Accounting Mcqs

Page No. 3

Discount for quick repayment of debt is normally referred to as


aTrade discount

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bPrompt payment discount

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cCash discount

✓


dBulk discount

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View Answer Cash discount

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


aAlphabetical order

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bNumeric order

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cBullets order

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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

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bRight or debit side of the account

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cRight or credit side of the account

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dLeft or debit side of the account

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


aLeft or credit side of the account

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bRight or debit side of the account

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cRight or credit side of the account

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dLeft or debit side of the account

✓



Term 'Credit' means _____ by the business


aReceiving of benefits

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bIt has no effect on business

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cProviding benefits

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dIt depends upon items

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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

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bStandard cost method

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cAVCO or average cost

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dFIFO method

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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

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bExpenses necessary to complete sale

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cCost of the stock

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dReplacement cost

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Cost of goods available for sale - closing inventory = ?


aOpening inventiry

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bCost of opening finished goods inventory

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cWork in progress ending inventory

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dCost of goods sold

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View Answer Cost of goods sold

Opening inventory + Net purchases = ?


aEnding inventory

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bClosing stock

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cCost of goods manufactured

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dCost of goods available for sale

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


aFIFO

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bLIFO

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cAVCO or average cost

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dMoving average

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View Answer LIFO

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