ACCOUNTING MANAGEMENT

1. The ABC system is a widely used classification technique to identify various items of inventory for purposes of inventory control and
recommends that a firm should exercise the max control on loose items of inventory that are:-
Ans: All of these
2. The fixed manufacturing cost can be carried forward to next period as part of inventory cost in which of the following costing system?
Ans: Full Costing.

3. For cash ltd. estimated sales for April, May, June, July, August are Rs.46000, Rs.48000, Rs.28000, Rs.44000, Rs.30000. In case 50% of
sales are realized in the next month and balances in the next of next month, determine cash collection from sales in June of July.
Ans: Rs.47000 and Rs, 38000.
4. Based on the following information for shine Ltd. Calculate the effective machine house worked in a year.
Ans : 2122 hours.
5. An increase in selling price per unit will lead to
Ans : An increase in contribution.
6. Based on the following information for shine Ltd. Calculate Machine hour rate?
Ans : Rs.12.60 per hour
7. The Direct method and indirect method of presenting cash flow statement differs only in respect of presenting cash flows from ______
activities.
Ans : Operating
8. Resources that are limited in quantity are called as :-
Ans : Key factors.
9. As per flexible budget sales is Rs.5, 00,000 COGS is Rs.3, 00,000 and 20% of which is fixed. Calculate COGS at 80% capacity utilizations,
considering that current utilization of capacity is 60%
Ans : Rs. 4,00,000
10. The Cost which remain constant in total but reduces per unit as the volume of production increase is known as.
Ans : Mixed Cost.
11. The part of cost of joint products that can be attributed exclusively and wholly to a particular product, process, division or department
is known as :-
Ans : ??
12. Calculate electricity consumption rate per hour?
Ans : Rs.6 per hour.
13. Calculate dep. Rate per hour?
Ans : Rs.9.43 per hour.
14. Relevant costs are costs which would change as a result of the
Ans : Decision
15. Which of the following items would be subtracted from net income when using the indirect method of calculating cash flows provided
by operating activities ?
Ans : A gain cash on the sale of land
16. Cost of factory lightening is an example of :-
Ans : Indirect Cost.
17. In process further or sell new decision, the decision should be taken based on ______
Ans : Incremental resources and Incremental Costs.
18. Which of the following is on indirect Cost ?
Ans : Sunk Cost.
19. Which of the following would be considered a cash flow item from a Financing activity ?
Ans : A Cash outflow to repurchase the firn own common stock.
20. The Ideal quick ratio is :-
Ans : 1:1
21. The following costs are irrelevant for a special order that will allow an organization to utilize some of its present idle capacity?
Ans : Unavoidable fixed overhead.
22. For a financial Institution interest paid and interest and dividends received are classified as ______ cash flows.
Ans : operating
23.A Company makes a single product and increase fixed costs of Rs,60,000 per annum variable cost per unit is Rs.10 and cash unit sells for
Rs.30 Annual. Sales demand is Rs.14,000 units. The breakeven points is :-
Ans : 3000 Units.
24________ is an example of non-current assets ?
Ans : Property, Plant and Equipment.
25. The following is included in overheads.
Ans : ??
26. Current assests are also known as.
Ans : working capital
27. A Current asset that can be transferred into cash written 3 months is known as :-
Ans : Cash equivalent
28. Interest received dividend received are an example of :-
Ans : Other operating income.
29. Cash receipt received from the sales fixed assets are registered under the head of :-
Ans : Investing activities.
30. Net profit is reported at Rs.50,00,000 N.P included interest expense 5,00,00 Income Tax expense 20,00,000. The Interest Income
3,00,000 and depreciation 6,00,000. There is no change in the working capital. There was no income tax liability at the beginning and at
the end of the year. Cash flow from financing activity is ______.
Ans : 55,00,000
31. The distribution of common cost among user department os nown as
Ans : Appointment of cost.
32. In product mix decision most important factor to be considered ____ ?
Ans : Contribution per unit of key resource.
33.The principle undertaking the variable costing is that the fixed cost manufacturing overheads are:-
Ans. Period Cost.
34. Patent is Categorized under which asset ?
Ans : Intargible.
35. Quick asset do not include
Ans : Inventories
36. A System assigned indirect cost on product in two stages first the accumulated cost are allocated is production ____
Ans : Activity based cost.
37. For ABC Ltd. Annual rent of factory is Rs.17,00,000 and units produced in the C.Y are 1,00,000 . the over absorption rate is Rs.10 per
unit. Calculate the under absorption in this cost ?
Ans : Rs.12,00,000
38.Current ration is 4:1, Networking capital is 30,000 Find the amount of current asset.
Ans : 40,000
39. P/L Statement is also known as :-
Ans : Statement of Income.
40. Tiles company expects sales of product to be 60,000 units ____ or the month of April should be :-
Ans : 65,000 units.
41. Current ratio of concern is 1, its not working capital would be
Ans : Nil.
42. About 60 items are required everyfay for a machine. AFC of 40 per order is incurred ____ period in 25 days.
Ans : 60 x 25 = 1500 items
43. A Firm requires 8000 nos of a certain component which is bought at Rs.60 each ……… to get max benefit.
Ans : 400 units.
