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: Accounting Concepts, Principles, Bases and Policies - Financial an... https://learning.onlinemanipal.com/d2l/lms/quizzing/user/quiz_submi...
Accounting Concepts, Principles, Bases and

Policies
sanjeev Misra (username: sanjeev.2214501636@mujonline.edu.in)
Attempt 1
Written: 11 February 2023 1:58 PM ‐ 11 February 2023 2:11 PM
Submission View
Your quiz has been submitted successfully.
Question 1 1 / 1 point
________________ is required to help comparison of financial data from one

period to another.
Materiality
Double aspect
Consistency
Conservatism
According to which accounting convention, revenue earned during a period

is compared with the expenditure incurred to earn that income, irrespective
of whether the expenditure is paid during that period or not?
Convention of income recognition
Convention of historical costs
Convention of full disclosure
Convention of matching cost and revenue
Which of the following statement is true about accounting policies?
1 of 10 27-02-2023, 14:51
The change in accounting policies is recommended whenever the

organisation bears heavy losses.
Disclosure of accounting policies should form part of the financial
statements.
Accounting standards are the same as accounting policies.
Accounting policy states that the benefit derived from measuring,
recording, and processing a transaction should justify the cost of
doing it.
Which convention states that for every debit transaction recorded in the
book, there is an equal and corresponding credit?
Convention of dual aspect
Convention of materiality
Convention of consistency
Convention of prudence
Which of the following statements is not true with respect to Generally

Accepted Accounting Principles (GAAP)?
The stakeholders need to understand the accounting language and

also the principles, concepts, and policies based on which the
financial statements have been prepared.
GAAP are the accounting principles that are accepted universally by
accountants, professional accounting bodies, and business entities
across the world.
Accounting principles are doctrines associated with theory and
procedures and current practices of accounting.
Accounting principles are those customs and traditions that guide
the accountants while preparing the financial statements.
2 of 10 27-02-2023, 14:51
Which of the following statements is not true about accounting

conventions?
In convention of income recognition, revenue is considered as being

earned on the date on which it is realized.
Convention of full disclosure states that if there is any change in the
accounting policies in the current year as compared to the previous
year/s, the effects of such changes and the reason/s thereof, it should
be stated.
Convention of double aspect concept states that every transaction
has two aspects. One is the receiving aspect and the other is the
giving aspect. In accounting language, these two aspects are called
�debit� and �credit�.
Convention of materiality convention states that the benefit derived
from measuring, recording, and processing a transaction should not
justify the cost of doing it.
According to which convention must a business state all the accounting

policies adopted in the preparation and presentation of financial
statements?
Convention of full disclosure
Convention of dual aspect
Convention of consistency
Convention of prudence
Mr. X purchased a building for Rs.100000 but at the end of the accounting
period, the market value of the building is Rs.150000. He disclosed the
building at Rs.150000 in the financial statements. He has violated the
_______________ principle.
Conservatism
Materiality
3 of 10 27-02-2023, 14:51
Cost
Consistency
Mr. X has a closing stock costing Rs.10000 but its market value is Rs.9000.
He shows this stock at Rs.10000 in the financial statements. He has
violated the ___________ principle.
Conservatism
Materiality
Cost
Consistency
A machine is purchased by S Enterprise for Rs. 2 lakhs and its market price
is Rs. 3.50 lakhs. This machine is shown as Rs. 2 lakhs in the financial
statements. This is an example of ____________________ principle.
Conservatism
Materiality
Cost
Consistency
Machinery is bought for Rs. 2,00,000 and its market value is Rs.80,000.
Which of these values do you mention in the balance sheet according to
cost principle?
200000
80000
120000
4 of 10 27-02-2023, 14:51
Non‐disclosure of material information amounts to ___________.
Manipulation
Fraud
Mismanagement
Total liabilities should be equal to ___________ as per dual aspect principle.
Total Expenses
Total Assets
For every debit, there should be an equivalent credit. This is called

_________ of accounting.
Double entry principle
Debit credit principle
State the relevant accounting principle for the statement ‐ Following FIFO
method of stock valuation year after year.
Principles of full disclosure
Principles of consistency
Principles of conservatism
5 of 10 27-02-2023, 14:51
State the relevant accounting principle for the statement ‐ Appending notes
to the financial statements.
State the relevant accounting principle for the statement ‐ Anticipating no

profit but providing for all probable losses.
Uncertainties are a fact and they are inevitable. Which one of the following
consideration does this fall in?
Substance over form
Prudence
Materiality
Transactions and events should be accounted for and presented in

accordance with their substance and financial reality and not merely with
their legal form. Which one of the following consideration does this fall in?
6 of 10 27-02-2023, 14:51
Substance over form
Materiality
Prudence
Financial statement should disclose all material items which might influence
the decision of the users of the financial statement. Which one of the
following consideration does this fall in?
Prudence
Substance over form
Materiality
At present, there are __________ accounting standards issued by the council

of the Institute of Chartered Accountants of India (ICAI)
24
48
32
Income is realised whether it is actually received in cash or promised to be

received. (TRUE/'FALSE)
True
False
7 of 10 27-02-2023, 14:51
Income realised is different from cash received. (TRUE/'FALSE)
True
False
Matching concept of accounting considers only revenue incomes and

expenses relating to a particular accounting period. (TRUE/'FALSE)
True
False
Expenditure paid or payable and revenue earned whether realised or not in

cash are taken into account to find out profit or loss. (TRUE/'FALSE)
True
False
All assets are shown at historical cost in the balance sheet. (TRUE/'FALSE)
True
False
Depreciation is charged against the historical cost of assets. (TRUE/'FALSE)
True
False
Historical cost is the cost at which an asset is actually purchased.

(TRUE/'FALSE)
True
8 of 10 27-02-2023, 14:51
False
Disclosing about assets without disclosing about liabilities is against the

principle of full disclosure. (TRUE/'FALSE)
True
False
Under dual aspect principle, total benefits received by business should

match the total benefits given. (TRUE/'FALSE)
True
False
Consistency principle helps for proper assessment of profit or loss.

(TRUE/'FALSE)
True
False
An accounting standard is a selected set of accounting policies or broad

guidelines regarding the principles and methods to be chosen out of several
alternatives. (True/False)
True
False
An accounting standard is a selected set of accounting policies or broad

guidelines regarding the principles and methods to be chosen out of several
alternatives. (True/False)
9 of 10 27-02-2023, 14:51
True
False
Attempt Score: 27 / 33 ‐ 81.82 %

Overall Grade (highest attempt): 27 / 33 ‐ 81.82 %
Done
10 of 10 27-02-2023, 14:51
: Budgetary Control - Financial and Management Accounting - Manip... https://learning.onlinemanipal.com/d2l/lms/quizzing/user/quiz_submi...
Budgetary Control
Attempt 1
Submission View
The objectives of budgetary control are as follows:
1. To conform to good business practices by planning for the future.

