Question # 1

If spoiled good are considered as abnormal part of production process then debited to

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Work in process

General expense

F-o-H control

None of above

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

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Capital expenditure

Revenue expenditure

Product cost

Administrative cost

Costs whose consumption may be identified with specific production units in called

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Direct labour cost

Indirect labour cost

Direct material cost

Indirect material cost

Realisation concept is the concept in which revenue is ------------ at the time when goods are sold or services rendered.

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Recognized

Not recognized

Paid

Received

Cost goods sold is Rs. 1650, gross profit ratio is 17.5% then sales is

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1800

1900

2000

2200

The cost flow must match the

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Output

Outflow

Inflow

Workflow

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

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1

2

3

4

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

Provision of doubtful debts are also known as:

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Allowances for uncollectable

Allowances for collectable

Bad debts

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

Office salaries are include in

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Direct material cost

Indirect material cost

Factory overhead cost

Total payroll

Doubtful debts are shown on:

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Profit side of statement of profit and loss

Liabilities side of balance sheet

Asset side of balance sheet

Not shown anywhere

Profit will be lower where prices are rising under

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FIFO method

LIFO method

Weighted average method

All of the above

Endorsement is made:

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For settlement of debts

For settlement of income

For settlement of profit

None

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

What is negotiable instrument?

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A document which is not transferable

A document which is transferable

A document which is accepted

None

Treble column cash book has three columns of:

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Cash, bank and discount

Income, expense and bank

Cash, bank and profit or loss

None

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

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

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One month

Six month

One year

None

Spoiled goods cannot be

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Sold without repairing

Repair and sold as damaged goods

Both A and B

None of above

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