
10.
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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 1102 . C 1104 . D 1111 .
B 1117 . B 1123 . D
6. oil refinery
7. car manufacturing company
8. sugar mill
9. multi-product company
10.
6. unit costing
7. job costing
8. batch costing
9. multiple costing
10.
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6. unit costing
7. process costing
8. batch costing
9. multiple costing
10.
6. paper mills
7. chemical works
8. printing press
9. textile mill
10.
6. mining quarries
7. steel production
8. brick kilns
9. all of these
10.
6. ship-building
7. airplane industries
8. automobile industries
9. none of these
10.
6. Fixed cost
7. variable cost
8. semi variable cost
9.
10.
6. manufacturing cost
7. Administration
8. Selling and distribution cost
9. Any of the above
10.
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6. Material
7. Labor
8. Overheads
9.
10.
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 1131 . D 1132 . An 1167
.B 1172 . An 1174 . A
6. Bill of Material
7. Bin card
8. stores ledger
9. All of these
10.
Question: 1180 which of the following documents is used for issuing materials to productions departments
Question: 1186 According to which of the following methods of pricing, issues are close to current economic
values
6. Last-in-first-out price
7. First-in-first-out price
8. Highest-in-first-out price
9. Weighted average price
10.
Question: 1187 in which of the following methods of pricing costs lag behind the current economic values
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6. Last-in-first-out price.
7. First-in -first-out price.
8. Replacement price.
9. Weighted average price.
10.
Question: 1192 which of the following methods of stock control aims at concentrating efforts on selected items
of materials
Question: 1193 in base stock method of pricing the material issues, the term base stock represents the
Question: 1194 which of the following items of cost should NOT be treated as NOT be treated as direct material
6. Annual stock-taking
7. Perpetual inventory system
8. ABC analysis
9. periodic inventory system
10.
Question: 1197 the classification of items in ABC analysis is made on the basis of
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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 1192 . D 1193 .
C 1194 . D 1195 . B 1197 . D
Question: 1202 in which of the following methods, issues of materials are priced at a pre-determined rate
Question: 1204 in which of the following methods, materials are issued at the price prevailing at the time of
issue
Question: 1205 the storekeeper should initiate a purchase requisition when stock reaches
6. Minimum leveled
7. maximum level
8. re-order level
9. overage level
10.
Question: 1207 which of the following material losses should be transferred to costing profit and loss account
6. Loss by evaporation
7. Loss due to improper storage of materials
8. Loss due to breaking the bulk
9. All of these
10.
Question: 1210 when material prices fluctuate widely, the method of pricing that gives absurd results is
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
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. 1,00,000 units
7. 5,ooo units
8. 10,000 units
9. 7,500 units
10.
Question: 1297 taking the data in Q.3.21 above, the estimated annual ordering cost is
6. RS.1,600
7. RS.10,000
8. RS.3,200
9. RS.5,000
10.
Question: 1300 On the basis of data given in Q 3.21 above, number of orders to be placed in each year are
6. 10
7. 50
8. 20
9. 100
10.
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 1212 . B 1213 . D 1294 .
B 1297 . A 1300 . B
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. 10
7. 50
8. 20
9. 100
10.
Question: 1304 when material prices are showing a rising trend, which method of pricing will show lower cost
of production
6. FIFO
7. LIFO
8. Weighted average
9. Replacement price
10.
Question: 1307 in periods of rising prices, which method of pricing shows higher stock values
6. FIFO
7. LIFO
8. Weighted average
9. Replacement price
10.
Question: 1309 in which method, prices charged to production are at the current prices prevailing in the market
6. FIFO
7. LIFO
8. Weighted average
9. Replacement price
10.
Question: 1312 when prices are showing a falling tendency, which method of pricing of material issues will
show higher closing stock value
6. FIFO
7. LIFO
8. Weighted average
9. Specific price method
10.
Question: 1313 When production is below standard specification or quality and cannot be rectified by incurring
additional cost, it is called
6. Defectives
7. Spoilage
8. Waste
9. Scrap
10.
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Question: 1315 Materials losses are due to some of the following reasons
6. Fore accident
7. Theft
8. Breaking the bulk
9. Evaporation
10. pilferage
Question: 1319 Documents used in a material control system include the following
Question: 1321 at what amount materials issued on 8-1-1997 will be charged if FIFO method is used
6. RS.1,550
7. RS.1,575
8. RS1,700
9. RS1,750
10.
Question: 1323 at what amount materials issued will be charged igloo method is used
6. RS.1,550
7. RS.1,575
8. RS.1,700
9. RS.1,750
10.
Question: 1325 at what amount materials issued will be charged if simple average price is used
6. RS.1,550
7. RS1,575
8. RS.1,610
9. RS.1,700
10.
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 1315 . A 1319 . D 1321
.B 1323 . C 1325 . B
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Question: 1329 at what amount materials issued will be charged if weighted average price is used
6. RS.1,575
7. RS.1,610
8. RS.1,625
9. None of these
10.
Question: 1330 at what amount materials issued will be charged if replacement price method is used
6. RS.1,400
7. RS.1,700
8. RS.2,100
9. RS. 1,750
10.
Question: 1335 what will be the value of closing stock under FIFO method
6. RS 600
7. RS 675
8. RS 700
9. None of these
10.
Question: 1336 what will be the value of closing under LIFO method
6. RS.600
7. RS.675
8. RS.690
9. RS.750
10.
Question: 1337 what will be the value of closing stock under simple average method
6. RS.600
7. RS.690
8. RS.725
9. RS.750
10.
Question: 1339 what will be the value of closing stock if weighted average method is applied
6. RS.600
7. RS.690
8. RS.725
9. RS.750
10.
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Question: 1340 what will be the value of closing stock if replacement price method if used
6. RS.100
7. RS.300
8. RS.200
9. None of these
10.
Question: 1344 in which of following incentive plans of wages payment, wages on time basis are NOT
guaranteed
6. Halsey plan
7. Rowan plan
8. Taylors differential piece rate system
9. Gantt's task and bonus system
10.
Question: 1427 in which of the following incentive plan of wages payment, wages on time basis are NOT
guaranteed?
6. Halsey plan
7. Rowan plan
8. Taylor's differential piece rate system
9. Gantt's task and bonus system
10.
Question: 1429 which of the following methods of wage payment is most suitable where quality and accuracy
of work is of primary importance?
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 1339 . B 1340 . B 1344 .
C 1427 . C 1429 . B
Question: 1430 Cost of idle time arising due to non-availability of raw material is
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Question: 1432 when overtime is required for meeting urgent orders, overtime premium should be
Question: 1436 when standard outputs is 10 units per hour and actual output is 12 units per hour , the
efficiency is
6. 80%
7. 120%
8. 100%
9. none of these
10.
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. Rs 18
7. Rs 14
8. Rs 16
9. Rs12
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10.
Question: 1449 using data as given in Q. 314 above, what will be the amount of wages under time rate system
6. RS. 12
7. RS.14
8. 16
9. 18.
10.
Question: 1451 using data as given in Q. 314 above, what will be the amount of bonus under rowan plan
6.
7. RS. 2
8. RS. 3
9. RS. 4
10. 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. RS. 2
7. RS.3
8. RS.4
9. Nil
10.
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 1438 . C 1443 . C 1449 .
A 1451 . B 1453 . A
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. RS.14.00
7. RS.14.25
8. 18.50
9. 19.00
10.
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. RS.15.15
7. RS.20.00
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8. 20.15
9. 20.20
10.
Question: 1460 Comparing Rowan and Halsey premium plans, it is seen that when the time saved is less than
50% of the time saved,
Question: 1461 when time saved is 40% of the standard time, Halsey plan allows
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. RS.24.00
7. RS.26.80
8. RS.17.28
9. RS.20.40
10.
6. priestman plan
7. Badaux plan
8. Halsey weir plan
9. All of these
10.
6. production cost
7. selling cost
8. distribution cost
9. It may be any of the above
10.
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6. production overhead
7. selling overhead
8. administration overhead
9. distribution overhead
10.
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. allocation
7. apportionment
8. absorption
9. allotment
10.
Following list gives the correct choice for the answer of the accounting mcqs.
1451 . B 1453 . A 1457 . B 1459 . D 1460 . A 1461 . B 1463 . C 1464 . A 1466 . D 1468 .
B 1471 . C 1472 . A
6. direct materials
7. direct wages
8. prime cost
9. works cost
10.
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8. Legal costs for debt realization
9. Distribution of samples
10.
Question: 1488 which method of absorption of factory overheads do you suggest in a concern which produced
only one uniform type of product
Question: 1490 When the amount of under-or over-absorption is significant, it should be disposed of by
Question: 1496 Maximum possible productive capacity of a plant, when no operating time is lost, is its
6. practical capacity
7. Theoretical capacity
8. Normal capacity
9. Capacity based on sales expectancy
10.
Question: 1499 the capacity which is based on the long term average of the sales expectancy level is known as
6. practical capacity
7. Actual capacity
8. Normal capacity
9. None of these
10.
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.
5. production overhead
6. Administration overhead
7. selling overhead
8. 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 1493 . C 1496 . C 1499 .
C 1502 . A 1506 . C
Question: 1508 Number of workers employed is used as a basis for the apportionment of
Question: 1518 in which of the following methods of providing depreciation, the amount of depreciation goes
on decreasing with the age of the asset
Question: 1544 Selling and distribution overheads are absorbed on the basis of
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. normal capacity
7. maximum capacity
8. 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. It is making a loss.
7. Marginal revenue is less than marginal cost.
8. Marginal revenue less than average variable cost at all levels of output.
9. Average revenue is less than average variable cost at all levels of output.
10. 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 pre-
determined 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
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. remain unchanged for fixed costs and increase for variable costs
7. increase for fixed cost and remain unchanged for variable costs
8. increase for fixed costs and decrease for variable costs
9. decrease for fixed costs and decrease for variable costs
10.