2. To coordinate with the various divisions of a business.
3. To establish divisional and departmental responsibilities.4. To forecast
operating activities and financial position.
1 and 3 are incorrect.
2 and 4 are correct.
1, 2, 3 ,4 are correct.
1, 2, 3 and 4 are incorrect.
Based on the time horizon, budgets are classified as follows:1. Short‐term

budgets2. Medium‐term budgets3. Long‐term budgets4. Fixed Budget
1, 2, 3 are correct.
1 of 4 27-02-2023, 14:57
The various receipts of cash are:1. Opening balance of cash in hand and
cash at bank2. Cash sales3. Collection from debtors to whom sales are
effected on credit basis4. College from bills received
1, 2 ,3 , 4 are correct.
Steps in ZBB1. Identifying all activities required to be performed and

structuring them as decision packages (programmes).2. Making a benefits
cost analysis (BC analysis) for each decision package.3. Evaluating each of
the decision packages based on a systematic analysis.4. Ranking the
decision packages in order of preference.
1, 2, 3, 4 are correct.
The following are the main limitations of budgeting:1. The success of

budgeting depends on the accuracy of the basic estimates or forecasts.2.
Budgeting may impose rigidity.3. Budgeting alone is not sufficient as a cost
control technique. It needs to be used along with other cost control
techniques.4. The installation of budgeting system in an organisation
involves considerable outlays.
1, 2, 3 and 4 are correct.
2 of 4 27-02-2023, 14:57
Budgetary control is the establishment of budgets relating to the

responsibilities of executives of a policy and the continuous comparison of
the actual with the budgeted results, either to secure by individual action
the objective of the policy or to provide a basis for its revision."
State True or False:
True
False
#REF!
True
False
A fixed budget is defined as a budget �which is designed to change in

relation to the level of activity actually attained �.
False
False
The principles of flexible budgeting concepts are applied to functional

budget and master budgets.State True or False:
True
False
Zero based budgeting is �a method of budgeting where by all activities are

revaluated each time a budget is set. Discreet levels of each activity are
valued and a combination chosen to match funds available�.State True or
False:
3 of 4 27-02-2023, 14:57
True
False
Break‐Even Chart is a graphical or visual presentation of the relationship

between cost, volume, and profit.
True
False
BEP is the volume of activity or sales when the organisation�s revenues

and expenses are zero. State True
or False:
False
False
Attempt Score: 8 / 12 ‐ 66.67 %

Done
4 of 4 27-02-2023, 14:57
: Cash Flow Analysis - Financial and Management Accounting - Mani... https://learning.onlinemanipal.com/d2l/lms/quizzing/user/quiz_submi...
Cash Flow Analysis

Attempt 1
Submission View
Cash Flow Analysis helps us to understand whether the __________ and

__________ decision taken by the company during the year are appropriate
or not.
investing and operating
investing and financing
financing and operating
All of the above
Which of the following statements represent the objectives of Cash Flow

Analysis?1. Change in the cash position of the firm (current vs previous
year)2. Sound liquidity position of the firm3. Sources of cash during the
current year4. Cash generated from operations5. Applications of cash
during the current year6. Cash spent on financing activities
1,2,4,5
1,2,3,4,5
1,2,3,6
2,3,4,6
1 of 4 27-02-2023, 14:56
Preparation and submission of cash flow statement is mandatory according

to ______________.
ICAI
AS3
GAAP
American Management Association
Identify the transactions that result in a source of cash.1. Cash lost in

operations2. Buy back of equity shares3. Cash from operations4. Proceeds
of issue of debentures or bonds5. Proceeds of issue of equity and
preference shares6. Raising mortgage loans (long‐term)
1,3,4,6
2,4,5,6
3, 4, 6
1,3 ,4, 5
Identify the transactions that result in a applciation or use of cash.1. Cash

lost in operations2. Buy back of equity shares3. Cash from operations4.
Proceeds of issue of debentures or bonds5. Proceeds of issue of equity and
preference shares6. Raising mortgage loans (long‐term)
1,2,4,5
1, 2, 5
1,2,5,6
1,2,3,4
Identify the transactions that fall under Indirect Method.1. Depreciation2.
2 of 4 27-02-2023, 14:56
Amortisation of intangible assets3. Sales4. Royalties
1,2
1,3
2,3
Only 3
Which of the following statements belong to Cash Flow Analysis?1. It is

concerned only with the change in cash position2. An improvement in funds
positions need not result in improvement in cash position3. Cash is part of
working capital and therefore an improvement in cash position results in
improvement in the funds position4. Net effect of receipts and
disbursements are recorded.5. It is accrual based6. It is merely a record of
cash receipts and disbursements
1,2,4,5
1,3,6
1,2,3,6
1,2,6
Which of the following statements belong to Fund Flow Analysis?1. It is

concerned with change in working capital position between two balance
sheet dates.2. An improvement in funds positions need not result in
improvement in cash position3. Cash is part of working capital and
therefore an improvement in cash position results in improvement in the
funds position4. Net effect of receipts and disbursements are recorded.5. It
is accrual based6. It is merely a record of cash receipts and disbursements
1,2,4,6
1, 2, 4, 5
2,3,4,5
3 of 4 27-02-2023, 14:56
1,3,5,6
Attempt Score: 7 / 8 ‐ 87.5 %

Done
4 of 4 27-02-2023, 14:56
: Decisions Involving Alternative Choices - Financial and Manageme... https://learning.onlinemanipal.com/d2l/lms/quizzing/user/quiz_submi...
Decisions Involving Alternative Choices

Attempt 1
Submission View
The __________ decisions are non‐routine types of decisions.
short‐term
intermidiate‐term
long‐term
high‐level
Decisions regarding entering new markets whether within or outside the

country should be taken after considering the following factors:1. Whether
the firm has surplus capacity to meet the new demand?2. What price is
being offered by the new market?3. Whether the sale of goods in the new
market will affect the present market for the goods?4. Whether the price of
goods in the new market will affect the present market for the goods?
1 of 4 27-02-2023, 14:58
Make or buy decisions arise when a company with unused production

capacity considers the following alternatives:1. To buy certain raw materials
or subassemblies from outside suppliers2. To use available capacity to
produce the items within the company3. To use available capacity to
produce the items outside the company4. To buy certain raw materials from
internal suppliers
1, 2 are correct.
Relevant costs.:1.Opportunity costs2.Avoidable costs3.

