PRATIMA MBA-1 Mang. Account - 120811

9998488888 PRATIMA EDUCATION® 9898168041
1. Creating Provision against fluctuation in the price of investment is an example of whichaccounting

convention
A) Convention of consistency C) Convention of materiality
B) Convention of full disclosure D) Convention of conservatism
2. In how many ways can cost classification bedone?

A) Three ways C) Four ways
B) Many ways D) Two ways
3. What is tender?
A) Estimation of cost
B)Estimation of profit
C) Estimation of the selling price
D) Estimation of units
4. Debit the receiver credit the giver rule for

A) Real a/c
B) Personal a/c
C) Nominal a/c
D) None of these
5. Warehouse rent is a part of which cost?

A) Production cost
B)Distribution cost
C) Prime cost
D) Factory cost
6. What is the total of all direct costs known as?

A) Cost of production
B)Cost of sales
C) Prime cost
D) Works’ cost
7. Which of the following terms is used to denote the response of a cost to the changein business
activity?
A) Cost behaviour
B) Cost trend
C) Cost response
D) Cost accumulation
8. A cost that changes in total rupee amountwith the change in the level of activity is known as:
A) Fixed cost C) Mixed cost
B) Variable cost D) Conversion cost
9. Mixed cost is also known as:

A) Semi-variable cost
B) Relative cost
C) Fluctuating cost
D) Double cost
MBA Sem- 2 Batches will be Started on 27th May 2021 (Thursday) pg. 1
10. Management Accounting provides invaluable services to management in performing
A) Controlling function
B) All management functions
C) Interpret financial data
D) None of these
11. If closing stock appears in the trial balance, it should be

A) Shown on the liability side of the Balance sheet
B) Credited to the trading account
C) Credited to the profit and loss account
D) Deducted from the purchases in the trading account
12. Return of goods by a customer should be debited to

A) Customer’s account
B) Sales return account
C) Goods account
D) Purchase account
13. What is the basic premise of cost concept?

A) Cost ascertainment
B)Tax compliance
C) Financial audit
D) Profit analysis
14. For which kind of firm is process costingappropriate?

A) Bricklaying firms
B)Transport firms
C) Hospitals
D)Oil refining firms
15. Which cost is incurred even if the company isclosed?

A) Sunk cost
B)Historical cost
C) Shut-down cost
D) Imputed cost
16. Units introduced 1000, Actual production 850 units, normal wastage 10% of input. Find out units
of abnormal wastage.
A) 150 Units
B) 85 Units
C) 100 Units
D) 50 Units
17. What are direct expenses also known as?

A) Overhead expenses
B)Sundry expenses
C)Chargeable expenses
D) Major expenses
18. What item is not included in cost accounting?
A) Product costing
B) Profit sharing
C) Planning
D) Controlling
19. Cash discount allowed to a debtor should be credited to

A) Discount account
B) Customer’s account
C) Sales account
D) Cash account
20. The concept of separate entity is applicable to which of following types of businesses?
A) Sole proprietorship
B) Corporation
C) Partnership
D) All of them
21. Sales units 12,000, Opening Stock 1000 units, closing stock 2000 units then production units will be
A) 12000 Units
B) 13000 Units
C) 14000 Units
D) 110000 Units
22. According principles are generally based upon:

A) Practicability
B) Subjectivity
C) Convenience in recording
D) None of the above
23. Managerial accounting information is generally prepared for

A) Shareholders
B) Creditors
C) Managers
D) Regulatory agencies
24. True & fair profit and loss a/c of a company know by
A) Preparing trial balance
B) Preparing respective ledger of account
C) Preparing trading a/c
D) Preparing trading & profit & loss a/c
25. Which type of costing do toy-manufacturingcompanies use?

A) Multiple costing
B) Process costing
C) Unit costing
D) Batch costing
26. A cost that is easily traceable to a cost objectis known as
A) Indirect cost
B) Variable cost
C) Direct cost
D) Fixed cost
27. Prime cost = ?

A) Manufacturing cost + direct labour cost
B) Direct material cost + direct labour cost
C) Direct material cost + manufacturingoverhead cost
D) Direct material cost + direct labour cost+ manufacturing
28. The cost of alternative ‘A’ is $25,000 and thecost of alternative ‘B’ is $20,000. In managerial accounting,
the difference of $5,000 in costs of two alternatives would betermed as:
a. Additional cost
b. Opportunity cost
c. Differential cost
d. Essential cost
29. In a process 2000 units are introduced, normal loss is 5%, then unit of normal loss will be-
A) 250 Units
B) 100 Units
C) 200 Units
D) 300 Units
30. Which of the following costs is treated asindirect labor?

a. Idle time
b. Overtime premium
c. Fringe benefit
d. All of the above
31. While applying the method of marginal costing, calculate the profit if the production is 1 lack
units, fixed cost Rs 2 lack, selling price Rs.10 per unit and variable cost is Rs.6per unit.
a. 2 lack
b. 6 lack
c. 8 lack
d. None of these
32. A company's telephone bill consisting of a Rs.200 monthly base amount, plus long distance
charges, would be classified as a:
A) Variable cost
B) Committed fixed cost
C) Direct cost
D) Semi variable cost
33. A book containing a chronological record of business transaction & original record
A) Journal
B) Ledger
C) Trial balance
D) None of these
34. Of the following account types, which would be increased by a debit?

A) Liabilities and expenses.
B) Assets and equity.
C) Assets and expenses.
D) Equity and revenues.
35. Which of the following statements about differences between financial and managerial
accounting is incorrect?
A) Managerial accounting information is prepared primarily for external parties such asstockholders
and creditors; financial accounting is directed at internal users.
B) Financial accounting is aggregated; managerial accounting is focused on products anddepartments.
C) Managerial accounting pertains to both past and future items; financial accountingfocuses primarily on
past transactions and events.
D) Financial accounting is based on generally accepted accounting practices; managerialaccounting faces
no similar constraining factors.
36. Units introduced in Process-1: 16000, Normal Wastage 8% of input, Actual Production 5400 units from
the given information, find out units of abnormal wastage:
A) 480 Units
B) 120Units
C) 240 Units
D) 220 Units
37. Balance Sheet is a statement of

A) Assets
B) Liabilities
C) Capital
D) All of the above
38. Which of the following is correct?

