Management Accounting - 4

LIST OF ATTEMPTED QUESTIONS AND ANSWERS


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

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 Management Accounting is the process of analysis and interpretation of financial data collected with help of financial accounting and cost accounting
Correct Answer True
Your Answer True

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 True

True/False
Question Cost Accounting is concerned with calculation of the profitability and state of affairs of the organization as a whole.
Correct Answer False
Your Answer False

True/False
Question Financial accounting may deal with the ascertainment of cost & calculation of profitability of the individual product.
Correct Answer False
Your Answer False

True/False
Question Management Accounting aims at enabling the management to take the decisions about the future. It may consider future data as well as non-financial factors.
Correct Answer True
Your Answer True

True/False
Question Financial Accounting primarily protects the interests of the outsiders dealing with organization in various capacities.
Correct Answer True
Your Answer True

Match The Following
Question Correct Answer Your Answer
Financial Accounting Systematic recording of business transactions Systematic recording of business transactions
Cost Accounting Ascertainment of cost Ascertainment of cost
Management Accounting Analyzing & interpretation of financial data Analyzing & interpretation of financial data
Accounting Art of interpreting & classifying business transaction Art of interpreting & classifying business transaction
Book Keeping Recording of business transactions Recording of business transactions

Match The Following
Question Correct Answer Your Answer
Bills Payable Amount payable to supplier Amount payable to supplier
Bills Receivable Amount received from the customer Amount received from the customer
Trade Discount Not accounted for in the books of Accounts Not accounted for in the books of Accounts
Cash Discount Accounted for in the books of Accounts Accounted for in the books of Accounts
Bad debts Amount not received from customer Amount not received from customer

True/False
Question Amount invested in purchasing Fixed Asset is a revenue expenditure.
Correct Answer False
Your Answer True

Multiple Choice Multiple Answer
Question Going Concern Concept __________________
Correct Answer Indefinite longer period , Not likely to close down in shorter period , This affects the values of asset and liabilities
Your Answer Indefinite longer period , Not likely to close down in shorter period , This affects the values of asset and liabilities

Multiple Choice Multiple Answer
Question Cost of asset is 1,20,000, estimated scrap value 20,000, cost of assets subjected to depreciation 2,00,000, rate of depreciation is 10%. Calculate depreciation for 3 yrs as per the reducing balance m
Correct Answer 20,000,18,000,16,200
Your Answer 20,000,18,000,16,200

Multiple Choice Multiple Answer
Question Profit & Loss A/C credit side has
Correct Answer Gross profit , Commission received , Interested received
Your Answer Gross profit , Commission received , Interested received

Multiple Choice Single Answer
Question Juhi started business with Rs borrowed capital of Rs. 1,00,000 with 10% interest per year. What is the total amount of the capital
Correct Answer 1,10,000
Your Answer 90,000

True/False
Question Cheques issued but not yet presented – the balance as per the bank pass book will be higher.
Correct Answer True
Your Answer False

Multiple Choice Single Answer
Question This cost indicates historical cost which is incurred in past.
Correct Answer Sunk cost
Your Answer Sunk cost

Multiple Choice Single Answer
Question Labour cost is the cost of __________ paid to employees of the organization.
Correct Answer Remuneration
Your Answer Remuneration

Multiple Choice Single Answer
Question Company having opening stock of Rs. 1,80,000 purchase Rs. 8,00,000. Freight Inward Rs, 35000 & closing stock Rs. 2,00,000, having direct wages Rs. 2,35,000. What will be prime cost.
Correct Answer 10,50,000
Your Answer 10,50,000

Multiple Choice Multiple Answer
Question For the proper interpretation and presentation of cost the overhead further classified as
Correct Answer Factory overheads , Office and administration overheads , Selling & distribution overhead
Your Answer Factory overheads , Office and administration overheads , Selling & distribution overhead

True/False
Question Valuation of returns indicates the material returned by store department to production department
Correct Answer False
Your Answer False

True/False
Question The wage payment system should take into consideration the external obligations such as the Minimum wages Act and the agreement entered into by the organization with the workers.
Correct Answer True
Your Answer True

True/False
Question A good wage payment system will punish the workers for the matters beyond the control of the workers.
Correct Answer False
Your Answer False

Multiple Choice Multiple Answer
Question These are the features of fixed overheads
Correct Answer total cost remains the same , per unit cost may vary , not dependent on volume of output
Your Answer total cost remains the same , per unit cost may vary , not dependent on volume of output

True/False
Question Under marginal costing technique only fixed costs are considered as relevant for decision making.
Correct Answer False
Your Answer False

True/False
Question Product mix refers to the proportion in which various products of a company can be sold.
Correct Answer True
Your Answer True

Multiple Choice Single Answer
Question The cost that varies in direct proportion with the level of activity is called
Correct Answer variable cost
Your Answer variable cost

Multiple Choice Multiple Answer
Question Basic assumptions made by marginal costing are
Correct Answer per unit selling price remains constant at all the levels of activities. , whatever is produced by the organisation is sold off. , per unit variable cost remain constant.
Your Answer per unit selling price remains constant at all the levels of activities. , whatever is produced by the organisation is sold off. , per unit variable cost remain constant.