Incremental/Differential costs4. Sunk costs (committed costs
When deciding between alternative courses of actions, the criterion should

be to select the project that yields the greatest contribution.State True or
False:
True
False
Differential analysis is the process of estimating the consequences of

alternative actions that a decision maker may take
2 of 4 27-02-2023, 14:58
True
False
The principles of marginal costing and CVP analysis are used in providing
assistance to the management in decision‐making, particularly in short‐term
operational decisions. State
True or False:
True
False
A firm is frequently faced with the problem of continuing the existing

policies or plans or change to new ones.State True or False:
True
False
Various factors both external and internal affect the functioning of a firm. In
such situations, it becomes necessary for a firm to temporarily suspend or
shutdown the activities of a particular product, department, or a unit as a
whole.State True or False:
True
False
When a firm is divided into multiple sales outlets, product lines, divisions, or
departments, it may have to evaluate individual performance to decide
whether to continue operations of each of these segments or not.State True
or False:
True
3 of 4 27-02-2023, 14:58
False
The application of decremental or differential costs and revenues for

decision making is known as decision situations or types of choice
decisions. State True or False:
True
False
Attempt Score: 6 / 11 ‐ 54.55 %

Done
4 of 4 27-02-2023, 14:58
: Double Entry Accounting - Financial and Management Accounting ... https://learning.onlinemanipal.com/d2l/lms/quizzing/user/quiz_submi...
Double Entry Accounting

Attempt 1
Submission View
Which account deals with the amount charged for goods sold or services
rendered?
Capital account
Liabilities account
Revenue account
Expenses account
According to traditional approach, which of these falls under personal

account?
Capital account
Cash
Purchases
Interest received
According to the modern approach to the accounting equation, the loan

account of the partner is classified under which account?
1 of 7 27-02-2023, 14:52
Asset account
Liabilities account
Capital account
Expenses account
Which step follows 'preparation of ledger accounts'?
Preparing vouchers
Recording vouchers as journal entries
Balancing the ledger accounts
Incorporating all adjustments
The system of recording transactions based on dual aspect concept is called

______________.
Double account system
Single entry system
Double entry system
Every account has the following two sides: 1) One account is the receiver of
the benefit or the incoming aspect or the expenses/losses.2) Other account
is the giver of the benefit or the outgoing aspect or the profits/gains.Which
of the above statement is True?
1 only
2 only
1,2
2 of 7 27-02-2023, 14:52
Given below are the steps in the process of accounting trail.3. Identifying
the transactions or events1. Preparation of vouchers4. Recording them as
journal entries2. Preparation of ledger accounts7. Balancing the ledger
accounts5. Incorporating all adjustments6. Preparation of a trail balance7.
Preparing the financial statements and balance sheet
Steps: 4,1,2,3,6,5,7
Steps: 3,1,4,2,7,5,6
Steps: 6,3,2,1,4,5,7
Steps: 4,5,1,2,3,6,7
In the journal format, which column is a brief explanation about the journal
entry?
Particulars
Ledger folio
Narration
Debit
According to the traditional approach, which of these fall under the nominal
account?
Subscription paid
Goodwill
Interest accrued account
Interest received in advance
Which of the following accounts are accounts of expenses, losses, incomes,

and gains?
3 of 7 27-02-2023, 14:52
Revenue account
Asset account
Personal account
Nominal account
Star Tours has a Rs. 5,000 account receivable from Mr. X. On February 5,
Mr. X makes a partial payment of Rs. 3,000 to Star Tours. The journal entry
made on February 5 by Star Tours to record this transaction includes:
A credit to the cash received account of Rs. 3000
A credit to the accounts receivables account of Rs. 3000
A debit to the cash account of Rs. 2000
A debit to the accounts receivable account of Rs. 2000
Goods sold to Ram for cash Rs. 1,000 causes _______________________.
Ram�s account to be debited
Ram�s account to be credited
sales account to be credited
cash account to be credited
Goods worth Rs. 1,600 are sold to Neeraj; its recording in the journal would
be _______________________________.
debit the sales account, credit Neeraj's account
credit the sales account, debit the cash account
debit Neeraj's account, credit the sales account
debit sales account and Neeraj's account
4 of 7 27-02-2023, 14:52
The ledger accounts are normally balanced at an interval of one month, that
is, at the end of every month. Identify the statements that hold good if the
credit total is larger.1. The �Bal c/d� will be on the credit side in the
current month2. The �Bal c/d� will be on the debit side in the current
month3. The �Bal b/d� will be on the debit side in the next month4. The
�Bal b/d� will be on the credit side in the next month5. The account is
said to be having a �debit balance�6. The account is said to be having a
�credit balance�
1,3,5
2,4,5
1,3,6
2,4,6
Liabilities plus equity is equal to ____________________________.
Sources of fund
Assets
Owner's equity
Outside liabilities
Assets minus liabilities to outsiders are equal to __________________.
Sources of fund
Assets
Equity
Outside liabilities
If assets are Rs. 5,00,000 and liabilities are Rs.3,00,000, find out the equity.
5 of 7 27-02-2023, 14:52
800000
200000
500000
300000
If owners equity is Rs. 3,00,000, outsider liabilities are Rs.2,00,000, and

owners share of profit is Rs.1,00,000, find out the total value of assets.
500000
300000
600000
200000
Accounting trial is a process starting from identifying the transactions or

events to preparing final statement of accounts. (True/False)
True
False
A trial balance is the summarised form of ledger balance. (True/False)
True
False
A transaction is a business activity which involves transfer of money or

money�s worth. ('TRUE/'FALSE)
True
False
6 of 7 27-02-2023, 14:52
An event happens as a result of internal policy of an organisation. ('TRUE/

'FALSE)
True
False
Business transactions and events have equal importance in finding the

financial results of the business concern. ('TRUE/'FALSE)
True
False
Every transaction influences balance sheet and it is shown by accounting

equation. (True/False)
True
False
Attempt Score: 18 / 24 ‐ 75 %
Overall Grade (highest attempt): 18 / 24 ‐ 75 %
Done
7 of 7 27-02-2023, 14:52
: Final Accounts - Financial and Management Accounting - Manipal ... https://learning.onlinemanipal.com/d2l/lms/quizzing/user/quiz_submi...
Final Accounts
Attempt 1
Submission View
______________ is a reduction in the value of an asset.
Bad debt
Depreciation
Appreciation
Provision for doubtaful debt
Which of the following falls under debit in the trading account?
Salaries
Capital account
Purchase returns
Commission
Furniture and fittings would be accounted for under which account?
Prepaid taxes account
Salaries account
Outstanding salaries account
1 of 6 27-02-2023, 14:58
Depreciation account
Cash and bank balances fall under which of the following categories?
Shareholders fund
Current assets, loans and advances
Loan funds
Fixed assets
The expenses related to core operations of the business are called

__________________.
Gross loss
Buying
Direct expenses
Gross profit
_______________ should be charged against the income of the current period.
Outstanding expenses
Prepaid expenses
Income received in advance
Accrued income
"Consider the following statements with respect to final accounts:
1. Balance sheet should present a true and fair view of the state of affairs of
a company as per section 221.
2 of 6 27-02-2023, 14:58
2. The balance sheet should be set out in the form prescribed in Part 1 of
Schedule VI of the Companies Act 1956."
1‐ True, 2‐ False
1‐ False, 2‐ True
1‐ True, 2‐ True
1‐ False, 2‐ False
"Consider the following statements with respect to accounting:
1. Recording in accounting is done through journal and susbsidiary books.