44. The point at which diff. products are separated after a common style of production is known as :
Ans : Split off plant.
45. The following is true about activity based costing ?
Ans : It si 2 style allocating systems that allocates costs to activities and then to products based on their uses.
46. The transfer of legal receipt of an asset may indicate that the customer has obtained the control of the _____
Ans : Asset.
47. Assumptions regarding VCP graph a :-
Ans : All of these.
48. Which of the following equities indicate break over point ?
Ans : Contribution = F.C.
49. Furniture Ltd. Produces multiple type of chairs _____ then calculate the overhead allocated to manage chairs?
Ans : Rs.2,00,000
50. ____ is a detailed budget of all cash receipt and cash expenses
Ans: Cash budget.
51. Fixed cost raised by the purchase of capacity producing assets such as plant and equipment are called as :
Ans : Committed.
52. Selling and distribution charges are incurred for marketing of products, dispatching goods sold and so on and include.
Ans : All of these
53. Fixed cost is a cost
Ans : Which do not change in total during a given period despite change in output
54. Complete contribution if sales is Rs.5,00,000 F.C is Rs.2,00,000 and U.C is Rs.2,00,000
Ans ; Rs.3,00,000
55.The activity based costing (ABC) system has advantage.
Ans: All of these
56 _____ refers to the ability to direct the use of and obtain sustaitionaly from the asset.
Ans : Control of asset.
57. The underlying diff between absorption costing and variable costing lies in the treatment of :-
Ans Direct labour cost.
58. A Contract with a customer sets out the right and obligation of both the entity and the customer which of the statement is correct.
Ans : The entity’s right is to deliver goods and services and the obligation is to pay consideration agreed for the supply of goods & sevice
59. Flexible budgets estimates costs at several levels of :
Ans : Acivity.
60. The cost allocation process does not comprise of on of the basic activity which is :-
Ans. Rationalizing fo the activities.
61. Opportunity cost represents the _____ forgone by not choosing the second best alternative in favour of the best one.
Ans : Loss.
62. From total income, when COGS, Admin and selling and distribution expenses are deducted , resulting profit is known as ?
Ans : EBITDA
63. Gross profit margin is calculated by dividing gross profit by ____
Ans : Revenue.
64. One of the following is the correct formula for gross margin under full costing.
Ans : sales revenue less total cost of sales including admin & selling cost.
65. Net profit is reported at 50,00,000 net profit includes interest expense 5,00,000. Income tax expense 20,00,000 interest income
3,00,000. Depreciation 6,00,000. Working capital increased during the year by 4,00,000. There was no income at the end of the year. Cash
flow from operating activity is ______
Ans : 54,00,000
66. In general the first budget prepared is the.
Ans : Sales budget
67. Fixed cost is a cost.
Ans : Which do not change in total during a given period irrespective changes in output.
68. A system assigns indirect cost or products in two stages first, the accumulated cost are allocated to production department, second the
accumulated cost in cost centres are assigned to individual job products on the basis of an overhead allocation rate based labor cost, direct
labour hour rate, machine hour rate this system is ______
Ans : Traditional costing system (TCS)
69. The volumne cost profit (VCP) analysis is a tool to show the relationship b/w various ingredients of profit planning namely ?
Ans : Unit sales price (SP) unit variable cost (VC) are hired cost.
70. Calculate overhead rate, using labour cost method – factory OH Rs.1,60,000 direct material Rs.1,00,000 and direct wages Rs.80,000
Ans : 2
71. The part of cost of joint products that can be attribute exclusively and wholly to a particular, product, process, division or dept. is
known as :-
Ans : Seperable.
72. The distribution of common cost among user dept’s is known as
Ans : Apportionment
73. Buy back pf shares is ae ____ of fund.
Ans : Investment.
74. Break even point is computed on the basis of the relationship b/w the fixed cost and the ?
Ans : Cost margin.
75. From the perspective of cost allocation service dept. costs are ?
Ans : Eventually applied by the user dept to the units produced.
76. An increase in variable cost per units will lead to _____
Ans : A reduction in contribution.
77. _____ refer to the ability to direct the use of and obtain substaintially. All of the remaining benefit from the asset.
Ans : Control of an asset.
78. The ideal quick ratio is
Ans : 1:1
79. The term current asset doesn’t cover
Ans : Car
80. Under observation costing which of the following fixed expenses are charged to cost of goods sold.
Ans : All of these
81. When a dept. or product line is dropped, the common fixed costs which had been allocated to that dept.
Ans : Become sunk costs.
82. _____ is the firms ability to arrange cash in short-term to meet its short-term obligations, whereas ___- is its long-term financial
commitments.
Ans : Liquidily, Solvency
83.A co experts sales of product W to be 60,000 units in April, 75,000 in May and 70,000 units in June _____ Given this info. Tibu
Company’s production of product W for the month of April should be.
Ans : 60,000 units.
84. The tax expense in the statement of profit and loss is 40,00,000 current tax liability at the beginning and at the end of the year was
2,00,000 & 3,00,000 Cash outflow during the year on account of income tax payment was _____
Ans : 39,00,000
85. For an organizational involved in construction of diverse types of housing like HIG, MIG and LIG houses, which of the following costing
system is appropriate for absorption of overhead ?
