Accounting & Auditing Paper II (2000) - A

Accounting & Auditing Paper II (2000) - A

1. Fixed Cost?

a) Changes with production
b) Never changes even if production capacity is doubled
c) None of the above

2. Conversion cost is?

a) Material Cost + Overhead Cost
b) Direct Labour + Material Cost
c) Labour Cost + Overhead Cost

3. Process Costing is relevant to?

a) Cement industry
b) Job Order cost oriented Projects
c) None of the above

4. Operating Profit is?

a) Profit after deducting financial costs
b) Profit after deducting taxes
c) Profit after deducting normal operating expenses including depreciation

5. A good Cost Accounting System is?

a) If it computes estimated cost only
b) If it cannot be reconciled with financial accounts
c) If it enables management to increase productivity and rationalize cost
d) If it enables management to increase productivity and rationalize cost structure

6. Verification includes?

a) Checking Vouchers
b) Examining audit report
c) None of the above

7. Stratified audit sample means?

a) Randomly selected items for audit
b) Purposively selected items for audit
c) Items carefully selected from each group

8. Internal Control is totally synonymous with?

a) Internal check
b) Internal audit
c) None of above

9. Audit of a bank is generally conducted through?

a) Routine checking
b) Couching
c) Balance sheet audit

10. An auditor is liable for his annual audit of accounts o?
a) Creditors
b) Bankers
c) Owners

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