2. Classifying is done through ledger accounts."
"Consider the following statements with respect to accounting:
1. Summarising can be done by preparing profit and loss account and

balance sheet.
2. Financial statements are prepared at the beginning of a new fiscal year."
3 of 6 27-02-2023, 14:58
"Consider the following statements with respect to debts:
1. Reserve for discount on debtors mean reserve created for meeting

expected bad debts.
2. Bad debt is an irrecoverable debt."
"Consider the following statements with respect to presentation of assets

and liabilities in a balance sheet:
1. As per the order of permanency, sundry debtors get listed before plants
and machinery under assets.
2. As per the order of liquidity, outstanding expenses get listed before

interest on capital under liabilities.
3. As per order of permanency, vehicles get listed before cash at bank

under assets.
4. As per order of liquidity, sundry creditors get listed before interest on
drawings under liabilities."
Statements 1, 2 & 3 are true.
4 of 6 27-02-2023, 14:58
Statements 1, 2 & 4 are true
"Consider the following statements with respect to adjustments:
1. Outstanding expenses, prepaid expenses, income received in advance

and accrued income are all entries under adjustments.
2. Transactions that occur after ledger accounts have been closed and trial
balance has been drafted, are called adjustments.
3. Adjustments may be provided even after the final accounts have been
prepared.
4. Depreciation must be deducted from assets and debited to the profit
and loss account."
"Consider the following statements with respect to profit and loss account:
1. Fright and octroi gets debited in the p&l account.
2. The insurance prepaid amount gets credited in the p&l account.
3. Royalty received gets creited in the p&l account.

4. The audit fee gets debited in the p&l account."
5 of 6 27-02-2023, 14:58
"Consider the following statements with respect to profit and loss account:
1. Fright and octroi gets debited in the p&l account.
2. The insurance prepaid amount gets credited in the p&l account.
3. Royalty received gets creited in the p&l account.

4. The audit fee gets debited in the p&l account."
Attempt Score: 8 / 14 ‐ 57.14 %

Done
6 of 6 27-02-2023, 14:58
: Financial Accounting - Financial and Management Accounting - Ma... https://learning.onlinemanipal.com/d2l/lms/quizzing/user/quiz_submi...
Financial Accounting
Attempt 1
Submission View
Which of the following statements is not a limitation of accounting?
Accounting measures only such transactions that can be measured in

terms of money.
Fixed assets are shown in the balance sheet at historical cost less
accumulated depreciation and not at their original cost.
Financial statements can be manipulated by accountants to achieve
pre‐determined results
Accounting makes it possible for management to share information
about resources and activities of a business with its stakeholders.
For which of the following reasons do owners use financial information?
To evaluate credit worthiness and liquidity

To confirm whether the business is generating sufficient return on
their investment
To analyse impact of financial performance on remuneration and
future prospects
To determine accuracy of taxes paid and tax returns filed
1 of 7 27-02-2023, 14:51
How does summarizing financial information help accountants?
It enables them to make more informed decisions.
It enables them to prepare financial statements.
It enables them to ensure that transactions are properly classified.

It enables them to identify what information needs to be recorded in
the books of accounts.
Ram starts a business with Rs.90,000 and then buys goods from Shyam on
credit for Rs.23,000.The accounting equation based on Assets = Capital +
Liabilities will be ______________.
1,13,000=90000+23000
1,03,000=90000+23000
90000=67000+23000
67000=90000‐23000
If total assets are Rs.36000 and liabilities are Rs.15000 then capital is
_______________.
Rs.20000
Rs.21000
Rs.22000
Rs.51000
Bookkeeping is the act of recording ______________ in a systematic manner

in certain sets of books known as the books of accounts.
ledgers
profits and losses
2 of 7 27-02-2023, 14:51
financial transactions
transactions of events
The book in which transactions are first recorded is called a _____________.
ledger
posting
journal
balance sheet
Which step explains the importance of all the data in a manner that the end
users of financial statements can make a meaningful judgment about the
financial position and profitability of the business?
Analyzing
Interpreting
Summarizing
Identifying
Which of the following statements is true about bookkeeping?
It is the second stage in financial accounting.

The objective is to ascertain net results of financial operations and
communicate the results to all stakeholders in a manner they
understand.
The job is nonroutine but analytical in nature.
It refers to the recordkeeping aspects of accounting, i.e. recording the
financial transactions and events in the books of accounts.
3 of 7 27-02-2023, 14:51
Which of the following statement is NOT an objective of Accounting?
1. Accounting assists in systematic recording of all business events or

transactions.
2. Accounting measures the financial performance of an enterprise.
3. Accounting facilitates reporting of results to both internal and external
users.4. Accounting is required to fulfil the statutory requirements of
various regulatory bodies.
Statements 1,2,3
Statements 2,3,4
Statements 1,3,4
Statements 1,2,3,4
Accounting policies can be manipulated to present a picture of the financial

statements in a way that we desire, rather than the actual one. This is called
______________.
Accounting manipulation
Window dressing
Accounting misappropriation
Accounting grossly lacks ____________ elements.
Qualitative
Quantitative
Both Qualitative and Quantitative.
4 of 7 27-02-2023, 14:51
The exact picture of the financial situation can be ascertained only on the
________ of an enterprise.
Inception
Basis of stock value
Liquidation
Basis of public image
The danger of ___________ arises when the management decides to

incorporate wrong figures to artificially inflate revenue or deflate losses or
when there is a threat of hostile takeover.
Accounting manipulation
Accounting misappropriation
Window dressing
Accounting ignores the price level changes when financial statements are
prepared on __________.
Actual Cost
Historical Cost
Projected Cost
Accrued Cost
________ are chief provider of risk capital and keen to understand both the
return from their investments and the associated risk.
Lenders
Investors
5 of 7 27-02-2023, 14:51
Customers
Public
_________ use financial reports for negotiating wage package, declaration of

bonus, and other benefits.
Trade Union
Tax Authorities
Regulatory Agencies
Government
___________ has a legitimate interest in financial reports of publicly held

enterprises to ensure efficient operation of capital market.
Regulatory Agencies
Rating Agencies
Stock Exchange
Trade Unions
The resources owned by a business are called ___________.
Equity
Assets
Liabilities
Capital
The individuals and entities who buy goods from the company on credit are
called _________________.
6 of 7 27-02-2023, 14:51
Borrowers
Creditors
Debtors
Bad debtors
A person or entity who has an interest in the economic performance of a

business is called ___________.
Well wisher
Stake holder
Legal advisor
Successors
Accounting helps in internal control by holding the concerned persons

responsible for any errors, lapses, or under performances. (True/False)
True
False
Attempt Score: 17 / 22 ‐ 77.27 %

Done
7 of 7 27-02-2023, 14:51
: Financial Statement Analysis - Financial and Management Accountin... https://learning.onlinemanipal.com/d2l/lms/quizzing/user/quiz_submi...
Financial Statement Analysis

