Question

Q. 1 A) In the activity based costing system overheads are allocated based on which parameters ?

B) In the traditional costing system overheads are allocated based on which of the following parameters

Options: 1. None of the above 2. Volume Based Parameters 3. Cost Drivers 4. Both of the Above

Q. 2 Equal stream of cash flows at regular interval starting at the end of the period is known as:

Options: 1. Annuity Cumulative 2. Annuity Ending 3. Annuity Regular 4. Annuity Due

Q. 3  The balance of cash account indicates

Options: 1. Net Income for the period 2. Net Loss for the period 3. Net worth of the business 4. Net Cash o hand

Q.4  every accounting transaction must at least affect__ accounts?

Options: 1. One 2. Two 3. Three 4 Four

Q. 5 in order to reflect the efficiency in debtors management debtor turnover ratio should be :

Options 1. Increased 2. Kept Constant 3. Decreased 4. none of the above

Q 6. Cash flows patterns when change of sign takes place more than once are known as

Options: 1. Normal Cash Flow 2. Abnormal Cash Flow 3. non- conventional cash flow 4. Conventional cash flow

Answer 1

1) Solution: a) Both of the Above b) Cost Drivers

Explanation: The traditional method takes one pool of total overhead costs of a company and ABC uses number of indirect cost pools which can be allocated to specific goods.

2) Solution: Annuity Due

3) Solution: Net Cash o hand

Explanation: A positive net cash balance reflects that cash is present and available in the account, while a negative one reflects that the account is overdrawn

4) Solution: Two

Explanation: Every accounting transaction will affect at least 2 items in it's equation