Accounting - Study Mode

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[#431] Variable cost ratio is 30%, fixed cost is Rs. 63,000. The break even point will be

(A) Rs. 81,900

(B) Rs. 90,000

(C) Rs. 18,900

(D) Rs. 71,100

Correct Answer

(B) Rs. 90,000

[#432] Given: Sals - Rs. 2,00,000 Gross Profit - 25% of cost Stock velocity - 3 months Closing stock is Rs. 2,000 more than the opening stock.

(A) Rs. 1,50,000

(B) Rs. 1,60,000

(C) Rs. 1,62,000

(D) Rs. 1,72,000

Correct Answer

(C) Rs. 1,62,000

[#433] On the dissolution of a firm, loan from the wife of a partner is treated as

(A) loan from the partner

(B) outsider liability

(C) preferential liability

(D) liability payable after all other debts have been paid

Correct Answer

(B) outsider liability

[#434] The profits of a firm for the last five years are Rs. 80,000, Rs. 90,000, Rs. 70,000, Rs. 85,000 and Rs. 1,00,000 respectively. The goodwill of the firm is calculated on basis of three year purchase of average profits of five years. The value of goodwill is

(A) Rs. 89,000

(B) Rs. 2,25,000

(C) Rs. 2,55,000

(D) Rs. 4,25,000

Correct Answer

(C) Rs. 2,55,000

[#435] A seller gives his goods worth Rs. 2,000 to a buyer for Rs. 1800. The differnce of Rs. 200 will be termed as

(A) Cash discount

(B) Trade discount

(C) Credit sales

(D) Bad debts

Correct Answer

(B) Trade discount