A) Profit does not alter capital
B) Capital can only come from profit
C) Profit reduces capital
D) Profit increases capital
39. Prepaid expenses is treated as

A) Current asset
B) Current liability
C) Short term liability
D) None of these
40. The prime function of accounting is to

A) To record economic data
B) Provide the information basis of action
C) Classifying and recording business transaction
D) Attainment of economic goal
41. Units introduced 2000, actual production 1250 units, normal wastage is 10% of units introduced. Find out
units of abnormal wastage.
A) 180 Units
B) 125 Units
C) 200 Units
D) 550 Units
42. Payment received from debtor

A) Decreases the Total Assets
B) Increases the Total Assets
C) Results in no change in the Total Assets
D) Increases the Total Liabilities
43. Going concern concept assumes

A) Business as a dissolving concern
B) Business on relishing values
C) Business as a going concern
D) Asset = liability
44. In a Process 5000 units are introduced, Normal wastage is 5%, then how many units of normal wastage
will be?
A) 250 Units
B) 500 Units
C) 300 Units
D) 100 Units
45. Management Account related to

A) Recording of accounting data
B) Recording of cost data
C) Presentation of account data
46. Insurance prepaid is shown as

A) Current Assets
B) Current Liabilities
C) Fixed Assets
D) Fixed Liabilities
47. Opening stock + + Direct Expenses (Carriage on Raw material)-ClosingStock =

A) Sales, Purchases
B) Sales, Sales return
C) Purchases, Cost of goods produced
D) Purchases, Cost of goods sold
48. Outstanding expenses are charged to

A) Asset side of balance sheet
B) Liability side of balance sheet
C) Not charged to balance sheet
D) None of these
49. Which of the following is a liability?

A) Loan from Mr.Y
B) loan to Mr.y
C) Both (a) (b)
D) None of these
50. Information of Process B

Process B A/c
Particular Total Rs. Cost Rs. Profit Rs. Particular Total Rs. Cost Rs. Profit Rs.
Total 205,000 177,000 28,000
Closing Stock 12,000
Cost of closing stock of process B is as under:
A) Rs. 10,361
B) Rs. 16,400
C) Rs. 12000
D) Nill
51. Income tax paid by a sole proprietor on his business should be

A) Debited to trading account
B) Debited to profit and loss account
C) Deducted from capital account in the balance sheet
52. Credit balance of profit & loss a/c shown on

A) Asset side of balance sheet
B) Liability side of balance sheet
C) Not shown in balance sheet
D) Half on asset side and half on liability side
53. Information of Process C:

Total Expenses Rs. 524,000, Total Cost Rs. 411,040, Total Profit Rs. 112,960, Closing Stock Rs. 64,000.
Unrealised profit in closing stock will be as under:
A) Rs. 52,203
B) Rs. 112,960
C) Rs. 48,960
D) Rs. 13,797
54. If P/V ratio is 40%, Profit 28,000 (20% of sales), Then Break Even Point (BEP)=_____
A) Rs. 70,000
B) Rs. 32,000
C) Rs. 140,000
D) Rs. 28,000
55. Marginal cost is known as

A) Indirect cost
B) Direct cost
C) Variable cost
D) Both (B) & (C)
56. Ascertain the marginal cost per unit and fixedcost, if in two period total cost amounts to Rs.
50000 and Rs. 40000 against productionof 20000 and 15000 units respectively.
A) Rs.2 and Rs.10000
B) Rs.10 and Rs.8000
C) Rs 4 and Rs 5000
D) None of these
57. cost conversion cost =?

A) Direct labour cost + manufacturing over head
B) Direct material + Manufacture over head
C) Direct material + Admin cost
D) Direct material + marketing cost
58. According to cost formula Y =.20,000 + 4X,total cost at an activity level of 15,000 unitswould be
A) Rs.20000
B) Rs.60000
C) Rs.80000
D) Rs.15000
59. Which of the following costs is not a periodcost?

A) Advertising cost
B) Sale commission
C) Interest
D) Direct labour
60. Manufacturing cost =?

A) Direct material cost + Manufacturingoverhead cost
B) Direct material cost + direct labour cost + manufacturing overhead cost
C) Direct material cost + direct labour cost + manufacturing overhead cost +marketing and admin cost
D) Prime cost + conversion cost
61. Which of the following costs is not a productcost?

A) Depreciation on plant
B) Factory electricity bill
C) Cost of shipping finished good fromwarehouse to stores
D) Salary of factory manager
62. A product passes through three Processes A, B and C and then after it is transferred to Finished Stock
Account. The following information of each process is available:
Particular Apparent Profit Rs. Profit in Op. Stock Rs. Profit in Cl. Stock Rs.
Process A 24,000 Nil Nil
Process B 81,000 4,000 1640
Process C 56,667 5600 13,797
Finished Stock 49,333 20,000 18,819
Actual profit will be as under:

A) Rs. 206,344
B) Rs. 4656
C) Rs. 211,000
D) Rs. 182,344
63. The costs incurred to acquire or manufacturea product is known as:

A) Period cost
B) Product cost
C) Warehouse cost
D) Undistributed cost
64. If total cost of 100 units is Rs 5000 and those of 101 units is Rs 5030 then increaseof Rs 30 in total cost is
A) Marginal cost
B) Prime cost
C) All variable overheads
65. he merits of marginal costingis/are................

A) Makes the process of cost accountingmore simple
B) Helps in proper valuation of closingstock
C) Useful for standard and budgetarycontrol
D) All of the above
66. The basic sequence in the accounting process can best be describe as:
A) Transaction, journal entry, source document, ledger account, trial balance.
B) Source document, transaction, ledger account, journal entry, trial balance.
C) Transaction, source document, journal entry, trial balance, ledger account.
D) Transaction, source document, journal entry, ledger account, trial balance.
67. Marginal costing concerned with:

A) Fixed cost
B) Variable cost
C) Semi-variable cost
68. Information of Zalak Ltd:

Particular Cost of Closing Stock Unrealized Profit Closing Stock
Process A 100,000 Nil 10,000
Process B 10,360 1640 12,000
Process C 50,203 13,797 64,000
Finished Stock 47,181 18,819 66,000
Stock valuation for balance sheet purpose will be as under

A) Rs. 34,256
B) Rs. 142,000
C) Rs. 152,000
D) Rs. 117,744
69. Which item does not come under the balance sheet:
A) Sales
B) Share capital
C) Reserves and surplus
D) Unsecured loan
70. The transferring of debit and credit items from journal to the respective accounts in the
ledger is called as
A) Ledger
B) Posting
C) Forward journal
D) None of these
71. Carriage outward is charged to

A) Debit side trading a/c
B) Debit side profit & loss a/c
C) Credit side of profit & loss a/c
D) Credit side of trading a/c
72. If Fixed cost of a company is Rs. X, Tax rate is 45% and cost earn profit after tax is Rs.200,000, then total
contribution =
A) X + 45%
B) X + 363,636
C) X + 363,600
D) X + (200,000 – 55%)
73. Which of the following terms is correct for acost that has already been incurred and cannot
be changed by any decision?
A) Past cost
B) Previous cost
C) Lost cost
D) Sunk cost
74. Which of the following errors will be disclosed in the preparation of a trial balance?
A) Recording transactions in the wrong account.
B) Duplication of a transaction in the accounting records.
C) Posting only the debit portion of a particular journal entry.
D) Recording the wrong amount for a transaction to both the account debited and theaccount credited.
75. The amount of salary paid to Suresh should be debited to

A) The account of Suresh
B) Salaries a/c
C) Cash a/c
D) Bank a/c
76. Accounting is the process of matching

