Accounting Mcqs

Page No. 3

Discount for quick repayment of debt is normally referred to as


aTrade discount


bPrompt payment discount


cCash discount


dBulk discount


View Answer Cash discount

In which of the following order, data is entered into the Journal?


aAlphabetical order


bNumeric order


cBullets order


dChronological order


View Answer Chronological order

When capital is increased by an amount, it is recorded on the:


aLeft or credit side of the account


bRight or debit side of the account


cRight or credit side of the account


dLeft or debit side of the account



When a liability is reduced or decreased, it is recorded on the:


aLeft or credit side of the account


bRight or debit side of the account


cRight or credit side of the account


dLeft or debit side of the account



Term 'Credit' means _____ by the business


aReceiving of benefits


bIt has no effect on business


cProviding benefits


dIt depends upon items


View Answer Receiving of benefits

Under which method of inventory costing, a pre-determined cost is assigned to all items of inventory?


aReplacement cost method


bStandard cost method


cAVCO or average cost


dFIFO method


View Answer Standard cost method

NRV or net realizable value of inventory is the expected selling price or market value less


aCarry value of the inventory


bExpenses necessary to complete sale


cCost of the stock


dReplacement cost



Cost of goods available for sale - closing inventory = ?


aOpening inventiry


bCost of opening finished goods inventory


cWork in progress ending inventory


dCost of goods sold


View Answer Cost of goods sold

Opening inventory + Net purchases = ?


aEnding inventory


bClosing stock


cCost of goods manufactured


dCost of goods available for sale



Which one of the following inventory costing methods is supposed to issue the most recently purchased goods?


aFIFO


bLIFO


cAVCO or average cost


dMoving average


View Answer LIFO

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