ACCOUNTANCY- PAGE 4
1:-The account prepared to find out the stock as on the date of fire
A:-trading account B:-stock account C:-memorandum trading account D:-lossof stock account
Ans: C
2:-Overriding commission is given for
A:-selling goods at higher price B:-for bearing loss C:-for bearing expenses D:-for bearing bad debts
Ans: A
3:-AS-3 relates to ...........
A:-cash flow statement B:-valuation balance sheet C:-disc|osure of accounting policies D:-accounting for amalgamation
Ans: A
4:-'anticipate no profit but provide for all possible losses' is based on concept/convention
A:-consevatism B:-consistancy C:-revenue D:-materiality
Ans: A
5:-If a plant purchased for Rs.10000, its book value is Rs.6000 and it sold for Rs.12000. what is its capital profit
A:-Rs.2000 B:-Rs.6000 C:-Rs.4000 D:-Rs.3000
Ans: A
6:-Cost of Rs.300000 for dismantling, removing and reinstalling a plant by a medium size sugar mill incurred in connection with the removal of works to a more suitable locality is considered as
A:-capital expenditure B:-revenue expenditure
C:-deferred revenue expenditure D:-capital loss
Ans: C
7:-Give an example of indirect expenses
A:-customs duty B:-royalty C:-trade expense D:-cartage and freight
Ans: C
8:-An amount of Rs.500 received from M credited to N, it would affect
A:-M's Account
B:-N's Account
C:-Cash Account
D:-Account of M& N
Ans: D
8:-Which is the most appropriate method of depreciation for loose tools, livestock jigs etc
A:-revaluation method B:-fixed installment method C:-dep|etion method D:-Diminishing balancing method
Ans: A
9:-Goodwill is a ......... asset.
A:-tangible B:-intangible C:-current D:-fluctuating
Ans: B
10:-Excess of opening capital over closing capital denotes ..........
A:-profit B:-lossC:-additional capital D:-|esser capital Ans: B
11:-Under stock and debtors system, loading in opening stock is credited in
A:-stock account B:-debtors account C:-branch adjustment account D:-trading account
Ans: C
12:-The unexpired discount for a banking company is
A:-Income B:-expense C:-liability D:-none of the above
Ans: C
13:-Statutory reserve created by a banking company as per Banking Regulation Act 1949 is
A:-20% B:-25% C:-15% D:-10%
Ans: B
14:-Cost of control of holding company account is credited with A:-revenue profit B:-capital profit C:-revenue loss D:-capital loss Ans: B
15:-In case of amalgamation, the liabilities which are not taken over by the new company are transferred to A:-Realization a/c B:-Partner's capital A/c C:-partner's current A/c D:-bank A/c Ans: A
16:-The debentures which do not carry any charge on assets of a company is called
A:-naked debenture B:-registered debenture C:-bearer debenture D:-first debenture
Ans: A
17:-Premium paid on the life policy of the proprietor is
A:-debited to P&L a/c B:-deducted from capital C:-credited to P&L A/c D:-added to capital a/c
Ans: B
18:-As Per companies Act 2013 maximum number of members in a partnership firm shall not exceed ------
A:-50 B:-20 C:-100 D:-150
Ans: C
19:-Minimum number of members for a public limited company is
A:-2 B:-3 C:-4 D:-5
Ans: B
20:-Investment made to earn regular income
A:-Short term investment B:-fixed investment C:-trade investment D:-marketable investment
Ans: B
21:-Research and development cost is an example of A:-Imputed cost B:-pre-production cost C:-Sunk cost D:-conversion cost Ans: B
22:-When the price of materials are fluctuating widely, which is the most effective method of issue of materials A:-FIFO B:-LIFO C:-Weighted average method D:-Simp|e average method Ans: C
23:-Which is cost accounting record? A:-Bill of material B:-Bin card C:-Store ledger D:-material requisition Ans: A
24:-Which method of costing is followed by general engineering workshops? A:-batch cost B:-unit cost C:-job cost D:-operation cost Ans: C
25:-Find out EOQ from the following Annual usage -6000 units, cost of material per unit Rs.20. cost of placing an order Rs.60. Annual carrying cost of one unit is 10% of inventory value A:-600 unit B:-1200 unit C:-120 unit D:-360 unit Ans: A
26:-Obsolete stock is those A:-have low turnover B:-having no demand for technological changes C:-having no present demand, but it may be in future D:-having high demand when price decreases Ans: B
27:-Which of the following is not an indirect cost A:-wages of production department machine operator B:-wages of a production department cleaner C:-materials used for machine maintenance in the production department D:-materia|s used to clean the production department floor Ans: A
