| 1 |
Cost of goods sold is equal to |
- A. sales - purchases
- B. purchases + closing stock - returns outwards
- C. Opening stock - closing stock + purchase + returns inwards
- D. Opening stock + purchases - returns outwards - closing stock
|
| 2 |
The inflow of assets in return for services performed or products delivered during a period is |
- A. Asset
- B. Revenue
- C. Non current asset
- D. None of these
|
| 3 |
The gross amount of goods sold or services performed during an accounting period is known as |
- A. Purchase
- B. Sale
- C. Gross profit
- D. Net profit
|
| 4 |
Which one of the following is a direct expense? |
- A. Packing expense
- B. Advertisement expense
- C. Manufacturing expense
- D. Traveling expense
|
| 5 |
Cost incurred to generate revenue is called |
- A. Revenue
- B. Cost
- C. Expense
- D. Liability
|
| 6 |
From the business point of view, interest on drawings is |
- A. An asset
- B. An expense
- C. A liability
- D. A revenue
|
| 7 |
Net sales - cost of goods sold - operating expenses = ? |
- A. Net purchases
- B. Cost of goods sold available for sale
- C. Net operating income
- D. Gross Profit
|
| 8 |
Net sales equal to |
- A. Sales - Returns outwards
- B. Sales + Returns inwards
- C. Sales - Returns inwards
- D. Purchases - Returns inwards
|
| 9 |
All expenses connected with the office and its conduct are called |
- A. Selling expenses
- B. Marketing expenses
- C. Service expenses
- D. Administrative expenses
|
| 10 |
Allowance for discount on account receivable is calculated on the amount of account receivable |
- A. Before deducting the allowance for doubtful debts
- B. Left after deducting the allowance for doubtful debts
- C. Before deducting the actual bad debts
- D. None of these
|
