Question # 1

Trading account shows ----------- result.

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Net

Gross

Profit

Loss

Statement of a affairs is a sort of -----------

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Profit and loss statement

Nominal account

Statement of changes in equity

Balance sheet

A person is said to be insolvent when his

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Assets are sufficient

Assets are enough to pay his liabilities

Assets are not enough to pay his liabilities

None

Difference in cost of alternative choices is called

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Total costing

Differential costing

Full costing

Variable costing

A cost whose magnitude will be affected by decision being made is called

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Historical cost

Relevant cost

Irrelevant cost

Sunk cost

What are accrued expenses?

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The expenses that have been incurred during current year and paid till the end of current year

The expenses that have been incurred previous year and paid in the current year

The expenses that have been incurred during current year and not paid till the end of current year

The expenses that have been incurred previous year and not paid till the end of current year

During period of rising material prices, ----------- method results in profit inflation

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LIFO

FIFO

Weighted average

All of the above

In bill of exchange, the party who accepts a bill is known as:

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Drawer

Drawee

Payee

Third party

Deferred liabilities are debts which are repayable less than ----------

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One month

Six month

One year

None

Loss which arises due to ----------- is known as abnormal loss

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Breakage of goods

Leakage

Fire

Shrinkage

Goodwill is ----------- for company.

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Intangible asset

Fixed asset

Current asset

Quick asset

The cost of holding the stock in storage is called

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Ordering cost

Material cost

Caring cost

All of the above

Cash or goods taken away by owner for personal use from business are known as:

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Capital

Drawings

Revenue

Expense

Sales prices is calculated as follow:-

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Cost + operating expense

Direct material + Direct labour + F.o.H

Cost + operating expenses + profit

None of above

How many types of inventories are in cost of goods sold statement?

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1

2

3

4

Which one is not a classification according to the accounting period?

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Capital expenditure

Revenue expenditure

Product cost

Administrative cost

Endorsement is made:

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For settlement of debts

For settlement of income

For settlement of profit

None

The stages of accounting cycle are

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Transaction-ledger-journal-trial balance-final accounts

Transaction-journal-ledger-trial balance-final accounts

Transaction-journal-trial balance-ledger-final accounts

Transaction-journal-ledger-final accounts-trial balance

The ------------- includes a control account entitled general ledger that shows is equity of the general office in the factory.

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General ledger

Head office ledger

Factory ledger

None of these

Depreciation expenditure is a

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Fixed cost

Variable cost

Semi-variable cost

Step fixed cost

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