Chapter 9, Reconciliation of Cost and Financial Accounts Video Solutions, Cost Accounting

Problem 1

State whether the following statements are true or false:
Cost and financial accounts are reconciled under non-integral accounting.

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Problem 1

Choose the correct answer:
Which of the following items is include in cost accounts?
(a) Notional profit
(b) Rent receivable
(c) Transfer to general reserve
(d) None of these

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Problem 2

State whether the following statements are true or false:
Rent on owned buildings is not included in cost accounts.

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Problem 2

Choose the correct answer:
Cost and financial accounts are reconciled under
(a) Integral system
(b) Cost-control accounts system
(c) Both a and b
(d) None of these

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Problem 3

State whether the following statements are true or false:
Income tax is provided only in cost accounts.

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Problem 3

Choose the correct answer:
Which of the following items is not included in financial books?
(a) Loss on sale of fixed assets
(b) Interest on capital
(c) Notional rent
(d) Donations

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Problem 4

State whether the following statements are true or false:
Under-absorption of production overheads is deducted while reconciling cost profit with financial profits.

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Choose the correct answer:
Which of the following items shall be added to costing profit to arrive at financial profit?
(a) Income tax paid
(b) Interest on debentures
(c) Under absorption of overheads
(d) Rent receivable

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Problem 5

State whether the following statements are true or false:
Under valuation of closing stock in cost accounts is added while reconciling cost profit with financial profits.

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Problem 5

Choose the correct answer:
When costing profit is Rs 13,500 and a charge in lieu of rent is Rs 2,000 , then the financial profit should be
(a) $\operatorname{Rs} 13,500$
(b) Rs 15,500
(c) $\operatorname{Rs} 11,500$
(d) None of these

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00:36

Problem 6

State whether the following statements are true or false:
Under absorption $=$ actual $>$ estimated.

Mitchell Cutler

Numerade Educator

Problem 6

Choose the correct answer:
While reconciling costing profits with financial profits, under recovery of works overheads is
(a) Deducted
(b) Added
(c) Not included
(d) Doubled

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00:36

Problem 7

State whether the following statements are true or false:
Over absorption $=$ actual $>$ estimated.

Mitchell Cutler

Numerade Educator

Problem 7

Choose the correct answer:
While reconciling costing profits with financial profits, capital expenses and losses in financial accounts are
(a) Doubled
(b) Added
(c) Not included
(d) Subtracted

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Problem 8

State whether the following statements are true or false:
Costing profit and loss account and financial profit and loss account are the same.

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Problem 8

Choose the correct answer:
When costing loss is Rs 7,600, office overheads under absorbed being Rs 800 , the loss as per financial accounts should be
(a) $\operatorname{Rs} 6,800$
(b) $\operatorname{Rs} 7,600$
(c) $\operatorname{Rs} 8,400$
(d) None of these

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Problem 9

State whether the following statements are true or false:
Capital losses shown in financial accounts are deducted while reconciling costing profits with financial profits.

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Problem 9

Choose the correct answer:
Dividend interest on investment and discount are shown in
(a) Cost accounts
(b) Management accounts
(c) Book keeping
(d) Financial accounts

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00:54

Problem 10

State whether the following statements are true or false:
Under absorptions are caused by clerical errors.

Norman Atentar

Numerade Educator

Problem 10

Choose the correct answer:
In cost accounts, the stock is valued at
(a) Cost
(b) Market price
(c) No value
(d) Cost plus profit

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