Accounting & Auditing Paper II (2001) - B

Accounting & Auditing Paper II (2001) - B

1. Re-order quantity …… 3600 units, Maximum consumption ...… 900 units per week, Minimum consumption …....300 units per week, Re-order period …………….….5 weeks. Based on this data Re-order level is?

a) 4500 units
b) 3900 units
c) 1200 units
d) 400 units
e) None of these

2. The time lag between indenting and receiving material is called?

a) Lead time
b) Idle time
c) Stock out time
d) None of these

3. A credit balance remaining in FOH Control account is called?
Direct material cost plus direct labour cost is called?

a) Over-applied overhead
b) Under-applied overhead
c) Actual overhead
d) All of these
e) None of these

4. A segment of the business that generates both revenue and cost is called?

a) Profit Center
b) Cost Center
c) Cost driver
d) All of these
e) None of these

5. Productivity means?

a) The ability to produce
b) All units produced
c) Good units produced
d) None of these

6. Verification includes?

a) Checking vouchers
b) Examining audit report
c) None of these

7. Direct material cost plus direct labour cost is called?

a) Prime cost
b) Conversion cost
c) Product cost
d) All of these
e) None of these

8. Audit of a bank is generally conducted through?

a) Routine checking
b) Vouching
c) Balance sheet audit
d) None of these

9. Short term Loan can be best described as?

a) If the period is three years
b) If the period is less than one year
c) If the period is over one year
d) None of these

10. Economics resources of a business that are expected to be of benefit in the future are referred to as?
a) Liabilities
b) Owner’s equity
c) Withdrawals
d) Assets

e) None of these

This is more feedback!

This is the feedback!