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Account for Manager Online Assignment Set 3
Study Accounting Online MCQ Test for your amity mba bba courses, ignou mba, imt cdl, smu and upes management program. This is important online mcq question answer for various distance learning program.
Q1: X draws a bill on Y on 1.1.2011 for Rs.20,000 for 30 days. What will be the maturity date of the bill
Answer
Answer: 3.2.2011
Q2: X draws a bill on Y. X endorsed the bill to Z. The payee of the bill will be
Answer
Answer: Z
Q3: X of Kolkata purchased 1,000 boxes costing Rs.100 each. 200 boxes were sent out to Y of Delhi at cost +25%. 600 boxes were sold at 120 each. The amount of gross profit to be recorded in general trading account will be
Answer
Answer: $12000
Q4: X of Kolkata send out 1,000 bags to Y of Delhi costing Rs.200 each. Consignor’s expenses Rs.2,000. Y’s expenses non-selling Rs.1000, selling Rs.2000. 100 bags were lost in transit.Value of lost in transit will be
Answer
Answer: $20200
Q5: X of Kolkata sends out 1,000 bags to Y of Delhi costing Rs.2,000 each. 600 bags were sold at 10% above cost price. Sales value will be
Answer
Answer: $1320000
Q6: X of Kolkata sends out 1,000 boxes to Y of Delhi costing Rs.20 each. Consignor’s expenses Rs.2,000. 4/5th of the boxes were sold at Rs.25 each. The profit on consignment will be
Answer
Answer: $2400
Q7: X of Kolkata sends out 100 boxes to Y of Delhi costing Rs.100 each. Consignor’s expenses Rs.1,000. Consignee’s selling expenses Rs.500. 3/5th of the goods sold by consignee, 1/2 of the balance goods were lost in consignee’s godown due to fire. The value of abnormal loss will be
Answer
Answer: $2200
Q8: X of Kolkata sends out 100 boxes to Y of Delhi costing Rs.200 each. Consignor’s expenses Rs.4,000. Consignee’s non-selling expenses (incurred till goods were reached to godown) Rs.900 and selling expenses Rs.500. 1/10th of the boxes were lost in transit. 2/3rd of the boxes received by consignee were sold. The amount of consignment Inventories will be
Answer
Answer: $7500
Q9: X of Kolkata sends out 1000 boxes costing Rs.200 each to Y of Delhi. 1/10th of the boxes were lost in transit. 2/3rd of the remaining boxes sold by consignee at cost +25%. The sale value will be
Answer
Answer: $150000
Q10: X of Kolkata sends out 2,000 boxes to Y of Delhi costing Rs.100 each. Consignor’s expenses Rs.5,000. 1/10th of the boxes were lost in consignee’s godown and treated as normal loss. 1,200 boxes were sold by consignee. The value of consignment Inventories will be
Answer
Answer: $68333
Q11: X of Kolkata sends out 400 bags to Y of Delhi costing Rs.200 each. Consignor expenses Rs.2,000. Y’s non selling expenses Rs.2,000 and selling expenses Rs.1,000. 300 bags were sold by Y. Value of consignment Inventories will be
Answer
Answer: $21000
Q12: X of Kolkata sends out 500 bags to Y costing Rs.400 each at an invoice price of Rs.500 each. Consignor’s expenses Rs.4,000 consignee’s non-selling expenses Rs.1,000 and selling expenses Rs.2,000. 400 bags were sold. The amount of consignment Inventories at Invoice Price will be
Answer
Answer: $51000
Q13: X of Kolkata sends out 500 bags to Y costing Rs.400 each at an invoice price of Rs.500 each. Consignor’s expenses Rs.4,000 consignee’s, non-selling expenses Rs.1000, selling expenses Rs.2,000. 400 bags were sold. The amount of Inventories Reserve will be
Answer
Answer: $10000
Q14: X of Kolkata sends out certain goods at cost +25%. Invoice value of goods sends out Rs.200,000. 4/5th of the goods were sold by consignee at Rs.1,76,000. Commission 2% upto invoice value and 10% of any surplus above invoice value. The amount of commission will be
Answer
Answer: $4800
Q15: X of Kolkata sends out certain goods to Y of Mumbai at cost +25%. 1/2 of the goods received by Y is sold at Rs.1,76,000 at 10% above invoice price. Invoice value of goods send out is
Answer
Answer: $320000