Attempt 2
Submission View
_________________ involves comparison of the firm�s current year figures

with the previous year�s figures.
Vertical analysis (common size statements)
Horizontal analysis (comparative statements)
Trend analysis
Business analysis
_____________ involves computation of ratios (trend percentages) for a series

of years.
Trend analysis
Business analysis
_____________ involves analysing the proportion of each component of the

financial statement to its total.
1 of 4 27-02-2023, 14:56
Trend analysis
Business analysis
If a company purchases treasury bills, its acid test ratio will _________.
Increase
Decrease
Not change
Information not enough
A company�s net working capital is Rs.10,000 and its current ratio is 2, its
current assets and current liabilities are respectively__________.
30000 and 20000
20000 and 10000
30000 and 10000
Zero
If a company sells one of its old machinery for Rs.35,000, the current ratio
will __________.
Increase
Decrease
Not change
2 of 4 27-02-2023, 14:56
If a company ploughs back profits, its debt equity ratio will __________.
Increase
Decrease
Not change
A company�s stock turnover ratio is 4 times. Its inventory holding period is

__________.
3 months
4 months
12 months
1 month
If a company purchases treasury bills, its acid test ratio will _________.
Increase
Decrease
Not change
A company�s net working capital is Rs.10,000 and its current ratio is 2, its
current assets and current liabilities are respectively__________.
30000 and 20000
20000 and 10000
30000 and 10000
3 of 4 27-02-2023, 14:56
If a company sells one of its old machinery for Rs.35,000, the current ratio
will __________.
Increase
Decrease
Not change

Done
4 of 4 27-02-2023, 14:56
: Funds Flow Analysis - Financial and Management Accounting - Ma... https://learning.onlinemanipal.com/d2l/lms/quizzing/user/quiz_submi...
Funds Flow Analysis

Attempt 2
Submission View
Fund flow statement is prepared considering __________
Profit & Loss Account of the Current Year
The Balance Sheet of the Previous & Current Year
Both A & B
None of the above
Buy back of equity is considered as‐
Application or use of fund
Source of fund
Source of working capital
None of above
Which of the following statement is incorrect?
1 of 3 27-02-2023, 14:59
Profit earned from non operating activities is added to net profit

while calculating profit form operation.
Profit from operation is the major source of working capital in long
run.
Any transaction that increases working capital is a source of funds.
Depreciation is a source of fund.
Which one of the following is correct?
Net working capital = Funds= Current assets ‐ Current liabilities
Current liabilities= Current assets‐ Funds
Funds= Net working capital‐ Current assets
None of the above
Fund flow statement is also called as
Statement of funds flow
Statement of sources and application of funds
Statement of sources and uses of funds
All of the above
2 of 3 27-02-2023, 14:59
Fund flow statement is prepared to
Know the outflow of funds in a given period
Know the reason behind the change in working capital
Ascertain the changes taken place in working capital
All of the above

Done
3 of 3 27-02-2023, 14:59
: Introduction to Management Accounting - Financial and Manageme... https://learning.onlinemanipal.com/d2l/lms/quizzing/user/quiz_submi...
Introduction to Management Accounting

Attempt 2
Submission View
Which of the following statement holds true for management accounting?
Management accounting enables the users to take financial decisions.
The accounting information is always expressed in terms of money.

Reports are prepared on a continuous basis i.e. monthly/ weekly/
daily.
Management accounting focuses on historical data.
Which traditional tool of management accounting helps in critical evaluation

of the changes in working capital?
Ratio analysis
Funds flow analysis
Cash flow analysis
Marginal costing
Which amongst the following is a contemporary performance measurement

system for an organisation?
1 of 7 27-02-2023, 14:58
Return on Investment
Net profit ratio
Earning per share
Balance scorecard
The perspective of internal operations in an organisation is fulfilled by

which amongst the below mentioned objectives?
Efficiency of MIS
Adherence to quality
Research and development activities
Training and development of employees
Which stage involves commitment of resources to the decision, in decision

making?
Identify objective
Search for alternative course of action
Implement the decision
Compare the actual and planned outcome
Which of the following statement holds true for management accounting

tools?
Management accounting provides several tools or techniques to the

management for performance evaluation.
Responsibility accounting is one of the modern tools for managing
functions such as planning or controlling.
Activity based costing is a system in which costs are first identified
with activities and then with products.
2 of 7 27-02-2023, 14:58
Marginal costing is a technique of controlling costs.
"Consider the following statements with respect to value added concept:
1. Value added concept helps the company to know the contribution of

different departments or divisions to the value created by the company.
2. The concept cannot show the value generated by the company being
distributed among various contributors."
"Consider the following statements with respect to merits of management

accounting system:
1. Management accounting brings systematic regularity in the business

activities through efficient direction and control.
2. Management accounting removes unacceptable standards or sub‐
standards."
3 of 7 27-02-2023, 14:58
"Consider the following statements with respect to management

accounting:
1. One of the limitations of management accounting is that it is a costly

affair and the scope of use is very less.
2. Management accounting does not eliminate various types of wastages,
production defectives, and other work related deficiencies."
"Consider the following statements with respect to responsibilities of a

management accountant:
1. One of the responsibilities of a management accountant includes

designing an accounting information system that ensures smooth and timely
flow of the accounting information from where it is generated to where it is
required.
2. Another function of a controller is making forecasts and estimates using
most appropriate and scientific methods, which would ensure accuracy of
the forecasts and estimates to the maximum possible extent. "
4 of 7 27-02-2023, 14:58
"Consider the following statements with respect to cost management

system:
1. Horngren and others define a CMS as a collection of tools and

techniques that identifies how management's decisions affect costs
2. A cost management system is a management planning and control

system with the objectives to provide cost information for strategic
management decisions.
3. Cost management system also provides a measure for value addition to

the inventory value and cost of goods sold for financial reporting.
4. CMS also determines the effectiveness and efficiency of all major
activities performed in the organisation."
"Consider the following statements with respect to value added concept:
1. Value added = sales cost of goods and services used in producing those
sales.
2. According to ICAI, the term value added refers to the increase in value of
a product or service resulting from an alteration in the form, location, or
availability including the cost of bought out materials and services.
3. Value addition may be expressed as profit before tax, inclusive of

employee costs, interest, and depreciation.
5 of 7 27-02-2023, 14:58
4. Value additions can also be expressed in the form of ratios."

