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
Correct answer: (A)
Water
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
Correct answer: (C)
Debit purchases a/c; credit A a/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
Correct answer: (C)
Results in no change in total assets
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
Correct answer: (B)
Posting
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.
Correct answer: (B)
The general ledger is posted from transactions recorded in the general journal.
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
Correct answer: (D)
All of these
77. Current liability does not include
- Sundry creditors
- Acceptances
- Unclaimed dividend
- Short term investment
Correct answer: (D)
Short term investment
78. The term Management Accounting was first used in
- 1910
- 1939
- 1950
- 1960
Correct answer: (C)
1950
79. ______________ system records only actual cash receipts and payments
- Cash basis
- Accrual basis
- Mercantile basis
- Single entry basis
Correct answer: (A)
Cash basis
80. Aggregate of direct costs is known as:
- Direct material costs
- Direct Wages
- Direct Expenses
- Prime Cost
Correct answer: (D)
Prime Cost
Wednesday, December 29, 2021