Reconciliation of Cost and Financial Accounts MCQ | 30 MCQs (Free Resource)

Reconciliation of Cost and Financial Accounts MCQ

1. ___________ facilitates internal control.
a) reconciliation
b) Overvaluation
c) Computation
d) None of the above

2. Dividend received is shown in _________ accounts only.
a) financial
b) Cost
c) Balance Sheet
d) Ignored

3. Overheads recovered in costing is more than actual it is called _________.
a) overabsorption
b) underabsorption
c) Both a & b
d) None of the above

4. Less overheads recovered in costing is called __________ .
a) underabsorption
b) overabsorption
c) Both a & b
d) None of the above

5. Donations paid reduces __________ profit.
a) financial profit
b) Ignored in costing
c) costing profit
d) Both a & b

6. Interest on capital reduces _________ profit.
a) Costing profit
b) financial profit
c) Assets
d) None of the above

7. Underabsorption of overheads in costing increases _________ profit.
a) costing
b) financial
c) Assets
d) None of the above

8. Premium on issue of shares is shown in _________ P & L A/c.
a) Financial
b) costing
c) Ignored
d) None of the above

9. Notional Rent is taken in _________ P & L A/c.
a) Costing
b) financial
c) Ignored
d) None of the above

10. Interest on investment increases ________ profit.
a) Financial
b) Costing
c) Assets
d) None of the above

Answers: 1)reconciliation 2)financial 3)overabsorption 4)under absorption 5)financial profit 6)financial profit 7)costing 8)Financial 9)Costing 10)Financial
Reconciliation of Cost and Financial Accounts
Reconciliation of Cost and Financial Accounts

11. Overvaluation of closing stock in costing increases_________ profit.
a) Assets
b) Financial
c) Costing
d) None of the above

12. Undervaluation of closing stock in costing decreases _________ profit.
a) Financial
b) Costing
c) Assets
d) None of the above

13. Over absorption of overheads in costing decreases ________ profit.
a) Costing
b) Assets
c) Financial
d) None of the above

14. Under absorption of overheads in costing increases _________ profit.
a) Assets
b) Costing
c) Financial
d) None of the above

15. Dividend paid on shares is debited to ________ P & L A/c.
a) Costing
b) Financial
c) Ignored
d) None of the above

16. Donation paid is debited to _________ P & L A/c.
a) Financial
b) Ignored in costing
c) Both a & b
d) Costing

17. Under valuation of opening stock in finance increases ________ profit.
a) Financial
b) Costing
c) Decrease Financial
d) None of the above

18. Overvaluation of opening stock in finance _______ costing profit.
a) Increases
b) Decreases
c) Both a & b
d) None of the above

19. Premium on issue of shares is _________ .
a) Shown in costing profit and loss A/c
b) Shown in financial profit and loss A/c
c) Ignored
d) None of the above

20. Notional rent is taken in ___________.
a) Cost A/c
b) Financial A/c
c) Balance sheet
d) Ignored

Answers: 11)Costing 12)Costing 13)Costing 14)Costing 15)Financial 16)Financial 17)Financial 18)Decreases

21. Excess of overheads in costing as compared to profit and loss A/c is __________.
a) Over absorption of overheads
b) Under absorption of overheads
c) Both (i) & (ii)
d) None of the above

22. Interest on investment increases __________.
a) Financial profit
b) Costing profit
c) Assets
d) None of the above

23. Loss on sale of capital asset is ________.
a) Added to financial profit
b) Added to costing profit
c) Ignored from cost A/c
d) None of the above to get costing profit

24. Overvaluation of closing stock in Cost Accounts _________.
a) Increases costing profit
b) Increases financial profit
c) Decreases costing profit
d) Decreases financial profit

25. Interest on Bank Deposits is _________.
a) Credited in costing P & L A/c
b) Credited in financial P & L A/c
c) Debited in costing P & L A/c
d) Debited in Financial P & L A/c

26. Dividend paid on share capital is ________.
a) Debited to costing P & L A/c
b) Debited to financial P & L A/c
c) Credited to costing P & L A/c
d) Credited to financial P & L A/c

27. Over absorption of overheads in costing _______.
a) Decreases costing profit
b) Increases financial profit
c) Increases costing profit
d) Both (i) & (ii)

28. Under valuation of opening stock in costing _________.
a) Increases costing profit
b) Decreases financial profit
c) Decreases costing profit
d) Both (i) & (ii)

29. Donations paid is __________.
a) Debited to costing P & L A/c
b) Debited to financial P & L A/c
c) Ignored in costing
d) (ii) & (iii)

30. Financial profit is 40,000 oversubscribtion of overheads 15,000 costing profit is ________.
a) 55,000
b) 25,000
c) 30,000
d) 22,000

Answer: 21)Over absorption of overheads 22)Financial profit 23)Added to financial profit 24)Increases costing profit 25) Credited in financial P & L A/c 26) Debited to financial P & L A/c 27)Both (i) & (ii) 28)Both (i) & (ii) 29)(ii) & (iii) 30)55,000

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