Expense Side of Statement of Profit and Loss

Q.

Salaries are shown under which head?

1. Finance Costs

2. Other Expenses

3. Other Income

4. None of these

Q.

On December 1, ABC Co. hired Juanita Perez to begin working on January 2 at a monthly salary of Rs. 14, 000. ABC's balance sheet of December 31 will show a liability of?

1. No liability

2. Rs. 14, 000

3. Rs. 8, 000

4. Rs. 2, 000

Q. Disclosure of the cost of materials consumed expense is required only in case of the companies.

1. construction
2. manufacturing
3. investment
4. banking

Q.

Which of the following can have detailed disclosure in notes to accounts?

1. Employee benefit expenses

2. Changes in inventories

3. Depreciation & Amortization

4. Other expenses

Q.

In case, any semi-finished goods/materials are purchased with an intention of doing further processing activities on the same, the same should be included in ___

1. Stock in trade

2. Work in progress

3. Cost of materials consumed

4. All of these

Q.

Disclosure of cost of materials consumed expense is required only in case of ___

1. Manufacturing companies

2. Investment companies

3. None of these

4. Banking companies

Q. ____________ is a technique of material cost control which leads to low carrying cost as a result of low investment in inventory.

1. ABC Analysis
2. VED Analysis
3. Perpetual Inventory System
4. JIT Inventory System

Q. Which of the following expenses is NOT included in the acquisition cost of a plant and equipment?

1. Delivery and handling charges.
2. Installation costs.
3. Cost of site preparation.
4. Financing costs incurred subsequent to the period after plant and equipment is put to use.

Q. Net result of a Manufacturing A/c is ____________.

1. Cost of production
2. Total expenditure
3. Cost of sales
4. Gross profit

Q. Which of the following forms part of employee benefit expenses?

1. Salaries
2. Depreciation
3. Wages
4. Interest payment
5. Pension
6. Bonus
7. Bank charges
8. Gratuity

Q. Absorption costing is also known as ___________.

1. Direct costing
2. Forward costing
3. Full costing
4. Partial costing

Q. All costs other than direct materials cost, direct labour cost and direct expenses are known as ________.

1. Indirect material cost
2. Overhead
3. Indirect labour cost
4. Indirect expenses

Q.

All other expenses not classified under other heads will be classified under ___

1. Employee benefit expenses

2. Changes in inventories

3. Depreciation & Amortization

4. Other expenses

Q. ___________ is the excess of overheads absorbed over the actual amount of overheads incurred.

1. Over absorption of overheads
2. Under absorption of overheads
3. Overheads absorption
4. None of these

Q. Why does work managers salary go in trading Account-?