Classical

Financial and Management Accounting - Financial and Management Accounting Questions

1:  
In accrual basis or mercantile basis of accounting, the financial effect of the transaction is recorded in the books
A.

As and when they occur

B.

On the basis of actual receipt and payment of cash

C.
On confirmation of orders but before the delivery of goods take place
D.

All of the above

 
 

Option: A

Explanation :


2:  
Match List-I with List-II and select the correct answer using the codes given below the lists:
     List-I                                                         List-II
a. Purchases Account                          I. Real Account
b. Sales Account                                  II. Nominal Account
c. Rent Outstanding                           Ill. Personal Account
d. Sales tax payable                          IV. Personal Account
 
A.

a   b   c    d

I    I     II    III

B.

a   b   c    d

II    II   I    III

C.

a   b   c    d

II    I     II    IV

D.

a   b   c    d

I    II    III   IV

 
 

Option: D

Explanation :


3:  
If the premium is paid on the life policy of the proprietor of the business, it is
A.
Treated as the drawings and is shown by way of deduction from the capital account
B.

Taken to the Trading Account

C.

Taken to the Profit and Loss Account

D.
Taken to the Balance Sheet and is shown as an asset
 
 

Option: A

Explanation :


4:  
Accelerated depreciation method is also called
A.

Sum of the years digit method

B.

Insurance Policy method

C.

Annuity Method .

D.

Fixed installment method

 
 

Option: A

Explanation :


5:  
Which method of inventory valuation helps in reducing the burden of income tax in times of rising prices?
A.

Last-in-first-out

B.

First-in-first-out

C.

Average cost

D.

Base stock method

 
 

Option: A

Explanation :




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  • These questions answers can be used in the preparation of ugc net exams.
  • These questions can be downloaded as Financial and management  accounting online study material pdf.
  • This section can be used for the preparation of quizzes by any commerce student.
  • This section can also be used by commerce students for improving their knowledge in Financial and management accounting
  • These mcq can also be used by any student of XI or XII standard who has opted to study commerce to increase his knowledge.