28:-Royalties paid for the use of patent is an example A:-Direct cost B:-se|ling overhead
C:-indirect cost D:-production cost Ans: A
29:-If vendors are issued fully paid shares of Rs.2,00,000 in consideration of net assets of Rs.1,80,000, the balance of Rs.20,000, will be debited to
A:-P&L a/c B:-Goodwilla/c C:-Capital reserve a/c D:-Genera| reserve a/c
Ans: B
30:-Discount allowed on reissue of forfeited shares is debited to A:-discount on issue of shares a/c B:-forfeited shares a/c C:-P&L a/c D:-capital reserve a/c Ans: B
31:-The balance of sinking fund investment a/c after the realization of investment is transferred to A:-P&L a/C B:-debenture a/c C:-sinking fund a/c D:-debentures suspense a/c Ans: C
32:-Divisible profit does not include A:-Reserve fund B:-Profit of revaluation of asset C:-pre-incorporation profit D:-dividend equalization profit Ans: B
33:-Preliminary expenses are transferred by the vendor company at the time of amalgamation to A:-realization a/c B:-equity shareholders a/c C:-purchasing company a/c D:-Goodwilla/c Ans: B
34:-In case of insurance companies the legal fees with respect of claims is shown in A:-revenue a/c B:-P&L a/c C:-P&L appropriation a/c D:-Ba|ance sheet Ans: A
35:-In case of banking company the VRS expenditure is treated as A:-deferred revenue expenditure B:-capital expenditure C:-revenue expenditure D:-operating expenditure Ans: A
36:-Taxation provision made by the subsidiary company will appear in consolidated balance sheet as an item of A:-current liability B:-revenue profit C:-capital profit D:-non current liability Ans: A
37:-In hotel business room rate is fixed on the basis of A:-no. of available rooms which can be hired out during a particular period B:-the estimated cost of operation during a particular period C:-the expected fair return on the investment D:-All the above Ans: D
38:-A and B are partners in a business sharing profit and loss in the ratio of 3:2 they admit a new partner C with 1/5 share in the profits. Calculate the new profit sharing ratio of the partners A:-12:8:5 B:-4:2:3 C:-5:2:1 D:-6:4:3 Ans: A
39:-Genera| provision for doubtful debts in case of standard assets is to be made by a banking company is A:-0.l% B:-0.40% C:-l% D:-0.25% Ans: B
40:-When actual loss is less than the normal loss, it is A:-norma| waste B:-abnorma| waste C:-normal gain D:-abnormal gain Ans: D
41:-............. variance is that portion of material cost variance which is due to the difference between actual quantity consumed and standard quantity specified A:-materia| usage B:-material yield C:-material mix D:-materia| cost variance Ans: A
42:-What will be the main reason for labour rate variance? A:-inefficient workers B:-defective tools, plant and machinery C:-insufficient training of workers D:-change in basic wage rate Ans: D
43:-Subdivision of overhead volume variance are A:-efficiency variance B:-capacity variance C:-ca|endar variance D:-a|| the above Ans: D
44:-From the following budget, which gives a summary of all functional budget A:-capital budget B:-master budget C:-f|exib|e budget D:-discretionary budget Ans: B
45:-Metal pieces left in utensil manufacture is an example of A:-joint product B:-by-product C:-scrap D:-waste Ans: C
46:-Operating costing is applicable in A:-e|ectricity companies B:-water works C:-shipping companies D:-meta| product companies Ans: D
47:-From the following which is not a part of job costing procedure A:-production order B:-cost of sales account
C:-cost card D:-cost sheet Ans: C
48:-Which is not come under selling and distribution overhead A:-transportation B:-warehouse Rent C:-genera| managers salary D:-Demurrage, wharfage Ans: C
49:-Over absorbed overhead due to defective planning are charged to A:-costing P& L A/C B:-overhead reserve a/c C:-overhead suspense account D:-Cost sheet Ans: A
50:-Under Gantt's task and bonus plan, no bonus is payable to a worker, if his efficiency is less than
A:-100% B:-80% C:-110% D:-125%
Ans: A
A:-trading account B:-stock account C:-memorandum trading account D:-lossof stock account
Ans: C
2:-Overriding commission is given for
A:-selling goods at higher price B:-for bearing loss C:-for bearing expenses D:-for bearing bad debts
Ans: A
3:-AS-3 relates to ...........
