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

Reconciliation of Cost and Financial Accounts MCQ

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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