A) Benefits & Costs
B) Revenues & Costs
C) Cash Inflow & Cash Outflow
D) Potential & Real Performance
77. The cost of production of an item is as follow: Material Rs. 100. Wages Rs. 150, Variable cost per unit
150% of wages, Fixed Cost Rs. 50,000. If sales price of a unit is Rs. 500 then find break Even Point
A) 1000 units
B) 2000 units
C) 3000 units
D) 4000 units
78. Outstanding salary is shown as:

A) A liability
B) By adjusting it in the P & L
C) Both (A) and (B)
D) None
79. Advantages of cost accounting accrue:

A) To management, workers, consumers and government
B) Only to workers
C) Only to consumers
D) Only to government
80. According to schedule VI companies Act which item is not shown on Assets side of Balance sheet
A) Provision
B) Investment
C) Currents Loan & Advances
D) Lease Holds
81. Variable cost is Rs. 20 per unit and fixed cost is Rs. 40,000. If break even point is reduced to 2000units,
find out the new selling price per unit
A) Rs. 40
B) Rs. 30
C) Rs. 20
D) Rs. 10
82. The P/V ratio is 30% and the margin of safety is 20%. Find out the fixed cost, it the sales volume is Rs.
25,00,000
A) Rs. 800,000
B) Rs. 750,000
C) Rs. 600,000
D) Rs. 500,000
83. Selling Price is Rs. 8 per unit, variable cost is Rs. 6 per unit, fixed cost is Rs. 12,000. Calculate the sales
required to earn a profit of Rs. 4000.
A) Rs. 80,000
B) Rs. 75,000
C) Rs. 72,000
D) Rs. 64,000
84. Variable cost is Rs. 42, Selling price is Rs. 50. For manufacturing of one unit 2 Kgs. Of raw material is used
find the contribution per Kg. of Material.
A) Rs. 8
B) Rs. 4
C) Rs. 2
D) Rs. 2/8
85. If P/V ratio is 60%, Margin of safety is 30% and sales is Rs. 15,00,000, the profit will be as under:
A) Rs. 600,000
B) Rs. 450,000
C) Rs. 180,000
D) Rs. 15,00,000
86. Salary paid to factory manager is an item of:

A) Prime cost
B) Selling overhead
C) Office overhead
D) Factory overhead
87. The following comments each relate to the recording of journal entries. Which statement istrue?
A) Journalizing is the process of converting transactions and events into debit/creditformat.
B) The chart of accounts reveals the amount to debit and credit to the affected accounts.
C) For any given journal entry, debits must exceed credits.
D) It is customary to record credits on the left and debits on the right.
88. Management accounting is applicable to

A) Service entities
B) Manufacturing entities
C) Non-profit entities
D) All of these
89. Purchased of goods on credit from A is recorded as:

A) Debit purchases a/c; credit A a/c
B) Debit purchases a/c; credit cash a/c
C) Debit A a/c; credit purchases a/c
D) Debit A a/c; credit stock a/c
90. The following comments all relate to the recording process. Which of these statements iscorrect?
A) Transposition is the transfer of information from the general journal to the general ledger.
B) The trial balance provides the primary source document for recording transactions intothe general
journal.
C) The general ledger is a chronological record of transactions.
D) The general ledger is posted from transactions recorded in the general journal.
91. Calculation of Prime Cost

Direct Material 200,000, Direct Wages 180,000, Material Consumed 120,000, Expenses 40,000, Factory
Overhead 60,000
A) 360,000
B) 340,000
C) 400,000
D) 500,000
92. What is the value of owner’s equity

Plant 10,000 Building 500,000 Cash 5000
A) 515,000
B) 415,000
C) 505,000
D) None
93. What is the value of total assets Owners Equity 300,000 Liabilities 15,00,000
A) 12,00,000
B) 150,000
C) 18,00,000
D) None
94. Particulars Rs.

Land 10,00,000
Building 500,000
Cash 500,000
Debtors 700,000
Creditor 900,000
Equity Capital 10,00,000
Find the loan value:
A) 900,000
B) 800,000
C) 12,00,000
D) None
95. Particulars Rs.

Plant 900,000
Cash 500,000
Loan 600,000
Creditors 500,000
Owner’s Equity 10,00,000
Find the Amount of Debtors:
A) 700,000
B) 900,000
C) 500,000
D) None
96. Current liability does not include
A) Short term investment
B) Acceptances
C) Sundry Creditors
D) Unclaimed Divided
97. Which of the following is not an example of real a/c:

A) Machinery
B) Building
C) Cash
D) Creditor
98. Cost accounting information can be used for:

A) Budget control and evaluation.
B) Determining standard costs and variances.
C) Pricing and inventory valuation decisions.
D) All of these
99. If loan have been guaranteed by managers and directors is called as

A) Loan
B) Secured loan
C) Unsecured loan
D) Advance by manager & director
100.All those to whom business owes money are:

A) Creditors
B) Debtors
C) Investment
D) Shareholders
101. Find out total Assets

Account Payable 9000
Creditor 7000
Loan 5000
Capital 10,000
A) 22,000
B) 21,000
C) 31,000
D) 35,000
102. Current Liabilities = 60,000 Rs.

Current Ratio= 2:5
Net Working Capital?
A) 36,000
B) 12,000
C) (36,000)
D) (18,000)
103. If gross profit 20,000 and Net Profit 20% of Gross Profit than Expenses
A) 16,000
B) 20,000
C) 24,000
D) 18,000
104.Interest on drawing is:

A) Expenditure for the business
B) Cost for the business
C) Gain for the business
105.Cost of goods sold= opening stock+ net purchases+ expenses on Purchases – sales Whichpart of
formula is wrong?
A) Sales
B) Expenses on Purchase
C) Opening stock
D) Net Purchase
106.All direct & indirect expenses related to business are charged:

A) Profit and loss account
B) Trading account
C) Trading account Profit and Loss account
D) Directly to Balance sheet
107. Find out EPS.

If No of Shares 100,000
PAT=100,000
Eq. Sh. Cap. 10Rs. Each 10,00,00
A) 0.10
B) 1
C) 0.11
D) 10
108. Debt Equity Ratio = 4:2

Total Barrowed Amt:= 600,000 Rs.
Find out Owner’s Net Worth?
A) 600,000
B) 10,00,000
C) 300,000
D) None
109. Total Assets 10,00,000

Current Liabilities 500,000
Eq. Sh. Cap. 200,000
Find out Debt Equity Ratio
A) 1:1
B) 2:1
C) 3:2
D) 2:3
110. Find out cost of goods sold

Purchase 7000 Rs.
Op. Stock 3000 Rs.
Carriage Insured 1000 Rs.
Cl. Stock 2000 Rs.
Sales 12,000 Rs.
Gross Profit Rs. 3000
A) 9000
B) 12,000
C) 10,000
D) 8000
111.The basic concept related to P & L A/c are:

A) Realization Concept
B) Matching Concept
C) Cost Concept
D) Both a and b above
112.Rent paid to landlord should be credited to

A) Landlord’s account
B) Rent account
C) Cash account
D) Expense account
113.Trade Payables are recorded in ______

A) Asset side of B/S
B) Liability side of B/S
C) P & L a/c
114.Authorized capital, also known as

A) nominal capital
B) Paid up capital
C) Issue capital
D) None of these
115.Cost accounting emerged mainly on account of:

A) Statutory requirements
B) Competition in the market
C) Labour unrest
D) Limitations of financial accounting
116.Which one of the following item would fall under the definition of a liability?
A) Owner’s Equity
B) Cash
C) Debtors
D) Creditors
117.Amount brought in by proprietor should be credited to

A) Creditors Account
B) Cash Account
C) Drawing Account
D) Capital Account
118.Which of the following is a real account?

