Questions A B C D Solution

reconciliatio Overvaluatio None of the reconciliatio

_____ facilitates internal control. n Computation above
n n
Dividend received is shown in _____ accounts Balance
financial Cost Sheet Ignored financial
only.
Overheads recovered in costing is more than overabsorpti underabsorpt None of the overabsorpti
actual it is called _____. on ion Both a & b above on
Less overheads recovered in costing is called underabsorpt overabsorpti None of the underabsorpt
_____. ion on Both a & b above ion
financial Ignored in financial
Donations paid reduces _____ profit. costing costing profit Both a & b profit
profit
Costing financial None of the financial
Interest on capital reduces _________ profit. profit Assets above
profit profit
Underabsorption of overheads in costing None of the
costing financial Assets above costing
increases _____ profit.
Premium on issue of shares is shown in _____ P None of the
Financial costing Ignored above Financial
& L A/c.
None of the
Notional Rent is taken in _____ P & L A/c. Costing financial Ignored above Costing
None of the
Interest on investment increases _____ profit. Financial Costing Assets above Financial
Over valuation of closing stock in costing None of the
Assets Financial Costing above Costing
increases_____ profit.
Under valuation of closing stock in costing None of the
Financial Costing Assets above Costing
decreases _____ profit.
Over absorption of overheads in costing None of the
Costing Assets Financial above Costing
decreases _____ profit.
Under absorption of overheads in costing None of the
Assets Costing Financial above Costing
increases _____ profit.
Dividend paid on shares is debited to _____ P & None of the
Costing Financial Ignored above Financial
L A/c.
Ignored in
Donation paid is debited to _____ P & L A/c. Financial costing Both a & b Costing Financial
Under valuation of opening stock in finance Decrease None of the
Financial Costing Financial above Financial
increases _____ profit.
Overvaluation of opening stock in finance _____ None of the
Increases Decreases Both a & b above Decreases
costing profit.
Underabsorption of overheads decreases costing
profit. True False False
Loss on sale of furniture is shown in financial
accounting. True False True
Interest received on Bank Deposit is purely
financial in nature. True False True
Transfer to General Reserve is an item of cost
accounts. True False False
Underabsorption of overheads increases costing
profit. True False True
Under integrated system of accounting both cost
accounts and financial accounts are maintained
in the same set of books. True False True
Under Non–integrated system of accounting,
both cost accounts and financial accounts are
maintained separately. True False True
Abnormal loss is considered in costing. True False False
Profit on sale of investment is not considered in
cost accounts. True False True
10. Retrenchment compensation is considered in
costing. True False False
Fines and penalties reducing financial profit. True False True
Notional cost decreases costing profit. True False True
Dividend received increases financial profit. True False True
Overvaluation of opening stock in costing
decreases costing profit. True False True
Overvaluation of opening stock in Financial
Accounting reduces Financial profit. True False True
Under valuation of closing stock in costing
reduces costing profit. True False True
Under valuation of closing stock in costing
increases costing profit. True False True
Difference in Depreciation in costing and
financial accounting distinguishes costing profit
from financing profit. True False True
Shown in Shown in
Shown in financial financial
Premium on issue of shares is costing profit profit and None of the profit and
and loss A/c loss A/c Ignored above loss A/c
Balance
Notional rent is taken in Cost A/c Financial A/c sheet Ignored Cost A/c

Over
Excess of overheads in costing as compared to Over Under
profit and loss A/c is absorption of absorption of Both (i) & None of the absorption of
overheads overheads (ii) above overheads
Financial Costing None of the Financial
Interest on investment increases profit profit Assets above profit
None of the
Added to above to get Added to
Loss on sale of capital asset is financial Added to Ignored from costing financial
profit costing profit cost A/c profit profit
Increases Decreases
Increases financial Decreases financial Increases
Over valuation of closing stock in Cost Accounts
costing profit profit costing profit profit costing profit
Credited in Credited in Debited in Debited in Credited in
Interest on Bank Deposits is costing P & financial P & costing P & Financial P financial P &
L A/c L A/c L A/c & L A/c L A/c
Debited to Debited to Credited to Credited to Debited to
Dividend paid on share capital is costing P & financial P & costing P & financial P & financial P &
L A/c L A/c L A/c L A/c L A/c
Increases
Decreases financial Increases Both (i) & Both (i) &
Over absorption of overheads in costing
costing profit profit costing profit (ii) (ii)
 Decreases
Increases financial Decreases Both (i) & Both (i) &
Under valuation of opening stock in costing
costing profit profit costing profit (ii) (ii)
Debited to Debited to
Donations paid is costing P & financial P & Ignored in (ii) & (iii)
L A/c L A/c costing (ii) & (iii)
Financial profit is ` 40,000 over absorption of
55,000 25,000 30,000 22,000 55,000
overheads ` 15,000 costing profit is