Final Accounts Test 26

Result

Final Accounts Test 26

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Weekly Quiz Competition

Question 1
1 / -0

The following classes of costs are usually involved in inventory decisions except________.

A
Cost of Ordering

B
Carrying cost

C
Cost of shortages

D
Machinery cost
Question 2
1 / -0

Goods given as charity credited to ___________.

A
Charity A/c

B
Purchase A/c

C
Drawings A/c

D
Sales A/c

Solution

Goods given by charity is credited to purchases account. It is an expense to the business and not sales as it is given free of cost for charity purpose. Hence, the entry will be :-
Goods given as charity A/c........ dr
To Purchases A/c
Question 3
1 / -0

Change in inventories of finished goods, work-in-progress and stock-in-trade means _________________________.

A
Difference between opening inventories and closing inventories

B
Difference between closing and opening invetories

C
Difference between opening and closing inventories, if opening inventories are higher

D
Difference between closing and opening inventories, if closing inventories are higher

Solution

Change in inventory means difference between total of opening and closing inventories. Opening inventories and closing include all raw material, work-in-progress and finished goods of inventory.
Question 4
1 / -0

Goods worth Rs. 10,000 were withdrawn by the proprietor for his personal use. The account to be credited is ___________.

A
Sales A/c

B
Drawing A/c

C
Purchases A/c

D
Expenses A/c

Solution

When the proprietor withdraws goods for personal use of Rs 10,000 it should be credited/deducted from the stock while calculating cost of goods sold and hence are deducted from purchases.
Question 5
1 / -0

Goods given as samples should be credited to ______________.

A
Advertisement A/c

B
Sales A/c

C
Purchases A/c

D
Closing stock A/c

Solution

Goods given out as samples should be credited to purchases account and not to sales account, because goods are moving out of the organisation. But there is no inflow of cash because samples are distributed free of cost. Distribution of samples can be for boosting the sales of the company.
Question 6
1 / -0

Trading on equity takes place ____________ .

A
When capital other than that of equity shareholders is also employed

B
Only when equity capital is employed

C
Only when debenture funds are employed

D
When profits are ploughed back

Solution

Trading on Equity sometimes reffered to as Financial leverage. Trading on Equity occurs when a corporation uses bonds, other debt and preferred stock to increase its earnings.
The earnings in excess of the interest expense will increase the earnings of the corporation's stockholders. The increase in earnings indicate that the corporation was successful in trading on equity.
Question 7
1 / -0

Which of the following are generally the inventories of a service business _________.

A
Finished goods inventories

B
Purchased goods

C
Raw materials inventories

D
Work in process inventories
Question 8
1 / -0

Which store accounting system involves use of market price or stock at cost, whichever is less?

A
Standard cost system

B
Average cost system

C
Costing the closing stock

D
Market value system
Question 9
1 / -0

The trade discount on purchases is recorded ________________.

A
When it is received

B
When the inventory is purchased

C
When the inventory is sold

D
Not at all recorded in the books
Question 10
1 / -0

A bond whose price will rise above its face value is classified as _______________.

A
premium face value

B
premium bond

C
premium stock

D
premium warrants

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Question Analysis

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Re-Attempt Weekly Quiz Competition

Final Accounts Test 26

Result

Final Accounts Test 26

Score

-

Rank

-

SHARING IS CARING

Question 1

Cost of Ordering

Carrying cost

Cost of shortages

Machinery cost

Question 2

Charity A/c

Purchase A/c

Drawings A/c

Sales A/c

Solution

Question 3

Difference between opening inventories and closing inventories

Difference between closing and opening invetories

Difference between opening and closing inventories, if opening inventories are higher

Difference between closing and opening inventories, if closing inventories are higher

Solution

Question 4

Sales A/c

Drawing A/c

Purchases A/c

Expenses A/c

Solution

Question 5

Advertisement A/c

Sales A/c

Purchases A/c

Closing stock A/c

Solution

Question 6

When capital other than that of equity shareholders is also employed

Only when equity capital is employed

Only when debenture funds are employed

When profits are ploughed back

Solution

Question 7

Finished goods inventories

Purchased goods

Raw materials inventories

Work in process inventories

Question 8

Standard cost system

Average cost system

Costing the closing stock

Market value system

Question 9

When it is received

When the inventory is purchased

When the inventory is sold

Not at all recorded in the books

Question 10

premium face value

premium bond

premium stock

premium warrants

User

Question Analysis

My Perfomance

Score

-

Rank

-

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