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

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