6. materials consumed
7. direct labor cost
8. direct labor hours
9. machine hours
10.
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5. temporary idleness of plant
6. greater production capacity than a company can use
7. the difference between theoretical capacity and actual capacity
8.
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 1567 . B 1569 . A 1571 .
B
Question: 1573 the concept of ideal capacity of plant as used in cost accounting is its
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 over-
absorption of overhead
6. RS.20000 over-absorption
7. RS. 20,000 over-absorption
8. RS.5000 under-absorption
9. RS.5,000 over-absorption
10.
6. RS.1,50,000
7.
8. rs.1,65,000
9. cannot be computed
10. None of these
6. RS. 1,50,000
7. RS. 1,65,000
8. RS. 15,000
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9. RS 20,000
10.
Question: 1592 In Q 3,37, which method should be used to treat under/over absorbed amount in cost accounts
6. 16,000
7. 12,000
8. Cannot be known
9. None of these
10.
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
Question: 1603 the principal factors to be considered on designing a cost system include
6. Manufacturing process
7. desires of management
8. nature of business
9. company organization structure
10. 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. job costing
7. Batch costing
8. operating costing
9. None of these
10.
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 1580 . C 1583 . A 1585 . B 1592 . B 1594 . B 1599 . B 1603 . E 1606 . A 1609 .
B
Question: 1606 the most suitable cost system where the products differ in type of materials used and work
performed is
6. job costing
7. Batch costing
8. operating costing
9. None of these
10.
6. job costing
7. Batch costing
8. Contract costing
9. None of these
10.
6. Repair shops
7. printing presses
8. Furniture making
9. Automobile garages
10. All of these
6. job costing
7. batch costing
8. contract costing
9. All of these
10.
Question: 1616 when a contract is not completed at the end of the accounting year, profit on incomplete
contract is
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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
Question: 1622 when contract id 40% complete, the amount of profit to be taken credit for is usually
6. Cost-plus contracts
7. Escalation clause
8. De-escalation clause
9. All of the above
10.
6. Cost-plus contracts
7. 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 1627 . E 1630 . B 1631 .
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.
6. contractor
7. contractee
8. both by contractor and contractee
9.
10.
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
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10.
Question: 1638 In contract costing, valuation of which of the following does not include an element of profit
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. Materials
7. Labor
8. Supervision
9. Storage lost
10. both(c)and (d)
Question: 1655 Which of the following items is not written on the credit side of the contract account
Question: 1659 The type of process loss that should not affect the cost of inventories is
6. abnormal loss
7. normal loss
8. 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. RS.18
6. RS.16.36
7. RS.12
8. 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 1655 . C 1659 . A 1663
.C
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
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. RS. 1.25
7. RS.8.00
8. RS.8.75
9. RS.8.88.
10.
Question: 1676 Given the data in Q.3.5 above, the normal cost of unit is
6. RS.0.25
7. RS.1.60
8. RS.1.78
9. RS.1.75
10.
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. 8,900 units
7. 9,100 units
8. 9,300 units
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9. 9,500 units
10.
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. 6,750
7. 6,850
8. 7,050
9. 7,150
10.
Question: 1689 When units are lost at end of the production process, the cost is charged to
6. factory overhead
7. selling expense
8. work-in-progress
9. completed units
10.
6. Operating costing
7. Batch costing
8. process costing
9. Unit costing
10.
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.
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 1689 . D 1691 . B 1698 .
B
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. RS.3,800
7. RS. 4,000
8. RS. 200
9. None of these
10.
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. RS.280
7. RS.200
8. RS.80
9. RS.360
10.
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. 5,000
7. 4,700
8. 5,200
9. 5,800
10.
Question: 1706 Classification and accumulation of costs by fixed and variable costs is of special importance in
6. process costing
7. unit costing
8. operation costing
9. operating costing
10. none of these
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6. automobile industry
7. oil refineries
8. engineering company
9. All of the above
10.
Question: 1709 Individual products, each of a significant sales value, produced simultaneously from the same
raw material, should be known as
6. by-products
7. main products
8. joint products
9. common products
10.
Question: 1712 Total manufacturing costs are divided by the total number of units produced to obtain a cost
per unit under the
Question: 1714 which of the following are virtually always subsequent costs
Question: 1720 When by-products are of small total value, its accounting should by
Question: 1723 Net realizable value of by-products at the split off point should be calculated by reverse cost
method when
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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 1714 . C 1720 . B 1723 .
C
Question: 1723 Net realizable value of by-products at the split off point should be calculated by reverse cost
method when
6. Job costing
7. Operating costing
8. Multiple costing
9. Contract costing
10.
6. waste
7. scrap
8. by-product
9. joint product
10.
Question: 1735 Which of the following methods of accounting of by-products should be applied when the by-
product is to be utilized in the undertaking itself as material for some other process
Question: 1737 Credit is given to the process account at a pre-determined value of the by-product under the
Question: 1742 The primary purpose of apportioning joint costs of a processing centre to various products
produced is to
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6. develop accurate processing cost variances product-wise
7. report more correct standard product costs for comparative analysis
8. establish inventor cost assigned to unsold units
9. record accurate cost of sales by product lines
10. 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
6. Rs. 2.18
7. Rs. 2.05
8. Rs. 2
9. RS. 1.89
10.
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. 2,700
7. 3,000
8. 3,200
9. 3,500
10.
6.
7. 2700 units
8. 300 units
9. 350 units
10. 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. 16,000 units
7. 17,000 units
8. 19,000 units
9. 20,000 units
10.
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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 1828 . B 1842 . D 1843
.C
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. 5,000
7. 300
8. 15,000
9. 150
10.
6. Integral system
7. Non-integral system
8. Under both (a)and (b)
9. None of these
10.
Question: 1852 Which of the following accounts make the cost ledger self-balancing
Question: 1855 Costing profit and Loss account does not record the
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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
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 1879 . C 1885 . B 1889 .
C
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. RS. 72,000
7. 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. Heavy donations
7. Loss on the sale of fixed assets
8. Notional rent
9. Interest on borrowed capital
10. all of these
Question: 1897 Which of the following items shall be added to costing profit to arrive at financial profit
Question: 1913 Which of the following account will always have debit balance
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. RS. 40,000
7. RS. 33,000
8. RS. 41,000
9. RS. 55,000
10. RS. 30,000
Question: 1918 The January 31 balance of work in progress control account should be
6. RS. 36,000
7. RS. 75,000
8. RS.76,000
9. RS. 77,000
10. 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. RS. 20,000
8. RS. 5,000
9. RS. 10,000
10. RS. 30,000
6. RS. 40,000
7. RS. 10,000
8. RS. 20,000
9. RS. 30,000
10. RS. 50,000
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 1932 . C 1943 . B 1955 .
D
Question: 1963 The fixed-variable cost classification has a special significance in the preparation of
6. Flexible budget
7. Master budget
8. cash budget
9. capital budget
10.
Question: 1966 If a company wishes to establish a factory overhead budget system in levels, it should prepare a
6. Flexible budget
7. Master budget
8. cash budget
9. Fixed budget
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10.
6. Flexible budget
7. Flexed budget
8. difference between planned and actual results
9. planning and control of activities
10.
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. Cash budget
7. Master budget
8. capital expenditure budget
9. Budget for the key factor
10. sales budget
Question: 1999 The success of a flexible budget depends upends upon careful study and classification of
expenses into
6. cost sheet
7. unit cost
8. direct cost
9. budget
10.
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.
6. operating budget
7. responsibility budget
8. flexible budget
9. financial budget
10.
5. Sales budget
6. cash budget
7. capital expenditure budget
8. 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 2001 . A 2002 . B 2003
.C
Question: 2004 A budget representing fixed assets expenditure during the budget period is
6. Fixed budget
7. Capital expenditure budget
8. Long term cash budget
9. Master budget
10.
6. RS. 30,000
7. RS. 40,000
8. RS. 50,000
9. RS. 80,000
10.
Question: 2006 The standard volume per month on which the budgeted overhead rate is based is
6. 3,000 tons
7. 5,000 tons
8. RS. 5,500 tons
9. 7,000 tons
10.
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Question: 2008 The budgeted fixed overhead cost per ton is
6. RS. 10
7. RS. 20
8. RS.21.36
9. RS. 17.14
10.
6. RS. 80,000
7. RS. 1,20,000
8. RS. 1,10,000
9. RS. 1,17,500
10.
6. RS. 7,500(A)
7. RS.12,500(A)
8. RS. 10,000(A)
9. Nil
10.
6. RS. 7,500
7. RS. 12,500
8. RS. 10,000
9. RS. 20,000
10.
Question: 2012 What is the raw material cost per unit at the actual production level
6. RS. 10.08
7. RS. 16.80
8. RS. 8.40
9. None of these
10.
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. RS. 4,00,000
6. RS. 2,40,000
7. RS. 6,00,000
8. 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 2012 . A 2013 . C 2014 .
B
Question: 2015 What is the fixed works overhead per unit when output is 60,000 units
6. RS. 6
7. RS. 7
8. RS. 8
9. None of these
10.
Question: 2016 What is the variable works overhead per unit at actual production level
6. RS. 4
7. RS. 3
8. RS. 2
9. None of these
10.
Question: 2017 what is the total administrative overhead per unit at actual production level
6. RS. 2.45
7. RS 1.90
8. RS. 1,60
9. None of these
10.
Question: 2018 what is the total selling overhead per unit at 60,000 output
6. RS 0.80
7. RS 0.90
8. RS 1.07
9. None of these
10.
6. RS 13.58
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7. RS 13.48
8. RS.18.00
9. None of these
10.
6. 1,100 units
7. 1,150 units
8. 1,350 units
9. None of the above
10.
6. 1,100 units
7. 1,150 units
8. 1,350 units
9. None of these
10.
