51
What is the gearing ratio if debt is Rs. 220, cash balance is Rs. 20, and equity is Rs. 300?
A)
20%
B)
40%
C)
50%
D)
30%
Answer & Solution
Answer: Option
B
52
. . . . . . . . budget may be classified into material cost budget, labour cost budget and overhead budget.
A)
Cost of production
B)
Purchase
C)
Sales
D)
Cash
Answer & Solution
Answer: Option
A
53
Material Costs of each job are determined from . . . . . . . .
A)
material requisition notes
B)
bill of materials
C)
Both A and B
D)
None of these
Answer & Solution
Answer: Option
C
54
What is the average collection period when the debt turnover ratio is 4?
A)
5 months
B)
4 months
C)
3 months
D)
2 months
Answer & Solution
Answer: Option
C
55
Cost that is not affected by changes in the volume of production
A)
Total cost
B)
Fixed cost
C)
Variable cost
D)
Opportunity cost
Answer & Solution
Answer: Option
B
56
Match the following.
List-I List-II
a. Cost accounting
1. . . . . . . . . is usually prepared every month.
b. Funds flow statement
2. . . . . . . . . deals with the cost of production, selling and distribution.
c. Cash flow statement
3. . . . . . . . . is an important technique financial analysis.
d. Ratio analysis
4. . . . . . . . . depicts the profit or loss made during a specified period.
A)
a-4, b-3, c-2, d-1
B)
a-2, b-1, c-4, d-3
C)
a-4, b-3, c-1, d-2
D)
a-3, b-4, c-2, d-1
Answer & Solution
Answer: Option
B
57
Economic Batch Quantity depends on . . . . . . . . and . . . . . . . . costs.
A)
material, labour
B)
set-up costs, carrying
C)
transportation, carrying
D)
warehousing, labour
Answer & Solution
Answer: Option
B
58
Accounting Standard-6 is meant for
A)
Accounting for fixed assets
B)
Accounting treatment for goodwill
C)
Depreciation accounting
D)
Disclosure of accounting policies
Answer & Solution
Answer: Option
C
59
Assertion (A) Increasing the value of closing inventory increases profit.Reason (R) Increasing the value of closing inventory reduces cost of goods sold.
A)
Both (A) and (R) are true
B)
(A) is true, but (R) is false
C)
(A) is false, but (R) is true
D)
Both (A) and (R) are false
Answer & Solution
Answer: Option
A
60
When partially completed units are converted to a comparable number of completed units, they are referred to as
A)
split-off units
B)
equivalent units
C)
converted units
D)
equitable units
Answer & Solution
Answer: Option
B
