Total No.

of Printed Pages:# 3 Examination October 2020

M.B.A. (Sem-I) CBCGS
3525 Accounting for Managers -MANB- 405
Time: One Hour Max. Marks: 50
instructions
solve any 25 questions from Q.1 to Q.30
solve any 25 questions from Q.31 to Q.60

1 The Accounting equation is ___________________

(A)Assets = Liabilities + Owners Equity(B)Liabilities = Assets+Owners Equity (C)Owners Equity = Assets + (D)None of the Above
Liabilities
2 Which is the correct entry of “Purchased goods for cash”
(A)Debit- Cash, Credit-Goods (B)Debit- Goods, Credit – Purchase (C)Debit-Purchase, Credit- Goods (D)Debit-Purchase, Credit – Cash.
3 Variances may be broadly classified into categories.
(A)Cost Variance (B)Sales Variance (C)Both (D)None
4 If assets= Rs. 65,000 and liabilities =Rs. 25,000, what is the net worth of the business?
(A)Rs.30,000.00 (B)Rs.40,000.00 (C)Rs.50,000.00 (D)Rs.25,000.00
5 Which of the following is not asset?
(A)a. Factory (B)b. Building (C)c. Cash at bank (D)d. Loan from Jim
6 ________ are costs which cannot be allocated to any specific job or process because they are not capable of being identified with any specific job or
process.
(A)Direct Cost (B)Indirect Cost (C)Fixed Cost (D)Opportunity Cost
7 Accounting assumes that the business entity will continue to operate for a long time in the future unless there is good evidence to the contrary.
(A)Business Entity Concept (B)Periodicity Concept (C)Historical Cost Concept (D)Matching Concept
8 __________ method of costing is used where production is not repetitive and is done against orders.
(A)a. Process Costing (B)b. Contract Costing (C)c. Job costing (D)d. Batch Costing
9 ________________states that items of small significance need not be given strict theoretically correct treatment.
(A)Consistency (B)Materiality concept (C)Conservatism (D)Cost
10 Which of them have some similarities
(A)Financial Accounting & (B)Cost Accounting and Management (C)Financial Accounting & Cost (D)None of the above
Management Accounting Accounting Accounting
11 ___________who first published the principles of Double Entry System in 1494 at Venice in Italy.
(A)Philip Kotler (B)Luco Pacioli (C)Kauṭilya (D)K.S. Iyer
12 ____________ is also called the book of first entry
(A)Account (B)Journal (C)Cash Book (D)Purchase Book
13 Prepaid rent given in the Trial Balance will be treated as a (an):
(A)Liability (B)Revenue (C)Deferred expense (D)Asset
14 LIFO means
(A)Least in first out (B)Last in final out (C)Least in Final out (D)Last in First out
15 Which financial statement displays the revenues and expenses of a company for a period of time?
(A)Income (B)Balance Sheet (C)Cash flow (D)Stock holders equity
16 A ________ is a simple arithmetical expression of the relationship of one number to another.
(A)Ratio (B)Fund (C)Cost (D)Expenses
17 Asset accounts have what type of balance?
(A)Debit (B)Credit (C)Contra (D)All of the them.
18 What will be debited, if Mohsin commenced business with cash?
(A)Cash Account (B)Capital account (C)Drawing account (D)Proprietor account
19 Which account is not a liability account?
(A)Account Payable (B)Accrued Accounts (C)Cash (D)Notes Payable
20 What is the main purpose of financial accounting?
(A)Organize Financial Information (B)Provide useful, Financial (C)Keep track of companies expenses.(D)Minimize company's taxes.
information to outsiders.
21 Direct material Direct labour + Direct Expenses= ………………….
(A)Total Cost (B)Production Cost (C)Factory cost (D)Prime Cost
22 Funds flow refers to changes in ...... capital.
(A)Working Capital (B)Fixed Capital (C)Debt Capital (D)Temporary Capital.
23 Cost Accounting mainly helps the management in_______.
(A)Earning extra profit (B)providing information to the (C)Fixing prices of the products (D)all of the above.
management
24 The discount which is not recorded in the books of account and entry is made only with the net amount paid or received.
(A)Cash Discount (B)Trade Discount (C)Both. (D)None.

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25 _________is a principal book of accounts of the enterprise.

(A)Journal (B)Trading Account (C)Ledger (D)purchase.
26 Which financial statement displays the revenues and expenses of a company for a period of time?
(A)Income Statement (B)Balance Sheet (C)Cash Flow Statement (D)Statement Of Stockholder's Equity
27 The accrual basis of accounting records revenues when they are:
(A)Collected (B)Earned (C)Contracted (D)Readily Available For Use
28 Asset accounts have what type of balance?
(A)Debit (B)Credit (C)Contra (D)All Of The Above
29 Accounts which are related to individuals, firms, companies, co-operative societies, banks, financial institutions are known as______________
(A)Nominal (B)Real (C)Personal (D)Impersonal
30 Financial Accounting considers the transactions
(A)in terms of money (B)important from business point of (C)not in terms of money (D)All of the above
view
31 A ____________is a two-column schedule listing the titles and balances of all the accounts in the order in which they appear in the ledger.
(A)Balance Sheet (B)Trial Balance (C)Profit and Loss account (D)Trading Account.
32 ____________is used to check the arithmetical accuracy of books of Accounts
(A)Balance Sheet (B)Trial Balance (C)Profit and Loss account (D)Trading Account.

