Accountancy New Topics

1 The main function of cost accounting is _______ reporting

a. Internal
b. External
c. Government
d. Bank
2 He sum of direct wages, direct expenses and overhead costs of
converting raw materials in to finished products is called
a. Prime cost
b. Works cost
c. Direct cost
d. Conversion cost
3 Conversion cost is calculated as
a. Sum of all direct materials
b. Sum of all indirect materials
c. Total cost of production –Direct materials
d. Prime cost + Factory OH
4 Cost incurred by undertakings which do not manufacture any
product but services is
a. Operation cost b. Operating cost
c. Joint cost d. Sunk cost
5 Floor area may be used as a basis for apportionment of
a. Rent and rates b. Building insurance
c. Lighting d. All of these
6 Which method of costing is suitable in case of mass production
industries manufacturing standardized products, wherein raw
materials pass through a number of processes in a particular
sequence?
a. Contract costing b. Service costing
c. Process costing d. Batch costing
7 In India, the GST is a dual model of
(a) UK
(b) Canada
(c) USA
(d) Japan
(e) China
8 India’s GST structure are based on how many structures?
(a) 6
(b) 4
(c) 3
(d) 5
9 Which code is used to classify goods and services under GST?
(a) HSN Code
(b) SAC/HSN Code
(c) GST Code
(d) SAC Code
10 Income Tax Act came into force on .
(a) 1.4.1961 (b) 1.4.1962
(c) 1.4.1956 (d) 1.4.1965
11 Previous Year can be a period of .
(a) > 12 months or < 12 months
(b) only 12 months
(c) 12 months or < 12 months
(d) ≥ 12 months.
12. Assessment year can be a period of .
(a) > 12 months or < 12 months
(b) only 12 months
(c) 12 months or < 12 months
(d) ≥ 12 months.

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13 Clubbing of income means _______________.
A Addition income of two partners
B Inclusion of income of other person in assessee income
C Total of income of various heads
D Collection of income
14 Income from horse race falls under the head _____.
A Salary
B Other sources
C Profession
D Business
15 The amount of total income is rounded off to the nearest multiple
of ____.
A Rs.100
B Rs.10
C Rs.5
D Rs.50
16 R&D budget and Capital expenditure budget are examples of
a. Short-term budget
b. Current budget
c. Long-term budget
d. None of the above
17 A budgeting process which demands each manager to justify his
entire budget in detail from beginning is
a. Functional budget
b. Master budget
c. Zero base budgeting
d. None of the above
18 ________ is the first step of budgetary system and all other
budgets depends on it.
a. Cost budget
b. Sales budget
c. Production budget
d. None of the above
19 Which of the following combinations is correct?
a) NABARD--------Industrial Loan
b) RBI---------------Long term Finance
c) RRB---------------Agriculture Finance
d) IDBI---------------Short Term Loans
20 ) In primary market, the first time issued shares to be publicly
traded, in stock market is considered as:
a) Traded Offering
b) Public Markets
c) Issuance Offering
d) Initial Public Offering
21 Where the location of the supplier and the place of supply are in
two different States –
a. IGST is applicable
b. CGST is applicable
c. SGST plus CGST is applicable
d. CGST plus IGST is applicable
22 Which of the following is called a ‘banker’s cheque’ ?
A Demand draft
B Debit card
C Pay order
D Pay in Slip
23 Identify the punishable offence by a Bank Account holder ?
A If a cheque is not crossed
B If a post dated cheque is issued
C If a cheque drawn by him is dishonoured for insufficiency of funds in
his account
D Issuing a cheque without signature
24 GST rates applicable on goods and services are:
a. 5% 12% 18% 22%
b. 5% 12% 18% 28%
c. 8% 12% 18% 28%
d. 5% 12% 16% 28%
25 The basic regulatory authority for mutual funds and stock markets
lies with the:
A Stock Exchanges
B Government of India
C Reserve Bank of India
D Securities and Exchange Board of India
26 The oldest stock exchange of India is :
A Bombay Stock Exchange
B Bangalore Stock Exchange
C Hyderabad Stock Exchange
D Ahmadabad Stock Exchange
27 IGST collected belong to
a. Central Government
b. To the State in which supply occurs
c. to the State to which supply occurs
d. The Centre and state to which supply occurs
28 The first Bank established in India was:
A Bank of Hindustan
B State Bank of India
C Punjab National Bank
D Central Bank
29 The system of value added taxation is applicable to :
A Income tax
B Excise duties
C Estate duty
D Property tax
30 What are gilt-edged securities in India ?
A Securities issued by the government
B Securities issued by the private sector
C Securities issued by the multinationals
D Securities issued by the joint venture companies
31 The liabilities of a commercial bank are:
I. Time deposits
II. Security holdings
III. Demand deposits
IV. Advances from the central bank
A I, II and III
B I, III and IV
C II and IV
D I and III
32 Due date for payment of advance tax of 3rd Installment is:-
a. 15th Sep
b. 15th Oct
c. 15th August
d. 15th December
33 Advance Tax is Known as
A pay and pay scheme
B pay before you earn scheme
C pay as you earn scheme
D pay and earn scheme
34 The Electricity charges are
a. Fixed Cost
b. Variable Cost
c. Semi-variable Cost
d. Administrative Cost
35 On the basis of “Relationship with accounting period” costs are
classified as
a. Historical Costs and Pre-determined Costs.
b. Capital Costs and Commercial Costs.
c. Capital Costs and Revenue Costs.
d. Product Costs and Period Costs.