6. 1,400 units
7. 1,150 units
8. 1,850 units
9. None of these
10.
6. 1,800 units
7. 2,000 units
8. 2,200 units
9. None of these
10.
5. 1,800 units
6. 2,200 units
7. 2,400 units
8. 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 2048 . B 2049 . C 2051
.C
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Question: 2052 production required in the month of December 1996 is
6. 1,800 units
7. 2,200 units
8. 2,400 units
9. None of these
10.
Question: 2054 production required for the six months ending December 1996 is
6. 11,000 units
7. 2,200 units
8. 2,400 units
9. None of these
10.
6. 1,000 units
7. 1,100 units
8. 1,150 units
9. None of these
10.
Question: 2060 The cost of product as determined under standard cost system is
6. fixed cost
7. historical cost
8. direct cost
9. pre-determined cost
10.
Question: 2061 In evaluating deviations of actual from standard cost, the probable technique used is
6. variable regression
7. variance analysis
8. trend analysis
9. linear progression
10.
Question: 2063 The type of standard that is best suited from cost control point of views is
6. Theoretical standard
7. Expected standard
8. Normal standard
9. Basic standard
10.
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Question: 2069 which of the following standards can be attained under the most favorable conditions possible
6. Theoretical standard
7. Expected standard
8. Normal standard
9. Basic standard
10.
Question: 2072 A company using theoretical standard cost system should expect that
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
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 2071 . C 2072 . A 2077 .
C
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
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. Rs. 20(Favorable)
7. RS.25(FAVOURABLE)
8. RS. 100(Adverse)
9. RS. 95 (Adverse)
10. None of these
6. RS. 20(Favorable)
7. RS. 25(Favorable)
8. RS. 100 (unfavorable)
9. RS. 95 (unfavorable)
10. None of these
Question: 2092 in standard costing, the material price variance is obtained by multiplying the
6. actual price by the difference between actual quantity purchased and standard quantity allowed
7. actual quantity consumed by the difference between actual price and standard price
8. standard price by the difference between standard quantity purchased and standard quantity allowed
9. standard quantity by the difference between actual price and standard price
10.
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. RS. 600(Favorable)
7. RS. 1,200(Adverse)
8. RS. 1,800(Adverse)
9. RS. 2,400(Favorable)
10.
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Question: 2103 Material usage variance in the above Q. 3.13 is
6. RS.600(Favorable)
7. Rs. 1,000(Adverse)
8. RS. 1,800(Adverse)
9. R.s. 2,400(Favorable)
10.
Question: 2106 standard costing will produce the same financial statement results as actual or conventional
costing when standard cost variances are distributed to
Question: 2109 Material cost variance is RS. 550(A) and material price variance RS. 150(F), the material usage
variance should be
5. RS. 400(A)
6. RS. 700(A)
7. RS. 400(F)
8. 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 2102 . C 2103 . A 2106 .
C 2107 . C 2109 . B
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6. overhead efficiency variance
7. Labor cost variance
8. Labor time variance
9. Labor efficiency variance
10.
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. RS. 400(A)
7. RS. 450(A)
8. RS. 500(A)
9. cannot be computed
10.
6. RS. 50(A)
7. RS. 100(A)
8. RS. 300(A)
9. RS. 250(A)
10.
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. RS. 1,000(F)
7. RS. 400(A)
8. RS. 400(F)
9. RS. 1,000(A)
10.
Question: 2115 The type of variance not computed for factory overhead is
6. controllable
7. volume
8. equivalent production
9. idle capacity
10.
6. Marginal costing
7. Absorption costing
8. job and process costing
9. All of the above
10.
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Question: 2117 standard cost are useful in all of the following except
6. reducing costs
7. speeding up preparation of operating reports
8. establishing records
9. costing inventories
10.
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
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 2115 . C 2116 . D 2117 .
C 2118 . C 2119 . D
6. two variances
7. three variances
8. four three variances
9. any of the above
10.
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Question: 2127 Which of the following statement best explains the difference between standard costing and
budgetary controls
6. Budget is a projection of financial accounts whereas standard cost is a projection of cost accounts
7. variances are analyzed under standard costing but not under budgetary control
8. The budget, as a statement of expected costs, is used for forecasting of finance, if certain performances
are achieved
9. Budgetary control is more intensive than standard costing
10.
6. Expenditure variance
7. Efficiency variance
8. variable overhead cost variance
9. volume variance
10.
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10.
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. RS. 14,000(F)
7. RS. 4,000(A)
8. RS. 4,000(F)
9. None of these
10.
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 2132 . D 2133 . D 2134 .
B
Question: 2135 Fixed overhead cost variance is expenditure variance is RS 200(A), calendar variance RS
500(F).what is the volume variance
6. RS. 2,700(A)
7. RS. 1,900(A)
8. Rs. 2,200(A),
9. Rs. 2,500(f)
10.
6. RS 400(F)
7. RS 400(A)
8. RS 440(F)
9. RS 440(A)
10.
6. RS 960(A)
7. RS 960(f)
8. RS 1,000(A)
9. RS 1,000(F)
10.
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Question: 2138 The material price variance in Q 3.46 is
6. RS. 100(Adverse)
7. RS. 100(Favorable)
8. RS. 110(Adverse)
9. RS. 110(Favorable)
10. None of the preceding responses is correct
6. Rs 110(Adverse)
7. RS. 100 (Favorable)
8. RS. 210(Adverse)
9. Rs. 408 (FAVOURABLE)
10. cannot be computed from the given data
6. ES. 152(Adverse)
7. RS. 560(Favorable)
8. RS. 560(Adverse)
9. RS 480(Favorable)
10.
6. RS. 152(Adverse)
7. Rs. 560(Favorable)
8. RS. 560(Adverse)
9. RS. 480(Favorable)
10.
6. RS. 560(Favorable)
7. RS. 560(Adverse)
8. RS. 152(Adverse)
9. RS. 408(Adverse)
10. none of the preceding responses is correct
6. RS. 2,000(A)
7. RS 4,000(A)
8. RS 2,000(F)
9. RS 4,000(F)
10.
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Question: 2144 In Q 3.53, what is the volume variance
5. RS 2,000(A)
6. RS 4,000(A)
7. RS6,000(A)
8. 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 2142 . E 2143 . A 2144 .
C
6. marginal income
7. gross profit
8. net income
9. new profit
10.
6. variable costs
7. fixed costs
8. prime cost
9. overhead costs
10.
Question: 2148 One of the primary differences between marginal costing absorption costing is regarding the
treatment of
6. direct materials
7. variable overheads
8. fixed overheads
9. prime cost
10.
Question: 2149 A costing method in which the fixed factory overheads are added to inventory valuation is
6. direct costing
7. 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. fact that standard costs can be used with absorption costing but not with marginal costing
7. amount of fixed costs that will be incurred
8. kinds of activities for which each can be used
9. amount of costs assigned to individual units of products
10.
Question: 2152 Under the marginal costing concept, unit product cost would most likely be increased by
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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 2152 . C 2153 .
C 2154 . C
Question: 2156 There will be no difference in profit as shown by marginal costing and that of absorption
costing when
Question: 2157 when fixed cost id Rs. 3,000 and sales RS.50,000, the P/V ratio will be
6. 14%
7. 20%
8. 25%
9. p/v ratio cannot be computed from the data given
10.
Question: 2158 when p/v ratio is 40% and sales value RS 10,000 the variable cost will be
6. RS. 4,000
7. RS. 6000
8. RS. 10,000
9. variable cost cannot be calculated from the data given
10.
Question: 2159 if net profit is 10% and p/v ratio is 50%, the margin of safety will be
6. 10%
7. 20%
8. 50%
9. margin of safety cannot be computed
10.
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7. increasing selling price
8. lowering variable cost
9. lowering fixed costs
10. All of these
6. factory overhead
7. period cost
8. direct cost
9. conversion cost
10.
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. opportunity
7. out-of-pocket cost
8. controllable cost
9. differential cost
10.
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 it’s
6. fixed costs
7. variable costs
8. prime costs
9. indirect costs
10.
Question: 2164 Cost-volume-profit analysis is most important for the determination of the
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 2162 . D 2163 . B 2164 .
C
question: 2165 if net profit is 10% and p/v ratio is 50%, the margin of safety will be
6. 10%
7. 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%
Question: 2167 when referring to margin of safety, one has the following in mind
Question: 2168 The conventional break-even analysis does not assume that
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. indeterminate
7. unchanged
8. higher
9. lower
10.
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. indeterminate
7. unchanged
8. higher
9. lower
10.
Question: 2171 when margin of safety is 20% and contribution sales ratio is 60% the profit will be
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6. 30%
7. 33% 1/3%
8. 12%
9. cannot be computed
10.
Question: 2172 when fixed cost is RS. 20,000 and margin of safety is RS.10,000, the p/v ratio will be
6. 200%
7. 50%
8. 33%
9. cannot be computed
10.
Question: 2173 when sales jumped from RS. 4,00,000 and profit increased by Rs. 40,000, the p/v ratio is
6. 7.5%
7. 10%
8. 40%
9. cannot be computed
10.
Question: 2174 when total fixed cost is RS. 50,000 and variable cost to sales is 75%, the break-even point id
6. RS. 37,500
7. RS. 12,500
8. RS. 2,00,000
9. cannot be determined
10.
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 2172 . D 2173 . C 2174 .
C
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. RS50,000
7. RS. 80,000
8. RS. 12000
9. None of these
10.
Question: 2176 In the chart given in 3.32 above, the horizontal line OL represents
6. sales
7. fixed cost
8. total cost
9. profit
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10.
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. RS. 64,000
7. RS. 16,000
8. Rs. 48,000
9. cannot be known
10.
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. RS. 40,000
7. RS. 30,000
8. RS. 1,00,000
9. RS. 1,50,000
10.