33 A trial balance can be prepared by the ____________ methods

(A)Balance Method (B)Total Method (C)Both (D)None
34 When business transaction is either completely or partly omitted to be recorded in the books of prime entry it is called an________.
(A)‘error of omission’ (B)‘error of commission’ (C)‘Error of Duplication’ (D)‘Compensating errors’
35 FIFO means
(A)First in final out (B)Final in first out (C)First In First Out (D)Final in final out
36 ……………Costs change in proportion to the level of production activity, while fixed costs remain unchanged.

(A)Various (B)Variable (C)Semi Variable (D)Sunk

37 Straight Line Method is used for calculation of
(A)Inventory (B)Budget (C)Depreciation (D)Cost
38 ____________Account is prepared to know the Gross Profit or Gross Loss
(A)Cash (B)Balance Sheet (C)Profit & Loss (D)Trading
39 Cost of asset should always be equal to the cost of the liabilities. This concept is
(A)Double Entry Bookkepping (B)Matching Concept (C)Consistency (D)Money Measurment Concept
40 ________________discloses net profit or net loss of the business.
(A)Cash (B)Balance Sheet (C)Profit & Loss (D)Trading
41 "The classifying, recording and appropriate allocation of expenditure for the determination of costs is called______________.”
(A)a. Costing (B)b. Casting (C)c. Accounting (D)d. Auditing
42 Which account is not a liability account?
(A)Accounts Payable (B)Accrued Expenses (C)Cash (D)Notes payable
43 _____________is the function of keeping costs within prescribed limits.
(A)Auditing (B)Cost control (C)Budgeting (D)Costing
44 A ____________ centre is "a location, person, or item of equipment or group of these for which costs may be ascertained and used for the purpose of
control".
(A)Cost (B)Community (C)Exam (D)Department
45 The _______________cost is a cost chargeable to a budget or cost centre, which can be influenced by the actions of the person in whom control the
centre is vested.
(A)Uncontrollable (B)Controllable (C)Opportunity. (D)Marginal.
46 The _____________ cost is the variable cost of one unit of a product or a service i.e., a cost which would be avoided if the unit was not produced or
provided.
(A)Fixed (B)Controllable (C)Opportunity. (D)Marginal.
47 The __________ cost is a cost that tends to be unaffected by changes in the level of activity during a given period of time.
(A)Fixed (B)Controllable (C)Opportunity. (D)Marginal.
48 The components of cost explained in a statement, giving total cost, cost per unit along with different cost components of is termed as a______________.
(A)Balance Sheet. (B)Cost sheet (C)Fund flow Statement (D)Cash flow Statement
49 “The term used to describe the accounting methods, systems, and techniques which, coupled with special knowledge and ability, assist management in
its task of maximising profits or minimizing is called ________.”
(A)Financial Accounting (B)Cost Accounting (C)Management Accounting. (D)None.
50 ________ is the tool of for the purposes of analysis and interpretation of financial statements.
(A)Comparative Financial Statements (B)Common-size Statements (C)Trend Analysis (D)All of the above.

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51 The ability of a firm to meet its current obligations as and when they become due.
(A)Profitability (B)Liquidity (C)Liquidation (D)Obligatory
52 _____________measures the profit available to the equity shareholders on a per share basis, that is, the amount that they can get on every share held.
(A)PE ratio (B)Profitability ratio (C)EPS (D)None
53 The term __________ means transfer of economic values from one asset or equity to another.
(A)Fund Flow (B)Inflow (C)Out flow (D)None
54 The excess of current assets over current liabilities is.
(A)Profit (B)Loss (C)Working Capital (D)Current Ratio
55 The difference between Standard Cost and actual cost for each element of cost incurred during a particular period.
(A)Profit (B)Loss (C)Variance (D)None
56 The art of recording, classifying and summarizing in as significant manner and in terms of money transactions and events which in part, at least of a
financial character, and interpreting the results thereof is called as ______________.
(A)Auditing (B)Financial Accounting. (C)Accounts (D)Book Keeping.
57 ___________is "the amount of expenditure (actual or notional) incurred on or attributable to a given thing".
(A)Cost (B)Costing (C)Casting (D)Forecasting.
58 When a business transaction is recorded twice in the prime books and posted in the Ledger in the respective accounts twice, the error is known as the
________________.
(A)'error of omission’ (B)‘error of commission’ (C)‘Error of Duplication’ (D)‘Compensating errors’
59 The____________ cost is the value of a benefit sacrificed in favour of an alternative course of action.
(A)Uncontrollable (B)Controllable (C)Opportunity. (D)Marginal.
60 In a T Account, Left side is_____________.
(A)Debate (B)Credit (C)Debit (D)Debtors.

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