CA Intermediate · Cost and Management Accounting · Cost Accounting Systems
Under an integrated accounting system, which statement is correct?
In integrated accounting, one set of books serves both cost and financial purposes, so no separate reconciliation between cost profit and financial profit is required. A Cost Ledger Control Account and separate ledgers belong to the non-integrated system.
- AA single set of books records both cost and financial data, so no reconciliation statement is neededCorrect
- BSeparate cost and financial ledgers are kept and reconciled annually
- CCost ledger control account is essential to balance the books
- DCost accounts are prepared only for decision-making and are never part of the ledger
Explanation
Integrated accounting uses one set of books providing both cost and financial information, so the reconciliation arising from two ledgers is eliminated. The other options describe non-integrated systems or are untrue.
Did you get it right without looking?
One question tells you little. A timed set on Cost Accounting Systems shows your real accuracy, how long you take and where you lose marks.
More Cost Accounting Systems questions
- Under a non-integrated (separate ledgers) system of accounting, which of the following is recorded only in the cost books and NOT in the fin…
- In a non-integrated system, raw materials worth ₹2,40,000 are purchased on credit and ₹1,80,000 of them are issued to production. Which entr…
- Under non-integrated accounting, Mehta Engineering purchases raw materials worth ₹6,00,000 on credit and issues ₹4,50,000 of materials to pr…
- Under non-integrated accounting, Kavya Industries records: materials purchased Rs 3,00,000; materials issued to production Rs 2,40,000, of w…
- Under non-integrated accounting, in a company's cost ledger, which account is the 'Cost Ledger Control Account' (General Ledger Adjustment A…
- Sharma Components Ltd. maintains separate cost and financial ledgers. Financial profit for the year is ₹4,80,000. Cost records show the foll…