Accounting For Managers 71. Which of the following is a liability?
Loan from Mr.Y loan to Mr.y Both (a) (b) None of these View answer Correct answer: (A)
72. Purchases of goods on credit from A is recorded as:
Debit purchases a/c; credit cash a/c Debit A a/c; credit purchases a/c Debit purchases a/c; credit A a/c Debit A a/c; credit stock a/c View answer Correct answer: (C)
73. Payment received from debtor:
Decreases the total assets Increases the total assets Results in no change in total assets Increase the total liabilities View answer Correct answer: (C)
74. The transferring of debit and credit items from journal to the respective accounts in the ledger is called as
Ledger Posting Forward journal None of these View answer Correct answer: (B)
75. The following comments all relate to the recording process. Which of these statements is correct?
The general ledger is a chronological record of transactions. The general ledger is posted from transactions recorded in the general journal. The trial balance provides the primary source document for recording transactions into the general journal. Transposition is the transfer of information from the general journal to the general ledger. View answer Correct answer: (B)
76. Cost accounting information can be used for:
Budget control and evaluation. Determining standard costs and variances. Pricing and inventory valuation decisions. All of these View answer Correct answer: (D)
77. Current liability does not include
Sundry creditors Acceptances Unclaimed dividend Short term investment View answer Correct answer: (D)
78. The term Management Accounting was first used in
1910 1939 1950 1960 View answer Correct answer: (C)
79. ______________ system records only actual cash receipts and payments
Cash basis Accrual basis Mercantile basis Single entry basis View answer Correct answer: (A)
80. Aggregate of direct costs is known as:
Direct material costs Direct Wages Direct Expenses Prime Cost View answer Correct answer: (D)