Management Accounting - 2

True/False
Question
Credit balances in all the Personal & Real accounts appear on asset side.
Correct Answer
False
Your Answer
False

Multiple Choice Multiple Answer
Question
Contents of Uniform Cost Manual are
Correct Answer
Organization , Cost Accounting system , Presentation of information
Your Answer
Organization , Cost Accounting system , Presentation of information

Multiple Choice Multiple Answer
Question
Uniform Costing Methods may be advantageously applied to . . .
Correct Answer
Single organization having number of branches. , Number of companies in same industry , Similar Industries such as cotton, jute etc.
Your Answer
Single organization having number of branches. , Number of companies in same industry , Similar Industries such as cotton, jute etc.

True/False
Question
1) Financial statements are basically in two forms i.e. profitability statement and balance sheet.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
The process of accounting has three streams of accounting ---------------,--------and ----------------------.
Correct Answer
Financial Accounting , Cost Accounting , Management Accounting
Your Answer
Financial Accounting , Cost Accounting , Management Accounting

True/False
Question
Long term loan borrowed from financial institution comes under the heading of long term liabilities.
Correct Answer
True
Your Answer
True

Match The Following
Question
Correct Answer
Your Answer
Book-Keeping
Books of Accounts
Books of Accounts
Financial statement
Profitability statement & Balance-sheet
Profitability statement & Balance-sheet
Accounting
Process of analyzing & interpretation
Process of analyzing & interpretation
Profitability statement
Indicates the amount of profit earned
Indicates the amount of profit earned
Balance-sheet
Financial status
Financial status

Multiple Choice Single Answer
Question
Judge the statement according to the criteria given : ' The accounting period for XYZ Ltd. ends on 31st December, 2003. It is noted that office rent for the month of December, 2003 is paid on 15th January, 2004. "According to concept of matching expenses with the revenues, this expenditure should be recorded in the books of accounts in January,
Correct Answer
The statement and its reason are both incorrect
Your Answer
The statement is correct but its reason is incorrect

Multiple Choice Multiple Answer
Question
Features of money measurement concept are . . .
Correct Answer
Only those transactions and facts are included expressed in terms of money are considered , Imposes severe restrictions on the kind of information available from financial statements , Works as a major drawback of financial accounting
Your Answer
Only those transactions and facts are included expressed in terms of money are considered , Imposes severe restrictions on the kind of information available from financial statements , Works as a major drawback of financial accounting

Multiple Choice Single Answer
Question
The installation and operation of ___________ accounting requires a very elaborate organizational structure and large number of rules & regulations
Correct Answer
Management
Your Answer
Management

Select The Blank
Question
________account can be defined as the record of all the transactions pertaining to a person, asset, liability income or expenditure which have taken place in a specified period.
Correct Answer
Ledger
Your Answer
Trading

Match The Following
Question
Correct Answer
Your Answer
Sunk Cost
Historical Cost
Historical Cost
Cost Centre
Facilitate the fixation of responsibility
Facilitate the fixation of responsibility
Cost Control
Process of controlling costs of operations
Process of controlling costs of operations
Differential Cost
Increase or Decrease in cost
Increase or Decrease in cost

Multiple Choice Multiple Answer
Question
Which of the following transactions should be excluded while preparing a cost sheet ?
Correct Answer
Interest on loan , Bad debts , Expenses on criminal law suit
Your Answer
Sale of scrap material , Interest on loan , Bad debts

True/False
Question
In a Balance-Sheet right hand side is referred as assets side and left hand side is referred as liabilities.
Correct Answer
True
Your Answer
True

True/False
Question
Credit note is an intimation send to person dealing with the business that his account being debited for the purpose indicated therein.
Correct Answer
False
Your Answer
False

True/False
Question
Primary distribution is effected on the basis of service rendered to the service departments by the production departments.
Correct Answer
False
Your Answer
True

Multiple Choice Multiple Answer
Question
Marginal costing is found to be unsuccessful in the following situations :-
Correct Answer
Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive industries where fixed costs are very large and hence cannot be ignored , With respect to service industries where employee costs are very large and almost fixed in nature
Your Answer
Impossible to distinguish costs into fixed and variable component. , With respect to capital intensive industries where fixed costs are very large and hence cannot be ignored , With respect to service industries where employee costs are very large and almost fixed in nature

True/False
Question
Debit Note is an intimation sent to person dealing with the business that his account is being credited for the purpose indicated therein.
Correct Answer
False
Your Answer
True

Multiple Choice Multiple Answer
Question
Labour efficiency variance arises due to:
Correct Answer
Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material
Your Answer
Inefficient supervisor , Poor working conditions , Use of sub-standard quality of material

True/False
Question
Financial Accounting discloses the financial performance & financial statements of the business as a whole.
Correct Answer
True
Your Answer
True

True/False
Question
Balance sheet indicates the expenditure & income from the business.
Correct Answer
False
Your Answer
True

