1. Retained earnings statement depicts:
a) Appropriation of profits
b) Estimates of profits
c) Estimates of costs
d) None of these
2. Financial accounting deals with:
a) Determination of cost
b) Determination of profit
c) Determination of price
d) Determination of selling price
3. Financial account record only
a) Actual figures
b) Budgeted figures
c) Standard figures
d) Management Figure
4. Content of income statement
a) Trading account
b) Profit and loss account
c) Balance sheet
d) All of the above
5. Depreciation is a ______________
a) Cash operating expenditure
b) Non cash operating expenditure
c) Cash non-operating expenditure
d) Non cash non-operating expenditure
6. Outstanding salary account is a ______________ account
a) Nominal account
b) Real Account
c) Artificial person’s account
d) Representative personal account
7. The work of factory employees that can be physically associated with converting raw material into
finished goods is classified as ––
a) Manufacturing overhead
b) Indirect materials
c) Indirect labour
d) Direct labour
8. Aggregate of prime cost and Factory overhead is known as:
a) Work on cost
b) Work Cost
c) Cost of Production
d) Direct Cost
9. Conversion cost includes cost of onverting ______________ into ______________
a) Raw material, WIP
b) Raw material, Finished goods
c) WIP, Finished goods
d) Finished goods, Saleable goods
10. All costs other than direct materials cost, direct labour cost and direct expenses are known as:
a) Indirect material cost
b) Overhead
c) Indirect labour cost
d) Indirect expenses