Co-operative Management and Administration | Set 2
1. Interest earned, Miscellaneous income, Commission, Profit in non-credit businessare
shown on the credit side of ………
Correct : A. profit and loss account
2. ………………are the expenses paid on account of rent, rates and taxes, insurance
premiums, subscriptions membership fee etc. for periods that extent beyond the date of the balance sheet.
Correct : A. prepaid expenses
3. Expenses incurred but not paid, are called………….
Correct : D. outstanding expenses
4. Interest accrued up to the date of balance sheet are known as ………………..
Correct : B. interest receivable
5. When heavy expenditure is incurred and the benefits of which extend to periods
beyond the date of the balance sheet, such expenditure should be equitably spread over the period during which the benefits of such expenditure would be available and are known as ………………….
Correct : C. deferred revenue expenditure
6. In the case of non trading societies such as Co-operative Education Societies, hospital,
societies and similar other types of societies, which do not undertake trading activities, it is common to term the “Profit and Loss Account” as…………..
Correct : D. both (a) and (b)
7. Realisable Value of an asset is……………
Correct : A. the estimated amount that the assets would fetch, if sold or disposed off.
8. The written down value or going concern value of an asset is……….
Correct : C. the amount that an asset costs, when purchased or acquired, less the provisions made for depreciation since its acquisition
9. The replacement value of an asset is……………
Correct : B. the amount that is estimated to replace the asset
10. Interest accrued on investment and loans, Stock in trade in case of trading concerns
are known as ……………assets.
Correct : D. both (a) and (c)
11. ……………..assets are those of a fixed nature and are gradually exhausted and used
up in the course of working, such as a mine or quarry.
Correct : B. wasting
12. ……………..will be acquired only by co-operatives which undertake publication of
books.
Correct : A. copy rights
13. Registered debentures, stocks and shares, Government Securities, Inscribed stocks and
Bearer bonds and share warrants are………
Correct : C. investments
14. Valuation of stock in trade is at ……………………….
Correct : D. cost or market price whichever is lower
15. ………………arises due to inefficiency, negligence, mischief or bad luck etc.
Correct : B. abnormal loss
16. In manufacturing and processing societies by-products may be valued at their ……………………..
Correct : A. current ruling prices
17. In farming societies producing crops with an annual cycle the basis of valuation of by
products may be …………………
Correct : A. the selling price
18. ……………are certain assets which represent capital expenditure which may not have
resulted in identifiable profit earning assets and which still remain to be written off.
Correct : C. fictitious assets
19. The word ‘Auditor’ is derived from the Latin word …………..meaning to hear.
Correct : A. audire
20. The main object of audit today is to ……….
Correct : A. find out whether the accounts of a particular concern exhibits a true and fair view of the financial state of affairs.
21. ………………… is a written record of queries made, replies furnished there against,
correspondence entered into, observations made at the time of checking etc.
Correct : A. audit note book
22. are lists of audit procedures to be performed by audit staff in order to obtain sufficient
appropriate evidence.
Correct : A. audit program
23. …………………………. is a detailed plan of the auditing work to be performed,
specifying the item in the financial statements and allocating tentative time required.
Correct : A. audit programme
24. ………………………….provides a guide in arranging and distributing the work and
in checking against the possibility of omissions.
Correct : A. audit programme
25. …………….. are those papers which contain essential facts about the accounts so that
the auditors may not have again to go over the accounts.
Correct : A. working papers
26. A ………….. is documentary evidence in support of a transaction in the Books of
account
Correct : B. voucher
27. The act of establishing the accuracy and authenticity of entries in the account books is
called …………
Correct : B. vouching
28. The Society which requires no help from official and non-official staff for its working
(excepting annual audit) comes under……………..
Correct : B. ‘a’ class
29. An…………………………… Society does not want any supervision from the Union
or Central Banks.
Correct : B. ‘a’ class
30. Societies the overdues of which exceed 40% and which are moribund are to be
classified as ………………..
Correct : D. d
31. The overdues in a……………… Class Society should not be above 25%.
Correct : B. b
32. The overdues in a ‘B’ Class Society should not be above………….
Correct : C. 25%
33. In ……………………….. Central Banks, the arrears under principal should not
exceed 20% of demand and arrears under interest should not exceed 5% of the demand.
Correct : B. ‘a’ class
34. In ………………………. Central Banks, the arrears under principal may exceed 20%
but should not exceed 40% of the demand. There may be interest overdues but it should not exceed 10% of the demand.
Correct : A. ‘b’ class
35. In ………………………………..Central Banks, the overdues under principal exceed 60%
of the demand and under interest exceed 15% of the demand.