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36 _______ is designed after assessment of the volume of output to
be produced during budget period.
a. Cost budget
b. Sales budget
c. Production budget
d. None of the above
37 _________ is stated as a budget which is made to change as per the
levels of activity attained.
a. Fixed budget
b. Flexible budget
c. Both a and b
d. None of the above
38 Which of the following statements are true about budget,
budgeting & budgetary control?
a. Budgetary control is a wider concept whereas Budget and budgeting
are narrower concepts
b. If there is budgeting or budget, it is not necessary that there should
be budgetary control also
c. If there is budgetary control, budgeting and budget are must
d. All of the above
39 Which of the following statements are true for forcast and budget?
a. Forecast and budget are one and same thing
b. Budget is prepared after the forecast
c. Forecast and budget both can be expressed in financial form
d. All of the above
40 The process of budgeting includes
a. Preparation of budget
b. Budget Control
c. Budget co-ordination
d. All of the above

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41 Costs are classified between direct and indirect costs according to
method of classification by
a. Nature or Element
b. Functions
c. Degree of traceability
d. Change in Activity or Volume
42 The lender of the last resort to the market is the _____________.
[a] Commercial banks
[b] Indigenous banks
[c] Money lenders
[d] RBI
43 The financial market for long-term funds is known as
[a] Capital market
[b] Money market
[c] Primary market
[d] Secondary market
44 When the volume of output is increased then the per unit fixed
cost will be
a. increase in the proportion of output.
b. decrease in the reverse proportion of output.
c. changed but not in proportion of output.
d. unchanged.
45 The organized financial system includes _____________.
[a] Commercial banks
[b] Indigenous banks
[c] Foreign banks
[d] None of these
46 When the market's required rate of return for a particular bond is
much less than its coupon rate, the bond is selling at
[a] Premium
[b] Discount
[c] Face value
[d] None of these
47 Type of market in which securities with less than one year maturity
are traded, is classified as
[a] money market
[b] capital market
[c] transaction market
[d] global market
48 Indirect material used in production is classified as
a. Office overhead
b. Selling Overhead
c. Distribution Overhead
d. Factory Overhead
49 Burden of tax borne by Consumer is
a. Direct tax
b. Indirect tax
c. Both A and B above
d. None of the above
50 How much percentage of advance tax liability is to be paid off by
2nd installment of advance tax?
a. 45%
b. 65%
c. 75%
d. 90%
51 A person with the age of ………… or more is considered as a senior
citizen as per Income tax Act.
a. More than 50 but less than 60
b. More than 60 but less than 80
c. More than 80 but less than 90
d. None
52 What does “I” in IGST stands stand for?
a. Internal
b. Integrated
c. Internal
d. Intra
53 GST number does not include
a. PAN
b. State Code
c. Aadhaar Number
d. Alphabet Z
54 At break even point …………………
(a) Total expenses = Total revenue
(b) Total expenses > Total revenue
(c) Total expenses < Total revenue
(d) Any of the above
55 A budget is tool which helps the management in planning and
control of…………………
a. All business activities
b. Production activities
c. Purchase activities
d. Sales activities
56 Production budget is…………………
a. Dependent on purchase budget
b. Dependent on sales budget
c. Dependent on cash budget
d. None
57 Fixed budget is useless for comparison when the level of
activity…………………
a. Increases b. Fluctuates both ways
c. Decreases d. Constant
58 Recording of actual performance is….………………
a. An advantage of budgetary control
b. A step in budgetary control
c. A limitation of budgetary control
d. None

