Question 1

A control system where accountability is established with responsibility is known as --------------

Accepted Answer

Responsibility accounting is a system where accountability is established with responsibility, focusing on assigning responsibility to different managers or departments and tracking their performance.

Question 2

--------- is a system where persons are made responsible for control of cost

Accepted Answer

Responsibility accounting is a system where individuals are made accountable for budgetary control and the costs associated with their areas of responsibility, enabling better control and management of costs.

Question 3

------------- centre is one for which both revenue and cost are accumulated

Accepted Answer

A profit centre is a branch or division of a company that is treated as a separate unit for the purpose of calculating profit. It involves both revenue generation and cost accumulation to determine its profitability.

Question 4

A firm's investment in current asset is known as ----------------

Accepted Answer

Gross working capital refers to the firm's investment in current assets, which includes cash, inventory, accounts receivable, etc. It represents the total amount of resources invested in current assets to facilitate day-to-day operations.

Question 5

A transaction that doesn't make any change in working capital position is ---------

Accepted Answer

A non-fund transaction does not affect the working capital position because it does not involve a change in current assets or current liabilities. Examples include depreciation, writing off of fictitious assets, and conversion of debentures into shares. These transactions do not result in any inflow or outflow of funds.

Quiz 7: Financial Accounting and Cost Management

A control system where accountability is established with responsibility is known as --------------

--------- is a system where persons are made responsible for control of cost

------------- centre is one for which both revenue and cost are accumulated

A firm's investment in current asset is known as ----------------

A transaction that doesn't make any change in working capital position is ---------