A:-cash flow statement B:-valuation balance sheet C:-disc|osure of accounting policies D:-accounting for amalgamation
Ans: A
4:-'anticipate no profit but provide for all possible losses' is based on concept/convention
A:-consevatism B:-consistancy C:-revenue D:-materiality
Ans: A
5:-If a plant purchased for Rs.10000, its book value is Rs.6000 and it sold for Rs.12000. what is its capital profit
A:-Rs.2000 B:-Rs.6000 C:-Rs.4000 D:-Rs.3000
Ans: A
6:-Cost of Rs.300000 for dismantling, removing and reinstalling a plant by a medium size sugar mill incurred in connection with the removal of works to a more suitable locality is considered as
A:-capital expenditure B:-revenue expenditure
C:-deferred revenue expenditure D:-capital loss
Ans: C
7:-Give an example of indirect expenses
A:-customs duty B:-royalty C:-trade expense D:-cartage and freight
Ans: C
8:-An amount of Rs.500 received from M credited to N, it would affect
A:-M's Account
B:-N's Account
C:-Cash Account
D:-Account of M& N
Ans: D
8:-Which is the most appropriate method of depreciation for loose tools, livestock jigs etc
A:-revaluation method B:-fixed installment method C:-dep|etion method D:-Diminishing balancing method
Ans: A
9:-Goodwill is a ......... asset.
A:-tangible B:-intangible C:-current D:-fluctuating
Ans: B
10:-Excess of opening capital over closing capital denotes ..........
A:-profit B:-lossC:-additional capital D:-|esser capital Ans: B
11:-Under stock and debtors system, loading in opening stock is credited in
A:-stock account B:-debtors account C:-branch adjustment account D:-trading account
Ans: C
12:-The unexpired discount for a banking company is
A:-Income B:-expense C:-liability D:-none of the above
Ans: C
13:-Statutory reserve created by a banking company as per Banking Regulation Act 1949 is
A:-20% B:-25% C:-15% D:-10%
Ans: B
14:-Cost of control of holding company account is credited with A:-revenue profit B:-capital profit C:-revenue loss D:-capital loss Ans: B
15:-In case of amalgamation, the liabilities which are not taken over by the new company are transferred to A:-Realization a/c B:-Partner's capital A/c C:-partner's current A/c D:-bank A/c Ans: A
16:-The debentures which do not carry any charge on assets of a company is called
A:-naked debenture B:-registered debenture C:-bearer debenture D:-first debenture
Ans: A
17:-Premium paid on the life policy of the proprietor is
A:-debited to P&L a/c B:-deducted from capital C:-credited to P&L A/c D:-added to capital a/c
Ans: B
18:-As Per companies Act 2013 maximum number of members in a partnership firm shall not exceed ------
A:-50 B:-20 C:-100 D:-150
Ans: C
19:-Minimum number of members for a public limited company is
A:-2 B:-3 C:-4 D:-5
Ans: B
20:-Investment made to earn regular income
A:-Short term investment B:-fixed investment C:-trade investment D:-marketable investment
Ans: B
21:-Research and development cost is an example of A:-Imputed cost B:-pre-production cost C:-Sunk cost D:-conversion cost Ans: B
22:-When the price of materials are fluctuating widely, which is the most effective method of issue of materials A:-FIFO B:-LIFO C:-Weighted average method D:-Simp|e average method Ans: C
23:-Which is cost accounting record? A:-Bill of material B:-Bin card C:-Store ledger D:-material requisition Ans: A
24:-Which method of costing is followed by general engineering workshops? A:-batch cost B:-unit cost C:-job cost D:-operation cost Ans: C
25:-Find out EOQ from the following Annual usage -6000 units, cost of material per unit Rs.20. cost of placing an order Rs.60. Annual carrying cost of one unit is 10% of inventory value A:-600 unit B:-1200 unit C:-120 unit D:-360 unit Ans: A
26:-Obsolete stock is those A:-have low turnover B:-having no demand for technological changes C:-having no present demand, but it may be in future D:-having high demand when price decreases Ans: B
27:-Which of the following is not an indirect cost A:-wages of production department machine operator B:-wages of a production department cleaner C:-materials used for machine maintenance in the production department D:-materia|s used to clean the production department floor Ans: A
28:-Royalties paid for the use of patent is an example A:-Direct cost B:-se|ling overhead