Question: 2212 WHEN PROFIT CHANGES BY R.s. 20,000, The sales changes by RS. 25,000, the P/V ratio is
6. 20%
7. 80%
8. 25%
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9. cannot be calculated
10.
Question: 2216 which of the following would cause the greatest increase in the unit contribution margin
Following list gives the correct choice for the answer of the accounting mcqs.
2175 . A 2176 . A 2177 . E 2182 . C 2187 . A 2206 . C 2210 . D 2212 . B 2213 . B 2216
.B
6. profit
7. Fixed cost
8. variable cost
9. contribution
10.
6. profit
7. Loss
8. contribution
9.
10.
6. key factors
7. variable cost
8. Contribution
9. Margin of safety
10.
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Question: 2228 which of the following is NOT an assumption of break-even chart
Question: 2233 In calculating cash break-even point, which costs are taken into account
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. hormocyst
7. hormogonium
8. trichome
9. trichogyne
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10.
Question: 3807 A debit balance on Amitie's account in your sales ledger means that
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 2271 . D 2544 . A 3807 .
A
Question: 3811 A debit balance on the rates account after the yearly transfer to the profit and loss account
indicates
Question: 3820 which one of the following normally has a debit balance?
Question: 3822 which one of the following normally has a debit balance?
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6. A proprietor's will remain constant if he only withdraws this Net profit each year and does not
introduce any new capital.
7. A proprietor's capital will increase if his drawings are higher than his Net profit and he does not
introduce any new capital.
8. A proprietor's capital will decrease if his Net profit is greater than his drawings and does not introduce
any new capital
9. A proprietor's capital will remain constant if he only withdraws his Net profit each year, but also
introduces new capital.
10.
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. Rs. 10,000
7. Rs. 20,000
8. Rs. 30,000
9. Rs. 40,000
10.
Question: 3839 If sales are Rs. 10,000, expenses Rs. 2,000 and net profit is 10% of sales, the gross profit is
6. Rs. 3,000
7. Rs. 9,000
8. Rs. 10,100
9. Rs. 11,000
10.
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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 3836 . A 3837 . B 3839 .
A
Question: 3840 If the gross profit is Rs. 5000 and the net profit is 25% of the gross profit ,the expenses must be
6. Rs. 1,250
7. Rs. 3,750
8. Rs. 4,150
9. Rs. 6,250
10.
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. Rs. 600
7. Rs. 1,200
8. Rs. 2,400
9. Rs. 4,800
10.
6. trial balance
7. balance sheet
8. trading profit and loss account
9. bank reconciliation statement
10.
6. returns outwards
7. cost of goods sold
8. returns inwards
9. carriage on sales
10.
6. Rs. 99,000
7. Rs. 99,500
8. Rs. 1,00.500
9. Rs. 1,01,000
10.
6. 10%
7. 20%
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8. 30%
9. 40%
10.
Question: 3846 The net cost of purchases for the year was
6. Rs. 69,000
7. Rs. 70.000
8. Rs.71,000
9. Rs.73,000
10.
6. Rs. 500
7. Rs. 1,000
8. Rs. 1,500
9. Rs. 2,000
10.
Question: 3848 If the purchases had been under cast by Rs. 10,000 the gross profit would be
6. Rs. 31,500
7. Rs. 41,500
8. Rs. 51,500
9. Rs. 61,500
10.
6. Rs. 59,000
7. Rs. 69,000
8. Rs. 71,000
9. Rs. 89,000
10.
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 3847 . D 3848 . A 3849 .
A
6. 5%
7. 10%
8. 15%
9. 20%
10.
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Question: 3851 Expenses for the year total
6. Rs. 29,000
7. Rs. 30,000
8. Rs. 31,000
9. Rs. 32,000
10.
Question: 3853 which one of the following is fixed asset for a builder's merchant?
6. Cash
7. Stock
8. Debtors
9. Type wirer
10.
6. A breakdown van
7. The managing director's private car
8. The condense in the saleroom
9. A customer's car in for repair
10.
6. working capital
7. total assets minus current liabilities
8. fixed assets minus current liabilities
9. capital minus current liabilities
10.
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Question: 3857 which one of the following is usually a current liability?
6. Mortgage
7. Bank loan
8. Bank over drat
9. Rent Paid in advance
10.
Question: 3858 The percentage return on the owner's opening capital for the past year was
6. 15%
7. 20%
8. 25%
9. 30%
10.
6. Rs. 20,000
7. Rs. 30,000
8. Rs. 50,000
9. Rs. 1,70,000
10.
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 3857 . C 3858 . C 3859 .
A
Question: 3860 The owner's capital employed in the business at the date of the balance sheet is
6. Rs. 1,20,000
7. Rs. 1,40,000
8. RS. 1,90,000
9. Rs. 2,13,500
10.
6. Rs. 50,000
7. Rs. 73,500
8. Rs. 1,20,000
9. Rs. 1,40,000
10.
Question: 3862 The interest on the loan paid during the year was
6. Rs. 2,500
7. RS. 5,000
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8. Rs. 7,500
9. Rs. 10,000
10.
6. RS. 50,000
7. RS. 1,70,000
8. RS. 2,20,000
9. RS. 2,70,000
10.
6. RS. 73,500
7. RS. 1,40,000
8. RS, 1,90,000
9. RS. 2,13,500
10.
6. RS. 1000
7. RS. 2000
8. RS. 3000
9. RS. 4000
10.
Question: 3887 The percentage return on total assets employed was approximately
6. 9%
7. 14%
8. 20%
9. 25%
10.
Question: 3890 In a balance sheet the balance of the fixed assets accounts are usually included at
6. cost
7. 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?
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 3888 . D 3890 . B 3892 .
A
Question: 3903 which one of the following not a book of original entry
Question: 3905 which one of the following is book of original entry and is also part of the ledger?
Question: 3906 The main source of information for the sales day book is obtained from
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6. invoices received
7. credit notes sent out
8. invoices sent out
9. credit notes sent
10. the till roll
Question: 3907 The main source of information for the purchase day book is obtained from
6. invoice received
7. invoices sent out
8. credit notes received
9. debit notes sent out
10.
Question: 3908 The main source of information for the sales returns day book is obtained from
6. invoices received
7. invoices sent out
8. credit notes received
9. debit notes received
10.
Question: 3910 The main source of information for the purchase returns day book is obtained from
6. invoices received
7. invoices sent
8. credit notes received
9. debit notes sent out
10.
Question: 3912 The totals of the sales day book are transferred to the
Question: 3914 The totals of the purchase returns day books are transferred to the
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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 3910 . C 3912 . B 3914 .
D
Question: 3916 which one of the following is centered in the journal proper?
Question: 4032 which one of the following is entered in the journal proper?
Question: 4035 which one of the following is entered in the journal proper?
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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: 4051 which of the following errors would normally be revealed by a trial balance?
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 4051 . D 4055 . C 4059
.D
Question: 4066 if the straight line method of depreciation is used the depreciation charge is
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Gat Subject (Management Sciences – Accounting-Management -Economics)
Question: 4069 Firms charge depreciation each year
Question: 4071 which of the following assets is most likely to appreciate rather than depreciate
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
Question: 4094 Another name for the Equal Installment method of depreciation is the
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Gat Subject (Management Sciences – Accounting-Management -Economics)
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. RS. 900
7. RS. 1,000
8. RS. 1,100
9. RS. 1,200
10.
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 year’s depreciation charge at 10% per annum
6. RS. 800
7. RS. 810
8. RS. 900
9. RS. 1,000
10.
Question: 4107 On 1st January a firm’s 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. RS. 500
6. RS. 1,000
7. RS. 1,500
8. 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 4098 . B 4104 . C 4107 .
C
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. 12%
7. 25%
8. 33%
9. 50%
10.
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
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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. RS. 2,200
7. RS. 3,200
8. RS. 3,600
9. RS.4,400
10.
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?
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. RS. 45,000
7. RS. 55,000
8. RS. 1,00,000
9. RS. 1,45,000
10.
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. RS, 6,690
7. Rs, 6,960
8. RS. 9,660
9. RS. 9,690
10.
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. RS. 10,000
7. RS. 25,000
8. RS. 40,000
9. RS. 50,000
10.
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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
6. RS. 47,500
7. RS. 48,000
8. RS. 51,500
9. RS. 52,500
10.
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
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. nil
6. a decrease of Rs. 500
7. an increase of RS. 500
8. 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 4175 . A 4176 . B 4183 .
C
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. nil
7. a decrease of Rs. 500
8. an increase of RS. 500
9. an increase of RS. 1,500
10.
Question: 4190 Which one of the following statements about debtors, bad debts and provisions for bad debts
in the incorrect?
6. Debtors usually appear as a current asset in the balance in the balance sheet
7. provisions for bad debts usually have a debit balance in ledger
8. The bad debts account usually has a debit balance in the ledger
9. An increase in the provision for bad debts account will reduce the profit of the firm
10.
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Question: 4191 which one of the following types of business is likely to have the largest amount of 'bad debts' ?
Question: 4193 If the sales ledger control has a debit balance of RS. 39,400 it means that
Question: 4197 If the purchase ledger control has a credit balance of RS. 48,000 it means that
Question: 4200 The total of the returns out wards for the month should be entered on the
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Gat Subject (Management Sciences – Accounting-Management -Economics)
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
Question: 4210 A cherub received which has now been dishonored should be entered on the
Following list gives the correct choice for the answer of the accounting mcqs.
4186 . C 4190 . B 4191 . D 4193 . B 4197 . C 4200 . A 4201 . D 4202 . C 4207 . B 4210
.D
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. current asset
7. current liability
8. fixed asset
9. long term liability
10.
Question: 4220 when the monthly bank statement is out which one of the following would appear?
Question: 4224 which one of the following be entered in the cash book and not on the bank statement ?
6. Bank charges
7. A dishonored cherub
8. payments into the bank but not yet credited
9. A credit transfer received from a customer
10.