Ans : Activity based costing (ABC)
86. Cash flow arising from the purchase and sale of dealing on pending securities are classified as ____ for a brokerage firm.
Ans : Operating activity
87. On process further or sell now decisions the decision should be taken based on _______
Ans : Incremental revenue & incremental cost.
88. Goodwill is categorized under which assets ?
Ans : Intagible
89. ____ is detailed budget of all cash receipts and cash expenditures.
Ans : Cash budget
90. Current tax asset is classified as _____
Ans : Current Assest
91. The accounting statement of cash flows reports a firms cash flow segerated into what categorical order ?
Ans : Operating, investing and financing.
92. In shutdown or continue decision, the factor to be considered are :-
Ans : Contribution Margin
93. The Overheads are obsorbed into diff. products under activity costing system.
Ans : Both of these.
94. Following info.is available for prime Ltd. For year ______ during the year using the marginal costing technique ?
Ans :Rs. 7,00,000
95. Furniture Ltd. Produces multiple type of chairs. It uses activity based costing ____ calculate the overheads allocated to manager chairs ?
Ans : Rs.2,00,000
96. The following costs are not considered in a differential analysis for decision making ?
Ans : Direct materials and direct labour if the item is purchased.
97. When production is more than units sold then the income under absorption costing will be ___ in comparison to income under variable
costing.
Ans : Same
98. Quick ratio is also called
Ans : current ratio
99. The purpose of Jan, Feb & March is Rs.10,000, 12,000, 15,000. Payment to supplier is done 50% in the month of purchase and 50% the
next month. Calculate the Cash payment for the month of Feb.
Ans : Rs.11,000
100. Resources that are limited in qty.is called as :-
Ans : Contributor
101. The following true activity based costing
Ans : It is a 2 stage cost allocation system that allocates costs to achieve and then to product based on their use of active.
102. The following cost are irrelevant for a special order that will allow an org. to utilize some of its present idle capacity ?
Ans : Unavoidable fixed Overhead.
103. Printers Ltd. Uses ABC for its products ____ the amount of overhead allocated to them for parts administration would be ?
Ans : Rs.7,20,000
104. The main operation related expenses ofa business are termed as :-
Ans : Operating expense.
105. ____ are the expenses related to business activity but are disproportionate in amount or occur infrequently.
Ans : Operating Expense.
106. Depreciation, rent, property taxes salaries of key personnel are eg. Of
Ans : Discretionary
107. Factory overhead cost refer to all indirect manufacturing costs which cannot be identifies with particular order or units of product. It
includes ______
Ans : None of them
108. The cost of a single process, or a series of processes that simultaneously produce two or more products of significant Sales value is ?
Ans : Joint Product cost.
109. Poster Corporation _____ cost of 2 months ?
Ans : Rs.31584.00
110. One of the following is not included in costing and control of factory overheads ?
Ans : Absorption of overheads.
111. When break-even point is 2000 units, selling price per unit Rs.14 and variable cost is Rs.8 find out F.C. ?
Ans : Rs.12000 (F.C/SP-VC)
112. The EOQ model, as a technique to determine the economic order Qty. is based on restrictive assumption namely
Ans. All of these.
113. The excess of actual sales revenue (ASR) over the break-even sales revenue (BESR) is known as
Ans : Margin of safety.
114. On the basis of flexibility budget is classified into two types such as fixed and ____ budget.
Ans : Flexible
115. Cash receipts received from the sales fixed asset are registered under the head of :-
Ans : Investing activity
116. Assumptions regarding VCP graph ac :
Ans : All of these
117. Code of ethics for accounting professionals is based upon.
And : All of these
118. It is a separate performances obligation
Ans : Service warranty
119. Net profit as per statement of profit and loss 10,00,000 and finance cost 3,00,000 ____
Ans : 11,70,000

ACCOUNTING MANAGEMENT _2
1. A Shop sells wedding dresses the cost of each dress it compromised of the following. Selling price of Rs.1,000 and variable (flexible)
costs of Rs.400. Total fixed capacity-related cost for shop is Rs.20,000 what is the contribution margin per dress ?
Ans : 600_/
2. Workers who leave the organization during a specific that period are taken into consideration for calculating the labour turnover rate
by ______
Ans : Separation Method
3. Shut down cost is :
Ans : Unavailable fixed cost.
4. The type of cost which changes with the change in alternative course of decision / actions where as irrelevant cost remains costs across
all he alternative course of decision / action.
Ans : Relevant
5. The Expected overhead cost for Neel Construction Ltd of a particular part cost pool was Rs,5,60,000 and the expected activity was
5,000 parts. The actual overhead cost for the cost pool was Rs,4,80,000 at an activity of 6,000 parts. The activity rate for the cost pool
was :
Ans : Rs.112 each cost.
6. Marginal cost is the aggregate of prime cost and ____
Ans : Variable Overhead.
