• 1. 
    A manufacturing account records the administrative expenses and the finance expenses of the business

  • TRUE
  • FALSE
  • 2. 
    It guides how the expenses should be matched with revenue for determining exact profit or loss for a particular period.

  • Accrual Concept
  • Matching Concept
  • Revenue Recognition Concept
  • Going Concern Concept
  • 3. 
    This concept assumes that, for accounting purposes, the business enterprise and its owners are two separate independent entities

  • Money Measurement Concept
  • Going Concern Concept
  • Business Entity Concept
  • Cost Concept
  • 4. 
    If all the business transactions are expressed in monetary terms, it will be easy to understand the accounts prepared by the business enterprise.

  • Business Entity Concept
  • Revenue Recognition Concept
  • Money Measurement Concept
  • Going Concern Concept
  • 5. 
    Which side does Discount Allowed belong?

  • Debit
  • Credit
  • 6. 
    According to this convention the accounting practices should remain unchanged from one period to another.

  • Convention of Consistency
  • Convention of Full disclosure
  • Convention of Conservatism
  • Convention of Materiality
  • 7. 
    The use of a transfer price enables a factory to make additional profit which is added into the profit for the year in the income statement

  • TRUE
  • FALSE
  • 8. 
    It encourages the accountant to post each entry in opposite sides of two affected accounts

  • Money Measurement Concept
  • Full disclosure convention
  • Dual aspect Concept
  • Realisation concept
  • 9. 
    Cost of materials consumed is calculated as opening inventory of raw materials + purchases - closing inventory of raw materials

  • TRUE
  • FALSE
  • 10. 
    This concept states that a business firm will continue to carry on its activities for an indefinite period of time.

  • Money Measurement Concept
  • Historical Cost Concept
  • Going Concern Concept
  • Dual Aspect Concept
  • 11. 
    In a manufacturing account, prime cost comprises three cost: direct materials, direct labour and factory overhead

  • TRUE
  • FALSE
  • 12. 
    Which side does Receipts from debtors belong ?

  • Debit
  • Credit
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