Consider the following data pertaining to the production of a company for a particular month :

Related Mcqs:

1. Consider the following data for a company during the month of June 2012 Budgeted hours 4,000 Standard hours for actual production 4,400 Maximum possible hours in the budget period 4,800 Actual hours 3,800 The activity ratio of the company during the month is

   A. 111%
   B. 120%
   C. 95%
   D. 117%

2. A company is currently operating at 80% capacity level. The production under normal capacity level is 1,50,000 units. The variable cost per unit is ` 14 and the total fixed costs are ` 8,00,000. If the company wants to earn a profit of ` 4,00,000, then the price of the product per unit should be

   A. 37.50
   B. 38.25
   C. 24.00
   D. 35.00

3. A company was entered in hire purchase agreement and had to pay $1000 per month. Three payments were made via bank account but no entry was found in cash book. Identify the correct adjustment in cash book

   A. $1000 will be added to cash book balance
   B. $2000 will be deducted from cash book balance
   C. $3000 will be added to cash book balance
   D. $3000 will be subtracted from cash book balance

4. The balance of Revaluation Reserve pertaining to an asset that has been disposed off or retired can be transferred to?

   A. General Reserve A/c
   B. Profit & Loss A/c
   C. Asset A/c
   D. Capital Reserve A/c

5. Debts which are payable in the course of a month are called _____________?

   A. External liabilities
   B. Fixed liabilities
   C. Current liabilities
   D. Liquid Liabilities

6. Which of the following statement is considered as the accountant’s snapshot of firm’s accounting value as of a particular date?

   A. Income Statement
   B. Balance Sheet
   C. Cash Flow Statement
   D. Retained Earning Statement

7. In which of the following orders data is entered in journal?

   A. Alphabetical order
   B. Numeric order
   C. Bullets order
   D. Chronological order

8. Find the value of opening stock from the following data. Purchases 1,50,000, Closing stock 30,000 Sales 2,20,000, Gross profit 40,000.

   A. 50,000
   B. 55,000
   C. 60,000
   D. 65,000

9. When production is equal to sales, which of the following is TRUE?

   A. No change occurs to inventories for either use absorption costing or variable costing methods
   B. The use of absorption costing produces a higher net income than the use of variable costing
   C. The use of absorption costing produces a lower net income than the use of variable costing
   D. The use of absorption costing causes inventory value to increase more than they would though the use of variable costing

10. Which of the following accounts will be credited if a company purchases building for cash?

    A. Capital account
    B. Fixed assets account
    C. Building account
    D. Cash account