7. Where sales are Rs.30,000 and P/V ratio is 20% then contribution will be ____
Ans : 6000
8. The Countries which have signed Kyoto protocol are called
Ans : Annexured Countries
9. XY Ltd. uses activity based costing for product M and product N. The total estimated overhead cost for the pats administration activity
pool was Rs.7,50,000 and the expected activity was 3000 part types. If product N request 1400 part types. The amount of overhead
allocated to product N for parts administration would be :
Ans : 350000
10. Which of the following is one of the two approaches used to analyse data in the decision to keep or discontinue a segment
Ans : Comparing contribution margins and fixed costs
11. The scare factor are also known as
Ans : Keyfactor
12. Cost of any finished product can be calculated on the costs of
Ans : All the above
13. Mr Recurring expenses like costs incurred on recruitment, training and development of human resources are _____ in as be Historical
cost Model for HRA

Ans : Capitalized.

14. Which of the following is not a material control techniques?

Ans : Maintaining stores ledger & amp, Bin Card
15. ABC helps managers role improved ___
Ans : All of the above
16. The full form of GHG is ____
Ans : Green House Gases
17. Where key factor is present from available alternative best project must be selected on the basis.
Ans : Contribution per key factor.
18. ____ take into account the national cost that may be required to acquire a new employee in place of the present one.
Ans : The replacement cost approach.
19. A manufacturing fir, of glass products produces an average profit of Rs.2 per unit, selling at Rs.12 per unit. The firm sells 50,000 units at
50% of potential capacity. The cost of sales is :- Direct materials Rs.3.5/- piece, Direct labour cost Rs.1.3/- piece, factory expenses
(Variable) Rs.2.5/- piece, Selling expenses (Variable) Rs.0.30/- piece. Total fixed cost is Rs.1,00,000 It finds an offer for a further 30% of
his capacity. What minimum price you would enclose for acceptance to confirm a total profit of Rs.2,00,000 ?
Ans : Rs.10.80
20. The cost which can be carried forward to next accounting period as part of inventory cost is called
Ans : absorbed cost
21. The break-even point in units is represented by the equation ?
Ans : Fixed costs / Contribution per Unit.
22. If actual units produced are lower than the budgetary level of production which of the following types of cost would you expect to be
lower than the budget ?
Ans : Total Variable costs.
23. A Company has fixed costs of Rs. 50,000 and variable costs per unit of Rs.8. If its sole product sells for Rs.18, what is the break-even
quantity of output ?
Ans : 5000
24. While making makes or buy decision under marginal costing, external purchase price of the articles must be compared with:
Ans : Its variable cost.
25. To find the break-even in Rupee, you have to divide the fixed cost by _____
Ans : Contribution Margin ratio.
26. Minimum level of stock is computed as :
Ans : Re-Order level – (Average usage * Average lead time)
27. Output and Sales 50,000 units with sale price of Rs.15/- unit. Material & labour cost per unit Rs.7/- & Variable Rs.3/- unit. Fixed
Rs.70,000 & other fixed overheads Rs.90,000. Calculate Net Income under marginal costing?
Ans : Rs.90,000
28. Cost which can be identified with goods produced or purchased for resale is named as
Ans : Product Cost
29. Which of the following cost should be considered for decision making.
Ans : Incremental Cost.
30. When fixed cost if deducted from contribution, the balances will be ____
Ans : Profit
31. What is the accrual basis of accounting ?
Ans : Matching expenses with revenue in the appropriate accounting period.
32. The purpose of directors responsibility statement is to given an assurance to stake holders that
Ans : All of these
33. While of the following is true about the revenue recognition principle.
Ans : Revenue must be recorded when this earned.
34. What are the basic financial statements provided in an annual report ?
Ans : Balance Sheet, Income Statement, Statement of Cash flows and statement of stockholders equity.
35. Out of the fund flow statement and cash flow statement which one is broader concept :-
Ans : Find flow Statement
36. If a firm have a current ratio of 1, then it is networking capital will be
Ans : Zero
37. 5 Steps that need to be followed in revenue recognition :
1. Identify the Contarcts,
2. Identify the performance obligations
 3. Determine the transaction price.
4. Allocate the transaction price
Ans : Recognise revenue when (or as) the entity satisfies a performance objective.
38. The concept of financial statements quality implies:-
Ans : Accuracy of the using the monetary reports to inform about predicted cash flows to stakeholders.
39. Undirect Indirect method how will the changes in accounts receivable are reflect ?
Ans : Adjustment to Net Income.
40. For Companies registered under companies act 2013 statuary audit is performed by :
Ans : Chartered Accountant
41. Which of the following is a financial activity ?
Ans : Cash used to make a payment of long term loan.
42. ______ reduces the value of property, plant and equipment on the balance sheet as the value of assets is lowered of their useful life.
Ans : Depreciation.
43. The term current asset doesn’t cover
Ans : vehicle
44. The Statement of only parent firm without including the subsidiary statements are known as _____
Ans : Standalone Financial Statement.
45. If net profit margin is 10.50%, asset turnover is 0.80 and debt to asset ratio is 0.70 then what is the return on net worth ?
Ans : 28%
46. Use revenue recognition principle to determine when a business should record revenue. A contract was signed in March for legal work
completed by a law firm in April. The client greed to pay for the completed work in May and the law firm received payment in early
June.
