3.credit - debit
4.none of these
A company had opening inventory of $200,000. Sales and purchases during the period were of $400,000 and $80,000 respectively. What is the gross profit for the period if the closing inventory was worth $100,000?
A company is owned by its
A company purchases a non-current asset in Year 1 for $90,000. The depreciation charge is $15,000. What net book value would be recorded in financial position statement (or balance sheet) at the end of Year-2?
A company sold goods worth $5,000 on 5 June and $10,000 on 28 June. The company received the first payment on 25 June and second on 7 July. The company prepared the financial statement on 30 June. What would be the total sale on the financial statement?
A debit entry usually represents
1.Assets and Expenses
2.Assets and Income
3.Liabilities and Income
4.Liabilities and Expenses
A machine price was $1,000 and was carried through a truck. The trucks fares were $500. The engineers charged $500 for the installation. The cost of the machine is?
Advance payments are recognized as
4.none of these
An item of equipment cost $300,000 and has a residual value of $50,000 at the end of its expected useful life of four years. What is the depreciable amount?
2.Petty cash book
Cheques issued but not presented, cause the bank statement balance to be ________ the cash book balance.
4.the two statements are irrelevant
Depreciable amount =
1.Cost of an asset + Residual value
2.Cost of an asset - Residual value
3.Residual value - Cost of an asset
4.None of these
Depreciation is normally charged as
1.are in accordance with the national standards
2.are in accordance with the international standards
3.have errors, mistakes, or fraud
4.present fairly the position and results of an entity
Goods which originally cost $800 were sold for $1,000. In the accounting equation Net Assets will?
1.Rise by $1,000
2.Rise by $200
3.Fall by $1,000
4.Fall by $200
IFAC is an abbreviation for
1.International Federation of Accountants
2.International Federation of Auditors
3.International Framework for Accounting Concepts
4.International Framework for Auditing Concepts
1.Sales returns book
2.Purchase returns book
3.Cash receipts book
4.Cash payment book
3.whole audit team
4.board of directors
The capital of a business is $100,000 and the liabilities are $40,000. What are the total assets?
1.Raw material being purchased on credit
2.Non-current assets being purchased on credit
3.A supplier being paid by cheque
4.Wages being paid in cash
1.Assets + Liabilities = Equity
2.Assets - Liabilities = Equity
3.Assets - Receivable = Equity
4.Assets + Receivable = Equity
The expected disposal value of the asset (after deducting disposal costs) at the end of its expected useful life is called
2.net book value
4.substance over form
The figure that appears in the statement of financial position, after the depreciation, is known as
2.substance over form
4.net book value
The goods that have been sold to the customers are treated as _____ in the financial statements.
The goods that have not been sold to the customers till the end of the reporting period are considered as
3.Both A and B
4.None of these
The selling price of some goods is $1500 and cost to sell the goods is $200. What is the Net Realizable Value (NRV)?
The selling price of some under-process goods is $1500, cost to finally produce the goods is $300, and cost to sell the goods is $200. What is the Net Realizable Value (NRV)?
The withdrawal of inventory by the owner for personal use should appear in the trading account as a deduction from
4.none of these
2.board of governors
4.auditor does not
There is a debit balance on the office expenses at the end of the financial year. In which section of the balance sheet this will be recorded?
1.Purchase of property
2.Purchase of office equipment
3.Replacement of a vehicle,
4.Repair of a vehicle
What is the net amount of cash paid to the supplier if: Credit purchases $12,000 out of which $2,000 were rejected and subsequently returned to the supplier. Supplier allowed a discount of 1% on settlement of amount.
What standards are used to prepare financial statements by most of the countries and companies
1.International Financial Reporting Standards
2.International Financial Accounting Standards
3.International Accounting & Auditing Standards
4.International Risk Reporting Standards
3.Commission of selling staff
3.Rent of store
1.Purchase of goods
2.Payment of wages
3.Sale of goods
4.Purchase of machinery
1.Purchasing office supplies
2.Hiring a new employee
3.Paying interest on a business loan
4.Receiving fees for services