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. added
7. subtracted
8. multiplied
9. divided
10.
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. added
7. subtracted
8. multiplied
9. divided
10.
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. Rs.280
7. Rs.720
8. Rs.1,000
9. Rs.1,720
10.
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184
Gat Subject (Management Sciences – Accounting-Management -Economics)
Question: 4238 A club's income and expenditure account performs the same function as a firm's
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 4236 . C 4237 . C 4238 .
A
6. a balance
7. a deficit
8. a surplus
9. drawing
10.
6. as asset
7. an expense
8. a liability
9. a surplus
10.
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. bank balance
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Gat Subject (Management Sciences – Accounting-Management -Economics)
7. assets
8. accumulated fund
9. surplus
10.
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. Rs.960
7. Rs.1,000
8. Rs.1,030
9. Rs.1,040
10.
Question: 4245 Depreciation written off the snooker table should be entered in the
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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 4246 . C 4247 . C 4248 .
D
Question: 4249 Which one of the following is most likely to have the lowest rate of stock turn?
6. a super market
7. a greengrocer
8. a newsagent
9. a jeweler
10.
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. Rs.100
7. Rs.900
8. Rs.1,000
9. Rs.1,100
10.
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. Rs. 4,00,000
7. Rs. 4,80,000
8. Rs. 4,00,000
9. Rs. 1,00,000
10.
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. Rs. 25,000
7. Rs. 55,000
8. Rs. 80,000
9. Rs. 1,00,000
10.
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. a loss of Rs.1,000
7. neither a profit nor a loss
8. a profit of Rs.1,000
9. a profit of Rs.2,000
10.
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Gat Subject (Management Sciences – Accounting-Management -Economics)
Question: 4257 A store's make up is the
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. Rs. 25,000
7. Rs. 26,200
8. Rs. 34,000
9. Rs. 35,200
10.
6. 5%
7. 10%
8. 15%
9. 20%
10.
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. 25%
7. 50%
8. 75%
9. 100%
10.
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 4259 . D 4260 . D 4261 .
B
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Gat Subject (Management Sciences – Accounting-Management -Economics)
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. Rs. 9,200
7. Rs. 9,400
8. Rs. 9,600
9. Rs. 9,200
10.
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. Rs. 200
7. Rs. 400
8. Rs. 700
9. Rs. 900
10.
6. cost of overheads
7. cost of raw materials used
8. cost of production
9. gross profit
10.
6. prime cost
7. production cost
8. work in progress
9. overheads
10.
Question: 4273 Which one of the following would not be included in the prime cost?
6. manufacturing wages
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Gat Subject (Management Sciences – Accounting-Management -Economics)
7. direct power
8. direct factory expenses
9. heating and lighting of the factory
10.
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. current asset
7. current liability
8. fixed asset
9. long term liability
10.
Question: 4288 when the monthly bank statement is sent out which one of the following would appear?
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 4286 . C 4287 . A 4288 .
B
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9. added to the cost of raw materials
10.
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. RS. 90,000
7. RS. 1, 00,000
8. RS. 1,10,000
9. RS. 1,30,000
10.
6. a financial cost
7. an overhead cost
8. a selling cost
9. an administration cost
10.
Question: 4293 If a manufacturing company gas to pay a royalty for every unit it produces, this would probably
be classified as
6. an indirect cost
7. a direct cost
8. an overhead
9. a cost of materials
10.
Question: 4294 Which one of the following is usually classified as a variable cost in the short term?
Question: 4295 which one of the following is usually classified as a fixed cost in the short term?
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Gat Subject (Management Sciences – Accounting-Management -Economics)
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. Rs. 5,00,000
7. Rs. 6,00,000
8. RS. 6,50,000
9. RS. 6,70,000
10.
6. RS. 6,00,000
7. RS. 670,000
8. RS. 11,00,000
9. RS. 14,20,000
10.
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 4296 . C 4297 . B 4298 .
C
6. RS.2,30,000
7. RS. 3,20,000
8. RS. 14,10,000
9. RS. 14,20,000
10.
6. RS. 11,00,000
7. RS. 14,10,000
8. 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. RS. 10,000
7. RS. 30,000
8. RS. 40,000
9. RS. 50,000
10.
6. RS. 10,000
7. RS. 20,000
8. RS. 30,000
9. RS. 40,000
10.
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. RS. 14,05,000
7. RS. 14,10,000
8. RS. 15,000
9. RS. 14,20,000
10.
Question: 4304 At the end of the financial year a partner's drawing current account are transferred to the
Question: 4305 After the final accounts have been prepared, a debit balance on a partner's current account
means that the
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. increased
7. decreased
8. unchanged
9. non-existent
10.
Question: 4314 which one of the following would be entered in the cash book and not on the bank statement
6. Bank charges
7. A dishonored cherub
8. payment into the bank but not yet credited
9. A credit transfer received from a customer
10.
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. added
6. subtracted
7. multiplied
8. 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 4306 . B 4314 . C 4315 .
A
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. added
7. subtracted
8. multiplied
9. divided
10.
Question: 4317 when the monthly bank statement is sent out which one of the following would not appear
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: 4358 A club's income and expenditure account performs the same function as a firm's
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Gat Subject (Management Sciences – Accounting-Management -Economics)
7. receipts and payments account
8. accumulated fund
9. statement of affairs
10.
6. bank balance
7. assets
8. accumulated fund
9. surplus
10.
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 4358 . A 4359 . D 4360 .
C
6. a balance
7. a deficit
8. a surplus
9. drawings
10.
6. an asset
7. an expense
8. a liability
9. a surplus
10.
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
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
Question: 4374 Depreciation written off the snooker table should be entered on the
Question: 4375 During the year the cash figure has increased by
6. RS. 820
7. RS. 1,000
8. RS.1,820
9. RS.2,790
10.
Question: 4376 The accumulated fund at the beginning of the club's second year amounted to
6. RS. 820
7. RS.1,000
8. RS. 1,820
9. RS. 2,790
10.
6. nil
7. RS. 50
8. RS. 350
9. RS. 400
10.
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 4376 . A 4377 . B 4378 .
A
Question: 4379 The amount owed to creditors for supplies of sweets at 31 December was
6. RS. 30
7. RS. 210
8. RS. 420
9. RS. 600
10.
Question: 4381 The book value of fixed assets at 31st December amounted to
6. RS. 20
7. RS. 70
8. RS.90
9. RS. 110
10.
Question: 4382 If the donations had been 'capitalized,' the accumulated fund at 31st December would have
been
6. RS. 700
7. RS. 820
8. RS. 1,520
9. RS. 1,740
10.
Question: 4383 If the donations had been 'capitalized,' the surplus would have been
6. RS. 120
7. RS. 700
8. RS.820
9. RS.1,520
10.
6. RS. 1,000
7. RS. 1,040
8. RS. 1,070
9. RS. 1,110
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10.
Question: 4392 which one of the following is most likely to have the lowest rate of stock turn?
6. A super market
7. A greengrocer
8. A news agent
9. A jeweler
10.
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. RS. 100
7. RS. 900
8. RS. 1,000
9. RS. 1,100
10.
Question: 4399 which one of the following is most likely to have the lowest rate of stock turn?
6. A super market
7. A greengrocer
8. A news agent
9. A jeweler
10.
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 4392 . D 4398 . A 4399 .
D
Question: 4401 The amount owed to creditors for supplies of sweets at 31 December was
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6. RS. 30
7. RS. 210
8. RS. 420
9. RS. 600
10.
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. RS. 4,000,000
7. 4,80,000
8. RS. 5,20,000
9. RS. 1,00,000
10.
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. RS. 25,000
6. RS. 55,000
7. RS. 80,000
8. 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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E
C
O
N
O
M
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I
C
S
Question: 928 The First in First Out (FIFO) materials pricing system charges issues at
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Question: 940 When Activity Based Costing is used it is probable the
Question: 943 Unit costs are extensively used in the public sector. This is because
Question: 944 which of the following firms are most likely to use process costing
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Question: 952 Check digit variations is
Question: 956 which of the following firms would be most likely to use job costing
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 948 . A 952 . B 956 .
C
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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.
11. common costs are shared among cost centres,in portion to the benefit received
12. The total amount of overheads for the firm can be calculated
13. The total overheads for a cost centre can be calculated
14. Each unit of the product carries a share of overheads
15.
Question: 998 Expenditure on steel used in the product would be classified into which of the following
categories
Question: 1005 A firms’ uses direct labor a basis for overhead absorption if large fluctuations in labor house are
experiences
Question: 1043 the costing associated with a typical site based contract
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11. means that more costs can be identified as direct
12. requires some estimate to be made of interim profits
13. means that the contract account will be credited with materials at the end of thee contract
14. includes all of these
15.
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 998 . A 1005 . A 1039
.D 1043 . D
Question: 1046 Using process costing the amount of cost transferred to finished goods stock is the cost of
Question: 1069 which of the following are possible causes of the changes in the graph at activity level Z
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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: 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. the cost per unit changed with the level of activity
12. the cost per unit was affected by inflation
13. the cost per unit remained constant with changes in the level of activity
14. the total expenditure on X remained the same
15.
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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 1078 . B 1081 . C 1085 .
C 1086 . B 1088 . B
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11. Planning
12. controlling
13. profit sharing
14. product costing
15.
Question: 1104 the three major elements of product costs are all but
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 1102 . C 1104 . D 1111 .
B 1117 . B 1123 . D
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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.
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11. paper mills
12. chemical works
13. printing press
14. textile mill
15.
11. ship-building
12. airplane industries
13. automobile industries
14. none of these
15.
11. Material
12. Labor
13. Overheads
14.
15.
