Accounting - Study Mode

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[#341] The following shall not be taken into account in the decision to manufacture or buy

(A) Effective utilization of manufacturing capacity

(B) Variable cost of products

(C) Income from rent of the effective areas used by the production sector

(D) Fixed cost unchanged

Correct Answer

(D) Fixed cost unchanged

[#342] Which of the following should a business entity get at the earliest?

(A) Scheduled sales

(B) Break even point

(C) Profit earning on investment

(D) Market share

Correct Answer

(B) Break even point

[#343] On the admission of a new partner if the partners decide to record change occurred in the value of assets and liabilities in books but not accounts then the firm prepares.

(A) Profit and loss appropriation

(B) Profit and loss adjustment account

(C) Revaluation account

(D) Memorandum revaluation account

Correct Answer

(D) Memorandum revaluation account

[#344] A trader maintains his books of accounts on Single Entry basis. His books of accounts show that his total purchases during the year were Rs. 90,000 of which he returned goods worth Rs. 10,000. His credit sales were Rs. 50,000 and cash sales were Rs. 80,000 of the total sales goods returned were Rs. 30,000. Closing stock is Rs. 12,000. He sells his goods at cost plus $$33frac{1}{3}\% .$$ xa0His opening stock is:

(A) Rs. 12,000

(B) Rs. 10,000

(C) Rs. 8,000

(D) Rs. 7,000

Correct Answer

(D) Rs. 7,000

[#345] Acceptances, endorsements and obligations on behalf of a customer will be shown as . . . . . . . . in the balance sheet of a company.

(A) other asset

(B) other liability

(C) borrowings

(D) contingent liability

Correct Answer

(D) contingent liability