University Of Mumbai 
   Sub : Human Resource Accounting and Auditing  
   Program : TYBMS Sem6 
    
   1. The cost to acquire a new employee is called as ---------- . 
   a) Acquisition cost 
   b) Hiring cost  
   c) Selection cost 
   d) Recruitment cost  
   2. The cost to make the employee suffiviently competent to work with the peers in the 
   organisation is called as -----------. 
   a) Training and development cost 
   b) Replacement cost 
   c) Selection cost 
   d) Additional cost 
   3. Human resource accounting does an accounting of --------- in the firm. 
   a) Human assets 
   b) Salaries  
   c) machines  
   d) wages 
   4. HRA is an ------- idealogy. 
   a) Employer oriented 
   b) Employee oriented 
   c) Employer- Employee mutually benefing 
   d) profit maximizing  
   5. --------------------Accounting deals with employees and management in an organization. 
   a)Human Resource Accounting  
    b)Inflation 
   c)Environment  
   d) Management  
   6. ------------------introduced the Opportunity cost approach in Human Resource Accounting. 
   a) Lev & Schwartz  
   b) Hekimian & Jones 
   c) Rensis Likert & Eric G. Flamholtz 
   d) Watson  
   7. Based on the following type of accounting------------------an appropriate choice whether to 
   make investment in manpower or other resources is made. 
   a) Human Resource Accounting 
   b) Creative Accounting 
   c) Financial Accounting 
   d) Management Accounting 
    
   8. The two main approaches of Human Recourse Accounting are classified into -------------. 
   a) Net Benefit and Present Value Method 
   b) Profit and cost maximization 
   c) Cost and Value based Approach 
   d) Opportunity Cost and Replacement Cost Approach 
    
   9. The art of valuing, recording and presenting the value of human capital of an organization 
   in an systematic manner is known as ------------------ 
   a)Human Resource Accounting 
   b)Human Resource Management 
   c)Human Resource 
   d) Human Resource Audit  
    
   10. In India Human Resource Accounting has been adopted by the following 
   companies/company. 
   a) MMTC 
   b) Reliance Capital Limited, Infosys, Bharat Heavy Electrical Limited 
   c) NLC, Cochin Refineries Ltd 
   d) ONGC 
   11. -------------------Accounting practices can help in locating the best manpower for the 
   organization. 
   a) Green Accounting 
   b) IPR Accounting 
   c) Creative Accounting 
   d) Human Resource Accounting 
    
   12. Behavioural Scientists Brumet, Flamholtz and Pyle developed ----------------approach of 
   Human Resource Accounting. 
   a) Historical Cost Approach 
   b) Present value of future earnings method 
   c) Present value of future services method 
   d) Replacement cost method 
    
   13. The amount to be incurred in replacing the existing employee for the new one is known 
   as --------------------approach under Human Resource Accounting. 
   a) Present value Approach 
   b) Replacement Cost Approach 
   c) Historical Cost Approach 
   d) Opportunity Cost Approach 
    
   14. Historical cost consists of ------ and -------- costs. 
   a) Acquisition and learning  
   b) Training and Developing  
   c) Hiring and Selecting  
   d) Developing and Hiring   
    
   15. Acquisition cost does no include --------- cost.   
   a) Recruitment  
   b) Selection 
   c) Placement  
   d) Training and Development  
    
   16. Replacement cost is --------------- historical cost. 
   a) expensive than 
   b) cheaper than 
   c) same as  
   d) known as  
    
   17. Replacement cost approach was developed by -------------------. 
   a) Rensis Likert & Eric G Flamholtz 
   b) Lev and Schwartz 
   c) Hermanson 
   d) Watson 
    
   18. Opportunity cost is ---------- cost. 
   a) Speculation  
   b) Scientific  
   c) Ascertained 
   d) Calculated 
    
   19. Capitalisation of salary also includes -------- along with salary component.  
   a) Fringe benefits  
   b) Inflation rate 
   c) pension scheme  
   d)Tax shield 
    
   20. The word audit is derived from Latin word ------ . 
   a) audite 
   b) audire  
   c) auditet