A) Goodwill
B) Accounts Receivable
C) Sales
D) Both A & B
119.Financial information should be neutral and bias free" is the dictation of which one of t h e
following?
A) Completeness concept
B) Faithful representation Concept
C) Objectivity Concept
D) Duality Concept
120.Which of the following statements is not an objective of financial reporting?

A) Provide information that is useful in investment and credit decisions.
B) Provide information regarding policy of organization
C) Provide information that is useful in assessing cash flow prospective
D) None of theses
121.The concept of square entity is applicable to which of following types of business?
A) Partnership
B) Sole Proprietorship
C) Corporation
D) All of the above
122.Which of these items would be accounted for as an expense?

A) Repayment of bank Loan
B) Dividend to stock holders
C) The purchase of land
D) Payment of current period rent
123.The convention of disclosure implies that all material information should be

A) Disclosed in the account
B) Disclosed in the accounts which is required to owner
C) Not disclosed
D) All of these
124.Interest, rent, electricity bill are types of account

A) Personal A/c
B) Real A/c
C) Nominal A/c
D) Impersonal A/c
125.P & L a/c is prepared for a period of one year by following:

A) Consistency concept
B) Conservatism concept
C) Accounting period concept
D) Cost Concept
126.The cash discount allowed to a debtor should be credited to

A) Sales A/c
B) Customer’s A/c
C) Discount A/c
D) None
127.Goods given as sample should be credited to:

A) Advertisement account
B) Sales account
C) Purchase account
128.Accounting does not record non-financial transaction because of:

A) Accrual concept
B) Cost concept
C) Continuity concept
D) Money measurement concept
129.Custom and traditions which guide the accountant while preparing the accounting statement
A) Accounting convention
B) Accounting concepts
C) Accounting principles
D) None of these
130.The primary objective of cost accounting is

A) Ascertain the cost of goods and services
B) Ascertain the profit
C) Presentation of all data
D) None of these
131.Proprietor (owner) is treated as creditor of business due to:

A) Periodicity concept
B) Materiality Principle
C) Entity Concept
D) Consistency concept
132.Cost of asset should always be equal to the cost of the liabilities. This concept is
A) Double Entry Bookkeeping
B) Matching Concept
C) Consistency
D) Money measurement Concept
133.Which of the following equation is related with Dual Aspect Concept?

A) Total Assets = Total Liabilities
B) Total Assets = Capital + Outsider’s Liabilities
C) Capital = Total Assets - Outsider’s Liabilities
D) All of the above
134.The books to be compulsorily maintained by a company are:

A) Cash book and ledger
B) Sales and purchase book
C) Journal
D) All of above
135.Which of the following best describe a trial balance?

A) It is a list of balances on the books
B) It is a special account
C) Shows the financial position of a business
D) Shows all the entries in the books
136.Sunk cot are:

A) relevant for decision making
B) Not relevant for decision making
C) cost to be incurred in future
D) future costs
137.Proposed dividends" is shown in the Balance Sheet of a company under the head:
A) Provisions
B) Reserves and Surplus
C) Current Liabilities
D) Other Liabilities
138.Information about an item is if its omission or misstatement mightinfluence the financial decision
of the users taken on the basis of that information
A) Concrete
B) Complete
C) Immaterial
D) Material
139.Which of the following is not related with Money Measurement Concept?

A) All business transaction should be expressed only in money
B) The transactions which cannot be expressed in money, will not be recorded in accountingbooks
C) Business is treated as separate from the proprietor
D) None of These
140.Fixed assets and current assets are categorized as per concept of:
A) Separate entity
B) Going concern
C) Consistency
D) Time period
141.Depreciation is a charge against

A) Profit
B) Assets
C) Company
D) Books of A/c
142.Debit what come n credit what goes out rule for

A) Real a/c
B) Personal a/c
C) Nominal a/c
D) None of these
143.Aggregate of direct costs is known as:

A) Direct material costs
B) Direct Wages
C) Direct Expenses
D) Prime Cost
144.Investment of X company profit in share of other company PQR Pvt. Ltd. are recorded in
A) Asset side of Balance Sheet
B) Liability side of Balance Sheet
C) Profit & Loss a/c
D) Not recorded in Balance Sheet
145. system records only actual cash receipts and payments
A) Cash basis
B) Accrual basis
C) Mercantile basis
D) Single entry basis
146.The term Management Accounting was first used in

A) 1910
B) 1939
C) 1950
D) 1960
147.What comes in is to be debited, what goes out is to be credited

A) Rules of Personal
B) Rules of Real
C) Rules of Nominal
D) All of these
148.Accounting does not record non-financial transactions because of:

A) Accrual concept
B) Cost concept
C) Continuity concept
D) Money measurement concept
149.Creating provision against fluctuation in the price of investment is application of accountingconcept

A) Convention of conservatism
B) Convention of full disclosure
C) Convention of consistency
D) None of these
150.Financial accounting is concerned with

A) Recording of business expenses and revenue
B) Recording of costs of products and services
C) Recording of day-to-day business transactions
151.Which one of the following is not an example of Intangible Assets?

A) Patents
B) Trade Marks
C) Copyright
D) Land
152.Sales made to Mahesh for a cash should be debited to

A) Cash account
B) Mahesh Account
C) Sales account
D) Purchase account
153. which of the following points is note correct in limitation of financial accounting?
a) presents only past data
b) useless for controlling
c) presents dead figures, not interpretation
d) useful for taking decisions
154.which of the following point is not included in characteristics of management accountancy?

a) It is based on accounting information
b) It is not concerned with analysis of all accounting information which may be useful to the management
c) It is concerned with presentation of accounting information at regular intervals in the form of reports
before the management
d) It is concerned with preparation of budget and budgetary control
155.Which of the following point is not correct in scope of management accounting?

a) Budgetary control system is an integral part of management accountancy
b) To control business activities, it is very much necessary to control inventory
c) The taxation is not more important in accounts than any other matter
d) For self-control of business internal audit is required
156.which of the function are not included in management accountancy?

