Question # 1
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
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Question # 2
Cost goods sold is Rs. 1650, gross profit ratio is 17.5% then sales is
Choose an answer
1800
1900
2000
2200
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Question # 3
How many types of bank accounts are there?
Choose an answer
4
3
5
6
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Question # 4
Petty cash book is a book which record
Choose an answer
Assets
Liabilities
Large payments
Small payments
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Question # 5
Good received note is prepared by
Choose an answer
Purchase department
Sales department
Receiving department
All of the above
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Question # 6
Depreciation expenditure is a
Choose an answer
Fixed cost
Variable cost
Semi-variable cost
Step fixed cost
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Question # 7
Excess of assets over liabilities is known as:
Choose an answer
Capital fund
Accumulated fund
Surplus fund
All options are correct
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Question # 8
Outstanding expenses are also known as
Choose an answer
Prepared expenses
Accrued expenses
Un-earned income
None
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Question # 9
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
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Question # 10
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
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Question # 11
Spoiled goods cannot be
Choose an answer
Sold without repairing
Repair and sold as damaged goods
Both A and B
None of above
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Question # 12
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
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Question # 13
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
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Question # 14
Profit will be lower where prices are rising under
Choose an answer
FIFO method
LIFO method
Weighted average method
All of the above
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Question # 15
In bill of exchange, the party who accepts a bill is known as:
Choose an answer
Drawer
Drawee
Payee
Third party
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Question # 16
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
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Question # 17
Loss which arises due to ----------- is known as abnormal loss
Choose an answer
Breakage of goods
Leakage
Fire
Shrinkage
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Question # 18
In job order costing system, each job is assigned a job cost
Choose an answer
Unit
Center
Driver
Sheet
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Question # 19
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
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Question # 20
How many branches are there in accounting?
Choose an answer
1
3
2
4
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Question # 21
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
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Question # 22
Variable cost and fixed cost have been treated as product cost in
Choose an answer
Absorption costing
Direct costing
Full costing
All of above
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Question # 23
Accounting is the
Choose an answer
Art
Science
Both
None
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Question # 24
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
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Question # 25
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
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Question # 26
Purchase Requisition is sent to
Choose an answer
Accounts department
Purchase department
Finance department
None of above
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Question # 27
Deferred liabilities are debts which are repayable less than ----------
Choose an answer
One month
Six month
One year
None
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Question # 28
Historical cost which is irrecoverable in a given situation is called
Choose an answer
Imputed cost
Standard cost
Opportunity cost
Sunk cost
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Question # 29
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
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Question # 30
Rebate is the --------- in the amount of bill paid
Choose an answer
Premium
Increase
Expense
Concession
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Question # 31
Debentures are
Choose an answer
Fixed assets
Fixed liabilities
Capital
Prepaid expenses
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Question # 32
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
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Question # 33
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
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Question # 34
How many of grace are given?
Choose an answer
5
4
3
2
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Question # 35
Office salaries are include in
Choose an answer
Direct material cost
Indirect material cost
Factory overhead cost
Total payroll
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Question # 36
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
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Question # 37
Which one is non-manufacturing costs?
Choose an answer
Direct material cost
Labour cost
Research and development cost
All of above
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Question # 38
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
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Question # 39
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
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Question # 40
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
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Question # 41
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
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Question # 42
Goodwill is ----------- for company.
Choose an answer
Intangible asset
Fixed asset
Current asset
Quick asset
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Question # 43
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
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Question # 44
Which one is not accounting convention?
Choose an answer
Materiality
Full disclosure
Consistency
Going concern
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Question # 45
According to possible for an event or transaction which is not measurable in terms of money
Choose an answer
True
False
May be
None
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Question # 46
Offsetting expenses against revenue is the concept of:
Choose an answer
Realization
Dual aspect
Matching
Conventions
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Question # 47
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
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Question # 48
Bin card is maintained by
Choose an answer
Purchase manager
Sales manager
Store keeper
Finance manager
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Question # 49
Cash or goods taken away by owner for personal use from business are known as:
Choose an answer
Capital
Drawings
Revenue
Expense
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Question # 50
Which one is not include in factory overhead?