C:-indirect cost D:-production cost Ans: A
29:-If vendors are issued fully paid shares of Rs.2,00,000 in consideration of net assets of Rs.1,80,000, the balance of Rs.20,000, will be debited to
A:-P&L a/c B:-Goodwilla/c C:-Capital reserve a/c D:-Genera| reserve a/c
Ans: B
30:-Discount allowed on reissue of forfeited shares is debited to A:-discount on issue of shares a/c B:-forfeited shares a/c C:-P&L a/c D:-capital reserve a/c Ans: B
31:-The balance of sinking fund investment a/c after the realization of investment is transferred to A:-P&L a/C B:-debenture a/c C:-sinking fund a/c D:-debentures suspense a/c Ans: C
32:-Divisible profit does not include A:-Reserve fund B:-Profit of revaluation of asset C:-pre-incorporation profit D:-dividend equalization profit Ans: B
33:-Preliminary expenses are transferred by the vendor company at the time of amalgamation to A:-realization a/c B:-equity shareholders a/c C:-purchasing company a/c D:-Goodwilla/c Ans: B
34:-In case of insurance companies the legal fees with respect of claims is shown in A:-revenue a/c B:-P&L a/c C:-P&L appropriation a/c D:-Ba|ance sheet Ans: A
35:-In case of banking company the VRS expenditure is treated as A:-deferred revenue expenditure B:-capital expenditure C:-revenue expenditure D:-operating expenditure Ans: A
36:-Taxation provision made by the subsidiary company will appear in consolidated balance sheet as an item of A:-current liability B:-revenue profit C:-capital profit D:-non current liability Ans: A
37:-In hotel business room rate is fixed on the basis of A:-no. of available rooms which can be hired out during a particular period B:-the estimated cost of operation during a particular period C:-the expected fair return on the investment D:-All the above Ans: D
38:-A and B are partners in a business sharing profit and loss in the ratio of 3:2 they admit a new partner C with 1/5 share in the profits. Calculate the new profit sharing ratio of the partners A:-12:8:5 B:-4:2:3 C:-5:2:1 D:-6:4:3 Ans: A
39:-Genera| provision for doubtful debts in case of standard assets is to be made by a banking company is A:-0.l% B:-0.40% C:-l% D:-0.25% Ans: B
40:-When actual loss is less than the normal loss, it is A:-norma| waste B:-abnorma| waste C:-normal gain D:-abnormal gain Ans: D
41:-............. variance is that portion of material cost variance which is due to the difference between actual quantity consumed and standard quantity specified A:-materia| usage B:-material yield C:-material mix D:-materia| cost variance Ans: A
42:-What will be the main reason for labour rate variance? A:-inefficient workers B:-defective tools, plant and machinery C:-insufficient training of workers D:-change in basic wage rate Ans: D
43:-Subdivision of overhead volume variance are A:-efficiency variance B:-capacity variance C:-ca|endar variance D:-a|| the above Ans: D
44:-From the following budget, which gives a summary of all functional budget A:-capital budget B:-master budget C:-f|exib|e budget D:-discretionary budget Ans: B
45:-Metal pieces left in utensil manufacture is an example of A:-joint product B:-by-product C:-scrap D:-waste Ans: C
46:-Operating costing is applicable in A:-e|ectricity companies B:-water works C:-shipping companies D:-meta| product companies Ans: D
47:-From the following which is not a part of job costing procedure A:-production order B:-cost of sales account
C:-cost card D:-cost sheet Ans: C
48:-Which is not come under selling and distribution overhead A:-transportation B:-warehouse Rent C:-genera| managers salary D:-Demurrage, wharfage Ans: C
49:-Over absorbed overhead due to defective planning are charged to A:-costing P& L A/C B:-overhead reserve a/c C:-overhead suspense account D:-Cost sheet Ans: A
50:-Under Gantt's task and bonus plan, no bonus is payable to a worker, if his efficiency is less than
A:-100% B:-80% C:-110% D:-125%
Ans: A
51:-In Haley plan a worker gets bonus equal to of time saved
A:-50% B:-25% C:-20% D:-10%
Ans: A
52:-Wages sheet is prepared by
A:-payroll department B:-time keeping department C:-personne| department D:-cost accounting department
Ans: A
53:-Which of the following is an example of direct labour cost?