"Consider the following statements with respect to the most commonly

used value added ratios:
1. Value added per employee
2. Value added per rupee of labour cost
3. Value added per labour hour

4. Value added per manufactured unit"

Done
6 of 7 27-02-2023, 14:58
7 of 7 27-02-2023, 14:58
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Marginal Costing and Break Even Analysis

Attempt 1
Submission View
Marginal costing is defined as�The ascertainment of marginal cost and of

the effect on ________of changes in volume or type of output by
differentiating between fixed costs and variable cost.�
volume
value
profit
supply
Marginal costing is based on the following assumptions:1. Segregation of

cost into fixed and variable2. Volume is the only factor which influences the
cost3. Constant selling price4. Constant total fixed cost
1, 2, 3,4 are correct.
Contribution:1.the excess of selling price over variable cost per
1 of 5 27-02-2023, 14:57
unit2.indicates the profitability of the firm3. expresses the revenue available

for recovering the fixed costs after recovering the variable costs.4.
difference between sales and fixed cost.
The contribution if the selling price per unit is Rs.45, variable cost per unit
is Rs.40 is__________
45
40
10
C/S ratio can be improved by:1. Increasing the selling price2. Reducing the
variable costs3. Reducing direct and variable costs by effectively utilising
labour, machines, and materials.4. Switching the production to more
profitable products showing a lesser C/S ratio.
The sales in units and in rupees for the below data is_____Units produced
60,000Fixed expenses Rs.1,50,000Selling price per unit Rs.10Variable cost
per unit Rs.10Profits to be earned Rs.87,500
2 of 5 27-02-2023, 14:57
37500
27500
17500
47500
Marginal costing helps the management in taking many policy decisions.

These are:1.Level of activity planning2. Alternative methods of
production3.Make or buy decision4. Fixation of selling price
1, 2, 3 ,4 are correct.
Absorption Costing is known as full costing.

True
False
Marginal cost per unit changes irrespective of the level of activity or output.
False
False
Profit volume ratio expresses the relationship between contribution and

sales.State True or False:
True
3 of 5 27-02-2023, 14:57
False
The break‐even analysis shows the relationship between costs and profits
with sales volume.State True or False:
True
False
The break‐even chart is a graphical or visual presentation of the relationship

between cost, volume, and lossState True or False:
False
False
Break‐Even Chart is a graphical or visual presentation of the relationship

between cost, volume, and profit.
True
False
BEP is the volume of activity or sales when the organisation�s revenues

and expenses are zero. State True
or False:
False
False
Margin of safety is the difference between the tageted sales revenue and
the break‐even sales revenue.State True or False:
4 of 5 27-02-2023, 14:57
False
False
Done
5 of 5 27-02-2023, 14:57
: Secondary Books - Financial and Management Accounting - Manip... https://learning.onlinemanipal.com/d2l/lms/quizzing/user/quiz_submi...
Secondary Books
Attempt 1
Written: 12 February 2023 8:41 AM ‐ 12 February 2023 8:54 AM
Submission View
"Consider the following statements with respect to thank you letter:
1. Credit period is the time given by a supplier to a customer to make

payment for the purchases made.
2. Normally the credit period allowed in business is 30 days, 45 days, 60

days, or 90 days.
3. Cash discount is given in order to encourage prompt payment by the

customer.
4. Drawee is the creditor who writes (draws) the bill of exchange on the
debtor."
All statements are true
"Consider the following statements:
1 of 9 27-02-2023, 14:58
1. A voucher is a document raised to record receipt of cash.

2. Amount deposited to the bank account appears on the credit side."
1. Bills receivable book is a subsidiary book meant for recording

acceptances obtained from the debtors.
2. Bills payable book is a subsidiary book meant for recording acceptances
given to creditors."
1. Sales, purchases and cash are the different types of transactions.

2. Each subsidiary book is meant for recording transactions of a particular
type. "
True or False:
2 of 9 27-02-2023, 14:58
1. In two column cash book, a bank column is inserted on either side of

the cash book.
2. In two column cash book, there will be two amount columns on either
side of the cash book.
3. The discount allowed column appears on the debit side of the two
column cash book.
4. The discount received column appears on the credit side of the two
column cash book. "
All statements are true
Consider the following statements:
1. To prepare bills receivable book one should know about the bill of
exchange.
2. Ledger is a document in writing promising to pay a certain sum of
3 of 9 27-02-2023, 14:58
money or money's worth to the drawer at a certain date for the value
received.
Enter the following transactions in analytical petty cash book:
2009.
Jan 1 Received cheque from head cashier 400
Jan 2 Paid for postage and telegram 50
Jan 3 Stationery purchased 100
Jan 30 Telegram charges 150The balance b/d to the month of February is
____________.
Rs.50
Rs.100
Rs.400
Rs.150
Enter the following transactions in the Sales Returns Book.
2010 .
May 02 Sridhar & Co., Bombay returned goods to us 1000
May 05 Bashir & Co., Coimbatore, returned goods to us 1500
May 10 Venkateshwara Traders, Tirupathi returned goods to us 2500The
total of the Sales Returns book is ____________.
Rs. 3500
Rs. 4500
4 of 9 27-02-2023, 14:58
Rs. 4000
Rs. 5000
Enter the following transactions in the Simple cash book.2008Jan 1,

Received from Madhu Rs. 1500 Jan 2, Paid Mrutyun
Rs. 200Jan 3 Received from cash sales Rs. 1600Jan
9 Paid Krishnan Rs. 200Jan 18 Received commission
from Aruna Rs.100The balance brought down to the month of February is
____________.
Rs. 2800
Rs. 2500
Rs. 800
Rs. 2000
Govind, a businessman, enters the following transactions in the month of

January 2010. You are required to record them in the subsidiary books.2010
(Rs)Jan 1, purchased goods
from Gopal subject to a trade discount of 10%
2000Jan 2 returned goods to Gopal 200Jan 3 Sent a debit
note to Gopal for an overcharge made by him
100Jan 4 purchased goods from Jones 500The total of
the purchases book of Mr. Govind is ____________.
Rs. 2000
Rs. 2300
Rs. 1800
Rs. 1300
What do you name this party to a bill of exchange who is the person
5 of 9 27-02-2023, 14:58
entitled to receive the amount mentioned in the bill?
Drawee
Drawer
Payee
Payer
Which cash book is maintained under the imprest system?
Simple cash book
Two column cash book
Triple column cash book
Petty cash book
Which of the following is a part of the format of a sales book?
Purchase invoice number
Name of the supplier
Credit period
Ledger folio
Which of the following is the reduction granted by a supplier to a customer

on the amount of bill due, considering payment within the credit period?
Trade discount
Amount
Cash discount
Goodwill
6 of 9 27-02-2023, 14:58
Which of the following statement is true for cash book?
Cash book is balanced
Cash book does not have a debit and credit side

