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

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