Q16: X of Kolkata sends out goods costing Rs 3,00,000 to Y of Delhi. Goods are to be sold at cost +331/3 %. The consignor asked consignee to pay an advance for an amount equivalent to 60% of sales value. The amount of advance will be
Answer
Answer: $240000
Q17: X of Kolkata sends out goods costing Rs.1,00,000 to Y of Delhi. 3/5th of the goods were sold by consignee for Rs.70,000. Commission 2% on sales plus 20% of gross sales less all commission exceeds cost price. The amount of Commission will be
Answer
Answer: $2833
Q18: X of Kolkata sends out goods costing Rs.1,00,000 to Y of Mumbai at cost +25%. Consignor’s expenses Rs.2,000. 3/5th of the goods were sold by consignee at Rs.85,000. Commission 2% on sales+ 20% of gross sales less all commission exceeds invoice value. Amount of commission will be
Answer
Answer: $3083
Q19: X of Kolkata sends out goods costing Rs.3,00,000 to Y of Delhi. Commission agreement -2% on sales +3% on sales as del-credere commission. The entire goods is sold by consignee for Rs.4 lacs. However, consignee is able to recover Rs.3,95,000 from the Trade receivables. The amount of profit to be transferred to P/L as net commission by consignee will be
Answer
Answer: $15000
Q20: X of Kolkata sends out goods costing Rs.3,00,000 to Y of Mumbai at cost +25%. Consignor’s expenses Rs.5,000. 1/10th of the goods were lost in transit. Insurance claim received Rs.3,000. The net loss on account of abnormal loss is
Answer
Answer: $27500
Q21: X of Kolkata sends out goods costing Rs.80,000 to Y of Mumbai so as to show 20% profit on invoice value. 3/5th of the goods received by consignee is sold at 5% above invoice price. The amount of sales value will be
Answer
Answer: $63000
Q22: X of Kolkata sent out 2,000 boxes costing 100 each with the instruction that sales are to be made at cost +45%. X draws a bill on Y for an amount equivalent to 60% of sales value. The amount of bill will be
Answer
Answer: $174000
Q23: X sent out certain goods to Y of Delhi. 1/10 of the goods were lost in transit. Invoice value of goods lost Rs.12,500. Invoice value of goods sent out on consignment will be
Answer
Answer: $125000
Q24: X sold goods to Y for Rs.1,00,000. Y paid cash Rs.30,000. X will grant 2% discount on balance, and Y request X to draw a bill for balance, the amount of bill will be
Answer
Answer: $68600
Q25: X sold goods to Y for Rs.3,00,000. 1/2 of the amount will be received in cash and balance in B/R. For what amount X should draw the bill on Y
Answer
Answer: $150000
Q26: Accounting principles are generally based on
Answer
Answer: Practicability
Q27: In case of Debt becoming bad, the amount should be credited to
Answer
Answer: Debtor’s account
Q28: When a firm maintains “Three Column Cash Book” it need not maintain
Answer
Answer: Both Cash and Bank Account in the Ledger
Q29: Purchases book is used to record
Answer
Answer: All credit purchases of goods
Q30: Cost of Goods Sold
Answer
Answer: Opening stock + Net Purchases (after adjusting returns) – Closing stock of goods.
Q31: Interest on drawing is
Answer
Answer: Expense for the business
Q32: Tax paid is
Answer
Answer: Application of Fund
Q33: Cash from operation is equal to
Answer
Answer: None of these —-(a) Net Profit plus increase in outstanding expense
(b) Net Profit plus increase in debtors
(c) Net Profit plus increase in stock
Q34: When fixed Cost is Rs 10000 and P/V/Ratio is 50%, the Break even point is
Answer
Answer: $20000
Q35: When P/V ratio is 40% and Sales Value Rs 10000 the variable cost will be
Answer
Answer: $6000
Q36: Assets are measured using the cost concept-T/F
Answer
Answer: TRUE
Q37: When the concept of conservation is applied to the Balance Sheet, it results in
Answer
Answer: Overstatement of Capital
Q38: Which of the following is a correct expression of the accounting equation
Answer
Answer: Assets = Liabilities + Owners’ Equity
Q39: How is the balance sheet linked to the other financial statements
Answer
Answer: Net income increases retained earnings on the statement of retained earnings, which ultimately increases retained earnings on the balance sheet.