A:-crane operator in a factory B:-wages paid to a tailor of a readymade garments
C:-wages paid to inspectors of ready made garments D:-wages paid to electrician of ready made garments
Ans: B
54:-Which costing method is followed by a cement industry
A:-batch costing B:-job costing C:-unit costing D:-process costing
Ans: D
55:-How can you calculate labour turnover
A:-no. of employees left during a period/average no. of employees during a period X 100
B:-no. of separation during a period+no. of additions/average no. of employees during a period X 100
C:-(no. of separation during a period+no. of additions/2)/ average no. of employees during a period X 100
D:-no. of workers replaced during a period/ average no. of employees during a period X 100
Ans: D
56:-Minimum stock level =
A:-minimum consumption x minimum reorder level
B:-re-order level - (normal consumption x normal reorder period)
C:-(reorder level+reorder quantity) - (minimum consumption x minimum reorder period)
D:-normal consumption x minimum reorder level
Ans: B
57:-Which is the most favorable method of material control of spare parts A:-VED analysis
B:-ABC analysis C:-FSND analysis D:-Just in time inventory system
Ans: A
58:-Special Economic Zone Act came into existence
A:-23 June 2005 B:-23 June 2007 C:-25 June 2003 D:-25 June 2007
Ans: A
59:-Financial accounting is different from cost accounting in respect of
A:-co||ection of cost B:-recording cost C:-a||ocating cost D:-controlling costing
Ans: D
60:-Prime cost + variable OH
A:-factory cost B:-margina| cost C:-cost of production D:-cost of sales
Ans: B
61:-When profit is 20% on sales, it will be ----- of cost price
A:-80% B:-25% C:-75% D:-60%
Ans: B
62:-For reducing the labour cost per unit which of the following factors is the most important
A:-Low wage rates B:-higher input-output ratio C:-strict control & supervision D:-longer hours of work
Ans: B
63:-In transport costing, an example of fixed cost is
A:-license fees B:-tyres and tubes C:-wages of driver D:-repairs and painting
Ans: A
64:-Which is not considering while preparing final accounts
A:-loss on sale of capital assets B:-fines and penalties C:-notional rent D:-damages payable by law
Ans: C
65:-If the rate of gross profit is 25% on cost of goods sold and the sales are Rs.100000, the amount of gross profit will be
A:-Rs.25000 B:-Rs.20000 C:-16667 D:-26667
Ans: C
66:-Which of the following is not a group bonus plan
A:-priestman Plan B:-Towne Plan C:-Rucker Plan D:-Bedaux Plan
Ans: D
67:-Which is not a method of segregating Semi-variable cost
A:-high and low point method B:-method of average
C:-scatter Diagram Method D:-A|pha coding method
Ans: D
68:-Wages paid to the casual workers are treated as
A:-factory expense B:-direct cost C:-direct expense D:-factory overhead
Ans: A
69:-Motion study was developed by
A:-F.B.Gi|brith B:-F W Taylore C:-Merrik D:-Rucker
Ans: A
70:-Time and motion study is done by
A:-personnel department B:-engineering department C:-payro|| department D:-cost accounting department
Ans: B
71:-Reversionary Bonus is bonus paid by Life Insurance Companies
A:-every year B:-along with the maturity value C:-in cash every half year D:-to employees
Ans: B
72:-Tax paid in advance in case of Banking Companies are included in
A:-Schedule 2 B:-Schedule 7 C:-Schedule 11 D:-Schedule 9
Ans: C
73:-Claims against the bank not acknowledged as debt
A:-contingent liability B:-Current liability C:-Short term liability D:-Long term liability
Ans: A
74:-In banks the posting of entries is done from
A:-Records B:-Subsidiary books C:-Slips D:-computer
Ans: C
75:-A stock worth Rs.500000 is insured for Rs.300000 only. And the loss incurred due to fire is Rs.200000. The policy contains average clause. The claim admitted by the insurance company will be
A:-Rs.500000 B:-Rs.200000 C:-Rs.120000 D:-Rs.125000
Ans: C
76:-Assets acquired by banks in satisfaction of claims is called
A:-banking assets
B:-acquired assets
C:-purchased assets
D:-non banking assets
Ans: D
77:-The statement prepared by Life Insurance Company to find out profit
A:-policy holders account B:-shareho|ders account C:-valuation balance sheet D:-ba|ance sheet
Ans: B
78:-The principle of 'Causa Proxima' in insurance business means
A:-The nearest cause
B:-The proximate cause
C:-The immediate cause
D:-All of these
Ans: D
79:-The Life Insurance Corporation Act came into effect in the year
A:-1956
B:-1972
C:-1934
D:-1961
Ans: A
80:-Which of the following is not a fundamental principle of insurance contract?
