Practice Test

Q1) Contract costing is a type of _______ costing. Show Answer

Q2) A person who undertakes the construction work as per terms and conditions agreed upon is called as ________ Show Answer

Q3) A person for whom construction is undertaken is called as ____ Show Answer

Q4) Work done and certified by the architect is called as ____ Show Answer

Q5) Work done and not certified by the architect is called as _____ Show Answer

Q6) ________ clause is included in the contract to protect the interest of the contractee in case of any defects found in the construction work. Show Answer

Q7) _______ clause is included in the contract to protect the interest of contractor in case cost of material and labour has gone up. Show Answer

Q8) _______ is a credit balance on contract account after recording all the expenses and losses and income and gains. Show Answer

Q9) Notional Profit includes ______ and ______ both. Show Answer

Q10) Realized profit is transferred to _________ account. Show Answer

Q11) Unrealized profit is transferred to _______ account. Show Answer

Q12) Sub-contract cost should be account ________ to contract account. Show Answer

Q13) Work uncertified is always valued at ____. Show Answer

Q14) _______ is credited to contract A/c when contract is 100% completed. Show Answer

Q15) If work certified is not given, it should be calculated on the basis of _______ Show Answer

Q16) A person for whom the work is undertaken is known as _____ Show Answer

Q17) When work done is less than 25% or 1/4 complete then ____ Show Answer

Q18) When work done is 1/4 (25%) or more but less than 1/2 (50%) then Show Answer

Q19) When work done is 1/2 (50%) or more then Show Answer

Q20) When work done is 100% or when the contract is completed, then & Loss A/c. Show Answer

Q21) If any plant is transferred from one contract to other contract, the transferee contract is ____ and transferor contract is ___ by the value of plant (W.D.V. of plant) Show Answer

Q22) Contractor prepares _______ to find out the estimated profit on completion. Show Answer

Q23) Depreciation on plant and machinery at site is calculated with the help of _____ Show Answer

Q24) Contract costing is at type of job costing. Show Answer

Q25) Each contract is considered as a separate unit of cost. Show Answer

Q26) The loss on contract which is not compensated is debited to contract A/c Show Answer

Q27) Cost of plant issued to site is debited to profit & loss A/c. Show Answer

Q28) If any material is transferred from one contract to other contract, the transferee contract is debited and transferor contract is credited. Show Answer

Q29) Plant returned from site to the stores is credited to the contract with W.D.V. of plant. Show Answer

Q30) Selling price of plant is credited to contract A/c and any Profit or Loss on sale is accounted separately in the contract A/c. Show Answer

Q31) Work done but uncertified is to be valued at market value. Show Answer

Q32) Contractor prepares memorandum contract A/c to find out the estimated profit on Completion. Show Answer

Q33) Calculation of profit on incomplete contract is of personal opinion. Show Answer

Q34) Mr. A undertook a contract for Rs. 5,00,000. Cash received was 80% of work certified which was Rs. 3,00,000. Find out amount of work certified. Show Answer

Q35) Mr. A undertook a contract for Rs. 5,00,000. Cash received was 80% of work certified which was Rs. 3,00,000. Find out % of work certified Show Answer

Q36) The contract was commenced on 1.1.2010 and total contract value was Rs. 8,00,000. On 15th Dec. 2010 the architect certified that 80% of the contract was completed and the contractor received payment of 75% of the value of work certified. Find Work certified? Show Answer

Q37) The contract was commenced on 1.1.2010 and total contract value was Rs. 8,00,000. On 15th Dec. 2010 the architect certified that 80% of the contract was completed and the contractor received payment of 75% of the value of work certified. Find cash received. Show Answer

Q38) The contract was commenced on 1.1.2010 and total contract value was Rs. 8,00,000. On 15th Dec. 2010 the architect certified that 80% of the contract was completed and the contractor received payment of 75% of the value of work certified. Find % of work done Show Answer

Q39) A firm started the work on the contract on 1st January, 2000. A firm has purchased machinery costing Rs. 1,50,000 on 1st April, 2000, it has a working life of five years and its scrap value has been estimated at Rs. 30,000. Calculated amount of depreciation to be charged to contract A/c. Show Answer

