Accounting Quiz 8

1 / 50

Which of the following bases is not appropriate for apportionment of Transport department?s cost ?

Crane hours

Crane value

Truck Mileage

Truck value

2 / 50

A company is currently operating at 80% capacity level. The production under normal capacity level is 1,50,000 units. The variable cost per unit is ` 14 and the total fixed costs are ` 8,00,000. If the company wants to earn a profit of ` 4,00,000, then the price of the product per unit should be

37.5

38.25

3 / 50

Which of the following is generally not the party to a check?

Payee

Bank

Seller

Payer

4 / 50

The process of paying off debt over time in regular installment of interest & principal sufficient to repay the loan in fully by its maturity date.

Loan Payment

Amortization

Securitization

Liability

5 / 50

If the asset turnover and profit margin of a company are 1.85 and 0.35 respectively, the return on investment is.

1.5

0.65

5.29

0.35

6 / 50

Cash received from debtor is recorded in which of the following SPECIALIZED journals?

Purchase journal

Sales journal

Cash receipts

Cash payments journal

7 / 50

When production is equal to sales, which of the following is TRUE?

The use of absorption costing produces a higher net income than the use of variable costing

The use of absorption costing produces a lower net income than the use of variable costing

The use of absorption costing causes inventory value to increase more than they would though the use of variable costing

No change occurs to inventories for either use absorption costing or variable costing methods

8 / 50

Cash book with cash and discount column is mostly referred as________?

Simple cash book

Petty cash book

Three column cash book

Two column cash book

9 / 50

A worker has a time rate of 15/hr. He makes 720 units of component (standard time : 5 minutes/ unit) in a week of 48 hours. His total wages including Rowan bonus for the week is

792

820

864

840

10 / 50

Depreciation fund method is also known as__________?

Sum of Year Digits Method

Annuity Method

None of these

Sinking Fund Method

11 / 50

An average cost is also known as________?

Variable cost

Total cost

Unit cost

Fixed cost

12 / 50

Sales on credit is recorded in which of the following journal?

Sales journal

Purchase journal

Purchases return journal

Sales return journal

13 / 50

IFRS 9 explains about?

Accounts Receivable

Expenses

Inventory

Accounts Payable

14 / 50

The cost of obsolete inventory acquired several years ago, to be considered in a keep vs. disposal decision is an example of :

Uncontrollable cost

Opportunity cost

Avoidable cost

Sunk cost

15 / 50

The closing balance of petty cash book is considered as_________?

Liability

Income

Asset

Expenses

16 / 50

Which of the following account with normal balance is shown at the credit side of a trial balance?

Equipment account

Bank account

Accrued expenses account

Cash account

17 / 50

Petty cash fund is supposed to be replenished?

Every day

Every year

Every half year

At the end of every accounting period

18 / 50

Transactions that a BUSINESS doesn?t record in any specialised journal are recorded in which of the following journals or day books?

General journal

Cash payments journal

Cash receipts journal

Purchases return journal

19 / 50

Another name of journal is_____________?

Day book

Specialized journal

Cash book

Record book

20 / 50

A credit balance in cash book indicates?

Bank balance

Bank underdraft

Bank overdraft

Cash at bank

21 / 50

Drawings by owner of business are generally recorded on which of the following side of a cash book?

Expenditures

Incomes

Payments

Receipts

22 / 50

Costs that change in response to alternative courses of action are called___________?

Differential costs

Sunk costs

Relevant costs

Target costs

23 / 50

Find the cost of goods sold if goods are sold for 2,000 at 25% profit on cost?

1,500

1,800

1,600

1,000

24 / 50

Tender is an_____________?

estimation of units.

estimation of cost.

estimation of profit.

estimation of selling price.

25 / 50

Sales and purchase journal don?t record__________?

Credit sales and purchases

Credit purchases

Cash sales and purchases

Credit sales

26 / 50

A cash book with cash, bank and discount column is commonly referred as________?

Cash book

Two columns cash book

Three columns cash book

Petty cash book

27 / 50

If the minimum stock level and average stock level of raw material are 4,000 and 9,000 units respectively, find out its reorder quantity.

8,000 units

10,000 units

11,000 units

9,000 units

28 / 50

Which of the following is a type of cash receipt journal + cash payment journal?

Bank statement

Cash book

Statement of cash flow

Cash documents

29 / 50

Direct cost incurred can be identified with_______________?

Each Executive

Each Department

Each Month

Each unit of output

30 / 50

Discount received is recorded on which of the following side of a cash book?

Payments

Expenditures

Incomes

Receipts

31 / 50

Which of the following specialized journals records ?goods returned by customers??

Sales return journal

Sales journal

Purchases return journal

Purchase journal

32 / 50

A simple or one column cash book usually has which of the following main columns?

Bank

Payments

Discount

Cash

33 / 50

Postage stamps on hand are considered as_________?

Prepaid expenses

Creditor

Bank

Accounts receivable

34 / 50

A cash book that is used to record the small payments of cash is generally referred as_________?

Petty cash book

Simple cash book

Two column cash book

Three column cash book

35 / 50

The total cost incurred in the operation of a business undertaking other than the cost of manufacturing and production is known as________?

Direct cost

Commercial cost

Conversion cost

Variable cost

36 / 50

Introduction capital by owner of business is recorded on which side of a cash book?

Payments

Expenditures

Incomes

Receipts

37 / 50

Postdated checks are considered as__________?

Accounts receivable

Cash

Bank balance

Cash reserve

38 / 50

Purchase of office equipment for cash will be recorded on which of the following sides of a cash book?

Payments

Receipts

Expenditures

Incomes

39 / 50

A Ltd. Has sales of 2,200, total fixed cost of 570, variable cost of 1,540, raw material consumed of ` 1,100, number of units sold 22,000. What shall be the BEP 9 in units) if raw material price is reduced by 2%?

19,000

18,560

18,750

18,387

40 / 50

Audit fess is a part of__________.

works on cost.

selling overhead.

distribution overhead.

administration overhead

41 / 50

One of the most important tools in cost planning is__________?

Budget

Direct cost

Cost Sheet

Marginal Costing.

42 / 50

Cash discount is allowed on _______ repayment of debt.

None of them

Lump sum

Actual

Prompt

43 / 50

Which of the following specialised journals will record ?goods returned by the BUSINESS ??

Purchases return journal

Purchase journal

Sales return journal

Sales journal

44 / 50

Budgeted sales for the next year is 5,00,000 units. Desired ending finished goods inventory is 1,50,000 units and equivalent units in ending W-I-P inventory is 60,000 units. The opening finished goods inventory for the next year is 80,000 units, with 50,000 equivalent units in beginning W-I-P inventory How many equivalent units should be produced?

5,50,000

5,75,000

5,80,000

5,00,000

45 / 50

Overhead cost is the total of ____________.

all indirect costs.

all specific costs

all direct costs.

indirect and direct costs.

46 / 50

The most common imprest system is the ________ system?

Discount

Petty cash

Cash receipt

Cash book

47 / 50

Warehouse rent is a part of _________?

prime cost.

production cost

distribution cost.

factory cost.

48 / 50

Consider the following data for a company during the month of June 2012 Budgeted hours 4,000 Standard hours for actual production 4,400 Maximum possible hours in the budget period 4,800 Actual hours 3,800 The activity ratio of the company during the month is

111%

120%

117%

95%

49 / 50

Which English alphabet is similar to the shape of an account?

None

50 / 50

Payment of rent expenses is recorded on which side of cash book?

Income

Receipts

Payments

Expense

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