A:-Utmost good faith
B:-Insurable interest
C:-Indemnity
D:-Assignment
Ans: D
81:-__________ is the feature of Value Added tax which prevents cascading effect of tax.
A:-Input tax credit
B:-Different tax slabs
C:-Cash credit
D:-None of these
Ans: A
82:-A ____________ report is prepared by the auditory when he finds the accounts exhibiting a true and fair view of the state of company's financial affairs.
A:-Unqualified report
B:-Qualified report
C:-Specific report
D:-None of these
Ans: A
83:-In India Value Added tax is first introduced in __________ state.
A:-Haryana
B:-Bihar
C:-Rajasthan
D:-Delhi
Ans: A
84:-The following error affects trial balance is
A:-Compensating error
B:-Error of principle
C:-Error of complete omission
D:-Error of commission
Ans: D
85:-_______________ is a technique with an auditor to contact responsible officials through interview and open communication with the outside parties for ensuring that the transactions are authentic, valid and accurate.
A:-Confirming
B:-Vouching
C:-Reconciling
D:-Testing
Ans: A
86:-Company audit is an example of __________ audit.
A:-Government audit
B:-Internal audit
C:-Statutory audit
D:-Private audit
Ans: C
87:-Any person who is responsible to pay tax on behalf of a minor, lunatic or a non-resident is known as
A:-Assessee in default
B:-Ordinary assessee
C:-Deemed assessee
D:-None of these
Ans: C
88:-Assessee includes
A:-Individual
B:-HUF
C:-Company
D:-All of the above
Ans: D
89:-Income tax department works under
A:-State govt.
B:-President
C:-Income tax commission
D:-CBDT
Ans: D
90:-Exempted income is
A:-Not taxable under income tax
B:-Not included in total income
C:-Agricultural income
D:-All of the above
Ans: D
91:-Types of assesses in income tax from residential point of view
A:-2
B:-3
C:-4
D:-Many
Ans: B
92:-Company may be
A:-Resident
B:-Non-resident
C:-Not ordinarily resident
D:-Resident or non-resident
Ans: D
93:-Previous year is
A:-Preceding year
B:-Income earning year
C:-Tax calculating year
D:-Income computation year
Ans: B
94:-The value added tax is an expense to be suffered by
A:-Suppliers
B:-Traders
C:-Companies
D:-Final consumer
Ans: D
95:-The responsibility for the preparation of the financial statements and the accompanying foot notes belongs to
A:-Both management and the auditor equally
B:-Management for the statements and the auditor for the notes
C:-The auditor
D:-Management
Ans: D
96:-Debit note is associated with
A:-Sales return
B:-Purchase return
C:-Purchase
D:-Sales
Ans: B
97:-Cash book is
A:-Journal
B:-Ledger
C:-Both journal and ledger
D:-None of these
Ans: C
98:-Bank reconciliation statement is prepared by
A:-Bank
B:-Auditor
C:-Account holder
D:-Government
Ans: C
99:-Identify one sided error from the following.
A:-Machinery purchase treated as purchase
B:-Cash received from Rajan credited to Rajesh
C:-Withdrawal by proprietor debited to establishment charge
D:-Purchase book is under cast
Ans: D
100:-____________ is a temporary account opened to make trial balacne agree.
