1. Marginal costing is concerned with:
a) Fixed cost
b) Variable cost
c) Semi variable cost
d) None of the above
2. The books to be compulsorily maintained by a company are:
a) Cash book and ledger
b) Sales and purchase book
c) Journal
d) All of a, b, c above
3. Which of the following best describes a trial balance?
a) It is a list of balances on the books
b) It is a special account
c) Shows the financial position of a business
d) Shows all the entries in the books
4. Which of the following equation is related with Dual Aspect Concept ?
a) Total Assets = Total Liabilities
b) Total Assets = Capital + Outsider’s Liabilities
c) Capital = Total Assets - Outsider’s Liabilities
d) All of the above
5. The prime function of accounting is to
a) To record economic data
b) Provide the information basis of action
c) Classifying and recording business transaction
d) Attainmentofeconomic goal
6. According to schedule VI Companies Act which item is not shown on Asset side of Balance sheet
a) Investment
b) Current Loan & Advances
c) Provision
d) Lease Holds
7. Salary paid to factory manager is an item of:
a) Prime cost
b) Factory overhead
c) Selling overhead
d) Office overhead
8. Carriage outward is charged to
a) Debit side Profit & Loss a/c
b) Debit side Trading a/c
c) Credit side of Profit & Loss a/c
d) Credit side of trading a/c
9. Payment received from Debtor
a) Decreases the Total Assets
b) Increases the Total Assets
c) Results in no change in the Total Assets
d) Increases the Total Liabilities
10. Accounting does not record non-financial transactions because of:
a) Accrual concept
b) Cost concept
c) Continuity concept
d) Money measurement concept