- Determine the P/V ratio from the following particulars.
Total Fixed Cost Rs. 12,000
Actual Sales Rs. 48,000
Margin of Safety Rs 8,000
(a) 20%
(b) 25%
(c) 30%
(d) 40% - Arrange the prefatory information of report writing in a logical sequence.
A. Executive Summary
B. Authorization Statement
C. Title Page
D. Letter of transmittal
E. Table of Contents
Choose the correct answer from the options given below:
(a) A, B, C, D, E
(b) C, D, E, B, A
(c) D, C, B, A, E
(d) D, B, C, E, A - Arrange the practical steps involved in the preparation of process account where there is work in progress.
A. Prepare process account
B. Prepare statement of Evaluation
C. Prepare statement of cost per equivalent unit
D. Prepare statement of equivalent production
E. Determine and analyze the number of physical units in the form of inputs (transferred from previous process) and output
Choose the correct answer from the options given below:
(a) A, B, C, D, E
(b) E, D, C, B, A
(c) C, D, E, A, B
(d) B, C, D, A, E - Which one of the following consists of comparing entries in the books of account with documentary evidence in support thereof.
(a) Internal check
(b) Internal control
(c) Vouching
(d) Verification - Which of the following statements are correct:
A. Call-in-advance is the amount paid by the shareholders in excess of amount due from them.
B. When the number of shares applied is more than the number of shares offered to the public for subscription, the issue is termed as under subscription.
C. Section 49 of the Companies Act prohibits the issue of shares other than sweat equity shares at discount.
D. Unless or until the fortified shares are re-issued, the balance on the shares fortified account will be deducted from the paid up capital.
E. The securities premium is an amount in excess of nominal value of face value of the securities.
Choose the correct answer from the options given below:
(a) A and E Only
(b) B, C and D Only
(c) A, B and C Only
(d) A, D and E Only - Match the List – I with List-II.
List -I (Direct Material Variance) List -II (Formula) A. Direct material cost variance I. Standard price × ( Revised standard quantity – Actual Quantity) B. Direct material price variance II. Standard price × (Standard Quantity for actual output quantity – Actual Quantity) C. Direct material usage variance III. Actual Quantity × (standard price – actual price) D. Direct material mix variance IV. Standard cost for actual output – actual cost Choose the correct answer from the options given below:
(a) A-I, B-II, C-III, D-IV
(b) A-IV, B-III, C-I, D-II
(c) A-IV, B-III, C-II, D-I
(d) A-III, B-IV, C-II, D-I - Prepaid Insurance is which type of account?
(a) Real Account
(b) Personal Account
(c) Nominal Account
(d) Real and Nominal Both - Current assets are Rs 4,00,000
Inventories are Rs 2,00,000
Working capital is Rs 2.40,000
Calculate Current Ratio.
(a) 2:1
(b) 2.5:1
(c) 1.5:1
(d) 1:2 - ‘Which of the following statements are true regarding admission of a new partner?
A. According to section 25 of the Indian Partnership Act, 1932, a person can be admitted as partner
B. New Profit – sharing ratio is the ratio in which all partners, including new partners, will share future profits and loses of the firm.
C. New Profit Share = Profit Share Sacrificed – Old Profit Share
D. Sacrificing Ratio = Old Profit Share – New Profit Share
E. The Profit or loss which arises from Revaluation Account will be transferred to partner’s capital account
Choose the correct answer from the options given below:
(a) B, D and E Only
(b) A, B and C Only
(c) B, C and D Only
(d) C, D and E Only - Match the List – I with List-II.
List -I (Accounting Concept & Convention) List -II (Meaning) A. Conservatism I. Use of same accounting policies by a firm from period to period B. Dual aspect II. Enterprise is treated as separate from owner and other persons associated with it C. Separate Business entity III. Every transaction has a two –fold effect D. Consistency IV. Anticipate no profit, but provide for all possible losses Choose the correct answer from the options given below:
(a) A-IV, B-III, C-II, D-I
(b) A-I, B-II, C-III, D-IV
(c) A-II, B-III, C-I, D-IV
(d) A-III, B-IV, C-I, D-II
Answer Key
1 (c) | 2 (d) | 3 (b) | 4 (c) | 5 (a) |
6 (c) | 7 (b) | 8 (b) | 9 (a) | 10 (a) |