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59 Budgetary control system helps the management to eliminate
………………
a. Undercapitalization
b. Overcapitalization
c. Both
d. Subjective matter
60 Budgetary control system acts as a friend, philosopher and guide to
the…………………
a. Management
b. Share holders
c. Creditors
d. Employees
61 Which of the following words complete the statement below?
____________ accounts are prepared for external stakeholders.
Management accounts are prepared for _____________ stakeholders.

(a) Shadow, Internal (b) Financial, Internal

(c) Financial, External (d) Internal, Budget
62 The following assumptions are made in case of break even analysis,
except …………………
(a) All fixed costs are fixed (b) All variable costs are fixed
(c) The prices of input factors are constant
(d) Volume of production and volumes of sales are equal
63 Contribution per unit is equal to …………………
(a) Selling price per unit – variable cost per unit
(b) Selling price per unit + variable cost per unit
(c) Selling price per unit X variable cost per unit
(d) Selling price per unit / variable cost per unit
64 Budget is prepared for a…………………
a. Indefinite period
b. Definite period
c. Period of one year
d. Six months
65 Budget period depends upon…………………
a. The type of budget
b. The nature of business
c. The length of trade cycles
d. All of these
66 Purchase Budget is also called as ______________.
(a) Production Budget (b) Material Budget
(c) Cost Budget (d) None of the above
67 Personnel Budget is also called as ______________.
(a) Cost Budget (b) Labour Budget
(c) Employee Budget (d) None of the above
68 Fixed Budget is also known as ______________.
(a) Static Budget (b) Standard Budget
(c) Master Budget (d) Flexible Budget
69 A company's break even point is 6,000 units per annum. The selling
price is Rs. 90 per unit and the variable cost is Rs. 40 per unit. What
are the company's annual fixed costs?
(a) Rs. 120 000 (b) Rs. 2,40,000
(c) Rs. 3,00,000 (d) Rs. 5,40,000
70 Total cost of a product: Rs. 10,000 Profit: 25% on Selling Price Profit
is:
(a) Rs. 2,500 (b) Rs. 3,000 (c) Rs. 3,333 (d) Rs. 2,000
71 Conversion cost includes cost of converting……….into……..
(a) Raw material, WIP
(b) Raw material, Finished goods
(c) WIP, Finished goods
(d) Finished goods, Saleable goods
72 In cinema halls, composite cost unit is ________________:
a. A seat per show
b. Cost of screening
c. Salary of staff
d. Rent of cinema hall
73 Operating costing is suitable for ___________.
A. job order business. B. contractors.
C. sugar industries. D. service industries.
74 Which one of the following is not considered for preparation of
cost sheet?
A. Factory cost. B. Goodwill written off.
C. Selling cost. D. Labour cost.
75 Long-term budgets are prepared for _______________.
A. 1 year. B. 1-3 years. C. 1-5 years. D. 5-10 years
76 The budget prepared to estimate expenditure to be incurred to sell
the product and its distribution is ____________.
A. Production overhead budget.
B. Administration overhead budget.
C. Selling and distribution overhead budget.
D. Master budget
77 The budget starts without any base is _______________.
A. Master budget. B. Flexible budget.
C. Zero base budgeting. D. Fixed budget
78 If selling price is Rs. 25,000 and profit is Rs. 5,000 then what is the
percentage of profit on cost?__________
A. 20%. B. 25%. C. 33.33%. D. 35%.
79 Capital employed at the end of the year is Rs.4,20,000. Profit
earned Rs.40.000. Average capital employed is
A Rs.4,20,000 B Rs.4,00,000
C Rs.4,40,000 D Rs.4,60,000
80 Which among the following is not a power of RBI?
A inspection of banks
B Nationalization of Banks
C Call of returns
D Control the lending policies of the banks

