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Commerce Mixed Test

Description: Commerce Mix Test
Number of Questions: 20
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Tags: Commerce Mix Test Management Accounting & Business Finance Financial Accounting Cost Concepts: Analysis and Behaviour Cost Accounting
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Which account is debited on sale of goods to Mr. Y for cash?

  1. Cash a/c

  2. Drawing a/c

  3. Personal a/c

  4. Repair a/c


Correct Option: A
Explanation:

 On sale of goods to Mr 'Y' for cash, the cash account is debited. This is because cash is recieved against the goods sold. Incoming cash is debited and outgoing cash is credited.

Which of the following system enrolls coin analysis?

  1. Inventory System

  2. Tally (financial and accounting system)

  3. Payroll system

  4. None of the above


Correct Option: C
Explanation:

Payroll system is a coin analysis. It is done to calculate the salary amount in various currency denominations (or notes).

Where is the closing balance shown in a trading a/c?

  1. Debit side

  2. Assets side

  3. Credit side

  4. Both (1) and (2)


Correct Option: C
Explanation:

 Assets belong to a fixed deposit like alcohol, cigrerattes.

In the cash book where does or in which column, are receipts recorded?

  1. Credit side

  2. P/L account income side

  3. Balance sheet liabities side

  4. Debit side


Correct Option: D
Explanation:

 In a cash book, reciepts are recorded on the debit side.

PAN No. is used to pay the

  1. Sales Tax

  2. Service Tax

  3. Income Tax

  4. Both (1) and (2)


Correct Option: C
Explanation:

Right answer because Pan No. is required for payment of income tax. 

CST is also known as

  1. Control Stock Transfer

  2. Central Security Transfer

  3. Company Saving Transfer

  4. Central Sale Tax


Correct Option: D
Explanation:

Right answer because CST is known as Central Sale Tax. So,Central Sale Tax is the right answer here.Central Sale Tax is working under Central Goverment.

Full form of VAT is

  1. Value Added Tax

  2. Visit as Tourist

  3. Visitor Account Tax

  4. None of these


Correct Option: A
Explanation:

Right answer because the full name of VAT is Value Added Tax.

RTGS is used for

  1. Banking

  2. Stock Exchange

  3. Share Market

  4. Banking and Stock Exchange


Correct Option: A
Explanation:

Right answer because RTGS is used to transfer money from one account to another account in the same bank or another bank. It is very easy way to transfer money in these days.

CST No. is used for

  1. Interstate sale

  2. Local sale

  3. Export sale

  4. Both Local and Export sales


Correct Option: A
Explanation:

Right answer because interstate sale means sale within two states and we use CST No. for the interstate sale.

Which of the following transactions has financial accounting effects?

  1. Ledger

  2. Voucher file

  3. A/C payable

  4. None of above


Correct Option: B
Explanation:

 Voucher is a financial accounting system that affects voucher file. Each transaction generates a voucher, which is used to update the ledger.

Sale Return is submitted after a period of

  1. 2 or 4 months

  2. 1 or 3 months

  3. 6 months

  4. 1 year


Correct Option: B
Explanation:

1/3 Month is right answer here because sale tax return is maintain in 1/3 month as per rule depend on Sale Tax and sale limit . So, it is right answer here.

The percentage of sale against 'C' form is

  1. 1/2%

  2. 5%

  3. 8%

  4. 10%


Correct Option: A
Explanation:

Right answer because sale tax is against “C” form 1 / 2 % as per Depend on state sale tax Rule and depend on Area. So that is the main reason that 1/2 % is right answer here.

Current ratio is the part of

  1. profit & loss account ratio

  2. combined ratio

  3. balance sheet ratio

  4. trading account ratio


Correct Option: C
Explanation:

 Right answer, because current ratio is the part of balance sheet ratio and we will find all items to calculate the current asset from balance sheet only. So this is the main reason why Current ratio is the part of balance sheet. Thus, it is the right answer.

The method of current ratio is

  1. current assets/current liabilities

  2. liquid asset/current liabilites

  3. current liabilities/liquid assets

  4. current liabilities/current assets


Correct Option: A
Explanation:

Right answer because current ratio means condition of current assets to current liability. It tests out capabilities to pay the liability. So, we can find the current ratio by this method.

The sound solvency position in current ratio is

  1. 2 : 1

  2. 1 : 2

  3. 0 : 1

  4. 1 : 1


Correct Option: A
Explanation:

Right answer, because current assets here are more equal to current liability and it shows that our payable capabilities are more then liability. This is the main reason that it is the right answer.

Non-manufacturing cost does not include

  1. advertising cost

  2. raw material cost

  3. sales commission cost

  4. manager's salary cost


Correct Option: B
Explanation:

 Raw material cost is not included in non-manufacturing cost, but in manufacturing cost. Since raw materials are directly involved in manufacturing of the product, it is a manufacturing cost. For example, the cost of iron-ore purchased for conversion into steel is a manufacturing cost, since iron-ore is a raw material for manufacturing steel.

 

Administrative costs do not include

  1. Shipping cost

  2. Top Executives Compensation

  3. Depreciation of office building

  4. Public relations cost


Correct Option: A
Explanation:

Right answer because shipping cost is included in marketing cost, not in administrative cost. Since shipping cost is incurred to dispatch the goods to the customers. Marketing cost includes the costs by which the customer gets the product.

 

The cost which is viewed as attaching to units of product is

  1. selling expenses

  2. administrative expenses

  3. direct material cost

  4. depreciation of machinery in the factory


Correct Option: C
Explanation:

 Direct material cost is the cost which is viewed as attaching to units of product. Since material used in manufacturing a product is concerned with acquiring of product and they remain attached to the finished product. For instance, leather used to manufacture a wallet, and the leather remains attached to it. Cost of purchasing leather is a direct material cost and wallet is a finished product, so it is the right answer.

Increase in beds purchased for hospital, with increase in number of patients in hospital is

  1. variable cost

  2. fixed cost

  3. mixed cost

  4. none of these


Correct Option: A
Explanation:

 It is variable cost means since as the number of patients are increasing in the hospital, the number of beds have also to be increased. Variable cost is that which increases with increase in the activity. Increase in the activity is the increase in number of patients and increase in cost is due to increase in number of beds purchased.

 

A machine operator earns Rs 100 per hour. He is paid on the basis of actual time worked and at the rate of one and a half times of normal wages for over time (time in excess of 40 hours a week). During a given week, he worked 45 hours and has no idle time. His labour cost for the week would be

  1. Rs. 4,500

  2. Rs. 4,750

  3. Rs. 5,000

  4. Rs. 4,800


Correct Option: B
Explanation:

It is Rs 4,750

Direct labor ( Rs 100 X 45 )                                                    4,500 Manufacturing overhead (overtime premium  Rs 50 X 5 )              250 Total labour cost for the week                                                  4,750  so the right answer is 4750/-

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