a) the budgets are not the bases, which are used to control the business activities by the management
b) the accounting data has to be classified and properly arranged for presentation before the management
c) the accounting data must be presented before the management in its proper perspective so that it becomes
meaningful
d) the management accountant is called upon to evaluate capital projects
157.Which of the following tools and techniques are not used by management accountant?
a) Standard coasting
b) Budgetary control
c) Operating coasting
d) Marginal costing
158. which of the following points is not correct in limitations of management accountancy?
a) It is not very expensive
b) Management accounting makes use of techniques of number of subjects
c) Management accountancy is only a tool of management for decision making
d) Management accountancy provides useful accounting data for policy decisions
159. the objective of management accountancy is –

a) Only to assist in preparing financial accounts
b) Only to assist in the costing functions like cost control, to decide sales price etc.
c) To assist in preparing financial reports to present to the share holders
d) To assist the managers by presenting the whole accounting data in suitable forms
160.Management accountancy -
a) Depends on financial accountancy
b) Depends on cost accountancy
c) Depends on both financial & cost accountancy
d) Is altogether different accounting method than financial and cost accountancy?
161. In management accountancy, profit must be calculated keeping in view of asset valuation on their –
a) Basic price
b) Cost price after depreciation
c) Replacement value
d) Policy is not decided
162. in management accountancy internal audit is to be done –

a) Compulsory once a year
b) Compulsory twice a year
c) Compulsory by the auditors nominated by government
d) Voluntary
163. which of the following reports is to be called special reports?

a) Report of daily consumption of raw materials
b) Report of monthly wages of employees
c) Report of replacement of machinery
d) Report of regionwide sales
164. which of the following methods is not a tools and techniques of management accountancy?
a) Standard costing
b) Historical costing
c) Unit costing
d) Marginal costing
165. the method where predetermined standards of cost are set in advance and actual performance is
compared with it is called –
a) Marginal costing
b) Standard costing
c) Historical costing
d) Contract costing
166. management but exception –

a) A method preparing financial statement
b) A tool of management accountancy
c) A part of costing method
d) Not any type of accounting method
167. to whom, management accountancy is most useful?

A) Investors
B) Mangers
C) Creditors
D) Shareholders
168. the accounts of management accountancy is to be prepared in the form of reports?

a) Decided by companies act
b) Decided by government
c) Which is to be presented in the annual general meeting of shareholder
d) Which can be helpful to the manager
169. the main function of management accountancy is –

A) To analyses the financial data and present to the management in the form of report
B) To assist the management in taking policy decisions
C) To assist the managers in taking managerial decisions
D) All of the above
170. the various reports prepared with the methods of management accountancy should be prepared to-
a) Shareholders
b) Inventers, creditors, bankers, etc.
c) Various level of management
d) Stock exchange of India
171. the main function of management accountant is –

A) To prepare various budget to control the business activities
B) To classify and properly arrange data for presentation before management
C) To draw the attention of the managers to those activities only which are not proceeding as. planned
D) All of the above
172. _________ is not used in management accountancy.

a) Marginal costing
b) Unit costing
c) Budgetary control
d) Standard costing
173. management accountancy s most profitable to-

a) Shareholder
b) Manager
c) Investors
d) None of the above
174. internal audits in management accounting is-

a) Voluntary
b) Compulsory once in a year
c) Compulsory twice in a year
d) Compulsory to be done through government appointed auditor
175. objective of management accounting is-

a) To prepare financial accounts only
b) To help management by using total accounting data
c) To prepare accounts of cost only
d) To prepare and present financial reports before shareholders
176. which of the following is not included in liquidity ratios?

a) Current ratio
b) Liquid ratio
c) Debt-equity ratio
d) Quick ratio
177. which of the following formula is to be used for calculating the return on equity shareholder funds?
𝐍𝐞𝐭 𝐏𝐫𝐨𝐟𝐢𝐭 − 𝐏𝐫𝐞𝐟.𝐃𝐢𝐯𝐢𝐝𝐞𝐧𝐝
a) 𝐑𝐞𝐭𝐮𝐫𝐧 𝐨𝐧 𝐞𝐪𝐮𝐢𝐭𝐲 𝐬𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫’𝐬 𝐟𝐮𝐧𝐝𝐬 = 𝐄𝐪.𝐒𝐡𝐚𝐫𝐞 𝐜𝐚𝐩𝐢𝐭𝐚𝐥+𝐟𝐫𝐞𝐞 𝐑𝐞𝐬𝐞𝐫𝐯𝐞 ∗ 𝟏𝟎𝟎
Net Profit+ Pref.Dividend

b) Return on equity shareholder’s funds = Eq.Share capital+free Reserve ∗ 100
Net Profit+ Pref.Dividend

c) Return on equity shareholder’s funds = Eq.Share capital− free Reserve ∗ 100
Net Profit − Pref.Dividend

d) Return on equity shareholder’s funds = Eq.Share capital− free Reserve ∗ 100
178. the company has cash on hand Rs. 10000 bank balance Rs. 45000 and readily marketable securities
Rs. 25000 and liquid liabilities are Rs. 120000 find out acid-test ratio.
a) 0.67:1
b)0.45:1
c) 0.63:1
d)0.35:1
179. operating ratio of a company is 80%.its sale is Rs. 2000000, sales return is Rs. 200000.if operating
expenses are Rs. 100000.find out cost of goods sold
a) Rs. 1340000
b) Rs. 1460000
c) Rs. 1250000
d) Rs. 1540000
180. a company has issued debentures share capital is rs300000 its preference share capital is rs200000
and equity share capital is rs2000000 then the capital gearing ratio will be as under?
a) 20% or 1:5
b) 25% or 1:4
c) 10% or 1:10
d) None
181. if debtor’s turnover ratio (360 days in a year) is 28 days and debtors + B/R are Rs280000 then credit
sales=_________S
a) Rs 2800000
b) Rs 1800000
c) Rs 3000000
d) Rs 3600000
182. if operating ratio of nit ltd, is 80% sales is Rs 1500000, gross profit ratio is 1/3 then operating
expenses=_________
a) Rs 200000
b) Rs 5000
c) Rs 1000000
d) none of the above
183. if gross profit is 20% of total cost then what is the gross profit ratio?
a) 16 2/3%
b) 25%
c) 33%
d) 15 2/3%
184. which of the following is the general ideal measurement for current ratio?
a) 2:1
b) 1:2
c) 1:1
d) 3:1
185. a company’s operating ratio is 70% and sales return is Rs 200000 if the cost of sales is Rs 600000
find out operating expenses
a) Rs 600000
b) Rs 100000
c) Rs 500000
d) Rs 300000
186. which of the following statement is correct?

a) according to AS-3 payment of taxes is to be shown as a cash out-flow before finalizing net cash flow from
operating activities
b) according to AS-3 payment of taxes is to be shown s a cash inflow before finalizing net cash flow from
operating activities
c) according to AS-3 payment of taxes is not to be considered in cash flow from operating activities
d) according to AS-3 payment of taxes is not to be shown on credit side of adjusted profit and loss account
187. which of the following statement is not correct?

