Sikkim-Manipal University of Health Medical and Technological Sciences (SMUHMTS) 2007 M.B.A Financial and Management Accounting - Question Paper

c)It is a classified list of assets and liabilities as on a date.
d)It is an account showing profit and loss of a financial period.
Ans : B

85The assets that are meant to be concerted into cash as soon as possible are termed as _______
a.Fixed Assets
b.Current Assets
c.Fictitious Assets
d.Floating Assets
Ans : D

86Where do you show the outstanding expense appearing in the trial balance while preparing the final accounts?
a.Capital Account – Credit Side
b.Profit and Loss Account – Debit Side
c.Balance Sheet – Asset Side
d.Balance Sheet – Liability Side
Ans : B

87Error of principle arises when
a)There is a complete or partial omission of a transaction.
b)There are wrong posting and wrong casting.
c)Distinction is not made ranging from capital and revenue items.
d)Postings are made to the wrong sides of accounts.
Ans : C


88In the balance sheet of a company the items goodwill, patents and trade marks are shown under the heading _______

a.Investments
b.Current Assets
c.Loans and Advances
d.Fixed Assets
Ans : D

89Where do you show interest on capital in the final accounts?

a.Trading Account and Drawings Account
b.Profit & Loss Account and Capital Account
c.Profit & Loss Account and Trading Account
d.Asset side of the balance sheet and Capital Account
Ans : D

Q 90Without________A business entity cannot communicate with outside world.
a)accounting
b)finance
c)proper channel
d)management
Ans. A

Q 91Accounting system is a measure ------- info system in every organization
a) Qualitative
b) quantitative
c) both a) and b)
d) none of the above
Ans. B

Q 92According to which concept a business organization is an economic unit which owns its assets and has its own obligations
a) Money measurement
b) Cost
c) entity
d) None
Ans. C

Q 93 Principals of double entry accounting was 1st discussed in print by -----
a) Luca Fra Pacioli
b) Johann won
c) Luca Fra Goethe
d) Johann Won Pacioli
Ans. A

94------ Voucher is used to record all known cash transactions
a)Receipt voucher
b)Payment voucher
c)Expenses voucher
d)Journal voucher
Ans. D

95.Incomes and gains should be ------ according to ground rules of journalisation

a)Debit
b)Credit
c)Both a) and b)
d)None
Ans. B

96--------- Records all residual transactions
a)Journal Proper
b)Purchase book
c)Sales book
d)Day book
Ans. A

97 --------serves purpose of both a book of prime entry and a book of secondary entry
a)Journal
b)Ledger
c)Cash book
d)Sales book
Ans. C

98. ________ has a separate account for every and every customer.
a)Creditors Ledger
b)Debtors Ledgor
c)General Ledger
d)Main Ledger
Ans B

99 _________ indicates the page number of the journal from which a particular entry is posted.
a)Journal Folio
b)Ledger Folio
c)both a & b
d)None of these
Ans A

100 ________refers to the closing of the ledger accounts by putting balance on the improper side of account.
a)balancing
b)posting
c)Transferring
d)None of these
Ans A

101 Interim Trial Balance are used as _________ steps
a)Higher
b)Lower
c)Control
d)Totalling
Ans C

102 If amount received from Meena is wrongly posted in account of Deepak.It is an fault of-
a)Commission
b)Principle
c)omission
d)Compensating
Ans D

103___________ is arrived by deducting the direct cost of goods from sales proceeds.
a)Gross Profit
b)Net Profit
c)Direct profit
d)Revenue
Ans A



104 Freight inward comes in
a)Trading A/C
b)Profit & Loss A/C
c)Balance Sheet
d)In all statements
Ans A

105 Decision making is linked with Planning &_______
a)Organising
b)Controlling
c)coordinating
d)Allocating
Ans B

106 ________ is the last phase of management accounting.
a)communication
b)Information
c)Communication of info
d)Interpretation
Ans C

107 In computerized MIS it is possible to have on line __________ data communication.
a) 1 way
b)two way
c)Three way
Ans b

108 ____________ expenses cannot be linked to any product.
a)Direct
b)Indirect
c)Recurring
d)Fixed
Ans B

109Managerial decisions are affected by ___________
a)Product life cycle
b)Sales Life Cycle
c)A & b both
d)None
Ans A

110__________ sets target in terms of volume & Value.
a)planning
b)Budgfting
c)Controlling
d)Customer
Ans B

111 Fund flow refers to modifications in ………….capital.
a)Working
b)Fixed
c)Current
d)None of these
Ans A

112 Building sold on credit is …………….. of funds.
a)Source
b) Application
c)Cash inflows
d)Cash outflows
Ans A

113 Any gain on sale of non – current assets should be ……….. from the net profit for determining funds from operators.
a)Deducted
b)added
c)No effect
Ans A

114. crease in an asset due to purchase is
a)Source of funds
b)User of funds
c)None
Ans B

115. Net profit earned plus non – W.C. expenses is equal to
a)Funk given by operations.
b)Use of funds
c)Sinking fund
Ans A

116. Tax paid is _________
a)Application of funds
b)Source of funds
c)No flow of funds
Ans A
117.Stock at the end outcomes in the
a)Application of fund
b)Source of fund
c)No flow fund
Ans B

118. Increase Share Premium A/C
a)An application of fund
b)A source of fund
c)No flow of fund
Ans B

119Sale of investments indicate
a)Source of fund
b)Application of fund
c)Change in C.A.
Ans A

120 Increase mount of bills payable outcomes in

a)Increase in cash
b)Decrease in cash
c)No change in cash
Ans A

121 Contribution margin is also known
A. Margin (Income)
B. Gross profit
C. Net Income
Ans A


122 Period cost means:
A. V.C.
B. F.C.
C Prime cost.
Ans B

123 The costing method in which fixed factory overheads are added to inventory is :-
A Direct costing
B marginal costing
C absorption costing
Ans C

124____________may kill managerial initiative.
A. Planning
B.Marginal costing
C.Budgets
D.Control
Ans. C

125 Items not entered into cost book accounts
A.Discount on problem of debenture
B Profit or loss on sale of asset
C all of above
D None of these
Ans C

126 Costs are classified on ____ bases.
A four B 5
C7 D 9
AnsD

127 Gross profit is arrived by deducting the _______________ 0f goods sold from sales proceeds.
A.Direct Cost
B.Indirect cost
C.Selling cost
DAdministration cost

Ans A


128 Optimum Current Ratio is
A.More than 2:1
B)Less than 2:1
C)More than 3:1
D)More than 4:1
Ans A





129________ appears in the balance sheet only when theCompany has paid for it .
A Goodwill
B Building
C Stock
D Salary
Ans A

130 __________ is difference ranging from a standard cost & the acyual cost.
A Estimated cost
B Differential cost
C Variance
D Oportunity cost
Ans C

131 There are ______ elements of balance sheet
e.Two
f.Three
g.Four
h.Five
Ans : B

Earning:   Approval pending.