Professional Documents
Culture Documents
True/False
Question To take make or buy decision under the marginal costing , if purchase
price of the product is less than its variable cost it is advisable to go for
manufacturing proposition.
Correct Answer False
Your Answer False
True/False
Question A business is an activity carried out with the intention of earning the
profit.
Correct Answer True
Your Answer True
True/False
Question Accounting is an art of recording, classifying & summarizing in a
significant manner.
Correct Answer True
Your Answer True
Multiple Choice Single Answer
Question For a unit, if opening stock of raw material is 10,000 units, closing
stock of raw material is 5,000 units and consumption is 3,20,000 units, what
will be the quantum of raw material to be purchased
Correct Answer 3,15,000
Your Answer 3,15,000
True/False
Question For taking make or buy decision marginal costing technique provide
useful assistance.
Correct Answer True
Your Answer True
True/False
Question Profitability statement indicates the amount of assets & liabilities.
Correct Answer False
Your Answer False
True/False
Question The variable costs are controllable at the lower level.
Correct Answer True
Your Answer True
True/False
Question Balance sheet indicates the expenditure & income from the business.
Correct Answer False
Your Answer False
True/False
Question Credit balances in all the Personal & Real accounts appear on asset
side.
Correct Answer False
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
True/False
Question Non-operating / financial expenses are added while calculating net
profit.
Correct Answer False
Your Answer True
True/False
Question Balance sheet indicates the financial status of the business at given
period.
Correct Answer True
Your Answer True
True/False
Question Due to errors of principle the arithmetical accuracy of the trial
balance does not get affected.
Correct Answer True
Your Answer True
True/False
Question Bin Card is having all the information of item received and issued.
Correct Answer False
Your Answer True
True/False
Question Accounting refers to the process of analyzing & interpreting the
information already recorded in the books of accounts.
Correct Answer True
Your Answer True
True/False
Question
Credit balances in all the Personal & Real accounts appear on asset side.
Correct Answer
False
Your Answer
False
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
Long term loan borrowed from financial institution comes under the heading of
long term liabilities.
Correct Answer
True
Your Answer
True
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
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
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
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
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
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
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
True/False
Question
Penalty paid for delay in payment to creditors represents uncontrollable cost.
Correct Answer
False
Your Answer
False