a) bough furniture of Rs10000. Is cash outflow
b) purchased goods of Rs 15000 on credit. No effect on cash flow
c) paid advances income tax Rs25000. no effect on cash flow
d) issued equity shares of face value of Rs 100000 at 10% premium for cash consideration. It is cash inflow
188. the balance of depreciation on machine account on 31-3-2011 was Rs 280000 and on 31-3-2012
was Rs300000 during the year a machine costing Rs 100000, accumulated depreciation thereon being Rs
60000 was sold for Rs 20000
Show the amount of depreciation charged to profit and loss account
a) Rs 80000
b) Rs 20000
c) Rs 40000
d) Rs 60000
189. if the balance of machinery account at cost on 31-3-2011 was Rs 800000 and 31-3-2012 Rs 900000
and other details are the same as above, what is the amount of purchase of machinery during the year?
a) Rs 140000
b) Rs 200000
c) Rs 180000
d) no purchase
190. which of the following items is not a cash inflow?

a) borrowing or incurring any liability
b) sale of fixed assets or investment
c) earning operating profit
d) repayment of loans and debentures
191. in a company, opening balance of the investment was Rs25000 and its closing balance was Rs
30000.during the year, some investment was sold for Rs 4250 and new investment were purchased worth
Rs 9000. Find out profit earned on investment sold.
a) Rs 500
b) Rs 250
c) Rs 1000
d) Rs 750
192. provision for taxation was Rs9000 on 31-12-2010 and Rs 6000 on 31-12-2011.income tax of Rs 5000
was paid during the year. Then how much provision for taxation should be made during the year?
a) Rs 2000
b) Rs 5000
c) Rs 6000
d) Rs 9000
193. Statement of cash flows includes

A) Financing Activities B) Operating Activities C) Investing Activities D) All of the Above
194. In cash flows, when a firm invests in fixed assets and short-term financial investments results in
A) Increased Equity B) Increased Liabilities C) Decreased Cash D) Increased Cash
195. A firm that issues stocks and bonds to raise funds results in
A) Decreases Cash B) Increases Equity C) Increases Cash D) Increases Liabilities
196. The purchase value of assets over its serviceable life is categorized as
A) Appreciated Liabilities B) Appreciated Assets C) Depreciation D) Appreciation
197. The basic financial statements include

A) Statement of Cash Flows B) Statement of Retained Earnings
C) Balance Sheet and Income Statement D) None of the Above
198. Cash flow example from an investing activity is

A) Issue of Debenture B) Sale of Investment by Non-Financial Enterprise
C) Purchase of Raw Materials for Cash D) Repayment of Long-term Loan
199. Cash flow example from an operating activity is

A) Purchase of Own Debenture C) Sale of Fixed Assets
B) Interest Paid on Term-deposits by a Bank D) Issue of Equity Share Capital
200. Listed Enterprises need to prepare Cash Flow Statement only under indirect method.
a) True b) False
201. Cash flow example from a financial activity is

A) Payment of Dividend B) Purchase of Fixed Asset
C) Cash Received from Customers D) Receipt of Dividend on Investment
202. Which item comes under financial activities in cash flow?

A) Redemption of Preference Share C) Issue of Preference Share
B) Interest Paid D) All of the above
203. In the case of financial enterprises, the cash flow resulting from interest and dividend received
and interest paid should be classified as cash flow from
A) Operating activities C) Financing activities
B) Investing activities D) None of the above
204. In case of other enterprises cash flow arising from interest paid should be classified as cash flow
from ________ while dividends and interest received should be stated as cash flow from ____.
a) Operating activities, financing activities c) Financing activities, investing activities
b) Investing activities, operating activities d) None of the above
205. Issue of bonus shares and conversion of debentures into equity are shown as a footnote to the
Cash Flow Statement.
a) True b) False
206. When a fixed asset is bought as hire purchase, interest element is classified under ______ and
loan element is classified under________.
a) Operating activities, financing activities c) Financing activities, investing activities
b) Investing activities, operating activities d) None of the above
207. Which of the following statements are false?

A) Old Furniture written off doesn’t affect cash flow.
B) Cash flow statement is a substitute for cash account.
C) Appropriation of retained earnings is not shown in Cash flow statement.
D) Net cash flow during a period can never be negative.
a) A, B, C b) B, C, D c) C, D, A d) None of the above
208. Which of the following is not a cash inflow?

a) Decrease in debtors b) Issue of shares c) Decrease in creditors d) Sale of fixed assets
209. Which of the following is not a cash outflow?

a) Increase in Prepaid expenses b) Increase in creditors c) Increase in stock d) Increase in
debtors
210. The statement of cash flow clarifies cash flows according to

A) Operating and Non-operating Flows B) Operating, Investing, and Financing Activities
C) Investing and Non-operating Flows D) Inflow and Outflow
211. As per AS-3, Cash Flow Statement is mandatory for

A) All enterprises
B) Companies listed on a stock exchange
C) Companies with a turnover of more than Rs 50 crores
a) Both A and B b) Both A and C c) Both C and B
212. The term management accounting was first coined in

a) 1950 b) 1960 c) 1945 d) 1955
213. . Management accounting is A) Subjective B) Objective

a) Only A b) Only B c) Both A and B d) None of the above
214. The use of management accounting is

a) Optional b) Compulsory
c) Legally obligatory d) Compulsory to some and optional to others
215. The management accounting can be stated an extension of

A) Cost Accounting B) Financial Accounting C) Responsibility Accounting
a) Both A and B b) Both A and C c) Both B and C d) A, B, C
216. Which of the following is true about management accounting? A) Management accounting is
associated with presentation of accounting data. B) Management accounting is extremely sensitive to
investor’s needs.
a) Only A b) Only B c) Both A and B d) None of the above
217. Management accounting assists the management
a) Only in control b) Only in direction
c) Only in planning d) In planning, direction and control
218. Which of the following are tools of management accounting? A) Decision accounting B) Standard
costing C) Budgetary control D) Human Resources Accounting
a) A, B and D b) A, C and D c) A, B and C d) A, B , C, D
219. Management accounting is related with a) The problem of choice making b) Recording of
transactions c) Cause and effect relationships
A. A and B B. B and C C. A and C D. All are false
220. Management accountancy is a structure for

A. Costing B. Accounting C. Decision making D. Management
221. Who coined the concept of management accounting?

A. R.N Anthony B. James H. Bliss C. J. Batty D. American Accounting
222. Management accounting deals with

A. Quantitative information B. Qualitative information
C. Both a and b D. None of the above
223. Management accounting highlights staff relationship with top management as well as other
personnel. A. True B. False
224. . Liquidity ratios are expressed in

A. Pure ratio form B. Percentage C. Rate or time D. None of the above
225. Which of the following statements are true about Ratio Analysis?
A) Ratio analysis is useful in financial analysis.
B) Ratio analysis is helpful in communication and coordination
C) Ratio Analysis is not helpful in identifying weak spots of the business.
D) Ratio Analysis is helpful in financial planning and forecasting.
a) A, B and D b) A, C and D c) A, B and C d) A, B, C, D
226. Profit for the objective of calculating a ratio may be taken as

A. Profit before tax but after interest
B. Profit before interest and tax
C. Profit after interest and tax
D. All of the above
227. Which of the following falls under Profitability ratios?

