In budgetary control, a 'master budget' is: MCQ with Answer and Explanation

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In budgetary control, a 'master budget' is:

A. Only sales budget

B. Capital expenditure budget

C. A summary of all functional budgets

D. Cash budget only

Answer: Option C

Solution (By JKSSB Mock Tests)

Master budget consolidates all subsidiary budgets (sales, production, cash, etc.) into a comprehensive overall budget.

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

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Practice More Accountancy and Book Keeping Questions

Question #1

A Suspense Account is generally closed when:

A. The balance sheet is signed

B. The auditor approves it

C. All errors causing the trial balance difference are rectified

D. The financial year ends

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Correct Answer: Option C

Explanation:
The Suspense Account exists only as a temporary fix. Once all one-sided errors are found and rectified, its balance becomes zero.

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

Question #2

In the Trading Account, 'Consumable Stores' used in production are:

A. Ignored

B. Debited to P&L Account

C. Shown as asset

D. Debited to Trading Account

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Correct Answer: Option D

Explanation:
Consumable stores are direct materials, so they are debited to Trading Account.

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Question #3

S1: The Trading Account shows the gross profit or loss. S2: The Profit and Loss Account shows the net profit or loss. Which statement(s) is/are correct?

A. Both S1 and S2

B. Neither S1 nor S2

C. S1 only

D. S2 only

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Correct Answer: Option A

Explanation:
The Trading Account calculates Gross Profit/Loss by matching direct expenses with net sales. The Profit and Loss Account calculates Net Profit/Loss by matching all indirect expenses and incomes with the Gross Profit. Both are correct.

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

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