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

Reconciliation of Cost and Financial Accounts MCQ

• MCQs on other topics of Cost Accounting
• Cost Accounting MCQs pdf

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

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