Ans JUNE
47. Which of the following is TRUE about the revenue recognition principle?
Ans : Revenue must be recorded when that is earned.
48. It is usual for a retail shop to recognize revenue when
Ans : The Customer becomes legally obliged to pay for the goods
49. Identify the transaction not involving outflow of cash
Ans : Depreciation
50. The process of recognizing the strengths and weakness of the firm by establishing the relationship among various items of balance
sheet and Income Statement is termed as:
Ans : Financial Statement Analysis
51. Use the following information to determine when a business should record (or recognize) revenue. A contract was signed in March for
legal work completed by a law firm in April. The Client agreed to pay for the completed work in May and the law firm received payment
in early June.
Ans : May
52. The existence of significant off balance sheet financing mainly specifies:
Ans : A decrease in debt , which decreases financial results quality.
53. Primary objective of cash flow statement is to provided information about :
Ans : Cash flow position of the company.
54. The primary objective of high quality financial reporting is presenting information about ____
Ans : Monetary Units.
55. Which of the following will not result is an increase in not working capital?
Ans : Decrease in Inventory.
56. One of the example of influenced accounting problem is:
Ans : Aggressive Revenue Identification.
57. Which statutory act requires that financial statement of companies shall comply with the accounting standards.
Ans : The companies Act 2013.
58. Which of the following statement is true about ratio analysis?
Ans : Ratio Analysis helps in debt simplification and Association.
59. The profit and account format as per companies Act 2013 I given schedule :-
Ans : III
60. Which one of the following is correct ?
Ans : Cash from operations is equal to Net Profit Adjusted for Non-Cash, Items and adjustment for working capital changes.
61. The process of material handling involves:-
Ans : All of the above
62.
63. Key factor is also called as:-
Ans : All of these
64. Warehouse expense is a part of which cost / overload?
Ans : Distribution overhead.
65. ______ was signed in 2005 between 41 countries in control the GHG emission.
Ans : Kyoto Protocol
66. A type of costing system in which only variable costs are recognized as product costs is called as :
Ans : Variable.
67. R & D budget & Capital expenditure budget are example of
Ans : Current Budget.
68. _____ method of HRA recognizes an Individuals expected economic value to the enterprise during remaining service period.
Ans : Present Value of future earning method
69. Plant Utilization budget and manufacturing overhead budget are type of
Ans : Cost budget.
70. The Cost which refers to the value of what you have to give up in order to choose something else is called as?
Ans : Opportunity Cost.
71. ______ is designed after assessment of the volume of output to be produced during budget period.
Ans : Cost Budget
72. Overhead allocation by using ABC mostly leads to ____
Ans : Changes overhead costs from high volume products to low-volume products.
73. While preparing sales budget which of the following factors are considered
Ans : Environmental factors.
74. _____ Contains the picture of total plans during the budget period and it comprises information relating to sales, profit, cost production
etc.
Ans : Master Budget.
75. ___ is stated as a budget which is made to changes as per the l…. of activity attained.
Ans : Flexible Budget.
76. A Company’s telephone bill costing of Rs.200 monthly base amount, plus long distance charges, would be classified as a ?
Ans : Mixed Cost.
77. As per CVP analysis, estimated sales for desired profit (in amount) is _____
Ans : FC + Profit / Contribution Margin Ratio.
78. An Increase in the variable cost ____
Ans : Decreases PV Ratio.
79. Break-even capacity _____ ?
Ans : Break-even sales in Rupees / Marginal Sales in Rupees
80. The accounting standards board was set by.
Ans : Institute of chartered accountants of India
81. What does balance sheet summarize for a business enterprise.
Ans : Financial Position at a point in time.
82. The TV manufacturing factory sells 5,000 TV on credit. The have shipped the TV … have not collected payment. Can the TV factory
recognize the revenue ?
Ans : Yes, the Revenue is realizable
83. The prime accountability of the financial statements leezy a fair and true representation of the financial health of the firm big with the :
Ans : Board of Directors.
84. Which of the following is a cash flow from a financing activity?
Ans : Cash outflow to share holders as dividend
85. Income is increase in economic benefits during the accounting period in the form of
Ans : Increase in asset and decrease in liabilities.
86. Amount set aside to meet the losses is a
Ans : Reserve.
87. Net Income is
Ans : Total Revenue - Total expense
88. P & L account can also be named as
Ans : Statement of Income.
89. What are the other motion behind influenced accounting ?
Ans : Both A & C.
90. What does the income statement measure for a firm?
Ans : The results of operations for a period.
91. The terms ____ is used the context of PP & E and the term ____, is used in the context of intangible assets.
Ans : Depreciation, Amortisation.
92. Which of the following would be considered a cash flow item from an investing activity?
Ans : All of these
93. All the assets than an entry control are recognized in the ___
Ans : Balance Sheet.
94. Which of the following Statements are true ? A) Financial Statements are only interim report. B) Financial Statements are also known as
annual records, C) Financial Statements are historic:
Ans : Option B & amp C
95. The Companies Act, 2013 requires all the _____ companies to appoint an …. Audition.
Ans : Listed Companies.