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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 1131 . D 1132 . An 1167
.B 1172 . An 1174 . A
Question: 1180 which of the following documents is used for issuing materials to productions departments
Question: 1186 According to which of the following methods of pricing, issues are close to current economic
values
Question: 1187 in which of the following methods of pricing costs lag behind the current economic values
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Question: 1192 which of the following methods of stock control aims at concentrating efforts on selected items
of materials
Question: 1193 in base stock method of pricing the material issues, the term base stock represents the
Question: 1194 which of the following items of cost should NOT be treated as NOT be treated as direct material
Question: 1197 the classification of items in ABC analysis is made on the basis of
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 1192 . D 1193 .
C 1194 . D 1195 . B 1197 . D
Question: 1202 in which of the following methods, issues of materials are priced at a pre-determined rate
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11. Inflated price method
12. Standard price method
13. Replacement price method
14. Specific price method
15.
Question: 1204 in which of the following methods, materials are issued at the price prevailing at the time of
issue
Question: 1205 the storekeeper should initiate a purchase requisition when stock reaches
Question: 1207 which of the following material losses should be transferred to costing profit and loss account
Question: 1210 when material prices fluctuate widely, the method of pricing that gives absurd results is
Question: 1212 when prices fluctuate widely, the method that will smooth out the effect of fluctuations is
Question: 1213 in which of the following methods, the charge to production is at actual cost
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11. Weighted average price
12. standard price
13. Replacement price
14. FIFO
15.
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
Question: 1297 taking the data in Q.3.21 above, the estimated annual ordering cost is
11. RS.1,600
12. RS.10,000
13. RS.3,200
14. RS.5,000
15.
Question: 1300 On the basis of data given in Q 3.21 above, number of orders to be placed in each year are
11. 10
12. 50
13. 20
14. 100
15.
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 1212 . B 1213 . D 1294 .
B 1297 . A 1300 . B
Question: 1300 On the basis of data given in Q 3.21 above, number of orders to be placed in each year are
11. 10
12. 50
13. 20
14. 100
15.
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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. FIFO
12. LIFO
13. Weighted average
14. Replacement price
15.
Question: 1307 in periods of rising prices, which method of pricing shows higher stock values
11. FIFO
12. LIFO
13. Weighted average
14. Replacement price
15.
Question: 1309 in which method, prices charged to production are at the current prices prevailing in the market
11. FIFO
12. LIFO
13. Weighted average
14. Replacement price
15.
Question: 1312 when prices are showing a falling tendency, which method of pricing of material issues will
show higher closing stock value
11. FIFO
12. LIFO
13. Weighted average
14. Specific price method
15.
Question: 1313 When production is below standard specification or quality and cannot be rectified by incurring
additional cost, it is called
11. Defectives
12. Spoilage
13. Waste
14. Scrap
15.
Question: 1315 Materials losses are due to some of the following reasons
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14. Evaporation
15. pilferage
Question: 1319 Documents used in a material control system include the following
Question: 1321 at what amount materials issued on 8-1-1997 will be charged if FIFO method is used
11. RS.1,550
12. RS.1,575
13. RS1,700
14. RS1,750
15.
Question: 1323 at what amount materials issued will be charged igloo method is used
11. RS.1,550
12. RS.1,575
13. RS.1,700
14. RS.1,750
15.
Question: 1325 at what amount materials issued will be charged if simple average price is used
11. RS.1,550
12. RS1,575
13. RS.1,610
14. RS.1,700
15.
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 1315 . A 1319 . D 1321
.B 1323 . C 1325 . B
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. RS.1,400
12. RS.1,700
13. RS.2,100
14. RS. 1,750
15.
Question: 1335 what will be the value of closing stock under FIFO method
11. RS 600
12. RS 675
13. RS 700
14. None of these
15.
Question: 1336 what will be the value of closing under LIFO method
11. RS.600
12. RS.675
13. RS.690
14. RS.750
15.
Question: 1337 what will be the value of closing stock under simple average method
11. RS.600
12. RS.690
13. RS.725
14. RS.750
15.
Question: 1339 what will be the value of closing stock if weighted average method is applied
11. RS.600
12. RS.690
13. RS.725
14. RS.750
15.
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
Question: 1427 in which of the following incentive plan of wages payment, wages on time basis are NOT
guaranteed?
Question: 1429 which of the following methods of wage payment is most suitable where quality and accuracy
of work is of primary importance?
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 1339 . B 1340 . B 1344 .
C 1427 . C 1429 . B
Question: 1430 Cost of idle time arising due to non-availability of raw material is
Question: 1432 when overtime is required for meeting urgent orders, overtime premium should be
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13. charged to respective jobs
14. all of these
15.
Question: 1436 when standard outputs is 10 units per hour and actual output is 12 units per hour , the
efficiency is
11. 80%
12. 120%
13. 100%
14. none of these
15.
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. Rs 18
12. Rs 14
13. Rs 16
14. Rs12
15.
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. RS. 12
12. RS.14
13. 16
14. 18.
15.
Question: 1451 using data as given in Q. 314 above, what will be the amount of bonus under rowan plan
11.
12. RS. 2
13. RS. 3
14. RS. 4
15. 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. RS. 2
12. RS.3
13. RS.4
14. Nil
15.
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 1438 . C 1443 . C 1449 .
A 1451 . B 1453 . A
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. RS.14.00
12. RS.14.25
13. 18.50
14. 19.00
15.
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. RS.15.15
12. RS.20.00
13. 20.15
14. 20.20
15.
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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
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. RS.24.00
12. RS.26.80
13. RS.17.28
14. RS.20.40
15.
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15.
Question: 1472 Charging to a cost centre those overheads that result soleoy from existence of that cost centre
is known as
11. allocation
12. apportionment
13. absorption
14. allotment
15.
Following list gives the correct choice for the answer of the accounting mcqs.
1451 . B 1453 . A 1457 . B 1459 . D 1460 . A 1461 . B 1463 . C 1464 . A 1466 . D 1468 .
B 1471 . C 1472 . A
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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
Question: 1490 When the amount of under-or over-absorption is significant, it should be disposed of by
Question: 1496 Maximum possible productive capacity of a plant, when no operating time is lost, is its
Question: 1499 the capacity which is based on the long term average of the sales expectancy level is known as
Question: 1502 when the amount of overhead absorbed is less than the amount of overhead incurred, it is
called
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15.
9. production overhead
10. Administration overhead
11. selling overhead
12. 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 1493 . C 1496 . C 1499 .
C 1502 . A 1506 . C
Question: 1508 Number of workers employed is used as a basis for the apportionment of
Question: 1518 in which of the following methods of providing depreciation, the amount of depreciation goes
on decreasing with the age of the asset
Question: 1544 Selling and distribution overheads are absorbed on the basis of
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
Question: 1553 A monopolies will shut down its plant in the short run if
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11. It is making a loss.
12. Marginal revenue is less than marginal cost.
13. Marginal revenue less than average variable cost at all levels of output.
14. Average revenue is less than average variable cost at all levels of output.
15. 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 pre-
determined 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
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. remain unchanged for fixed costs and increase for variable costs
12. increase for fixed cost and remain unchanged for variable costs
13. increase for fixed costs and decrease for variable costs
14. decrease for fixed costs and decrease for variable costs
15.
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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 1567 . B 1569 . A 1571 .
B
Question: 1573 the concept of ideal capacity of plant as used in cost accounting is its
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 over-
absorption of overhead
11. RS.1,50,000
12.
13. rs.1,65,000
14. cannot be computed
15. None of these
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. Tr. to costing P& L A/c
12. Use of supplementary rate
13. Carry over to next year
14. Any of the above
15.
11. 16,000
12. 12,000
13. Cannot be known
14. None of these
15.
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
Question: 1603 the principal factors to be considered on designing a cost system include
Question: 1606 the most suitable cost system where the products differ in type of materials used and work
performed is
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Following list gives the correct choice for the answer of the accounting mcqs.
1573 . A 1580 . C 1583 . A 1585 . B 1592 . B 1594 . B 1599 . B 1603 . E 1606 . A 1609 .
B
Question: 1606 the most suitable cost system where the products differ in type of materials used and work
performed is
Question: 1616 when a contract is not completed at the end of the accounting year, profit on incomplete
contract is
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
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 1627 . E 1630 . B 1631 .
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.
11. contractor
12. contractee
13. both by contractor and contractee
14.
15.
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. 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.
Question: 1638 In contract costing, valuation of which of the following does not include an element of profit
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. Materials
12. Labor
13. Supervision
14. Storage lost
15. both(c)and (d)
Question: 1655 Which of the following items is not written on the credit side of the contract account
Question: 1659 The type of process loss that should not affect the cost of inventories is
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. RS.18
10. RS.16.36
11. RS.12
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 1655 . C 1659 . A 1663
.C
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
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
Question: 1676 Given the data in Q.3.5 above, the normal cost of unit is
11. RS.0.25
12. RS.1.60
13. RS.1.78
14. RS.1.75
15.
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
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. 6,750
12. 6,850
13. 7,050
14. 7,150
15.
Question: 1689 When units are lost at end of the production process, the cost is charged to
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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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 1689 . D 1691 . B 1698 .
B
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. RS.3,800
12. RS. 4,000
13. RS. 200
14. None of these
15.
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. RS.280
12. RS.200
13. RS.80
14. RS.360
15.
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. 5,000
12. 4,700
13. 5,200
14. 5,800
15.
Question: 1706 Classification and accumulation of costs by fixed and variable costs is of special importance in
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Question: 1709 Individual products, each of a significant sales value, produced simultaneously from the same
raw material, should be known as
11. by-products
12. main products
13. joint products
14. common products
15.
Question: 1712 Total manufacturing costs are divided by the total number of units produced to obtain a cost
per unit under the
Question: 1714 which of the following are virtually always subsequent costs
Question: 1720 When by-products are of small total value, its accounting should by
Question: 1723 Net realizable value of by-products at the split off point should be calculated by reverse cost
method when
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 1714 . C 1720 . B 1723 .