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81 Wages paid to a labour who was engaged in production activities
can be termed as.
A. direct cost. B. indirect cost.
C. sunk cost. D. imputed cost.
82 Prime cost includes.
A. direct materials, direct wages and indirect expenses .
B. indirect materials and indirect labour and indirect expenses.
C. direct materials, direct wages and direct expenses.
D. direct materials, indirect wages and indirect expenses.
83 Audit fess is a part of__________.
A. works on cost. B. selling overhead.
C. distribution overhead. D. administration overhead
84 Contribution margin is also known as __________.
A. marginal income . B. gross profit.
C. net profit. D. net loss
85 An increase in variable costs______________.
A. increases p/v ratio .
B. increases the profit.
C. reduces contribution .
D. increase margin of safety.
86 Selling price per unit Rs. 10; Variable cost Rs. 8 per unit; Fixed cost
Rs. 20,000; Break-even production in units___________.
A. 10,000. B. 16,300.
C. 2,000. D. 2,500
87 Actual sales Rs .4,00,000; Break-even sales Rs. 2,50,000; Margin of
Safety in percentage is__________.
A. 33.33%. B. 66.67%
C. 37.5% . D. 76.33%.
88 Budgetary control ends with ____________.
A. Planning. B. Organizing
C. Budgeting. D. Control.
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89 The budget prepared for replacement of assets, expansion of
production facilities, adoption of new technologies etc.
is______________.
A. Capital expenditure budget.
B. Production overhead budget.
C. Administration overhead budget.
D. Selling and distribution overhead budget
90 Which of the following is not an organized sector in India?
a) Nationalized Banks b) Regional Rural Banks
c) Cooperative Banks d) Chits and Money lenders
91 Which of the following statement is false about Treasury Bills?
A. It is a secure Instrument
B. It is a promissory note
C. It is issued by government
D. It is issued maximum for maturity of 1 year
a) Option A & B are false
b) Only option C is true
c) Option A & D are correct
d) All the options are correct
92 Which of the following is an inter-state supply ?
a. Supplier of goods located in Delhi and place of supply of goods I to
an SEZ located in Delhi.
b. Supplier of goods located in Delhi and place of supply of goods in
Jaipur.
c. Supplier of goods loacated in Delhi and place of supply of goods is to
an SEZ located in Chandigarh.
d. All the above
93 Renting of immovable property is __________
a) Supply of goods b) Supply of services
c) Neither as a supply of goods nor a supply of services.
d) Either as a supply of goods or a supply of services.
94 Which of the following is – the supply in which possession of the
goods are transferred but the title on the same will be transferred at
the future date ?
a) Rent a car b) Hire Purchase
c) Normal sale of goods d) None of the above.
95 . M has taken a house on rent and sublets the same to A. Income of
M from such house property shall be taxable under the head.
(a) Income from house property
(b) Income from other sources
(c) Business income
(d) Capital Gain
96 Mr. A is the owner of a petrol pump in Rajasthan state and also
owns certain licenses for supply of liquor. With the implementation of
GST, he got to know that certain items relating to his business don’t
fall in the ambit of GST initially. Which of the following goods and
services are not taxable under GST?
i) Supply of alcholic liquor for human Consumption
ii) Petroleum Crude
iii) Motor Spirit (petrol)
iv) High Speed Diesel
v) Natural Gas
Which of the above are not chargeable to GST?
a) i,iii,iv,v b) i,ii,iv,v c) ii,iii,iv d) All of the above
97 What is the meaning of the cascading effect?
a) Charging tax on tax
b) Dual taxation
c) Non-eligibility of ITC
d) None of the above
98 What is the taxable event under GST?
a) Manufacturing of goods
b) Sales of Goods
c) Provision of Services
d) Supply
99 Administration and levy of GST is as follows:
a) Only Centre will levy and administer all CGST, SGST and IGST.
b) Centre will levy and administer CGST and IGST and States will levy
and administer SGST
c) Centre will levy and administer IGST only and States will levy and
administer CGST and SGST
d) State will levy and administer SGST and IGST and IGST shall be
distributed among Centre and State partially.
100 When was GST implemented in State of Jammu & Kashmir?
a) 1st July 2017 b) 8th July 2017
c) 30th June 2017 d) 1st August 2017

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