96. Which of the following term are not a part of current assets in a firm?
Ans : Outstanding Expenses
97. The following information is extracted from the financial statement of KTS Ltd. Cost of goods sold Rs.25,00,000 sales Rs,50,00,000.
Average accounts receivable Rs.4,00,000. Net Profit is Rs.10,00,000. The accounts receivable turnover, inventory turnover and total
assets turnover for a firm are _____
Ans : 12.5 times, 1.67 times, 1 times
98. Expenses in the form of salary, wages, frige benefits and other repeatitive expenses are classified as ___ as per historical cost model of
HRA.
Ans : Revenue Expense.
99. What is the essential idea of costing concept?
Ans : Cost Ascertainment
100. In marginal costing stock of finished goods is valued of ___
Ans : Lower than the value under absorption costing.
101. Marginal cost is the ___ cost of producing an additional unit of output.
Ans : Variable
102. As per ABC cost categorizations, direct materials and direct labour are categorized as ____
Ans :
103. As per ABC cost categorization, building maintenance and safety are categorized as ____
Ans : Facility – level costs.
104. _____ cost is the amount of benefits foregone from the second best alternative decision / action
Ans : Opportunity.
105. Joint Implementation Programme as per Kyoto Protocol is applicable to ____
Ans : Developed Countries.
106. Wipro Limited has ____ as unit of measurement for the financial year ended March 2019.
Ans : Millions.
107. Under which head do we classify bills receivable
Ans : Current Assets.
108. Listed companies are required to submit financial statements to
Ans : Stock Exchange
109. The term financial statement covers
Ans : Profit & Loss Statement and Balance Sheet.
110. Which account shows the profitability of the business?
Ans : Income Statement.
111. Cash and Cash equivalent during a financial period are shown under which statement?
Ans : Cash flow Statement.
112. Current liabilities include:
Ans : All of the above.
113. Current assets does not include
Land & Building
114. Tangible assets does not include
Goodwill
115. Net profit is determined in the
Profit & Loss statement
116. The profit on sale of old motor car will reflect to
Balance Sheet
117. Current liabilities are such obligations which are satisfied
within 1 year
118. Which of the following option is not recorded in the balance sheet?
Rent Paid
119. Profit on sale of machinery is an example of
Other Income
120. Inventories, cash and equivalents and accounts receivables are listed as
Assets on the balance sheet
121. An entities profits are normally determined by the exchange values of the liabilities or assets involved. Revenue recognition does
not take place till
When the revenue is Accrued
122. A computer software company decides to program software package on Feb 1, year 1 Rs.10,000 payments are to be made on the
first of each month, with the 1sr payment on March 1, year 1. The software is approved by June 1 client Year 2. How much should be
recognized for year 1 revenue?
Rs. 0
123. When should an airline recognize its revenue from airline tickets
When relevant flights occur
124. Bridge contractor has a contract with fixed price to construct a bridge. It is expected that the bridge will be completed in 2 years.
Progree billings would be sent to the client after every 3 months. What is the preferable point for revenue recognition for this contract
if the outcome of the contract could be assessed consistently?
When the progress is made to completion of the contract
125. In order to fulfill the matching principle the cost of labour service of a worker contributing to the production of a good should
usually be charged to the income statement for the time for which
When a good is sold
126. Unrealized profit and loss on trading securities would be written in the
Notes to the financial statement
127. Which of the following statements is true?
Revenue exists from ordinary activities only
128. If the agreed date of payment by a client is later than the date on which products or services are passed to that client, part of the
consideration will always be treated as finance income (not revenue). Agree or not agree
Not Agree
129. A performance obligation is fulfilled over time if
The company’s performance creates an asset that the clients control as it is created
130. Certain conditions should be fulfilled before a company is able to account for a customer contract. Which of the conditions below is
not one of those?
It is certain that the company will collect the___ to which it is entitled
131. Generally contracts costs incurred in relation to the contract with a customer should be
Recognized as an asset if they relate to a performance obligation which is not yet being fulfilled.
132. Satin Lts disclosed the following information for 2019 and 2018
Prepaid rent on 31 March 2018 – Rs.14000
Prepaid rent on 31 March 2018 – Rs.11500
Rent Expense for 2018-2019 – Rs.25200
Rs.22700
133. Break-even analysis is also called as
Business Analysis
134. In order to measure firm’s capability to fulfill its long term obligations, a finance manager would most likely examine
Solvency Rations
135. Which ratio would a firm most likely use to measure its ability to meet short-term commitments?
Current Ratio
136. ABC Co extends credit terms of 45 days to its customers. It’s credit collection would be considered poor if its average collection