Q40) Contract costing is a basic method of Show Answer

Q41) Contract costing is a variant of __________ Costing. Show Answer

Q42) Contract costing usually applicable in Show Answer

Q43) ________ is the person for whom the Contract job is undertaken. Show Answer

Q44) Which one of the following is not a contract cost? Show Answer

Q45) The degree of completion of work is determined by comparing the work certified with Show Answer

Q46) In contract costing credit is taken only for a part of the profit on Show Answer

Q47) In contract costing payment of cash to the contractor is made on the basis of Show Answer

Q48) The cost of any sub-contracted work is Show Answer

Q49) Progress payments received by the contractor from the client are Show Answer

Q50) Retention Money is equal to Show Answer

Q51) Material supplied by the Contractee Show Answer

Q52) Cost of material lost or destroyed Show Answer

Q53) Work Certified is valued at Show Answer

Q54) Value of Work Certified Less Profit = Show Answer

Q55) The Total Value of Work Completed during an accounting year is equal to Show Answer

Q56) Notional Profit is equal to Show Answer

Q57) Work-in-progress at year end is equal to Show Answer

Q58) Work certified is less than 25% of the contract price. The transfer to P & L A/c will be Show Answer

Q59) Work certified is between 25% and 50% of the contract price. The transfer to P & L A/c will be Show Answer

Q60) Work certified is between 50% and 90% of the contract price. The transfer to P & L A/c will be Show Answer

Q61) The entire contract is complete. The transfer to P & L A/c will be Show Answer

Q62) If a contract is 40% complete, credit taken to the profit and loss account is Show Answer

Q63) Value of work certified - Rs. 5,00,000
Cost of work to date - Rs. 4,00,000
Cost of work not yet certified - Rs. 1,00,000
Notional Profit is Show Answer

Q64) The total profit on a contract for Rs. 3,00,000 is Rs. 60,000 and the contract is 60% complete and has been certified accordingly. The retention money is 20% of the certified value, then the amount of profit that can be prudently credited to Profit and Loss Account Show Answer

Q65) Contract cost - Rs. 2,80,000
Contract value - Rs. 5,00,000
Cash received -Rs. 2,70,000
Uncertified work - Rs. 30,000
Deduction from bills by way of retention money is 10%.
How much profit, if any. you would take to the profit and loss account? Show Answer

Q66) Value of work-in-progress is Show Answer

Q67) Reserve for contingencies is Show Answer

Q68) Any material supplied by the Contractee (e.g. cement in construction Contract), is debited to the Contract Account. Show Answer

Q69) The cost of material lost or destroyed is debited to the Contract Account. Show Answer

Q70) The sale price of material for a contract is credited to the Contract Account. Show Answer

Q71) The price received on sale of special plant purchased for a contract is credited to the Contract Account. Show Answer

Q72) Retention Money = Payment received Less Work Certified. Show Answer

Q73) If the contract is less than 25% complete, entire profit is credited to the profit and loss account. Show Answer

Q74) If a contract is 40% complete, 40% of the notional profit is credited to the profit and loss account. Show Answer

Q75) If a contract is 60% complete, 1/3 of the notional profit is credited to the profit and loss account. Show Answer

Q76) A contract is 40% complete. There is a notional loss. 100% of the notional loss is debited to the profit and loss account. Show Answer

Q77) Cost of normal wastage of materials is debited to the Contract Account. Show Answer

Q78) Cost of abnormal wastage of materials in a contract is transferred to the Costing Profit & Loss Account. Show Answer

Q79) In contract costing, the percentage of price not paid by the contractee is known as margin money. Show Answer

Q80) In contract costing, the work - in - progress does not include uncertified work. Show Answer

Q81) Job order system is appropriate for a manufacturer, which produces product as special orders. Show Answer

Q82) A contract is a small Job while a job is a big contract. Show Answer

Q83) Work certified is valued at cost. Show Answer

Q84) Work uncertified is valued terms of contract price. Show Answer

Q85) Work-in-progress is valued at cost plus profit which has not been taken to the Profit & Loss A/c. Show Answer

Q86) Cash received on contract is credited to Contract Account. Show Answer