Q40: The process of recording the economic effects of business transactions in a book of original entry:
Answer
Answer: Journalizing
Q41: If the sum of the debits and credits in a trial balance is not equal, then
Answer
Answer: Most likely an error was- made in posting journal entries to the general ledger or in preparing the trial balance.
Q42: Z Ltd had Rs. 1800 of supplies on hand at January 1, 2006. During 2006, supplies with a cost of Rs. 7,000 were purchased. At December 31, 2006, the actual supplies on hand amounts to Rs. 2,300. After the adjustments are recorded and posted at December 31, 2006, the balances in the Supplies and Supplies Expense accounts will be
Answer
Answer: Supplies, Rs2, 300; Supplies Expense, Rs6, 500.
Q43: In the statement of changes in financial position, uses of resources are defined as:
Answer
Answer: Fund decreases
Q44: Most firms elected to define funds in the statement of changes in financial position as
Answer
Answer: Cash
Q45: The funds flow statement included
Answer
Answer: All sources and uses of resources.
Q46: Which of the following is not an example of a non-fund adjustment to income required in preparing the statement of changes in financial position when funds were defined as working capital
Answer
Answer: Interest expense
Q47: In the cash flow statement, cash is defined as
Answer
Answer: (a) Quick assets
(b)Literal cash on hand or on demand deposit, plus cash equivalents
(c) Literal cash on hand or on demand deposit, plus marketable securities.
All these correct answer
Q48: Flexible budgets
Answer
Answer: Accommodate changes in activity levels.
Q49: Which of the following statements regarding changing inventory methods is true
Answer
Answer: One place that the reader of an annual report would be able to identify that a company changed inventory methods is the footnotes to the financial statements.
Q50: Use the information presented below to answer the questions that follow. Solid Co. received a non-interest-bearing note from Y Ltd. on October 1, 2006. The amount of the note due at the maturity date is Rs6, 200. The note was accepted by Solid for merchandise sold to Bedrock with a selling price of Rs6, 000. The note is due in 3 months The difference of Rs200 between the amount of the note (Rs. 6,200) and the sales price of the merchandise (Rs. 6,000)
Answer
Answer: Will be recorded in a contra account, Discount on Notes Receivable, by Co.
Q51: Which of the following combination of financial statements would provide the most in-depth information to help under stand a company’s liquidity
Answer
Answer: Balance sheet and statement of cash flows.
Q52: Y Ltd sold equipment for Rs4, 000. This resulted in a Rs1, 500 loss. What is the impact of this sale on the working capital
Answer
Answer: Has no affect on working capital at all.
Q53: If a company’s asset turnover rate increased from 2005 to 2006, which of the following cone usions can be made
Answer
Answer: The company produced more sales in 2006 for each dollar invested in assets.
Q54: X Ltd’s master budget calls for the production of 6,000 units of product monthly; The master budget includes indirect labor of Rs. 396,000 annually; X Ltd considers indirect labor to be a variable cost. During the month of September, 5,600 units of product were produced, and indirect labor costs of Rs. 30,970 were incurred. A performance report utilizing flexible budgeting would report a flexible budget variance for indirect labor of
Answer
Answer: Rs. 170 unfavorable.
Q55: Which of the following is not an advantage for using standard costs for variance analysis
Answer
Answer: Standards are developed using past costs and are available at a relatively low cost.
Q56: The main purpose of cost accounting is to
Answer
Answer: Provide information to management for decision making
Q57: Conversion cost is total of
Answer
Answer: Direct wages and production overheads.
Q58: A cost, which does not involve cash outlay, is called
Answer
Answer: Imputed cost
Q59: Committed fixed costs are those, which
Answer
Answer: Arise from additional capacity.
Q60: Cost of research undertaken at the request of the customer should be
Answer
Answer: Recovered from the customer.
Q61: Salaries due for the month of March will appear
Answer
Answer: Nowhere in the Cash Book.