Multiple Choice Single Answer
Question Calculate Volume Variance, If budgeted production is 20,000 units, actual production is 22,000 units and Standard rate per unit is Rs.1.5/-.
Correct Answer Rs.3,000/- ( Favorable )
Your Answer Rs.3,000/- ( Favorable )

Multiple Choice Single Answer
Question Calculate Sales Price Variance, If actual price is Rs.5.40/- per unit, Standard price is Rs.5/- per unit and actual sales volume is 500 units.
Correct Answer Rs.200/- ( Favorable )
Your Answer Rs.200/- ( Favorable )

Multiple Choice Single Answer
Question Standard Costs are used as tool for
Correct Answer Cost Control
Your Answer Price fixation

Multiple Choice Single Answer
Question Standard Costing specifically relates to the function of
Correct Answer Production
Your Answer Production

True/False
Question Uniform Costing disturbs the healthy competition in the industry
Correct Answer False
Your Answer True

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

Multiple Choice Multiple Answer
Question The following factors affects the budgeted advertisement cost
Correct Answer Percentage of profits , Availability of funds , Competitors policy
Your Answer Percentage of profits , Availability of funds , Competitors policy

Multiple Choice Multiple Answer
Question In Cash budget , Operating cash outflow includes
Correct Answer Payment to Creditors , Cash purchases of raw material , Wages/salaries
Your Answer Payment to Creditors , Cash purchases of raw material , Wages/salaries

Multiple Choice Multiple Answer
Question Characteristics of budget can be said to be
Correct Answer It may be prepared in terms of quantity or money or both , It is prepared for a fixed period of time , It spells out objectives to be attained
Your Answer It may be prepared in terms of quantity or money or both , It is prepared for a fixed period of time , It spells out objectives to be attained

Select The Blank
Question Like initial formation expenses, ________ and R & D are the examples of Deferred Revenue Expenditure
Correct Answer Initial Advertisement
Your Answer Purchase of an asset
Correct Answer R & D
Your Answer

Select The Blank
Question If ________ is not provided, the asset may appear in the Balance Sheet at an ________ amount
Correct Answer depreciation
Your Answer depreciation
Correct Answer overstated
Your Answer overstated

Select The Blank
Question If ________ books are the books which record the transactions in the chronological order, ________ is the book where transactions of a similar nature are pooled together
Correct Answer subsidiary
Your Answer jornal
Correct Answer ledger
Your Answer ledger

Select The Blank
Question While selecting source of supply ________ epartment may call for the ________ from the prospective suppliers
Correct Answer purchase
Your Answer purchase
Correct Answer quotation
Your Answer quotation

Select The Blank
Question Preventive costs of labour turnover refers to all the costs which may be incurred by the organisation to keep workers happy and ________ them from ________ the job
Correct Answer discourage
Your Answer discourage
Correct Answer leaving
Your Answer leaving

Select The Blank
Question 4.Under the differential time rate method the wages are paid at Rs. 1.50 per hour between ________ efficiency and Rs.1.25 per hour between ________ efficiency
Correct Answer 101% to 125 %
Your Answer 101% to 125 %
Correct Answer 80% to90%
Your Answer 80% to90%

Select The Blank
Question Expenditure like general lighting are apportioned considering ________ as a base and expenditure like depreciation are apportioned considering ________ as a base.
Correct Answer number of light points
Your Answer number of light points
Correct Answer value of assets
Your Answer value of assets

Select The Blank
Question ________ and ________ are examples of element wise classification ofoverhead costs
Correct Answer Idirect material
Your Answer Idirect material
Correct Answer indirect labour
Your Answer indirect labour

Select The Blank
Question Break even point is a situation of no ________ no ________
Correct Answer profit
Your Answer profit
Correct Answer loss
Your Answer loss

Select The Blank
Question A key factor is defined as the factor which, at a particular point of time or over a period will ________ the volume of ________
Correct Answer limit
Your Answer limit
Correct Answer output
Your Answer output