Select The Blank
Question
The indirect material cost, indirect labour cost and indirect expenses cost, collectively are termed as ________.
Correct Answer
Overhead
Your Answer
Overhead

Select The Blank
Question
A person in charge of a ________ may be held responsible for its proper functioning and cost control.
Correct Answer
Cost centre
Your Answer
Cost centre

Multiple Choice Multiple Answer
Question
The organization chart shows the following aspects :
Correct Answer
Functional responsibility of different functional managers , Delegation of authority to various managers , Inter-functional relationships of these managers
Your Answer
Functional responsibility of different functional managers , Delegation of authority to various managers , Inter-functional relationships of these managers

True/False
Question
Uniform costing system is a pre-requisite to an inter-firm comparison of firms belonging to the different industries.
Correct Answer
False
Your Answer
False

True/False
Question
P&L statement which is a period statement & relates to a certain period tells about results of operations.
Correct Answer
True
Your Answer
False

Select The Blank
Question
Depreciation charged on office furniture on straight line basis is an example of ________.
Correct Answer
Administration overheads
Your Answer
Administration overheads

True/False
Question
Under time rate system a worker is paid on the basis of production achieved by him in a given time.
Correct Answer
False
Your Answer
False

Select The Blank
Question
Information as to the cost and profit / loss associated with the firm's operations is provided to the ________ by Management accounting.
Correct Answer
Management
Your Answer
Management

True/False
Question
Danger level for inventory of materials means the safety stock of inventory.
Correct Answer
False
Your Answer
True

True/False
Question
The role of the budget committee may be taken as an advisory role to the Chief Executive.
Correct Answer
True
Your Answer
True

Multiple Choice Multiple Answer
Question
The main advantages of profit sharing are :
Correct Answer
Employees try to increase productivity , Incentives are shared by all the employees , Augments emplyees' efficiency
Your Answer
Employees try to increase productivity , Incentives are shared by all the employees , Augments emplyees' efficiency

Select The Blank
Question
________ Accounting assists the management in establishing the plans to attain the economic objectives and take proper decisions for the attainment of its objectives.
Correct Answer
Management
Your Answer
Management

Multiple Choice Multiple Answer
Question
Which of the following is likely to be a contributory factor to the incidence of excess expenditure on material cost?
Correct Answer
The level of control of the used of material in the production cycle , The incorrect choice of purchase order quantity , Failure to control the issue of materials from stores
Your Answer
An increase in the maximum material inventory level , The incorrect choice of purchase order quantity , Failure to control the issue of materials from stores

Multiple Choice Multiple Answer
Question
Management accounting is concerned with the following activities :
Correct Answer
Decision making , Safeguarding assets , Planning and controlling activities
Your Answer
Decision making , Safeguarding assets , Planning and controlling activities

Multiple Choice Multiple Answer
Question
Features of double entry accounting system are . . .
Correct Answer
Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit
Your Answer
Every business transaction has two elements , When business receives something, it has to pay something , Every debit has a corresponding credit

Select The Blank
Question
Under Differential Time Rate method payment is made at Rs. 1.40 per hour when the level of efficiency is between________.
Correct Answer
90% to 100%
Your Answer
90% to 100%

True/False
Question
Maintenance Department is a service cost centre.
Correct Answer
True
Your Answer
True

True/False
Question
The process of accounting split into three steams i.e. financial, cost, management accounting.
Correct Answer
True
Your Answer
True

Select The Blank
Question
The difference between sales and cost of sales is termed as ________.
Correct Answer
Net Profit
Your Answer
Net Profit

Select The Blank
Question
The final result disclosed by trading account is the ________profit earned by the organization.
Correct Answer
Gross
Your Answer
Gross

Multiple Choice Multiple Answer
Question
Select the accounts to be disclosed on the liability side of the Balance sheet.
Correct Answer
Loan , Outstanding expenses , Creditors
Your Answer
Loan , Outstanding expenses , Creditors

True/False
Question
Penalty paid for delay in payment to creditors represents uncontrollable cost.
Correct Answer
False
Your Answer
False

Multiple Choice Single Answer
Question
Which document facilitates estimating material cost of a particular job, before completion of that job?
Correct Answer
Bill of material
Your Answer
Material requisition note

Multiple Choice Single Answer
Question
Purchases returns of Rs.18,000/- were wrongly transferred to the sales returns account. Calculate its impact on net profit.
Correct Answer
The net profit will not be affected
Your Answer
The net profit will not be affected

Multiple Choice Single Answer
Question
It is said that adoption of uniform costing creates customer confidence because . . .
Correct Answer
Prices are reliable
Your Answer
Prices are reliable

Multiple Choice Single Answer
Question
An order for goods worth Rs.18,000/- was placed on 25th March, 2004. The goods were received on 1st April, 2004. Calculate the impact of this transaction on the final statements of accounts for the year ended 31st March, 2004.
Correct Answer
The net profit will not be affected
Your Answer
The net profit will not be affected