Ledger accounts have to be maintained in the ledger besides
maintaining the cash book
Cash books are only journals
Which of the following statement is true for trade discount?
Trade discount is a reduction granted on the invoice price,

considering immediate payment or payment within a stipulated
period
Trade discount encourages early or prompt payment
Trade discount appears in the books of accounts
Trade discount may vary with the quantity purchased
Which of the following statements is not true about petty cash?
At the beginning of a year, a fixed sum of money is given by the chief

cashier to the petty cashier to meet petty expenses.
The petty cash book is normally maintained under a system called
Imprest system.
A separate cash book maintained for expenses like stationery,
postage, refreshments, carriage, cartage, daily wages, etc. is known
as petty cash book.
Analytical petty cash book is prepared in a columnar fashion to
facilitate analysis of payments.
Which of the following statements is not true about two column cash
7 of 9 27-02-2023, 14:58
books?
A bank column is inserted on either side of the cash book.
There are two amount columns on either side of the cash book.
The discount allowed column appears on the debit side.
The discount received column appears on the credit side.
Which of the following statements is true for trade discounts?
Trade discount is a reduction granted on the invoice price,

considering immediate payment or payment within a stipulated
period.
Trade discount encourages early or prompt payment.
Trade discount appears in the books of accounts.
Trade discount may vary with the quantity purchased.
Which subsidiary book is also known as returns outwards book?
Sales book
Purchases returns book
Bills receivable book
Purchases book
Which subsidiary book is meant for recording acceptances given to

creditors?
Cash book
Bills payable book
Bills receivable book
8 of 9 27-02-2023, 14:58
Sales return book
Attempt Score: 13 / 21 ‐ 61.9 %

Done
9 of 9 27-02-2023, 14:58
: Standard Costing - Financial and Management Accounting - Manipa... https://learning.onlinemanipal.com/d2l/lms/quizzing/user/quiz_submi...
Standard Costing
Attempt 1
Submission View
____________ are standards which can be attained in the best and most
favourable conditions possible.
Normal (practical) standards
Historical standards
Ideal (perfect) standards
Expected standards
Make or buy decisions arise when a company with unused production

capacity considers the following alternatives:1. To buy certain raw materials
or subassemblies from outside suppliers2. To use available capacity to
produce the items within the company3. To use available capacity to
produce the items outside the company4. To buy certain raw materials from
internal suppliers
1, 2 are correct.
1 of 7 27-02-2023, 14:57
Decisions regarding entering new markets whether within or outside the

country should be taken after considering the following factors:
1. Whether the firm has surplus capacity to meet the new demand?
2. What price is being offered by the new market?
3. Whether the sale of goods in the new market will affect the present
market for the goods?4. Whether the price of goods in the new market will
affect the present market for the goods?
_____________is that portion of labour cost variance which is due to the

difference between the standard rate specified and the actual rate paid.
Labour fixed variance
Labour variance
Labour rate variance
Expected variance
Establishment of standards is the first step in the standard costing process.

True
False
#REF!
2 of 7 27-02-2023, 14:57
False
False
When a firm is divided into multiple sales outlets, product lines, divisions, or
departments, it may have to evaluate individual performance to decide
whether to continue operations of each of these segments or not.State True
or False:
True
False
A firm is frequently faced with the problem of continuing the existing

policies or plans or change to new ones.State True or False:
True
False
Various factors both external and internal affect the functioning of a firm. In
such situations, it becomes necessary for a firm to temporarily suspend or
shutdown the activities of a particular product, department, or a unit as a
whole.State True or False:
True
False
When deciding between alternative courses of actions, the criterion should

be to select the project that yields the greatest contribution.State True or
False:
True
False
3 of 7 27-02-2023, 14:57
Under standard costing system, there is a need to determine the standard

costs for each element of cost. State True
or False:
True
False
The controllable variance can be identified as the primary responsibility of a

specified person or a department.
True
False
Material cost variance is the difference between the standard cost of

materials allowed for the actual output and the actual cost of materials
used. State True or False:
True
False
A favourable variance would result if actual cost is less than the standard
cost and vice versa. State True or False:
True
False
The material cost variance is the differences between total of material price
variance and material usage variance.
4 of 7 27-02-2023, 14:57
False
False
In material price variance, the price paid for materials is different from the
predetermined price. State True or
False:
True
False
The material cost variance is the differences between total of material price
variance and material usage variance.
False
False
In material price variance, the price paid for materials is different from the
predetermined price. State True or
False:
True
False
Material usage variance is also known as material quantity variance or

efficiency variance. State True or
False:
True
False
5 of 7 27-02-2023, 14:57
For calculating the mix variance, first calculate the quantities of revised
standard mix. State True or False:
True
False
Material yield variance arises only when the rate of output is known.
True
False
Indirect labour variance is the difference between actual labour cost and
the standard labour cost of production achieved.
False
False
Labour efficiency variance is that portion of labour cost variance, which is

due to the difference between the standard labs or hours specified for the
activityState True or False:
True
False
Attempt Score: 15 / 23 ‐ 65.22 %

6 of 7 27-02-2023, 14:57
Done
7 of 7 27-02-2023, 14:57
: Trial Balance - Financial and Management Accounting - Manipal Un... https://learning.onlinemanipal.com/d2l/lms/quizzing/user/quiz_submi...
Trial Balance
Attempt 1
Written: 12 February 2023 9:24 AM ‐ 12 February 2023 9:31 AM
Submission View
If the trial balance does not tally, the accountant has to proceed with
spotting errors. For this purpose a temporary account called
____________________ is opened.
subsidiary account
profit & loss account
suspense account
ledger account
Treating income as liabilities is _______________________.
an error of omission
an error of commission
an error of principle
a compensating error
Errors committed due to misplacement of figures like 12 for 21, 24 for 42

can be located if the difference in Trial balance is divisible by _____.
1 of 7 27-02-2023, 14:55
Rectification entries are recorded in a _________________ if the errors such

as wrong posting, wrong casting, wrong calculation, etc., are committed in
the books of original entry or ledger.
general journal
suspense account
trading account
trial balance
The accounts of _____________________ will not be closed because they

continue to exist further.
assets and liabilities
salaries expenses
revenue from services
telephone expenses
Which of the following statements is TRUE about a Trial Balance?
1. It is a statement containing the various ledger balances on a particular

date.
2. It is a list of debit and credit totals of all the ledger accounts prepared on
any particular date.
3. It is the source document for preparing final accounts.4. It is a a list of
debit and credit balances of all the ledger accounts prepared on any
2 of 7 27-02-2023, 14:55
particular date.
1,2 and 3
1,2 and 4
2,3,4
1,2,3,4
Which of the following statement are objectives of a Trial Balance?1. To

check the arithmetic accuracy of the entries made. 2. To identify and rectify
errors in the books of accounts.3. To prepare trading account, profit and
loss account, and balance sheet.4. It is a summarised ledger.
1,2,3
2,3,4
1,2,3,4
1,3,4
In the ____________, the totals of debits and credits of every account

areshown in the trial balance.
balance method
totals method
In the ________________, the net balance of every ledger account is taken.
balance method
totals method
3 of 7 27-02-2023, 14:55
Which one of the two methods of preparing a trial balance is popular than
the other?
balance method
totals method
Which of the following hints are applicable while preparing a trial

balance?1. Assets have credit balance2. Liabilities have credit balance3.
Expenses and losses have debit balance4. Incomes and gains have debit
balance5. Capital has debit balance6. Drawings have credit balance
1,3,5,6
2,3
1,2,6
2,3,4
____________ are passed at the end of accounting period.
Opening journal entries
Closing entries
Drawings made by the proprietor are credited to capital account is an