period was
47 days
137. The notion of ratio with respect to the items depicted in the financial statements known as
Accounting Ratio
138. Debt-Equity ratio of a firm is sub-category of
Long term solvency ratio
139. Misclassification of revenue expense as a capital expense results in a
Decrease in expenses and an increase in profits
140. Shares are _____ and hence it can be measured as collateral security for raising loans
Commodities
141. Which of the following variable NOT included in Beneish Model
Networking Capital
142. The severe lapses in information disclosures and reporting by Indian firms have led to
Poor stick performance
143. Which of the following are not the sources about business risks?
Processes & People
144. Which of the following best distinguishes a product cost form period costs?
Period cost is expensed in the period in which it is incurred while product cost can be carried forward to next period in the form of
inventory
145. Which of the following is the difference between variable costs an fixed costs
Variable costs per unit fluctuate and fixed costs per unit remain constant
146. Which of the following costs are relevant for income measurement?
Absorbed and unabsorbed cost
147. Moon ltd opted for investment in its subsidiary which is expected to generate the return on investment for 10% while the required
return on such project with similar risks is 9%. The market equity return is 12%. What is opportunity cost for the firm
9%
148. A Ltd Sells only soaps and its variable cost is Rs.4000 and fixed cost is Rs.10000. It is deciding to launch the new product line which
will lead to increase in variable cost by Rs.5000 and fixed cost will remain Rs.10000. The incremental cost is?
Rs.5000
149. The most significant element of cost in furniture industry is
Material
150. Direct Material is recognized as a
None of these
151. Absorption refers to the
Charging of overheads to cost units
152. Warehouse expense cost is
Distribution cost
153. Example of direct expenses is
Royalty charged on production
154. ABC suggests the use of which of the following as the denominator, while initially making activity cost pool rates for each activity
Practical Capacity
155. Activity based costing systems would most likely give the maximum profits for firms that use
Job order costing
156. The main difference of differences between traditional costing and activity based costing amount for indirect manufacturing costs
is/are:
Traditional costing treats only unit level costs as variable, while ABC systems treat unit level, batch level and product level costs as
the variable
157. Which of the cost concepts most closely associated with activity based costing?
Long Run Variable Costing
158. What is an activity measurement in Activity based costing
Both B & C (A primary cost driver & The Volume of work associated with the activity)
159. In absorption costing decision making is based on
Profit
160. Which costing is not suitable where selling price is fixed on the basis of cost plus method?
Marginal Costing
161. Which of the following are merits of marginal costing?
All of the above
162. Calculate profit under variable costing technique, when number of units produced is 100000, selling price is Rs.10 per unit, variable
cost is Rs. 6 per unit and fixed costs are Rs.200000
Rs.200000
163. The other name for absorption costing is
Both A & B (Historical Costing & Total Costing)
164. Under absorption costing, profit is determined on the basis of
Both a & b (Computation as per desired rate of profit on sales or cost, Difference between total cost and sales)
165. Marginal costing is also known as
Both a & b (Direct Costing & Variable Costing)
166. For calculations of profit in marginal costing
Fixed cost is added to contribution
167. Marginal costs are taken as equal to
Direct Cost + Variable Overheads
168. If total cost of 100 units is estimate at Rs.50000 and then for 101 units it is Rs.50030 then increase if Rs.30 in total cost is