A) General Profitability ratios
B) Overall Profitability ratios
C) Comprehensive Profitability ratios
A. A and B B. A and C C. B and C D. None of the above
228. General Profitability ratios are based on

A. Investments B. Sales C. a & B D. None of the above
229. Gross Profit ratio is also termed as

A. Gross Profit Margin B. Gross Margin to net sales
C. Both a and b D. All of the above
230. While calculating Gross Profit ratio,

A. Closing stock is deducted from cost of goods sold
B. Closing stock is added to cost of goods sold
C. Closing stock is ignored
D. None of the above
231. While calculating Gross Profit, if net profit is given,

A. It can be converted into gross profit by adding interest to it
B. It can be converted into Gross profit by adding indirect expenses to it
C. Both a and b
232. Gross profit ratio is calculated by

A. (Gross Profit/Gross sales) *100
B. (Gross Profit/Net sales) *100
C. (Net Profit/Gross sales) *100
233. Given Sales is 1, 20,000 and Gross Profit is 30,000, the gross profit ratio is
A. 24% B. 25% C. 40% D. 44%%
234. What will be the Gross Profit if, total sales are Rs 2,60,000 Cost of net goods sold is Rs 2,00,000
and Sales return is Rs 10,000?
A. 13% B. 28% C. 26% D. 20%
235. If selling price is fixed 25% above the cost, the Gross Profit ratio is
A. 13% B. 28% C. 26% D. 20%
236. Gross Profit ratio should be adequate to cover
A. Selling expenses B. Administrative expenses C. Dividends D. All of the above
237. Provision of taxation is treated as
A. As a current liability B. As an appropriation of profits
C. Either a or b D. None of the above
238. As per accounting standard AS3, provision for taxation should be treated as
A. As a current liability B. As an appropriation of profits
C. Either a or b D. None of the above
239. Financing activities brings changes in

A. Size and composition of owner equities
B. Borrowing of the enterprise
C. Both a and b
240. For year 2013 Equity Share Capital is Rs 3,00,000 Preference Share Capital is 1,00,000 10% debentures is
2,00,000 and Share premium is 30,000. For year 2014 Equity Share Capital is Rs 4,00,000 Preference Share
Capital is 60,000 10% debentures is 1,00,000 and Share premium is 40,000. Also given, Dividend paid on
shares Rs 15,000 and Interest paid on debentures RS 20,000. Determine net cash flow from financing
activities.
A. Cash inflow of Rs 65,000
B. Cash outflow of Rs 65,000
C. Cash inflow of Rs 56,000
D. Cash outflow of Rs 56,000
241. As per AS-3, Cash Flow Statement is mandatory for

A) All enterprises
B) Companies listed on a stock exchange
C) Companies with a turnover of more than Rs 50 crores
A. Both A and B B. Both A and C C. Both C and B
242. In the case of financial enterprises, the cash flow resulting from interest and dividend received and
interest paid should be classified as cash flow from
A. Operating activities
B. Financing activities
C. Investing activities
243. In case of other enterprises cash flow arising from interest paid should be classified as cash flow from
________ while dividends and interest received should be stated as cash flow from ____.
A. Operating activities, financing activities
B. Financing activities, investing activities
C. Investing activities, operating activities
244. The Provision for income tax to be shown under the head in the balance sheet as per Schedule
III of companies Act,2013.
a) Short term provisions b) Long term provisions c) Trade payables d) None of the Above
245. In the balance of trail balance, Balances of 10% debentures is Rs. 1,00,000 and interest on
debentures paid Rs. 5,000, then what will be debited to Profit & Loss Account Rs. ?
a) 5,000 b) 10,000 c) 15,000 d) None of the Above.
246.
Particulars Debit (Rs.) Credit (Rs.)
6% Debenture Account - 3,00,000
Debenture Interest 6,000 -
Account
What Amount of interest will be shown in profit and loss statement?
a) Rs 6,000 b) Rs. 12,000 c) Rs. 18,000 d) Rs. 24,000
247. Creditors and bills payables will be considered as liabilities.

A) Preferential creditors B) Secured creditors
C) Unsecured creditors D) Internal liabilities
248. If in the trial Balance 10% debentures are of Rs.100000 and interest on debentures paid is
ra.5000 then the amount to be debited to profit & loss Account is_
A) Rs.5000 B) Rs.10000 C) Rs.15000 D) Rs. None of these
249. The company has 10000 equity share of Rs.10 each Rs.8 per share paid up then interim dividend
payable at 10% will be
A) Rs.8000 B) Rs.18000 C) Rs.5000 D) None of these
250. Corporate dividend tax is computed on .

A) Proposed dividend C) Provision of income tax
B) Profit after tax D) Income from business operation
251. Financial Accounting, Cost Accounting and Management Accounting are_______

A) Policies of Accounting B) Branches of Accounting
C) Principle of Accounting D) Conventions of Accounting
252. Accounting is the language of __________
A) Business B) Ledger C) Journal D) Books of Accounts
253. Basically, Accounting is concerned with:

A) Taxation B) Measurement of profit and loss C) audit D) Management
254. The accounting equation is satisfied by –

A) Capital = Net Assets B) Capital – Assets + Liabilities C) liabilities = Capital + Assets
255. Capital = ___________?

A) Money B) Assets C) Revenue D) Loss
256. The process of recording a transaction in the books of accounts is called:

A) Accounting B) Balancing C) Journalising D) Posting
257. Journal is book of:

A) Secondary entry B) Original Entry C) Cash Transaction D) Credit Transaction
258. Say which of the following transaction is credit transaction?

A) Paid Salary Rs. 5000 by Cheque C) sold goods for cash Rs. 4000
B) Sold Goods to Varun Rs. 15,000 D) Purchase goods for Rs. 10,000
259. Deepa has assets of Rs. 65,000 and liabilities of Rs. 15,000, her capital would be:
A) Rs. 80,000 B) Rs. 65,000 C) Rs. 50,000 D) None of these
260. The capital and outside liabilities as on 31-3-2010 is Rs. 150,000 and Rs.50,000 respectively. Hence total
assets would be as on 31-3-2010:
261. which of the following equation is not correct?

A) Liabilities = Assets + Capital C) Capital = Assets – liabilities
B) Assets = Capital + Liabilities D) Liabilities = Assets – capital
262. The assets and capital as on 31-3-2010 and Rs. 80,000 respectively. Hence liabilities would be as one 31-3-
2010:
263. Find out the amount of capital, Assets Rs. 20,000, Liabilities Rs. 5400
A) Rs. 4200 B) Rs. 14,600 C) Rs. 5600 D) Rs. 12,600
264. which of the following is an intangible asset?