A:-P and L account
B:-Discount account
C:-Suspense account
D:-None of these
Ans: C
A:-50% B:-25% C:-20% D:-10%
Ans: A
52:-Wages sheet is prepared by
A:-payroll department B:-time keeping department C:-personne| department D:-cost accounting department
Ans: A
53:-Which of the following is an example of direct labour cost?
A:-crane operator in a factory B:-wages paid to a tailor of a readymade garments
C:-wages paid to inspectors of ready made garments D:-wages paid to electrician of ready made garments
Ans: B
54:-Which costing method is followed by a cement industry
A:-batch costing B:-job costing C:-unit costing D:-process costing
Ans: D
55:-How can you calculate labour turnover
A:-no. of employees left during a period/average no. of employees during a period X 100
B:-no. of separation during a period+no. of additions/average no. of employees during a period X 100
C:-(no. of separation during a period+no. of additions/2)/ average no. of employees during a period X 100
D:-no. of workers replaced during a period/ average no. of employees during a period X 100
Ans: D
56:-Minimum stock level =
A:-minimum consumption x minimum reorder level
B:-re-order level - (normal consumption x normal reorder period)
C:-(reorder level+reorder quantity) - (minimum consumption x minimum reorder period)
D:-normal consumption x minimum reorder level
Ans: B
57:-Which is the most favorable method of material control of spare parts A:-VED analysis
B:-ABC analysis C:-FSND analysis D:-Just in time inventory system
Ans: A
58:-Special Economic Zone Act came into existence
A:-23 June 2005 B:-23 June 2007 C:-25 June 2003 D:-25 June 2007
Ans: A
59:-Financial accounting is different from cost accounting in respect of
A:-co||ection of cost B:-recording cost C:-a||ocating cost D:-controlling costing
Ans: D
60:-Prime cost + variable OH
A:-factory cost B:-margina| cost C:-cost of production D:-cost of sales
Ans: B
61:-When profit is 20% on sales, it will be ----- of cost price
A:-80% B:-25% C:-75% D:-60%
Ans: B
62:-For reducing the labour cost per unit which of the following factors is the most important
A:-Low wage rates B:-higher input-output ratio C:-strict control & supervision D:-longer hours of work
Ans: B
63:-In transport costing, an example of fixed cost is
A:-license fees B:-tyres and tubes C:-wages of driver D:-repairs and painting
Ans: A
64:-Which is not considering while preparing final accounts
A:-loss on sale of capital assets B:-fines and penalties C:-notional rent D:-damages payable by law
Ans: C
65:-If the rate of gross profit is 25% on cost of goods sold and the sales are Rs.100000, the amount of gross profit will be
A:-Rs.25000 B:-Rs.20000 C:-16667 D:-26667
Ans: C
66:-Which of the following is not a group bonus plan
A:-priestman Plan B:-Towne Plan C:-Rucker Plan D:-Bedaux Plan
Ans: D
67:-Which is not a method of segregating Semi-variable cost
A:-high and low point method B:-method of average
C:-scatter Diagram Method D:-A|pha coding method
Ans: D
68:-Wages paid to the casual workers are treated as
A:-factory expense B:-direct cost C:-direct expense D:-factory overhead
Ans: A
69:-Motion study was developed by
A:-F.B.Gi|brith B:-F W Taylore C:-Merrik D:-Rucker
Ans: A
70:-Time and motion study is done by
A:-personnel department B:-engineering department C:-payro|| department D:-cost accounting department
Ans: B
71:-Reversionary Bonus is bonus paid by Life Insurance Companies
A:-every year B:-along with the maturity value C:-in cash every half year D:-to employees
Ans: B
72:-Tax paid in advance in case of Banking Companies are included in
A:-Schedule 2 B:-Schedule 7 C:-Schedule 11 D:-Schedule 9
Ans: C
73:-Claims against the bank not acknowledged as debt
A:-contingent liability B:-Current liability C:-Short term liability D:-Long term liability
Ans: A
74:-In banks the posting of entries is done from
A:-Records B:-Subsidiary books C:-Slips D:-computer
Ans: C
75:-A stock worth Rs.500000 is insured for Rs.300000 only. And the loss incurred due to fire is Rs.200000. The policy contains average clause. The claim admitted by the insurance company will be
A:-Rs.500000 B:-Rs.200000 C:-Rs.120000 D:-Rs.125000
Ans: C
76:-Assets acquired by banks in satisfaction of claims is called
A:-banking assets
B:-acquired assets
C:-purchased assets
D:-non banking assets
Ans: D
77:-The statement prepared by Life Insurance Company to find out profit
A:-policy holders account B:-shareho|ders account C:-valuation balance sheet D:-ba|ance sheet
Ans: B
78:-The principle of 'Causa Proxima' in insurance business means
A:-The nearest cause
B:-The proximate cause
C:-The immediate cause
D:-All of these
Ans: D
79:-The Life Insurance Corporation Act came into effect in the year
A:-1956
B:-1972
C:-1934
D:-1961
Ans: A
80:-Which of the following is not a fundamental principle of insurance contract?
