Tag: Financial Accounting Mcq

(A) Sales – Cost of goods sold
(B) Sales – Closing Stock + Purchases
(C) Opening Stock + Purchases – Closing Stock
(D) None of the above

(A) Net Profit = Gross Profit – Administration and Other expenses
(B) Net Profit = Gross Profit + Administration expenses and Other expenses
(C) Opening Stock + Purchases – Closing Stock = Cost of Sales
(D) Both (b) and (c) above

(A) Replacement cost
(B) Current cost
(C) Cost to acquire less accumulated amortization
(D) Cost less expired portion

(A) Debit P&L A/c and Credit Reserve for Discount on Accounts Payable A/c
(B) Debit Accounts Payable A/c and Credit P&L A/c
(C) Debit Reserve for Discount on Accounts Payable A/c and Credit P&L A/c
(D) Debit Reserve for Discount on Accounts Payable A/c and credit Accounts Payable A/c

(A) Credited to P&L A/c
(B) Debited to P&L A/c
(C) Reduced from debtors in Balance Sheet
(D) Added to debtors in Balance Sheet

(A) Debited to P&L A/c
(B) Shown as liability in Balance Sheet
(C) Reduced from related asset in Balance Sheet
(D) Both (a) and (c) above

(A) Current Asset
(B) Current Liability
(C) Fixed Asset
(D) Income

(A) An Asset in the Balance Sheet
(B) A Liability
(C) By adjusting it in the P & L A/c
(D) Both (b) and (c) above