Online Test

Question # 1

Doubtful debt are:

Choose an answer

Definite loss to the business

Definite profit to the business

Expected loss to the business

Expected profit to the business

The primary object of non-profit organizations is

Choose an answer

Not to earn profit

Work for the welfare of society

Buy/sell goods

A and B but not C

What is accumulated depreciation?

Choose an answer

Depreciation expense of the current year

Sum of all depreciations in different accounting year

Depreciations of previous accounting year

None

Work in process opening and closing inventory includes:-

Choose an answer

Arterial in process

Labour in process

F.o.H in process

All of the above

Under perpetual inventory system stock taking is under taken at the

Choose an answer

Start of the accounting year

End of the accounting

Regular bases

None of above

The technique and process of ascertaining cost is termed as

Choose an answer

Costing

Cost accounting

Calculation of cost

Controlling cost

Realisation concept is the concept in which revenue is ------------ at the time when goods are sold or services rendered.

Choose an answer

Recognized

Not recognized

Paid

Received

Historical cost which is irrecoverable in a given situation is called

Choose an answer

Imputed cost

Standard cost

Opportunity cost

Sunk cost

Cost which cannot be conveniently identified with individual cost unit is called

Choose an answer

Direct material cost

Indirect material cost

Indirect labour cost

Caring cost

What is accounting period?

Choose an answer

It is a time for which business prepares its financial statements

It is time for which business prepares its profit and loss statement

It is a time for which business prepares its balance sheet

None

Which one is non-manufacturing costs?

Choose an answer

Direct material cost

Labour cost

Research and development cost

All of above

From the following statements which one is not true about over applied F.o.H

Choose an answer

Less from cost of goods sold at normal

Less from entire production if required

Add in gross profit if required

Less from Net profit.

Deferred liabilities are debts which are repayable less than ----------

Choose an answer

One month

Six month

One year

None

Which one of the following is not a negotiable instrument?

Choose an answer

Cheque

Promissory note

Bill of exchange

None of the above

In job order costing system, each job is assigned a job cost

Choose an answer

Unit

Center

Driver

Sheet

A credit purchases are:

Choose an answer

If goods purchased and payment made at the same time

If goods purchased and payment not made at the same time

If goods sold and payment receive at the same time

If goods sold and payment not receive at the same time

Excess of assets over liabilities is known as:

Choose an answer

Capital fund

Accumulated fund

Surplus fund

All options are correct

The primary objective of cost accounting is to

Choose an answer

Control cost

Calculate profit

Avoid cost

All of above

Manufacturing concern cycle is ---------- than trading concern cycle:

Choose an answer

Shorter

Greater

Medium

None of above

Per Unit cost is calculated by dividing the cost of goods sold by

Choose an answer

The number of units sold

The number of units purchase

The number of units manufactured

All of the above

Hypothetical cost which are specially computed outside the accounting system for the purpose of decision making is called

Choose an answer

Future cost

Replacement cost

Imputed cost

Sunk cost

A cost whose magnitude will be affected by decision being made is called

Choose an answer

Historical cost

Relevant cost

Irrelevant cost

Sunk cost

Accounts which are related with properties are known as

Choose an answer

Real accounts

Nominal accounts

Property accounts

A and C are correct Accounting principles:

What is amortization?

Choose an answer

Decrease in the value of fixed assets

Decrease in the value of intangible assets

Increase in the value of fixed assets

Increase in the value of intangible assets

According to possible for an event or transaction which is not measurable in terms of money

Choose an answer

True

False

May be

None

Difference in cost of alternative choices is called

Choose an answer

Total costing

Differential costing

Full costing

Variable costing

Statement of a affairs is a sort of -----------

Choose an answer

Profit and loss statement

Nominal account

Statement of changes in equity

Balance sheet

Treble column cash book has three columns of:

Choose an answer

Cash, bank and discount

Income, expense and bank

Cash, bank and profit or loss

None

The stages of accounting cycle are

Choose an answer

Transaction-ledger-journal-trial balance-final accounts

Transaction-journal-ledger-trial balance-final accounts

Transaction-journal-trial balance-ledger-final accounts

Transaction-journal-ledger-final accounts-trial balance

Any written evidence of a business transaction is known as

Choose an answer

Voucher

Pay-in-slip

Debit note

Credit note

A person is said to be insolvent when his

Choose an answer

Assets are sufficient

Assets are enough to pay his liabilities

Assets are not enough to pay his liabilities

None

If applied factory overhead is less than actual factory overhead, it is called

Choose an answer

Applied F.o.H

Over applied F.o.H

Under-applied F.o.H

None of above

Which one is not include in factory overhead?