C
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Question: 1723 Net realizable value of by-products at the split off point should be calculated by reverse cost
method when
11. waste
12. scrap
13. by-product
14. joint product
15.
Question: 1735 Which of the following methods of accounting of by-products should be applied when the by-
product is to be utilized in the undertaking itself as material for some other process
Question: 1737 Credit is given to the process account at a pre-determined value of the by-product under the
Question: 1742 The primary purpose of apportioning joint costs of a processing centre to various products
produced is to
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14. record accurate cost of sales by product lines
15. 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
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. 2,700
12. 3,000
13. 3,200
14. 3,500
15.
11.
12. 2700 units
13. 300 units
14. 350 units
15. 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
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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 1828 . B 1842 . D 1843
.C
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. 5,000
12. 300
13. 15,000
14. 150
15.
Question: 1852 Which of the following accounts make the cost ledger self-balancing
Question: 1855 Costing profit and Loss account does not record the
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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
Question: 1885 When costing loss is RS. 5,600, administrative overhead under-absorbed being RS. 400, the loss
as per financial accounts should be
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
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 1879 . C 1885 . B 1889 .
C
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
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13. RS. 69,500
14.
15.
Question: 1895 Which of the following items is not included in financial books
Question: 1897 Which of the following items shall be added to costing profit to arrive at financial profit
Question: 1913 Which of the following account will always have debit balance
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
Question: 1918 The January 31 balance of work in progress control account should be
Question: 1919 The January 31 balance of finish Goods Control Account should be
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12. RS. 20,000
13. RS. 5,000
14. RS. 10,000
15. RS. 30,000
11. statements included in the budget report vary from period to period
12. budget standards may be adjusted at will
13. reporting dates vary according to the activity level reported upon
14. planned activity level is adjusted to the actual activity level before the budget comparison report is
prepared
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 1932 . C 1943 . B 1955 .
D
Question: 1963 The fixed-variable cost classification has a special significance in the preparation of
Question: 1966 If a company wishes to establish a factory overhead budget system in levels, it should prepare a
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15.
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
Question: 1999 The success of a flexible budget depends upends upon careful study and classification of
expenses into
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.
9. Sales budget
10. cash budget
11. capital expenditure budget
12. 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 2001 . A 2002 . B 2003
.C
Question: 2004 A budget representing fixed assets expenditure during the budget period is
Question: 2006 The standard volume per month on which the budgeted overhead rate is based is
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Question: 2008 The budgeted fixed overhead cost per ton is
11. RS. 10
12. RS. 20
13. RS.21.36
14. RS. 17.14
15.
Question: 2012 What is the raw material cost per unit at the actual production level
Question: 2013 What is the total cost of direct labor at actual production level
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Question: 2014 What is the fixed works overhead total amount when output of 1,00,000 units
9. RS. 4,00,000
10. RS. 2,40,000
11. RS. 6,00,000
12. 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 2012 . A 2013 . C 2014 .
B
Question: 2015 What is the fixed works overhead per unit when output is 60,000 units
11. RS. 6
12. RS. 7
13. RS. 8
14. None of these
15.
Question: 2016 What is the variable works overhead per unit at actual production level
11. RS. 4
12. RS. 3
13. RS. 2
14. None of these
15.
Question: 2017 what is the total administrative overhead per unit at actual production level
Question: 2018 what is the total selling overhead per unit at 60,000 output
11. RS 0.80
12. RS 0.90
13. RS 1.07
14. None of these
15.
11. RS 13.58
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12. RS 13.48
13. RS.18.00
14. None of these
15.
9. 1,800 units
10. 2,200 units
11. 2,400 units
12. 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 2048 . B 2049 . C 2051
.C
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Question: 2052 production required in the month of December 1996 is
Question: 2054 production required for the six months ending December 1996 is
Question: 2060 The cost of product as determined under standard cost system is
Question: 2061 In evaluating deviations of actual from standard cost, the probable technique used is
Question: 2063 The type of standard that is best suited from cost control point of views is
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Question: 2069 which of the following standards can be attained under the most favorable conditions possible
Question: 2072 A company using theoretical standard cost system should expect that
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
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 2071 . C 2072 . A 2077 .
C
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
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
Question: 2092 in standard costing, the material price variance is obtained by multiplying the
11. actual price by the difference between actual quantity purchased and standard quantity allowed
12. actual quantity consumed by the difference between actual price and standard price
13. standard price by the difference between standard quantity purchased and standard quantity allowed
14. standard quantity by the difference between actual price and standard price
15.
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
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Question: 2103 Material usage variance in the above Q. 3.13 is
11. RS.600(Favorable)
12. Rs. 1,000(Adverse)
13. RS. 1,800(Adverse)
14. R.s. 2,400(Favorable)
15.
Question: 2106 standard costing will produce the same financial statement results as actual or conventional
costing when standard cost variances are distributed to
Question: 2109 Material cost variance is RS. 550(A) and material price variance RS. 150(F), the material usage
variance should be
9. RS. 400(A)
10. RS. 700(A)
11. RS. 400(F)
12. 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 2102 . C 2103 . A 2106 .
C 2107 . C 2109 . B
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11. overhead efficiency variance
12. Labor cost variance
13. Labor time variance
14. Labor efficiency variance
15.
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
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
Question: 2115 The type of variance not computed for factory overhead is
11. controllable
12. volume
13. equivalent production
14. idle capacity
15.
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Question: 2117 standard cost are useful in all of the following except
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. additional costs of raw materials acquired under a speculative purchase contract
12. a breakdown of equipment
13. increased labor rates won by the union as a result of strike during the year
14. overestimates of production activity for the period resulting from failure to predict an unusual decline
in the market for the company' s product
15.
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 2115 . C 2116 . D 2117 .
C 2118 . C 2119 . D
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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.
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15.
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
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 2132 . D 2133 . D 2134 .
B
Question: 2135 Fixed overhead cost variance is expenditure variance is RS 200(A), calendar variance RS
500(F).what is the volume variance
11. RS 400(F)
12. RS 400(A)
13. RS 440(F)
14. RS 440(A)
15.
11. RS 960(A)
12. RS 960(f)
13. RS 1,000(A)
14. RS 1,000(F)
15.
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Question: 2138 The material price variance in Q 3.46 is
11. Rs 110(Adverse)
12. RS. 100 (Favorable)
13. RS. 210(Adverse)
14. Rs. 408 (FAVOURABLE)
15. cannot be computed from the given data
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Question: 2144 In Q 3.53, what is the volume variance
9. RS 2,000(A)
10. RS 4,000(A)
11. RS6,000(A)
12. 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 2142 . E 2143 . A 2144 .
C
Question: 2148 One of the primary differences between marginal costing absorption costing is regarding the
treatment of
Question: 2149 A costing method in which the fixed factory overheads are added to inventory valuation is
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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. fact that standard costs can be used with absorption costing but not with marginal costing
12. amount of fixed costs that will be incurred
13. kinds of activities for which each can be used
14. amount of costs assigned to individual units of products
15.
Question: 2152 Under the marginal costing concept, unit product cost would most likely be increased by
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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 2152 . C 2153 .
C 2154 . C
Question: 2156 There will be no difference in profit as shown by marginal costing and that of absorption
costing when
Question: 2157 when fixed cost id Rs. 3,000 and sales RS.50,000, the P/V ratio will be
11. 14%
12. 20%
13. 25%
14. p/v ratio cannot be computed from the data given
15.
Question: 2158 when p/v ratio is 40% and sales value RS 10,000 the variable cost will be
Question: 2159 if net profit is 10% and p/v ratio is 50%, the margin of safety will be
11. 10%
12. 20%
13. 50%
14. margin of safety cannot be computed
15.
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12. increasing selling price
13. lowering variable cost
14. lowering fixed costs
15. All of these
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. opportunity
12. out-of-pocket cost
13. controllable cost
14. differential cost
15.
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 it’s
Question: 2164 Cost-volume-profit analysis is most important for the determination of the
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 2162 . D 2163 . B 2164 .
C
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%
Question: 2167 when referring to margin of safety, one has the following in mind
Question: 2168 The conventional break-even analysis does not assume that
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. indeterminate
12. unchanged
13. higher
14. lower
15.
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. indeterminate
12. unchanged
13. higher
14. lower
15.
Question: 2171 when margin of safety is 20% and contribution sales ratio is 60% the profit will be
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11. 30%
12. 33% 1/3%
13. 12%
14. cannot be computed
15.
Question: 2172 when fixed cost is RS. 20,000 and margin of safety is RS.10,000, the p/v ratio will be
11. 200%
12. 50%
13. 33%
14. cannot be computed
15.
Question: 2173 when sales jumped from RS. 4,00,000 and profit increased by Rs. 40,000, the p/v ratio is
11. 7.5%
12. 10%
13. 40%
14. cannot be computed
15.
Question: 2174 when total fixed cost is RS. 50,000 and variable cost to sales is 75%, the break-even point id
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 2172 . D 2173 . C 2174 .
C
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. RS50,000
12. RS. 80,000
13. RS. 12000
14. None of these
15.
Question: 2176 In the chart given in 3.32 above, the horizontal line OL represents
11. sales
12. fixed cost
13. total cost
14. profit
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15.
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
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
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: 2216 which of the following would cause the greatest increase in the unit contribution margin
Following list gives the correct choice for the answer of the accounting mcqs.
2175 . A 2176 . A 2177 . E 2182 . C 2187 . A 2206 . C 2210 . D 2212 . B 2213 . B 2216
.B
11. profit
12. Fixed cost
13. variable cost
14. contribution
15.
11. profit
12. Loss
13. contribution
14.
15.
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Question: 2228 which of the following is NOT an assumption of break-even chart
Question: 2233 In calculating cash break-even point, which costs are taken into account
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. hormocyst
12. hormogonium
13. trichome
14. trichogyne
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15.
