1. Financial accounting discloses the financial performance of a business as a whole and not about an individual department or a process
2. From the given options, what are the examples of deferred revenue expenditure?
Initial advertisement expenditure. Research & development expenditure.
3. Where the daily time sheet method of time booking may be conveniently used
Where the worker works of various jobs of duration.
Casting refers to the totaling of books of accounts.
5. Accrued income
This indicates the amount of income for the current period which is not received during it
6. There can be a number of methods for absorbing the overheads but the ultimate selection of method has to be made after considering various factors . From the given options select such a factor to be considered.
the like type of industry, nature of products
7. For which of the following purpose, control ledgers can be maintained in practical circumstances.
Advances to staff, sundry debtors.
8. Cash book records these transactions
Cash receipts; cash payments;
9. There are some fixed rules & principle for deciding the number and size of cost centers.
10. Standard may not be necessarily useful for this purpose.
Standard costing and budgetary control_are the best possible tools available to the management tor the purposeof controlling the costs. Both the techniques involve the process of setting the targets or standards, measurement of actual performance, comparison of actual performance with targets or standard set, computation and analysis of variations and the attempts to maintain favorable variations and remove unfavorable variations.
11. The ………… Note stands for an intimation sent to the supplier at the time of returning the goods which informs the supplier that his account is being debited on account of goods returned to him.
12. Budgets are the ceilings or limits on expenses above which actual expenditure should not normally exceed and if it does ……..
the planned profits will be reduced.
13. Select the transactions which can be entered in the Journal proper.
Opening entries , Closing entries , Rectification entries
14. The production Cost Budget further classified under each element of cost such as Direct Material Cost Direct Labour Cost and Overheads Cost.
15. In case of the under or over absorption of the overheads arising out of the abnormal circumstances, they are written off to Costing Profit and Loss Account.
16. For the apportionment of power cost, Kwh/HP rating would have ……….
be an ideal base
17. In practical circumstances, control ledgers may be maintained for the following categories:-
Sundry debtors , Sundry creditors , Advance to Staff
The criteria for selecting the final source of supply may depend upon the terms of offer which can be compared in respect of price offered, quality, other terms (like Sales Tax, Octroi, Freight etc.), terms of delivery, terms of payment, guarantee offered by the supplier, goodwill of the supplier non-corporate organizations, (which are not a legal entity separate from the owners).
18. A budget manual:
document setting out the responsibilities of the persons engaged in and the forms and procedures required for the budgetary control.
19. in good wage payment stystem, workers should not be punished in term …….. due to circumstances like machinery breakdown, power failures etc.
20. ………… involve the process of setting the targets or standards, measurement of actual performance, comparison of actual performance with targets or standard set, computation and analysis of variations and the attempts to maintain favorable variations and remove unfavorable variations.
Both the techniques, The budgetary control & Standard Costing
21. With the process of primary apportionment or distribution, the loading of overheads for all the departments i.e. production as well as service departments can be obtained. What would be the next step?
to transfer the overheads of non-production departments to the production departments,
22. Budget period:
period of time for which the budget will be prepared and operated.
23. Budget centre
Is that section of the organization with respect to which the budgets will be prepared.
24. As current conditions are likely to change, the current
standards are also subject to revision as per the changes in current conditions,
25. How should be the standards fixed to measure the efficiency of a worker in the organization.
Standard should be normal, which a normal worker in normal conditions can attain.
26. ………. is assessed at the end of accounting period by preparing the balance sheet.
27. Only large scale organization can afford to install & operate management accounting because it requires?
Elaborate organizational structure, number of business rules & regulations.
28. Material cost is important part of manufacturing process, from the given options which sentences are suitable for the term ?
Material cost can be direct or indirect. This is the cost of commodities & material used by the organization.
29. What does direct labour cost indicate.
It indicates that labour cost which can be identified with the individual cost centre. It is incurred for those employees who are engaged in the manufacturing process.
30. Personal Accounts may consist of
Accounts of suppliers, capital account.
31. In the Bin card entries in issue columns are made on the basis of materials requisition note
32. While balancing the ledger account, if the balance appers on the credit side, the account will be considered to ________ balance
33. Theses are not subject matter of financial accounting
34. In the process of controlling the costs of operating the business. Which steps are generally involved?
Measuring actual performance, Comparison of planned & actual performance.
35. The final result disclosed by the Manufacturing Account is the ……..
Cost of Production
36. The hand written method of time keeping is simple……..
has become outdated
37. If similar transactions take place on the same day and the same account is either debited or credited is same. Then transaction is accounted journal entry.
by passing compound
38. Form the given options, which consequences may overstocking of materials have
Risk of deterioration of quality & obsolescence. Additional insurance cost.
39. Complete the given sentence by selecting the appropriate answers regarding the determination of actual cost, â€œThe actual cost information is available only after the completion of the job, process or service and
Hence it has practical utility from control point of view; There no basic is provided with which actual cost can be compared
40. In case of the situations where there are more than one key factor, what is the first thing to do necessarily
The importance of the key factors themselves will be assessed first
41. While selecting the budget period, it should be noted that â€“too long budget period makes correct estimation more easy, where too short a budget period may prove to be also profitable one
42. What can be considered as a good base for primary apportionment of overheads like staff supervision
Number of workers/employees
43. After receiving the ________ should be made, so that best possible source can be selected.
Comparison among the various available sources
44. What does the accrual system of accounting considered to be
More ideal; Generally preferred
45. Mr. Saxena business with cash Rs. 10,000, Machinery Rs 20,000, and Building of Rs 40,000, in his books journal Credit will be given to (s)
To Saxena A/C 10,000; To Saxena A/C 70,000; To Capital A/C 70,000; To Asset A/C 70,000
46. _______ can be the example of variable overheads.
Nuts/bolts, loose tools etc
Match The Following
Purchases day book:- Credit purchase transaction
Sales day book:- credit sales transactions
Sales return register:- Credit sales goods returned by the customer
Purchases return register:- Credit purchase goods returned to supplier
47. Organization is assumed to be a separate entity & accounting process is carried out for the business and not for the owner.
48. There can be a number of methods for absorbing the overheads but the ultimate selection of method has to be made after considering various factors. From the given options select such a factor to be considered.
Type of industry and nature of products
49. From the following options which can be classified as impersonal cost centre
50. Which of the statements depict the meaning of ‘standard cost’
It is a predetermined cost which is calculated from the management standards of efficient operation; It is a predetermined cost which is calculated from the relevant necessary expenditure
51. In case of remuneration in non monetary form, the workers may not receive anything in the form of money.
Match the following
Stores Department:- Number of requisitions
Purchase Department:- number of purchase order
Internal transport:- Weight/value of goods moved
Personnel/Time keeping Department:- Number of employee
52. Organizations, Which by themselves are separate legal entity, from the owners are known as-
53. _______ is an intimation sent to the supplier at time of returning goods informing that his account is debited on account of goods returned to him.
54. The direct cost can be identified _______ and hence poses difficulties to change.
With the individual cost center
55. Compound entry means duplication of the entry, of the transaction happened, in the journal book.
56. Management accounting suffers limitation due to
It requires constant improvement of techniques; Uncertainty about its application
57. Goods sent to the customers on approval basis ______ the sales, while preparing the final accounts.
Should not be treated as
58. In order to bring uniformity in recording business transactions, the procedures are followed. They are broadly categorized as-
Accounting conventions and concepts