Advanced Accountancy- XIII MCQ and Short Answer Questions

 

A) Choose the correct alternative from given below.                                            

1.  ……………. Measures cost and value of peoples to organisation.

a) Social Responsibility Accounting               b) Human Resource Accounting       

c) Environmental Accounting                         d) Forensic Accounting

2.  There are ……………. approaches to measure the performance of human resource.

a) Two                                    b) Four

c) Six                           d) Eight

3. Royalty account is of the nature of …………… account.

a) Nominal     b) Personal

c) Real            d) None of the above

4. In case the right to recoup shortworkings has expired, the balance in the shortworkings account is transferred to………………… account.

a) Landlords                            b) Profit & Loss

c) Royalty                               d) Shortworkings

5. Contract accounting is applicable in ……………...

a)  Building                              b) Construction

c) Ship Building                       d) All of the above

6. Each contract undertaken is treated as……………

a) Cost             b) Cost Center             c) Cost unit     d) All of the above

7.  ……………. is that part of work in progress which has been approved by the Contractees architect or engineer for payment.

a) Cash ratio                            b) Work certified

c) Work uncertified                 d) All of the above

8. …………. is typically considered income for an NGO.

a) Donations               b) Depreciation          

c) Bad Debts               d) Interest expenses

9. If an NGO receives a donation that has to be used for a specific project it should be recorded ……………..

a) As unrestricted income                   b) As an investment

c) As restricted income                      d) As a liability

10. The income and expenditure account of an NGO reflects……………..

a) Profit or Loss                      b) Surplus or Deficit

c) Cash flow                            d) Revenue earned

11.  The success of service industries is depending on the quality of their……………..

a) Management                                   b) Marketing    

c) Products                                          d) Human Resource

12.  …………. is the benefit of human resource accounting.

a) Valuable information                      b) Realistic investment decisions

c) Performance measurement              d) All of the above

13. Royalty payable is debited by lessee to………………

a) Royalty account                           b) Landlord account  

c) Profit & Loss account                    d) All of the above

14. Royalty earned by the lessor is credited to………………

a) Sub lessee account                          b) Profit & Loss account        

c) Royalty receivable account           d) All of the above

15. …………. is that part of work in progress which is not approved by the architect or engineer.

a) Cash ratio                            b) Work certified

c) Work uncertified               d) All of the above

16. In case plant is sold on the completion of contract, the ………….. account is credited with its sale proceeds.

a) Plant                        b) Sales                        c) Contractees             d) Contract

17.  …………… is the difference between the value of work in progress certified and the cost of such work in progress certified.

a) Estimated Profit                  b) Notional Profit

c) Net Profit                            d) All of the above

18. An NGOs income and expenditure account is prepared based on ………….. concept.

a) Cash basis               b) Accrual basis        

c) Mixed basis             d) Receipt and Payment

19. Deficit in the income and expenditure account means…………..

a) Expenses are higher than income                        b) Income is higher than expenses

c) Cash receipts are high                                 d) Excess Donations

20. …………. would not typically be found on an NGOs Balance Sheet.

a) Unrestricted Net Assets                  b) Program Expenses           

c) Accrued Liabilities                         d) Fixed Assets

21. The measurement and reporting of the cost and value of people in organizational resources is called……………

a) Social Responsibility Accounting               b) Human Resource Accounting       

c) Environmental Accounting                         d) Forensic Accounting

22.  …………. approach involves methods based on the costs incurred by the company with regard to an employee.

a) Cost                                    b) Economic value

c) Present Value                      d) All of the above

23. ……………. is the excess of minimum rent over actual royalties.

a) Surplus                   b) Profit           c) Shortworkings                   d) All of the above

24. The lessees right to recoup shortworkings is related to………………..

a) First three years                   b) Terms of the agreement

c) Subsequent two years         d) All of the above

25. ………….. is a contract in which contract price is ascertained by adding a specified amount or percentage of profit to the cost allowed in the contract.

a)  Contract                              b) Cost less contract

c) Cost plus contract             d) all of the above

26. Loss on uncompleted contracts transferred in full to ……………… account

a) Trading                    b) Profit & Loss                    

c) Reserves                  d) All of the above

27.  …………… is often provided in contracts to cover any likely changes in the price or utilisation of materials and labour.

a) Escalation Clause              b) Cost Plus Clause

c) Inflation Clause                  d) All of the above

28. Which one of these is debited in the income and expenditure account?

a) Donations received             b) Government grants

c) Office rent paid                 d) Subscriptions fees

29. Life membership fees are generally………..

a) Shown as income                            b) Added to capital fund

c) Treated as expenditure                    d) Treated as reserve

30. Income and expenditure accounts records……………..

a) Both Cash and non-cash transactions     b) Only cash transactions

c) Only non-cash transactions                         d) Fixed assets sale only

B)  State whether the following statements are true or false.                                                          

1. Two types of costs are of special importance in human resource accounting. True

2. The methods for calculating the economic value of individuals in to only monetary. False

3. Royalty means the sum payable by one person called the lessee to another person called lessor for using the right by the former vested in the latter.  True

4. There is no difference between notional profit and estimated profit in relation to contracts. False

5. A job is a small contract and contract is a big job. True

6. Grant received for future periods should be recorded as current income. False

7. The economic value approach look at human resources as assets. True

8. The lessee is not required to pay minimum rent to the lessor if he does not get any benefit out of the right rented out to him. False

9. The shortworkings account shows a credit balance in the books of the lessor. True

10. If work in progress certified is less than 25% of contract price then no profit is transferred to profit and loss account. True

11. Profit on each contract is computed every year on incomplete portion of the contract. False

12. Donations for a specific purpose are shown under the capital fund. True

13. Replacement cost of human resources is the cost that would have to be incurred if present employees are to replaced. True

14. The object of dead rent is that a landlord should not get more than a certain amount per year. False

15. The shortworkings account shows a credit balance in the books of the lessor. True

16. When a contract is 50% complete, 50% of its profit on cash basis is generally transferred to Profit and Loss A/c at the end of the year.  False

17. Contractor will charge extra money for extra work. True

18. There are four types of NGOs. True

C) Write Short Notes                                                                      

1. Objectives of Human Resource Accounting

2. Features of Contract Accounting  

3. Methods of Valuation of Human Resources

4. Minimum Rent and Shortworkings

5. Work Certified and Work Uncertified

6. Types of NGO

7. Need of Human Resource Accounting

8. Cost Plus Contracts  

9. Limitations of Human Resource Accounting

10. Recoupment of Shortworkings

11. Contract Costing Procedure

12. Types of Government Grants

13. Scope of Human Resource Accounting

14. Merits of Human Resource Accounting  

15. Rules regarding transfer of notional or estimated profit to Profit and Loss Account.

16. Characteristics of NGOs

17. Work Certified and Uncertified

18. Methods of Accounting for Government Grants