Question: 3807 A debit balance on Amitie's account in your sales ledger means that
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 2271 . D 2544 . A 3807 .
A
Question: 3811 A debit balance on the rates account after the yearly transfer to the profit and loss account
indicates
Question: 3820 which one of the following normally has a debit balance?
Question: 3822 which one of the following normally has a debit balance?
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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: 3837 A man buys Rs. 40,000 worth of goods and sells of them for R.s. 50,000. His gross profit is
Question: 3839 If sales are Rs. 10,000, expenses Rs. 2,000 and net profit is 10% of sales, the gross profit is
Question: 3840 If the gross profit is Rs. 5000 and the net profit is 25% of the gross profit ,the expenses must be
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. 10%
12. 20%
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13. 30%
14. 40%
15.
Question: 3846 The net cost of purchases for the year was
Question: 3848 If the purchases had been under cast by Rs. 10,000 the gross profit would be
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 3847 . D 3848 . A 3849 .
A
11. 5%
12. 10%
13. 15%
14. 20%
15.
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Question: 3851 Expenses for the year total
Question: 3853 which one of the following is fixed asset for a builder's merchant?
11. Cash
12. Stock
13. Debtors
14. Type wirer
15.
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Question: 3857 which one of the following is usually a current liability?
11. Mortgage
12. Bank loan
13. Bank over drat
14. Rent Paid in advance
15.
Question: 3858 The percentage return on the owner's opening capital for the past year was
11. 15%
12. 20%
13. 25%
14. 30%
15.
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 3857 . C 3858 . C 3859 .
A
Question: 3860 The owner's capital employed in the business at the date of the balance sheet is
Question: 3862 The interest on the loan paid during the year was
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13. Rs. 7,500
14. Rs. 10,000
15.
Question: 3887 The percentage return on total assets employed was approximately
11. 9%
12. 14%
13. 20%
14. 25%
15.
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?
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 3888 . D 3890 . B 3892 .
A
Question: 3903 which one of the following not a book of original entry
Question: 3905 which one of the following is book of original entry and is also part of the ledger?
Question: 3906 The main source of information for the sales day book is obtained from
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11. invoices received
12. credit notes sent out
13. invoices sent out
14. credit notes sent
15. the till roll
Question: 3907 The main source of information for the purchase day book is obtained from
Question: 3908 The main source of information for the sales returns day book is obtained from
Question: 3910 The main source of information for the purchase returns day book is obtained from
Question: 3912 The totals of the sales day book are transferred to the
Question: 3914 The totals of the purchase returns day books are transferred to the
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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 3910 . C 3912 . B 3914 .
D
Question: 3916 which one of the following is centered in the journal proper?
Question: 4032 which one of the following is entered in the journal proper?
Question: 4035 which one of the following is entered in the journal proper?
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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: 4051 which of the following errors would normally be revealed by a trial balance?
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 4051 . D 4055 . C 4059
.D
Question: 4066 if the straight line method of depreciation is used the depreciation charge is
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Question: 4069 Firms charge depreciation each year
11. to ensure there is enough money in the firm to replace the asset
12. to spread the cost of the asset over its working life
13. to reduce the profit and thus reduce the dividends they can pay to shareholders
14. because the law states they must
15.
Question: 4071 which of the following assets is most likely to appreciate rather than depreciate
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?
Question: 4092 The companies Acts state that companies' Final published Accounts must show
Question: 4094 Another name for the Equal Installment method of depreciation is the
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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
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 year’s depreciation charge at 10% per annum
Question: 4107 On 1st January a firm’s 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. RS. 500
10. RS. 1,000
11. RS. 1,500
12. 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 4098 . B 4104 . C 4107 .
C
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%
12. 25%
13. 33%
14. 50%
15.
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
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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
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?
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
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
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
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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
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
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. nil
10. a decrease of Rs. 500
11. an increase of RS. 500
12. 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 4175 . A 4176 . B 4183 .
C
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. nil
12. a decrease of Rs. 500
13. an increase of RS. 500
14. an increase of RS. 1,500
15.
Question: 4190 Which one of the following statements about debtors, bad debts and provisions for bad debts
in the incorrect?
11. Debtors usually appear as a current asset in the balance in the balance sheet
12. provisions for bad debts usually have a debit balance in ledger
13. The bad debts account usually has a debit balance in the ledger
14. An increase in the provision for bad debts account will reduce the profit of the firm
15.
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Question: 4191 which one of the following types of business is likely to have the largest amount of 'bad debts' ?
Question: 4193 If the sales ledger control has a debit balance of RS. 39,400 it means that
Question: 4197 If the purchase ledger control has a credit balance of RS. 48,000 it means that
Question: 4200 The total of the returns out wards for the month should be entered on the
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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
Question: 4210 A cherub received which has now been dishonored should be entered on the
Following list gives the correct choice for the answer of the accounting mcqs.
4186 . C 4190 . B 4191 . D 4193 . B 4197 . C 4200 . A 4201 . D 4202 . C 4207 . B 4210
.D
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
Question: 4220 when the monthly bank statement is out which one of the following would appear?
Question: 4224 which one of the following be entered in the cash book and not on the bank statement ?
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. added
12. subtracted
13. multiplied
14. divided
15.
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. added
12. subtracted
13. multiplied
14. divided
15.
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. Rs.280
12. Rs.720
13. Rs.1,000
14. Rs.1,720
15.
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Question: 4238 A club's income and expenditure account performs the same function as a firm's
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 4236 . C 4237 . C 4238 .
A
11. a balance
12. a deficit
13. a surplus
14. drawing
15.
11. as asset
12. an expense
13. a liability
14. a surplus
15.
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
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12. assets
13. accumulated fund
14. surplus
15.
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. Rs.960
12. Rs.1,000
13. Rs.1,030
14. Rs.1,040
15.
Question: 4245 Depreciation written off the snooker table should be entered in the
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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 4246 . C 4247 . C 4248 .
D
Question: 4249 Which one of the following is most likely to have the lowest rate of stock turn?
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. Rs.100
12. Rs.900
13. Rs.1,000
14. Rs.1,100
15.
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
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
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
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Question: 4257 A store's make up is the
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. 5%
12. 10%
13. 15%
14. 20%
15.
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. 25%
12. 50%
13. 75%
14. 100%
15.
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 4259 . D 4260 . D 4261 .
B
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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
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
Question: 4273 Which one of the following would not be included in the prime cost?
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12. direct power
13. direct factory expenses
14. heating and lighting of the factory
15.
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
Question: 4288 when the monthly bank statement is sent out which one of the following would appear?
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 4286 . C 4287 . A 4288 .
B
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14. added to the cost of raw materials
15.
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
Question: 4293 If a manufacturing company gas to pay a royalty for every unit it produces, this would probably
be classified as
Question: 4294 Which one of the following is usually classified as a variable cost in the short term?
Question: 4295 which one of the following is usually classified as a fixed cost in the short term?
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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
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 4296 . C 4297 . B 4298 .
C
11. RS.2,30,000
12. RS. 3,20,000
13. RS. 14,10,000
14. RS. 14,20,000
15.
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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
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
Question: 4304 At the end of the financial year a partner's drawing current account are transferred to the
Question: 4305 After the final accounts have been prepared, a debit balance on a partner's current account
means that the
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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292
Gat Subject (Management Sciences – Accounting-Management -Economics)
11. increased
12. decreased
13. unchanged
14. non-existent
15.
Question: 4314 which one of the following would be entered in the cash book and not on the bank statement
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. added
10. subtracted
11. multiplied
12. 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 4306 . B 4314 . C 4315 .
A
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. added
12. subtracted
13. multiplied
14. divided
15.
Question: 4317 when the monthly bank statement is sent out which one of the following would not appear
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
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Gat Subject (Management Sciences – Accounting-Management -Economics)
12. RS. 720
13. RS. 1,000
14. RS. 1,720
15.
Question: 4358 A club's income and expenditure account performs the same function as a firm's
Made By Farhan Qadeer (M.Sc. Management and Finance, Birmingham City University, UK)
Lecturer (University of The Lahore)
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294
Gat Subject (Management Sciences – Accounting-Management -Economics)
12. receipts and payments account
13. accumulated fund
14. statement of affairs
15.
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 4358 . A 4359 . D 4360 .
C
11. a balance
12. a deficit
13. a surplus
14. drawings
15.
11. an asset
12. an expense
13. a liability
14. a surplus
15.
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
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
Made By Farhan Qadeer (M.Sc. Management and Finance, Birmingham City University, UK)
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295
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
Question: 4374 Depreciation written off the snooker table should be entered on the
Question: 4375 During the year the cash figure has increased by
Question: 4376 The accumulated fund at the beginning of the club's second year amounted to
11. nil
12. RS. 50
13. RS. 350
14. RS. 400
15.
11. nil
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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 4376 . A 4377 . B 4378 .
A
Question: 4379 The amount owed to creditors for supplies of sweets at 31 December was
11. RS. 30
12. RS. 210
13. RS. 420
14. RS. 600
15.
Question: 4381 The book value of fixed assets at 31st December amounted to
11. RS. 20
12. RS. 70
13. RS.90
14. RS. 110
15.
Question: 4382 If the donations had been 'capitalized,' the accumulated fund at 31st December would have
been
Question: 4383 If the donations had been 'capitalized,' the surplus would have been
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Cell: +92333-4881302
297
Gat Subject (Management Sciences – Accounting-Management -Economics)
15.
Question: 4392 which one of the following is most likely to have the lowest rate of stock turn?
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
Question: 4399 which one of the following is most likely to have the lowest rate of stock turn?
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 4392 . D 4398 . A 4399 .
D
Question: 4401 The amount owed to creditors for supplies of sweets at 31 December was
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11. RS. 30
12. RS. 210
13. RS. 420
14. RS. 600
15.
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
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. RS. 25,000
10. RS. 55,000
11. RS. 80,000
12. 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)
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