Choose an answer

Power hear & light

Indirect labour cost

Depreciation of plant

Salary of accountant

Material are charged to production at actual cost under

Choose an answer

Weighted average method

FIFO method

LIFO method

Both ii & iii

Office salaries are include in

Choose an answer

Direct material cost

Indirect material cost

Factory overhead cost

Total payroll

How many types of inventories are in cost of goods sold statement?

Choose an answer

1

2

3

4

Goodwill is ----------- for company.

Choose an answer

Intangible asset

Fixed asset

Current asset

Quick asset

Which one is not accounting convention?

Choose an answer

Materiality

Full disclosure

Consistency

Going concern

Offsetting expenses against revenue is the concept of:

Choose an answer

Realization

Dual aspect

Matching

Conventions

Cost goods sold is Rs. 1650, gross profit ratio is 17.5% then sales is

Choose an answer

1800

1900

2000

2200

What are bad debts?

Choose an answer

Debts which are irrecoverable from the debtors

Debts which are recoverable from the debtors

Debts which are irrecoverable from the creditors

Debts which are recoverable from the creditors

Lead time is the time between the time on item reaches --------------- and ---------- of

Choose an answer

Order level, dispatch of material

Order level, maximum level

Maximum level, minimum level

Order level, actual receipt

Quick assets are

Choose an answer

Cash in hand

Cash at bank

Debtors

All of the above

How many types of bank accounts are there?

Choose an answer

4

3

5

6

Cash or goods taken away by owner for personal use from business are known as:

Choose an answer

Capital

Drawings

Revenue

Expense

Loss which arises due to ----------- is known as abnormal loss

Choose an answer

Breakage of goods

Leakage

Fire

Shrinkage

Bin card is maintained by

Choose an answer

Purchase manager

Sales manager

Store keeper

Finance manager

Section of the business to which cost can be charged is termed as

Choose an answer

Cost driver

Cost center

Cost unit

All of above

During period of rising material prices, ----------- method results in profit inflation

Choose an answer

LIFO

FIFO

Weighted average

All of the above

The cost of holding the stock in storage is called

Choose an answer

Ordering cost

Material cost

Caring cost

All of the above

Spoiled goods cannot be

Choose an answer

Sold without repairing

Repair and sold as damaged goods

Both A and B

None of above

Debentures are

Choose an answer

Fixed assets

Fixed liabilities

Capital

Prepaid expenses

Cost which is calculated before manufacture operation is called

Choose an answer

Sunk cost

Mixed cost

Standard cost

None of above

Rebate is the --------- in the amount of bill paid

Choose an answer

Premium

Increase

Expense

Concession

Good received note is prepared by

Choose an answer

Purchase department

Sales department

Receiving department

All of the above

How many of grace are given?

Choose an answer

5

4

3

2

How many branches are there in accounting?

Choose an answer

1

3

2

4

The cost flow must match the

Choose an answer

Output

Outflow

Inflow

Workflow

The price at which assets will be sold at the end of its useful life is known as:

Choose an answer

Scrap value

Residual value

Written down value

All of the above

The ------------- includes a control account entitled general ledger that shows is equity of the general office in the factory.

Choose an answer

General ledger

Head office ledger

Factory ledger

None of these

Which one is not a classification according to the accounting period?

Choose an answer

Capital expenditure

Revenue expenditure

Product cost

Administrative cost

Doubtful debts are shown on:

Choose an answer

Profit side of statement of profit and loss

Liabilities side of balance sheet

Asset side of balance sheet

Not shown anywhere

Which one is not a functional classification?

