1. Which does not comes under the head of asset:
a) Fixed asset
b) Investment
c) Current asset
d) Owners equity
2. The word accounting can be classified in to:
a) Financial accounting and management accounting
b) Financial accounting and cost accounting
c) Financial accounting, management accounting and cost accounting
d) Cannot be classified
3. The work of a book keeper is ______________ in nature
a) Analytical
b) Clerical
c) Executive
d) Non – executive
4. Which of the following is true for: – "In accounts recording is done of_ _ _ _ _"
a) only financial transaction
b) only non- financial transaction
c) Both
d) Personal transaction of Proprietor
5. Salary is one of the ______________ expenses
a) Capital
b) Revenue
c) Direct
d) Non – cash
6. A company's telephone bill consisting of a Rs.200 monthly base amount, plus long distance charges,
would be classified as a:
a) Variable cost
b) Committed fixed cost
c) Direct cost
d) Semi variable cost
7. The practice of appending notes regarding contingent liabilities in accounting statement is pursuant
of
a) Convention of consistency
b) Money measurement concept
c) Convention of conservatism
d) Convention of disclosure
8. . In manufacturing a product, prime costs are:
a) Raw materials and manufacturing overhead
b) Indirect materials and manufacturing overhead
c) Indirect labour and manufacturing overhead
d) Direct materials and direct labour
9. Because of automation, which component of product cost is declining?
a) Direct labour
b) Direct materials
c) Manufacturing overhead
d) Advertising
10. Salary paid to factory manager is an item of:
a) Prime Cost
b) Factory Overhead
c) Selling overhead
d) Office overhead