Question Option 1 Option 2 Option 3 Option 4 Answers

Management accountancy is a structure for  Decision making  Accounting Costing Management 1

The prime function of management accounting is to: Record business Assist the Interpret the financial Assist tax authorities
transaction management in data
performing its 2
functions effectively

Under which of the following kinds of business concepts it is Going Concern Entity Accounting Entity Money Measuring Accounting Period
assumed that organization will last for a long time. Concept 1
Accounting Principles are generally based on Practicability Subjectivity Convenience in Traditionality
recording 1
Basic function of Financial accounting is__________ Record the Do analysis Provide information Match the debt side credit side
transactions of 1
business

The Policy of ‘anticipate no profit and provide for all possible losses’ Consistency Disclosure Conservatism Matching
arises due to convention of 3
It is assumed that only those transactions that could be expressed Money Dual Aspect Principle Going Concern Entity Cost Principle
in monetary terms, under which of the following concepts:          Measurement Entity 1
A document sent by our company to supplier which indicates that Debit Note Credit Note Bills receivable Bills payable
balance in supplier's account is being reduced by amount of 1
purchase returns or purchase allowances is called as _____.
Every transactions has two aspects i.e., debit and credit, under Dual Aspect Principle Cash Accrual Revenue Accrual Double Entry Book-keeping System
which of the following accounting principles: Principle Principle 1
Depriciation is the example of_______________concept. Matching accrual dual aspect consistency 1
Journal entry which contains more than 2 A/Cs is called as : Posted journal entry Adjusting journal Erroneous journal Compound journal entry
entry entry 2
A debit may signify : Increase in asset A/C Decrease in asset A/C Increase in liability Increase in capital A/C
A/C 1
Which of the following is a liability A/C : Accounts receivable Withdrawals Rent expense Accounts payable 4
Outstanding rent is Asset Liability Income Expense 2
Assets sold on credit are recorded in : Sales day book Cash book Journal proper Purchase day book 1
Equity of debits and credit can be tested by preparing : Trial Balance T Accounts Journal Ledger 1
Roberts D'souza gives Rs5 Lakhs cheque to his proprietary firm. Debit Capital A/C Credit bank A/C Debit bank A/C and Credit bank A/C and debit Capital
Accountant should -------------------------------- credit capital A/C A/C 3
Anything for which a separate measurement of cost is desired may Cost Object Cost control Cost centre Costing
be defined as 1
A cost that is easily traceable to a cost object is known as: Direct cost Indirect cost Variable cost Fixed cost 1
Direct material cost + direct labor cost + other variable costs is Contribution Total cost Marginal cost Sales
equal to 1
Contribution/sales is equal to… P/V  ratio Net profit ratio BEP EPS 1
The term gross margin refers to… Total profit Contribution Profit before tax Profit before interest and tax 2
At B.E.P. Contribution is = ………………………………………….. Fixed Cost Variable Cost Semi- Variable Cost Sales 1
An industry is selling a product for Rs. 10 per unit. The fixed cost for 8,000 10,000 12,000 14,000
assets is Rs. 40000 with variable cost of Rs. 6 per unit. How many 2
units should be produced to break even?
In ‘make or buy’ decisions, it is profitable to buy from outside only Fixed Cost Variable Cost Contribution Profit
when the suppliers price is below the firm’s own – 2