Choose an answer
Power hear & light
Indirect labour cost
Depreciation of plant
Salary of accountant
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Question # 51
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
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Question # 52
During period of rising material prices, ----------- method results in profit inflation
Choose an answer
LIFO
FIFO
Weighted average
All of the above
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Question # 53
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
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Question # 54
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
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Question # 55
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
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Question # 56
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
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Question # 57
Material are charged to production at actual cost under
Choose an answer
Weighted average method
FIFO method
LIFO method
Both ii & iii
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Question # 58
What is negotiable instrument?
Choose an answer
A document which is not transferable
A document which is transferable
A document which is accepted
None
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Question # 59
In operating expense includes
Choose an answer
Marketing expense
Admin expense
Selling expense
All of the above
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Question # 60
Depreciation is a loss due to wear and tear of an asset.
Choose an answer
Correct
Incorrent
May be
None
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Question # 61
Quick assets are
Choose an answer
Cash in hand
Cash at bank
Debtors
All of the above
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Question # 62
Which one is not a functional classification?
Choose an answer
Manufacturing cost
Marketing cost
Finance cost
Mixed cost
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Question # 63
Cost which is calculated before manufacture operation is called
Choose an answer
Sunk cost
Mixed cost
Standard cost
None of above
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Question # 64
Difference in cost of alternative choices is called
Choose an answer
Total costing
Differential costing
Full costing
Variable costing
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Question # 65
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
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Question # 66
In payroll include the remunerations of
Choose an answer
Direct labour
Indirect labour
Both a & b
None of the above
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Question # 67
Any written evidence of a business transaction is known as
Choose an answer
Voucher
Pay-in-slip
Debit note
Credit note
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Question # 68
Which one is not a classification according to the accounting period?
Choose an answer
Capital expenditure
Revenue expenditure
Product cost
Administrative cost
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Question # 69
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
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Question # 70
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.
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Question # 71
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
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Question # 72
Trading account shows ----------- result.
Choose an answer
Net
Gross
Profit
Loss
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Question # 73
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
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Question # 74
The cost flow must watch the
Choose an answer
Output
Outflow
Inflow
Workflow
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Question # 75
Assets which have to no market value are called
Choose an answer
Fictitious assets
Liquid assets
Intangible assets
Real assets
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Question # 76
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
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Question # 77
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
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Question # 78
Statement of a affairs is a sort of -----------
Choose an answer
Profit and loss statement
Nominal account
Statement of changes in equity
Balance sheet
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Question # 79
A cost whose magnitude will be affected by decision being made is called
Choose an answer
Historical cost
Relevant cost
Irrelevant cost
Sunk cost
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Question # 80
The technique and process of ascertaining cost is termed as
Choose an answer
Costing
Cost accounting
Calculation of cost
Controlling cost
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Question # 81
Endorsement is made:
Choose an answer
For settlement of debts
For settlement of income
For settlement of profit
None
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Question # 82
Manufacturing concern cycle is ---------- than trading concern cycle:
Choose an answer
Shorter
Greater
Medium
None of above
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Question # 83
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:
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Question # 84
The primary objective of cost accounting is to
Choose an answer
Control cost
Calculate profit
Avoid cost
All of above
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Question # 85
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
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Question # 86
How many types of inventories are in cost of goods sold statement?
Choose an answer
1
2
3
4
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Question # 87
Which one of the following is not a negotiable instrument?
Choose an answer
Cheque
Promissory note
Bill of exchange
None of the above
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Question # 88
The cost flow must match the
Choose an answer
Output
Outflow
Inflow
Workflow
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Question # 89
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
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Question # 90
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
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Question # 91
Provision of doubtful debts are also known as:
Choose an answer
Allowances for uncollectable
Allowances for collectable
Bad debts
None
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Question # 92
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
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Question # 93
The cost of holding the stock in storage is called
Choose an answer
Ordering cost
Material cost
Caring cost
All of the above
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Question # 94
Tenor is the period of time ------------ which a bill becomes payable
Choose an answer
Before
After
Both a and b
None
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