example of _____________ entries.
4 of 7 27-02-2023, 14:55
Closing
Opening journal
Transferring
Identify from the list of errors, errors which can be detected by a trial
balance.1. Errors of omission2. Posting to wrong side of an account3. Error
of Principle4. Compensating errors5. Casting errors6. Posting a wrong
amount
1,2,3,4
2,5,6
1,4,5
1,3,5,6
Identify from the list of errors, errors which can be detected by a trial
balance.1. Errors of omission2. Posting to wrong side of an account3. Error
of Principle4. Compensating errors5. Casting errors6. Posting a wrong
amount
1,2,3,4
2,5,6
1,4,5
1,3,5,6
The sum of errors in accounting is transferred temporarily to _________

account.
real
5 of 7 27-02-2023, 14:55
nominal
suspense
pesonal
Where the difference in the trial balance is divisible by _______ then the
difference is likely to be due to misplacement of figures like 12 for 21, 24
for 42, 36 for 63, etc.
Adjusting entries are journal entries passed for making some adjustmentsin
the books.
True
False
Errors either disclosed or not disclosed by trial balance, have to be

corrected or rectified in order to obtain the correct picture of profit or loss
and financial position. (True/False)
True
False
Errors either disclosed or not disclosed by trial balance, have to becorrected

or rectified in order to obtain the correct picture of profit or lossand
financial position. (True/False)
6 of 7 27-02-2023, 14:55
True
False
Done
7 of 7 27-02-2023, 14:55
: Understanding Cost - Financial and Management Accounting - Mani... https://learning.onlinemanipal.com/d2l/lms/quizzing/user/quiz_submi...
Understanding Cost
Attempt 2
Submission View
Works Cost includes__________
Direct Material & Indirect Material
Indirect Material & Indirect Labour
Direct Expenses & Indirect Expense
Prime Cost & Production Overhead
Total Product Cost includes__________
Production Overheads + Administration Overhead
Production Cost + Selling and distribution Expenses
Factory Costs + Administration Overhead
Prime Cost + Factory Cost
All of the following are the methods of inventory costing except
FIFO
LIFO
AVCO
1 of 6 27-02-2023, 14:57
STOCK RATE
Which one of the following methods of inventory costing yields highest

taxable income
FIFO
LIFO
AVCO
Standard Cost Method
Which one of the following methods of inventory costing produces ending
FIFO
LIFO
AVCO
Which one of the following inventory costing methods is supposed to issue

the most recently purchased good
FIFO
LIFO
AVCO
Cost of goods�available�for sale � closing inventory =

_____________________
Opening Inventory
2 of 6 27-02-2023, 14:57
Cost of Opening Finished goods Inventory
Work in process ending inventory
Cost of goods sold
An example of a production overhead would be
Rent
Materials
Supervisory Costs
Labour Cost
Absorption costing is closely related to which of the following cost

elements
Overheads
Prime Costs
Direct Labour
Total Costs
Under‐recovery of overheads occurs when
The overhead charged to production is lower than the actual

overhead incurred
The actual overhead incurred is less than the overhead that has been
charged to production
Actual overheads have fallen in relation to what they were expected
to be
The basis of apportioning overheads has changed during the period
3 of 6 27-02-2023, 14:57
The following is also known as overhead costs or on costs
Cost of Direct Labour
Cost of Indirect Labour
Direct Expenses
Indirect Expenses
If EOQ = 40 units, order costs are Rs 2 per order, and carrying costs are Rs
0.20 per unit, what is the usage in units?
10 Units
16 Units
40 Units
80 Units
Which of the following statements hold true for safety stock?
The greater the risk of running out of stock, the larger the safety
stock needed.
The lower the opportunity cost of the funds invested in inventory,
the smaller the safety stock needed
The greater the uncertainty associated with forecasted demand, the
lower the level of safety stock needed.
The higher the profit margin per unit, the lower the safety stock
necessary.
Absorption means ��.
Charging of overheads to cost sheet
Charging of overheads to cost units
4 of 6 27-02-2023, 14:57
Charging of overheads to cost units or cost centres
None of the above.
Historical costing is also called��

��.
Total costing
Actual Costing
Notional Costing
Marginal Costing
Marginal costing in concerned with
Fixed Costs
Variable Costs
Semi � Fixed Cost
Periodic Costs
Standard costing is
Technique
Method
Process
Direct re‐distribution method
Attempt Score: 16 / 17 ‐ 94.12 %

5 of 6 27-02-2023, 14:57
Done
6 of 6 27-02-2023, 14:57

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: Accounting Concepts, Principles, Bases and Policies - Financial an... https://learning.onlinemanipal.com/d2l/lms/quizzing/user/quiz_submi...

Accounting Concepts, Principles, Bases and

________________ is required to help comparison of financial data from one

According to which accounting convention, revenue earned during a period

Convention of income recognition

Convention of historical costs

Convention of full disclosure

Convention of matching cost and revenue

Which of the following statement is true about accounting policies?

The change in accounting policies is recommended whenever the

Convention of dual aspect

Which of the following statements is not true with respect to Generally

The stakeholders need to understand the accounting language and

Which of the following statements is not true about accounting

In convention of income recognition, revenue is considered as being

According to which convention must a business state all the accounting

Convention of full disclosure

Convention of dual aspect

Non‐disclosure of material information amounts to ___________.

Total liabilities should be equal to ___________ as per dual aspect principle.

For every debit, there should be an equivalent credit. This is called

Double entry principle

Debit credit principle

Principles of full disclosure

Principles of full disclosure

State the relevant accounting principle for the statement ‐ Anticipating no

Principles of full disclosure

Substance over form

Transactions and events should be accounted for and presented in

Substance over form

Substance over form

At present, there are __________ accounting standards issued by the council

Income is realised whether it is actually received in cash or promised to be

Income realised is different from cash received. (TRUE/'FALSE)

Matching concept of accounting considers only revenue incomes and

Expenditure paid or payable and revenue earned whether realised or not in

Depreciation is charged against the historical cost of assets. (TRUE/'FALSE)

Historical cost is the cost at which an asset is actually purchased.

Disclosing about assets without disclosing about liabilities is against the

Under dual aspect principle, total benefits received by business should

Consistency principle helps for proper assessment of profit or loss.

An accounting standard is a selected set of accounting policies or broad

An accounting standard is a selected set of accounting policies or broad

Attempt Score: 27 / 33 ‐ 81.82 %

The objectives of budgetary control are as follows:

1. To conform to good business practices by planning for the future.

1 and 3 are incorrect.

2 and 4 are correct.

1, 2, 3 and 4 are incorrect.

Based on the time horizon, budgets are classified as follows:1. Short‐term

1 and 3 are incorrect.

2 and 4 are correct.

1, 2, 3 and 4 are incorrect.

1 and 3 are incorrect.

2 and 4 are correct.

1, 2, 3 and 4 are incorrect.

Steps in ZBB1. Identifying all activities required to be performed and

1 and 3 are incorrect.

2 and 4 are correct.