TOPIC: CONTRACT AND ESTATE ACCOUNT
DIRECTION: Choose the correct answer from the lettered options.
1. All costs arising at the completion of the contract is ______ to the contract
A. debited
B. credited
C. added
D. posted
The correct answer is option [A]
2. _____ is appointed to handle the properties of a deceased person
A. Accountant
B. Lawyer
C. Engineer
D. Executor
The correct answer is option [D]
3. In contract account Work-In-Progress is debited?
A. True
B. False
The correct answer is option [A]
4. _________is money held by the Employer/Client as a safeguard against defects
which may subsequently develop and which the Contractor may fail to remedy
A. Sustainance money
B. Relief
C. Deposit money
D. Retention money
The correct answer is option [D]
5. The following are enteries in Contract account EXCEPT ________
A. debit Contract account with all the expenses applicable to the particular contract
B. debit Contract account with all the Revenue applicable to the particular contract
C. debit Personal account of customers with contract price
D. when the customers pays, Credit his personal account and Debit bank
The correct answer is option [B]
6. _____ relates to construction activities
A. Departmental accounting
B. Manufacturing accounting
C. Consignment accounting
D. Contract accounting
The correct answer is option [D]
7. Mortgage financing provides credit facility for __________
A. purchase of business
B. procurement of materials
C. procurement of shares
D. real estates
The correct answer is option [D]
Mortgage debt is used to buy real estate. The real estate secures, or backs, the
mortgage loan as collatera
TOPIC: DEPARTMENTAL ACCOUNTS AND BRANCH
ACCOUNTS
DIRECTION: Choose the correct answer from the lettered options.
1. Which of the following statements is correct about the head office current account
and the branch current account?
A. Both always have debit balance
B. Both always have credit balance
C. The head office current account has a credit balance while the branch current
account has a debit balance
D. The head office current account has a debit balance while the branch current
account has a credit balance
E. All of the above
The correct answer is option [D]. Options [A] and [B] are wrong because they are
contrary to the double entry principle of accounts. Option [C] is wrong because the
entries are wrongly posted.
2. One of the following is the method of apportionment of expenses in departmental
account EXCEPT ________
A. Floor space basis
B. Turneover basis
C. Direct analysis basis
D. Purchases basis
The correct answer is option[D].
3. Which of the following is not an objective of branch account?
A. To prevent fraud
B. To maximise cost and make comparison
C. Verification of stock
D. To ascertain project
The correct answer is option[B].
4. Where the branches keep separate accounts, the accounting entries are;
(i) Head office account in the branch books
(ii) Branch account in the head office books
(iii) Head office account in the head office books
A. (i) and (ii) only
B. (ii) and (iii) only
C. (i) and (iii) only
D. (i), (ii) and (iii)
The correct answer is option[A].
5. Cash stolen from Branch takings is recorded in the Head Office books by debiting
________
A. defalcations account and crediting branch stock account.
B. mark-up account and crediting branch stock account.
C. defalcations account and crediting profit and loss account.
D. cash account and crediting branch stock account.
E. branch stock account and crediting defalcations account.
The correct answer is option [B].
6. The preparation of final account in both branch and departmental account are
similar
A. TRUE
B. FALSE
The correct answer is option [A]
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