Principles of Accounting | Study Mode

Join Discuss Share to WhatsApp
Question 21
A
Formation
B
dissolution
C
winding up
D
termination
Explanation

It is the first step in termination process


Correct option: B
Join Discuss Share to WhatsApp
Question 22
A
4000
B
300
C
4300
D
5000
Explanation

Explanation not provided, please join discuss, your contributions are welcomed


Correct option: C
Join Discuss Share to WhatsApp
Question 23
A
Cost price
B
new price
C
invoice price
D
normal price
Explanation

Branch stock adjustment account deals with the loading on the respective items of goods relating to Branch stock account.

Branch adjustment account is prepared at invoice price.

The difference between the two sides of this account reveals either gross profit (if credit side is greater than the debit side) or gross loss (if debit side is greater than the credit side).


Correct option: C
Join Discuss Share to WhatsApp
Question 24
A
#20,500
B
#23,000
C
#28,000
D
#27,000
Explanation

Average stock is the calculating the addition of stock at the beginning and at the end of the financial period and dividing the value by two.

It is the average value of products kept for sale during an accounting period.

Therefore:

Average stock = opening stock + closing stock/2

= 32000 + 9000/2

= 41000/2

=? 20500


Correct option: A
Join Discuss Share to WhatsApp
Question 25
A
#61,000
B
#62,000
C
#58,000
D
#57,000
Explanation

Cost of goods sold is the direct costs attributable to the production of the goods sold in a company.

Cost of goods available for sale (32000 + 39000) = 71000

Less closing stock = 9000

Cost of goods sold = 7100 - 9000

= 62000


Correct option: B
Join Discuss Share to WhatsApp
Question 26
A
Promote mutual understanding
B
Enhance mistrust
C
Encourage discrepancy
D
Control funds
Explanation

Partnership deed can be used to:

i. Indicates terms on which the business corporation us founded

ii. To form a partnership for the purpose of doing business together

iii. Prevent future disputes

iv. Promote mutual understanding

v. Avoid mistrust


Correct option: A
Join Discuss Share to WhatsApp
Question 27
A
Goods are sold at specific prices
B
goods are perishable
C
goods attract different gross profit percentage
D
to disclose gross profit or loss
Explanation

cost price method is used to enhance quick sales


Correct option: B
Join Discuss Share to WhatsApp
Question 28
A
#40,000
B
#41,500
C
#41,700
D
48,500
Explanation

Trading, profit and loss account for the month ended 31/1/95

For the month ended 31/1/95

? ?

Sales 8200

Cost of sales:

Purchases 15000

Closing stock(10000) (5000)

Gross profit8200

Gross profit b/d 8200

Sales commission 500

Rent 1000 (1500)

Net profit1700

WORKINGS:

Rent paid for 12 months 12000

Rent paid for one month

12000 x 1/12(1000)

Prepaid rent11000

Balance sheet as at 31/1/95

Noncurrent asset:

Furnishing 10000

Ceiling fan1500 11500

Current asset:

Cash (see cash account) 9200

Inventory 10000

Prepaid rent (see above) 11000 30200

41700

Capital 40000

Net profit (see p&l) 1,700

41700


Correct option: C
Join Discuss Share to WhatsApp
Question 29
A
Profit and loss account as brought forward figure
B
Closing balance sheet as carried forward figure
C
Closing balance sheet as brought forward figure
D
Profit and loss as carried forward figure
Explanation

fixed asset are brought forward in closing balance sheet


Correct option: C
Join Discuss Share to WhatsApp
Question 30
A
?705
B
?500
C
?1000
D
?10000
Explanation

Explanation not provided, please join discuss, your contributions are welcomed


Correct option: A

Try this quiz in in E-test/CBT Mode
switch to Principles of Accounting in CBT Mode

Previous Page Next Page
Question Map
Quiz link
Share Principles of Accounting with your audience
Share to WhatsApp CBT mode Study mode copy link
​​​Help keep QUIZZERWEB running! 
A donation makes a contribution towards the costs, the time and effort that's going on in building and improving this platform.