Q62: Liabilities of business are Rs. 11,220 and owner’s equity is Rs. 15,000. The assets of the business will be
Answer
Answer: $26220.00
Q63: An entry of Rs. 320 has been debited to Eknath’s account at Rs. 230. If is an error of
Answer
Answer: Commission.
Q64: Unearned revenues are
Answer
Answer: Liabilities.
Q65: The revenue recognition principle requires that sales revenues be recognized:
Answer
Answer: When the goods are transferred from the seller to the buyer.
Q66: All of the following are “other receivables” except
Answer
Answer: Petty cash.
Q67: Depreciation is depsndent on a number of estimates. When a change in an estimate is required, the change is ma
Answer
Answer: in the current year
and
in the future year.
Q68: In order to pay a dividend
Answer
Answer: the corporation must have adequate retained earnings.
Q69: Cash flow activities that include the cash effects of transactions that create revenues and expenses and thus enter into the determination of net income are referred to as
Answer
Answer: Operating activities.
Q70: All of the following are used in preparing a statement of cash flows except
Answer
Answer: Additional information.
Q71: Depreciation is result of
Answer
Answer: Usage
Time
Obsolescence.
Q72: Outstanding Expenses are the examples of
Answer
Answer: Nominal Accounts.
Q73: Liquid Assets are inclusive of all current assets except
Answer
Answer: Inventories
Prepaid Expenses.
Q74: Management Accounting is mainly related to
Answer
Answer: Presentation of Figures from Financial Accounting
Presentation of Figures from Cost Accounting.
Q75: Variance Analysis is done with regards to actuals with
Answer
Answer: Standards
Budgeted
Figure
Benchmarks
Q76: Accounting is a language of business-T/F
Answer
Answer: True
Q77: Accounting is a service function-T/F
Answer
Answer: True
Q78: Accounting records only those transactions and events which are financial character-T/F
Answer
Answer: True
Q79: Drawings reduce capital-T/F
Answer
Answer: True
Q80: Capital is increased by profit and decreased by losses-T/F
Answer
Answer: True
Q81: The system of recording transaction on the basis of their two old (it should be fold)aspects is called double entry system-T/F
Answer
Answer: True
Q82: Purchases made from B for cash should be debited to B-T/F
Answer
Answer: False
Q83: Earnings of revenue means increase in Cash/Bank balance-T/F
Answer
Answer: False
Q84: The balance of an account is always known by the side which is shorter-T/F
Answer
Answer: False
Q85: The return of goods by a customer should be debited to Returns Inwards Account-T/F
Answer
Answer: True
Q86: Goods bought for resale are referred to as Stocks-T/F
Answer
Answer: True
Q87: If the business has any liability, the proprietor’s capital must be more than the total assets-T/F
Answer
Answer: False
Q88: Withdrawal of money by the owner is an expense for the business-T/F
Answer
Answer: False
Q89: Ledger is called the book of final entry-T/F
Answer
Answer: True
Q90: Cash book is used to record all receipts and payments of cash-T/F
Answer
Answer: True
Q91: Sales book is used to record all credit sales-T/F
Answer
Answer: True
Q92: The journal is not a book of original entry-T/F
Answer
Answer: False
Q93: Goodwill is an intangible asset-T/F
Answer
Answer: True
Q94: Salaries and Wages appearing in the trial balance are shown on the liabilities side of the balance sheet-T/F
Answer
Answer: False
Q95: The profit and loss account is one of the financial statements-T/F
Answer
Answer: True
Q96: Share having preferential right as to dividend and repayment of capital are termed as equity share capital-T/F
Answer
Answer: False
Q97: Shares which are not preference shares are called equity shares-T/F
Answer
Answer: True
Q98: The amount of share premium received by the company is shown under the heading reserves and surplus in the company’s balance sheet-T/F
Answer
Answer: True
Q99: Debenture holders are not the member of the company-T/F
Answer
Answer: True
Q100: There are no legal restrictions, similar to shares, for issue of debentures at discount-T/F
Answer
Answer: True
Q100: Which of the following statements is true concerning assets
a. They are recorded at cost and adjusted for inflation.
b. They are recorded at market value for financial reporting because historical cost is arbitrary.
c. Accounting principles require that companies report assets on the income statement.
d. Assets are measured using the cost concept.
Answer
Answer: D Assets are measured using the cost concept
