Tag: basic accounting terms

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Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Costing system, which is a combination of process costing and job costing system is classified as _____________.

  1. weighted costing system

  2. average costing system

  3. hybrid costing system

  4. double costing system
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Hybrid costing is a combination of process costing and job costing, used when products have both unique and common features.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Element/s of Cost of a product are _________.

  1. Material only

  2. Labour only

  3. Expenses only

  4. Material, Labour and expenses
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The three primary elements of cost for any product are direct materials, direct labor, and manufacturing overheads (expenses).

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

One of the book selection principles states that ''the best reading for the largest number at the__________ Cost.''

  1. Maximum

  2. Medium

  3. Least

  4. Zero
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Melvil Dewey's principle of book selection emphasizes providing the best reading material for the largest number of people at the least cost.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

A saree manufacturer marks 20% higher price on his sarees. He allows 10% discount to the coustomer and earns a profit of Rs. 56 The cost of the saree is _____________.

  1. Rs. 700

  2. Rs. 600

  3. Rs. 800

  4. Rs. 1, 000
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let cost be C. Marked price = 1.2C. Selling price = 0.9 * 1.2C = 1.08C. Profit = 1.08C - C = 0.08C = 56. C = 56 / 0.08 = 700.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Method which divides support department cost into two dimensions such as fixed and variable cost pool is classified as _____________.

  1. sales mix allocation method

  2. dual-rate cost-allocation method

  3. single rate cost allocation method

  4. quantity variance allocation method
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The dual-rate cost-allocation method classifies costs into fixed and variable pools and allocates them using different bases for each.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

A manager who is responsible for only cost of company belongs to _____________.

  1. cost center

  2. revenue center

  3. profit center

  4. investment center
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A cost center is a department or function within an organization that incurs costs but does not directly generate revenue.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Which of the following is not an advance given by a bank?

  1. Loan

  2. Overdraft

  3. Deposit

  4. Cash credit
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Deposit is a money deposited by customer in bank for saving.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Insurance Act came in to effect in _______.

  1. 1956

  2. 1972

  3. 1938

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The Insurance Act, 1938 is a law originally passed in 1938 in British India to regulate the insurance sector. It provides the broad legal framework within which the industry operates.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

On 31.3.2019 after sale of goods Rs. 2,000, Neelam is left with the closing inventory of Rs. 10,000. This is ____________.

  1. An event

  2. A transaction

  3. A transaction as well as an event

  4. Neither a transaction nor an event
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

An event is a happening that results in a change in the financial position of a business, such as the closing inventory balance, whereas a transaction is an exchange of value.

Multiple choice commercial studies basic accounting terms basic accounting terminologies introduction to financial accounting and financial accounts basic accounting terminology meaning and features of balance sheet income-expenditure account meaning, importance and specimen of journal objectives, functions, and importance of accounting stages and functions of accounting qualitative characteristics, objectives and roles of accounting

Which of the following are ways to prove access rights?

  1. What you know, like a password

  2. What you have, like an ATM card

  3. What you look like

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Authentication methods typically fall into three categories: something you know (password), something you have (token/card), and something you are (biometrics).