Marginal Cost
169. The cost which is partly fixed and partly variable is called
Semi variable cost
170. Costs that remain constant even when the activity base varies are known as
Fixed costs
171. Contribution Margin is the difference between sales
Variable Cost
172. When do we see increase in fixed cost per unit?
When the productions volume decreases
173. What is not the use of CVP analysis?
Analysis of the cash flow
174. Which one of the given option is a semi variable cost?
Electricity bill
175. Calculate total cost and the contribution per unit if you are provided with the following details:
Sales is Rs.40000. Sales in units is 4000 and variable cost is Rs,30000
Rs.10000 and Rs2.5
176. Calculate total contribution given that the fixed cost is Rs.40000 and profit is Rs.30000
Rs.70000
177. Which of the following is ab irrelevant cost?
Sunk Cost
178. Any export deal is acknowledged at
Below total cost but above marginal cost
179. Following practice should not be considered in, make or buy decisions
Uncharged fixed costs
180. The budget is a curve of all cash receipts and cash payment i.e.
Cash Budget
181. The meaning of flexible budget is
The planned activity level (units produces) is familiar to the actual level before budget comparison report is made
182. Relevant factor is evaluating the performance if an activity would be:
Difference between planned and actual results
183. Flexible budget requires careful study and classification of expenses in to:
Fixed, Semi-Variable and Variable Expenses
184. The budgetary control is like a tool of controlling
Revenue
185. One-time expenses incurred on human resource like recruiting training & developing is capitalized or determining the value of
employee in
Historical Cost Method
186. Calculating the value of human resource as a sum of present value of the future earning of employees is an approach used in
Capitalization of Profits Method
187. In the Kyoto Protocol which of the following are part of Annex Countries
Developed Countries with Industrialization
188. For accounting purpose Carbon credits are treated as
Asset (Inventory)
189. Human resource accounting advocates the treatment of human resource as
Current Assets
190. Lev & Schwartz model the value of human resource is assed as
Sum of present value of future annual earning to then
191. In historical cost model the value of human resource is assessed as
Opportunity cost of the human resource
192. As value of one certified emission reduction (CER) on Carbon Credits equal to
One ton of carbon
193. Carbon credits are valued at
Cost of NRV whichever is less
194. Calculate the margin of safety if sales is 20000 units and BEP is 15000 units
5000 units
195. If an owned premises is used for a business, the rental income forgone by not giving it on rent is an example of
Opportunity Cost

196. _____________ is an obligation present at the balance sheet date

Liability
197. ____________ attached with the balance sheet forms a part of the financial statement
Notes
 1 The access of the actual sales revenue ASR over the break even sales revenue (BESR) is known as Margin of Safety
The cost of a single process or a series of processes that simultaneously produce two or more
2 products of signification sales value is Joint cost
3 The ideal quick ratio is 1 ratio 1
4 resources that are limited in quantity are called as Key Factors
5 SEBI requires non finance companies to present cash flow -------- method Direct
6 Building is an example of ------ Non current asset
The entity's is obligation is to deliver good and services a
A contract with a customer sets out the rights and obligations of both, the entity and the customer. the right is to receive the consideration agreed for the
7 Which of the statement is correct? supply of goods and services
When production is more than units sold then the income under absorption costing will be ------in
8 comparison to income under variable costing Lower
9 Which report gives a review on the profitability of a business Income statement
Based on the following information for shine ltd. Cost of machine 200000, estimated life 10 yrs, scrap
11 value 6000, Calculate electricity 6 per hour
Based on the following information for shine ltd. Cost of machine 200000, estimated life 10 yrs, scrap
12 value 6000, Effective machine hours 2122 hrs
Based on the following information for shine ltd. Cost of machine 200000, estimated life 10 yrs, scrap
13 value 6000, Depreciation of machine 19400 pa
Based on the following information for shine ltd. Cost of machine 200000, estimated life 10 yrs, scrap
14 value 6000, Calculate machine hour rate 12.60 per hour
For abc ltd, annual rent of factory is Rs 1200000 and units produced in the current year are 100000.
16 The overhead absorption rate is 10 rs per unit, Calculate the under absorption in this case? 12 lakh
 700000
Following information is available of Prime ltd for year ended march 2020. Fixed cost rS 8,00000,
variable cost Rs 20 per unit selling price Rs 30 per unit Output level 200000 units, closing stock 50000
17 units. What will be amount of profit earned during the year using the marginal costing technique ?
Annual requirement is 100000 units; unit price 5, order cost 20 per order. Carrying cost 1 per unit and
18 lead time is 2 week the economic order quantity would be 2000 units
Which of the following items would be subtracted from net income when using the indirect method
19 of calculating cash flows provided by operating activities Gain on sale
20 An increase in variable cost per unit will lead to ------ reduction in contribution
21 _______________ is an example of non current assets property plant and equipment
For a financial institution interest paid and interest and dividends received are classified as _________
22 cash flows operating
23 Quick ratio is also called Acid test ratio
A company manufactures a single product for which cost and selling price data are as follows - Selling
price per unit Rs 6 variable cost per unit Rs 4 fixed cost for a period rs 20000 Budgeted sales for a
24 period -15000 units. The margin safety is 5000 units
When a department or product line is dropped, the common fixed costs which had been allocated to
25 that department are allocated to the remaining departments or product l

26 The principle underlying the variable cost is that the fixed manufacturing overheads are_________ All of these

The following details relate to a particular company a) total cost centre overhead are Rs 200000 for
machining dept. and Rs 150000 for assembly dept. b) machine hours used in machining are 10000 hrs
and in assembly are 5000 hrs c) labour hours used in machining are 4000 hrs and in assembly are
27 12000 hrs . The most appropraite overhead rate to use for the machining dept. would be 12.5 per labour
From total income, when CoGS, admin and Selling & Distribution expenses are deducted resulting
28 profit is known as EBITDA
30 Income from after sales services' to customers should be included in ___________ Other income
_________ companies earn interest from investments and therefore, for them, interest income is not
31 revenue Non Financial
32 the overheads are absorbed into different products under activity costing system using level of activity used in producing the cost unit
36 Which of the following would be considered a cash-flow item from a financing activity ? A cash outflow to repurchase the firm's own common st
37 on the basis of flexibility budget is classified into two types such as fixed budget ad ______ budget Fixed budget and flexible budget
Tibu company expects sales of Product W to be 60000 unts in April, 75000 units in May and 70000
units in June. The company desires that the inventory on hand at the end of each month be equal to
40% of the next month's expected unit sales. Due to excessive production during March, on march 31
there were 30,000 units of product W in the ending inventory Given this information, Tibu company's
38 production of Product W for the month of April should be 60000 units
Costs that tend to vay in direct proportion or in a one to one relationship to changes in production
activity, sales activity or some other measure of volume within relevant range for a given budget
40 period are referred to as Variable cost
__________ are the assets which the management expects to convert into cash within 12 months
41 after the balance sheet date Current asset
43 gain from sale of items of PP&E should be included in ____________ Other income
44 The closing inventory, if any, under absorption costing is valued at__________ ? Variable& fixed cost per unit
45 The main operations related expenses of a business are termed as _____ Operating
46 Assumptions regarding the VCP graph are All of these
48 Which statement shows the flow of cash and cash equivalents the financial period? Cash flow statement
50 Goodwill is categorised under which assets Intangible asset
52 Cost of factory lighting is an example of ____________ ? direct cost
54 Patent is categorised under which assets? Intangible assets
___________ are the assets which the management expects to convert into cash within 12 months
58 after the balance sheet date Current assets