A) Land B) Investment C) Cash D) Patents
265. Identify the current assets from the following:

A) Goodwill B) Furniture C) Investment D) Bills Receivable
266. The principle of accounting which recognized the double aspect of a business transaction is –
A) Dual aspects B) Single Entry C) Matching Concept D) Cost Concepts
267. The person who supplies goods to business is ______ of the business.
A) Partner B) Customer C) Creditors D) Debtors
268. The world “credit” is derived from the latin world credere. It means___
A) To take B) To Give C) To owe D) None of these
269. The rule of “Debit what comes in and credit what goes out” is applicable to:
A) Nominal Accounts B) Personal Accounts C) Real Accounts D) None of these
270. The Rule of “Debit Expenses and Credit Income and Gains” is applicable to:
A) Real Accounts B) Personal Accounts C) Nominal Accounts D) None of these
271. The rule of “Debit the Receiver and credit the Giver” is applicable to:
272. Capital Accounts is:

273. Bad Debts recovery accounts is:

274. Rent received in advance is of nature of:

Real Accounts B) Personal Accounts C) Nominal Accounts D) None of these
275. Purchase Return accounts is concerned to:

A) Nominal Accounts B) Personal Accounts C) Real Accounts D) None of these
276. Which of the following statement is correct?

A) The change in owner’s capital is an indication of profit in business
B) The rules of Debit and credit are not universal.
C) Nominal accounts refer to false transaction.
D) Real accounts refer to properties of a business
277. Which of the following is a Personal Account?

A) Cash Account B) Motar Car Account C) Rent Account D) Creditor Account
278. Fixed Asset is ________

A) Debtors B) Land C) Stock D) Creditors
279. When the owner of business withdraws goods for personal use, it is debited to his drawings account
because of-
A) Business entity concept
B) Continuity concept
C) Convention on conservatism
280. many petty expenses of business are grouped under the helping sundry expenses because of
A) Convention on conservatism
B) Convention of Consistency
C) Convention of Materiality
281. Business expenses are divided into two parts: Revenue and Capital because of
A) Realisation Principle
B) Convention of Periodicity
C) matching cost with revenue
282. Generally, income is said to be realised when

A) Cash is received
B) goods are sold
C) Production is completed
283. Entries are made in books of account on the basis of evidence supporting the transaction because of
A) Principle of Realisation
B) Principle of Objectivity
C) Principle of full Disclosure
284. Commission on sales is debited to profit and loss account in year in which sale is effected because of
A) Principle conservatism
B) Principle of Matching cost with Revenue
C) Principle of Realisation
285. Retirement of manager is not recorded in the books of account because of

A) Cost Concept
B) Money value concept
C) Accounting period convention
286. Fees not received is not treated as income in case of Chartered Accountants because of,
A) cost concept
B) Principle of Realisation
C) Principle of Objective
287. Bank credits income of doubtful interest suspense account because of

A) Principle of Conservation
B) Principle of Full Disclosure
C) Principle of Consistency.
288. Fixed assets are not shown at their realisable value in accounts because of
A) Cost Concept
B) Principle of Matching Cost with Revenue
C) Principle of Objectivity
289. The Assumption of a business enterprise will not be sold or liquidated in the near future is based on:
A) Going Concern Concept C) Cost Concept
B) Business Entity Concept D) Periodicity Concept
290. Valuing the closing stock at stock at cost or market price whichever is lower is on the basis of:
A) Materiality Concept C) Conservatism Concept
B) Consistency Concept D) Matching Concept
291. In the books of accounts, the qualitative transaction will not be recorded due to:
A) Materiality Concept C) Cost Concept
B) Money Measurement Concept D) Realisation Concept
292. Assets purchase are to be recorded in the books of accounts at the actual amount paid for them is related
to :
A) Conservatism Concept C) Materiality Concept
B) cost concept D) Realisation Concept
293. The accounting equation: assets = Liabilities is based on:

A) Matching Concept C) Accrual Concept
B) Dual Aspects Concept D) Periodicity Concept
294. The market value of share of the ABC company is shown as a footnote in Financial Statement is based on:
A) Cost Concept C) Business Entity Concept
B) C) Matching Concept D) Disclosure Concept
295. Closing entries are passed:

A) At the beginning of the accounting year C) At the end of the accounting year
B) for rectification or error D) For adjustment of period and outstanding
expenses
296. Owner’s drawing will be deducted from:

A) Sales B) Closing Stock C) Capital D) Net Profit
297. All the revenue expenditures and revenue Income are transferred to:
A) Balance sheet B) P & L account C) Trading Account D) Either to B Or C
298. Interest on drawing is:

A) Business Income B) Business Expense C) Owners Expenses D) an Increase in the capital
299. Loss on sale of old furniture is debited:

A) P & L Account B) Trading Account C) Furniture Account D) Depreciation Account

PRATIMA MBA-1 Mang. Account - 120811

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

PRATIMA MBA-1 Mang. Account - 120811

Uploaded by

Copyright:

Available Formats

9998488888 PRATIMA EDUCATION® 9898168041

1. Creating Provision against fluctuation in the price of investment is an example of whichaccounting

2. In how many ways can cost classification bedone?

4. Debit the receiver credit the giver rule for

5. Warehouse rent is a part of which cost?

6. What is the total of all direct costs known as?

9. Mixed cost is also known as:

11. If closing stock appears in the trial balance, it should be

12. Return of goods by a customer should be debited to

13. What is the basic premise of cost concept?

14. For which kind of firm is process costingappropriate?

15. Which cost is incurred even if the company isclosed?

17. What are direct expenses also known as?

19. Cash discount allowed to a debtor should be credited to

22. According principles are generally based upon:

23. Managerial accounting information is generally prepared for

25. Which type of costing do toy-manufacturingcompanies use?

27. Prime cost = ?

30. Which of the following costs is treated asindirect labor?

34. Of the following account types, which would be increased by a debit?

37. Balance Sheet is a statement of

38. Which of the following is correct?

39. Prepaid expenses is treated as

40. The prime function of accounting is to

42. Payment received from debtor

43. Going concern concept assumes

45. Management Account related to

46. Insurance prepaid is shown as

47. Opening stock + + Direct Expenses (Carriage on Raw material)-ClosingStock =

48. Outstanding expenses are charged to

49. Which of the following is a liability?

50. Information of Process B

51. Income tax paid by a sole proprietor on his business should be

52. Credit balance of profit & loss a/c shown on

53. Information of Process C:

55. Marginal cost is known as

57. cost conversion cost =?

59. Which of the following costs is not a periodcost?

60. Manufacturing cost =?

61. Which of the following costs is not a productcost?

Process A 24,000 Nil Nil

Process B 81,000 4,000 1640

Process C 56,667 5600 13,797

Actual profit will be as under:

63. The costs incurred to acquire or manufacturea product is known as:

65. he merits of marginal costingis/are................

67. Marginal costing concerned with:

68. Information of Zalak Ltd:

Process A 100,000 Nil 10,000

Process B 10,360 1640 12,000

Process C 50,203 13,797 64,000

Stock valuation for balance sheet purpose will be as under

71. Carriage outward is charged to

75. The amount of salary paid to Suresh should be debited to

76. Accounting is the process of matching

78. Outstanding salary is shown as:

79. Advantages of cost accounting accrue:

86. Salary paid to factory manager is an item of:

88. Management accounting is applicable to

89. Purchased of goods on credit from A is recorded as:

91. Calculation of Prime Cost

92. What is the value of owner’s equity

94. Particulars Rs.