In a manufacturing account, 'Prime Cost' includes: MCQ with Answer and Explanation

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In a manufacturing account, 'Prime Cost' includes:

A. Direct materials, direct labour, direct expenses

B. Selling overheads

C. All factory overheads

D. Administration overheads

Answer: Option A

Solution (By JKSSB Mock Tests)

Prime cost is the sum of all direct costs.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

The rule 'Debit the receiver, Credit the giver' applies to:

A. Nominal accounts

B. All accounts

C. Personal accounts

D. Real accounts

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Correct Answer: Option C

Explanation:
This rule is for personal accounts.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

The objective of 'Financial Statements' is to provide information about:

A. Only profit

B. Only liabilities

C. Financial position, performance, and cash flows

D. Only assets

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Correct Answer: Option C

Explanation:
Financial statements present the financial position, performance, and cash flows of an entity.

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Question #3

Which system of book-keeping is technically referred to as 'Accounting from Incomplete Records'?

A. Double Entry System

B. Accrual System

C. Management Accounting

D. Single Entry System

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Correct Answer: Option D

Explanation:
Single entry system does not maintain a complete record of the dual aspect of every transaction, leading to incomplete records.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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