Choose an answer

Manufacturing cost

Marketing cost

Finance cost

Mixed cost

Provision of doubtful debts are also known as:

Choose an answer

Allowances for uncollectable

Allowances for collectable

Bad debts

None

Name the main accounts which are prepared in accounting?

Choose an answer

Assets, liabilities, income and expenses

Assets, liabilities, income and revenue

Assets, owner's equity, income and expenses

Assets, liabilities and expenses

Profit will be lower where prices are rising under

Choose an answer

FIFO method

LIFO method

Weighted average method

All of the above

Outstanding expenses are also known as

Choose an answer

Prepared expenses

Accrued expenses

Un-earned income

None

Variable cost and fixed cost have been treated as product cost in

Choose an answer

Absorption costing

Direct costing

Full costing

All of above

Depreciation expenditure is a

Choose an answer

Fixed cost

Variable cost

Semi-variable cost

Step fixed cost

A property which is received by virtue of a will of a person after his death is known as

Choose an answer

Legacy

Donation

Subscription

Gift

Accounting is the

Choose an answer

Art

Science

Both

None

In payroll include the remunerations of

Choose an answer

Direct labour

Indirect labour

Both a & b

None of the above

A--------------- is an account in which those transaction are entered which cannot be placed to their accounts

Choose an answer

Nominal account

Suspense account

Personal account

Debtor account

If spoiled goods are considered a normal part of production process than debit to

Choose an answer

Work in process

General expense

F.o.H control

None of above

Endorsement is made:

Choose an answer

For settlement of debts

For settlement of income

For settlement of profit

None

Costs whose consumption may be identified with specific production units in called

Choose an answer

Direct labour cost

Indirect labour cost

Direct material cost

Indirect material cost

What is negotiable instrument?

Choose an answer

A document which is not transferable

A document which is transferable

A document which is accepted

None

Compound entry is an entry in which:

Choose an answer

More than one account is debited

More than one account is credited

Both a and b are correct

None of the above

Purchase Requisition is sent to

Choose an answer

Accounts department

Purchase department

Finance department

None of above

Depreciation is a loss due to wear and tear of an asset.

Choose an answer

Correct

Incorrent

May be

None

Dishonor of the bill occurs when:

Choose an answer

The drawer refuse to pay

The acceptor refuses to meet the bill on due date

The endorsee accepts to meet the bill

None

If spoiled good are considered as abnormal part of production process then debited to

Choose an answer

Work in process

General expense

F-o-H control

None of above

Which ratio tells how many times in a year stock is used up and replaced?

Choose an answer

Gross profit ratio

Net profit ratio

Cost ratio

None of these

The cost flow must watch the

Choose an answer

Output

Outflow

Inflow

Workflow

Trading account shows ----------- result.

Choose an answer

Net

Gross

Profit

Loss

Tenor is the period of time ------------ which a bill becomes payable

Choose an answer

Before

After

Both a and b

None

What are accrued expenses?

Choose an answer

The expenses that have been incurred during current year and paid till the end of current year

The expenses that have been incurred previous year and paid in the current year

The expenses that have been incurred during current year and not paid till the end of current year

The expenses that have been incurred previous year and not paid till the end of current year

In bill of exchange, the party who accepts a bill is known as:

Choose an answer

Drawer

Drawee

Payee

Third party

Assets which have to no market value are called

Choose an answer

Fictitious assets

Liquid assets

Intangible assets

Real assets

The objective of financial accounting is to ascertain:

Choose an answer

True results of profit

True results of loss

True results of profit or loss

None

Sales prices is calculated as follow:-

Choose an answer

Cost + operating expense

Direct material + Direct labour + F.o.H

Cost + operating expenses + profit

None of above

Petty cash book is a book which record

Choose an answer

Assets

Liabilities

Large payments

Small payments

In operating expense includes

Choose an answer

Marketing expense

Admin expense

Selling expense

All of the above

The bills which are drawn and accepted against the sale and purchase of goods on credits are called

Choose an answer

Trade bills

Bill of exchange

In-land bills

Foreign bills