6. X, a doctor, sent a cheque of Rs 25,000 to Prime Miniter's relief fund as a personal contribution. Journal entry in his books will be
a. Drawings A/C Dr 25,000 To Bank A/C 25,000
b. Drawings A/C Dr 25,000 To Prime Minister's Fund A/C 25,000
c. Drawings A/C Dr 25,000 To Capital A/C 25,000
d. Drawings A/C Dr 25,000 To X A/C 25,000
Answer: a. Drawings A/C Dr 25,000 To Bank A/C 25,000
7. Cost centres are sometimes also referred to as _________ as they help perform the control function.
a. Stable centres
b. Responsibility centres
c. Liability centres
d. Control centres
Answer: b. Responsibility centres
8. Match the Following
1] Break Even Point
i] = (Change in Profits / Change in Sales) x 100
2] Contribution
ii] = (Sales / Contribution) x 100
3] Margin of Safety
iii] = Profit / Profit Volume Ratio
4] Profit Volume Ratio
iv] = Fixed cost / Contribution per unit
v] = Profit Volume Ratio / Fixed Cost
vi] = Sales - Variable cost
a. 1-iv, 2-vi, 3-iii, 4-i
b. 1-v, 2-iii , 3-i, 4-vi
c. 1-iii, 2-i , 3-v, 4-vi
d. None of the above
Answer: a. 1-iv, 2-vi, 3-iii, 4-i
9. Time Keeping is the process of _________
a. recording the time which requires for book keeping
b. counting the time which supplier take to supply the material after purchase order is given
c. recording the attendance time of the workers
d. None of the above
Answer: c. recording the attendance time of the workers
10. In cost accounting process, cost are ascertained and controlled with respect to the ________ and hence it is pre-requisite.
a. Records in books of organization
b. Cost centres
c. Transactions
d. Cost accountants