A:-Utmost good faith
B:-Insurable interest
C:-Indemnity
D:-Assignment
Ans: D
81:-__________ is the feature of Value Added tax which prevents cascading effect of tax.
A:-Input tax credit
B:-Different tax slabs
C:-Cash credit
D:-None of these
Ans: A
82:-A ____________ report is prepared by the auditory when he finds the accounts exhibiting a true and fair view of the state of company's financial affairs.
A:-Unqualified report
B:-Qualified report
C:-Specific report
D:-None of these
Ans: A
83:-In India Value Added tax is first introduced in __________ state.
A:-Haryana
B:-Bihar
C:-Rajasthan
D:-Delhi
Ans: A
84:-The following error affects trial balance is
A:-Compensating error
B:-Error of principle
C:-Error of complete omission
D:-Error of commission
Ans: D
85:-_______________ is a technique with an auditor to contact responsible officials through interview and open communication with the outside parties for ensuring that the transactions are authentic, valid and accurate.
A:-Confirming
B:-Vouching
C:-Reconciling
D:-Testing
Ans: A
86:-Company audit is an example of __________ audit.
A:-Government audit
B:-Internal audit
C:-Statutory audit
D:-Private audit
Ans: C
87:-Any person who is responsible to pay tax on behalf of a minor, lunatic or a non-resident is known as
A:-Assessee in default
B:-Ordinary assessee
C:-Deemed assessee
D:-None of these
Ans: C
88:-Assessee includes
A:-Individual
B:-HUF
C:-Company
D:-All of the above
Ans: D
89:-Income tax department works under
A:-State govt.
B:-President
C:-Income tax commission
D:-CBDT
Ans: D
90:-Exempted income is
A:-Not taxable under income tax
B:-Not included in total income
C:-Agricultural income
D:-All of the above
Ans: D
91:-Types of assesses in income tax from residential point of view
A:-2
B:-3
C:-4
D:-Many
Ans: B
92:-Company may be
A:-Resident
B:-Non-resident
C:-Not ordinarily resident
D:-Resident or non-resident
Ans: D
93:-Previous year is
A:-Preceding year
B:-Income earning year
C:-Tax calculating year
D:-Income computation year
Ans: B
94:-The value added tax is an expense to be suffered by
A:-Suppliers
B:-Traders
C:-Companies
D:-Final consumer
Ans: D
95:-The responsibility for the preparation of the financial statements and the accompanying foot notes belongs to
A:-Both management and the auditor equally
B:-Management for the statements and the auditor for the notes
C:-The auditor
D:-Management
Ans: D
96:-Debit note is associated with
A:-Sales return
B:-Purchase return
C:-Purchase
D:-Sales
Ans: B
97:-Cash book is
A:-Journal
B:-Ledger
C:-Both journal and ledger
D:-None of these
Ans: C
98:-Bank reconciliation statement is prepared by
A:-Bank
B:-Auditor
C:-Account holder
D:-Government
Ans: C
99:-Identify one sided error from the following.
A:-Machinery purchase treated as purchase
B:-Cash received from Rajan credited to Rajesh
C:-Withdrawal by proprietor debited to establishment charge
D:-Purchase book is under cast
Ans: D
100:-____________ is a temporary account opened to make trial balacne agree.
A:-P and L account
B:-Discount account
C:-Suspense account
D:-None of these
Ans: C