Objective Type Question - NET exam paper 2

1.Loss on issue of debenture is treated as a ---------
a. Intangible asset
b.Current asset
c.Current Liability
d.Miscellaneous Expense

2.Premium on redemption of debenture account is --------.
a.A real account
b.A nominal account - income.
c A personal account.
d..A nominal account - expenditure

3.The unit contribution margin is calculated as the difference between:
a) selling price and fixed cost per unit.
b) selling price and variable cost per unit.
c) selling price and product cost per unit.
d) fixed cost per unit and variable cost per unit.

4.Cost-volume-profit analysis is based on certain general assumptions. Which of the following is not one of these assumptions?
a) Product prices will remain constant as volume varies within the relevant range.
b) Expenses can be categorized as fixed, variable, or semivariable.
c) The efficiency and productivity of the production process and workers will change to reflect manufacturing advances.
d) Total fixed expenses remain constant as activity changes.


5.The extent to which an organization uses fixed costs in its cost structure is measured by:
a) financial leverage.
b) operating leverage.
c) fixed cost leverage.
d) contribution leverage



Answer
1. d    2.d  3.a 4.c  5.b