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Wednesday, July 21, 2010
Posted In
Fin
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answer
according to me
(a) Inventory Age turn over ratio
Average inventory*365/ CGS
526500*365/2632500= 73 days
b).
Return on capital employed (ROI) ?
=(Net Profit before interest, tax/Capital employed)*100
=(238,500/1,192,500)*100
=20%
now ABC obtain a long term loan on 10% but ROI of ABC co. ltd. is 20% so, company have the potential to pay interest . 10%
c).
Operating expenses = Gross profit-Net income
= 1,417,500-238,500
Operating expenses =1,179,000
guyes may b i m wrong please check out before send the anwer.
if,
net income = operating profit - tax- interest payment
am i right so, = 432,000-126,000-67,500
= 238,500
net income = 238500
operating profit = 432000
so, operating expenses ?
= gross profit - operating profit
=1417500-432000
=985500
operating expenses = 985500
Income tax not inculded in operating expenses. so
Operating expenses = Gross profit - net income - income tax - Interest expenses.
= 1417500 - 238500 - 126000 - 67500
= 985,500
Wednesday, July 21, 2010
Posted In
MGT
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Question # 1 of 15 ( Start time: 07:12:43 PM ) Total Marks: 1
What is the proper order of the following steps in the accounting process? I.
Prepare and analyze the trial balance II. Record relevant transactions and
events in a journal III. Analyze each transaction and event from source
documents IV. Post journal information to ledger accounts
Select correct option:
III. IV. I. II.
I. II. III. IV.
III. II. IV. I.
III. II. I. IV.
Question # 2 of 15 ( Start time: 07:14:12 PM ) Total Marks: 1
Which of the following is an example of direct materials cost?
Select correct option:
Production worker’s wages
Depreciation expenses
A piece of wood for the production of chair
Polish and finishing material for chair
Question # 3 of 15 ( Start time: 07:14:50 PM ) Total Marks: 1
Bad debts written off (given in adjustment) always affect the:
Select correct option:
Debtors account
Creditors account
Cash account
Capital account
Question # 4 of 15 ( Start time: 07:16:02 PM ) Total Marks: 1
The term "Debit" is drived from____________ language.
Select correct option:
Latin
English
French
Chinese
Question # 5 of 15 ( Start time: 07:16:40 PM ) Total Marks: 1
The balance in drawings account is transferred to which of the following at
the end of the year.
Select correct option:
Capital account
Shareholder account
Cash account
Expense account
Question # 6 of 15 ( Start time: 07:17:26 PM ) Total Marks: 1
Expenses incurred for Salaries, heating and lighting are the examples of:
Select correct option:
Preliminary Expense
Deferred Expense
Revenue Expense
Capital Expense
Question # 7 of 15 ( Start time: 07:19:10 PM ) Total Marks: 1
A transaction that has been recorded in wrong account of the same class
instead of being recorded in the right account, this is called:
Select correct option:
Error of Omission
Error of Commission
Error of Principle
Error of Original entry
Question # 8 of 15 ( Start time: 07:20:22 PM ) Total Marks: 1
In the cost of goods sold statement, Cost of direct material consumed +
Direct labor=?
Select correct option:
Conversion cost
Prime cost
Total factory cost
Cost of goods manufactured
Question # 9 of 15 ( Start time: 07:21:04 PM ) Total Marks: 1
Which of the following contents are included in the Cost of goods sold?
Select correct option:
Opening stock
Purchases
Freight in
All of the given option
Question # 10 of 15 ( Start time: 07:21:47 PM ) Total Marks: 1
Cash book is a part of _______ .
Select correct option:
Voucher
General Journal
General Ledger
Trial Balance
Question # 11 of 15 ( Start time: 07:22:58 PM ) Total Marks: 1
The basic accounting principle/concept according to which business record
must be kept separate from the personal records of the owner is known as:
Select correct option:
Going-concern concept
Separate entity principle
Realization principle
Objectivity principle
Question # 12 of 15 ( Start time: 07:23:18 PM ) Total Marks: 1
Discount allowed Rs. 93 to Ali has been recorded in the books of accounts as
Rs. 39. To rectify this error:
Select correct option:
Both accounts will be adjusted with Rs. 93
Both accounts will be adjusted with Rs. 54
Only Ali’ accounts will be adjusted with Rs. 54
Only Discount allowed account will be adjusted with Rs. 54
Question # 13 of 15 ( Start time: 07:24:42 PM ) Total Marks: 1
Total depreciation of an asset can not exceed its:
Select correct option:
Scrap value
Residual value
Market value
Depreciable value
Question # 14 of 15 ( Start time: 07:26:08 PM ) Total Marks: 1
Which of the following will be credited if shares are issued against cash?
Select correct option:
Bank account
Share capital account
Share premium account
Cash account
Question # 1 of 15 ( Start time: 05:41:07 PM ) Total Marks: 1
Supervisor's salary and equipment repair cost are examples of:
Select correct option:
Factory overhead cost
Direct material cost
Direct labor cost
Finished goods cost
Question # 2 of 15 ( Start time: 05:41:38 PM ) Total Marks: 1
In an account if credit side > debit side, the balance is known as:
Select correct option:
Negative Balance
Debit Balance
Credit Balance
Positive Balance
Question # 3 of 15 ( Start time: 05:41:57 PM ) Total Marks: 1
The goal of reconciliation is all of the flowing EXCEPT:
Select correct option:
To discover the various things the bank has not done in the pass book but recorded in cash book
To discover anything that bank has passed through but the cash book has not
To put right anything that is wrong & draws an explanation for the differences
To discover any discrepancy that is due to timing rather than error
Question # 4 of 15 ( Start time: 05:42:51 PM ) Total Marks: 1
Under the diminishing balance method, depreciation is calculated on:
Select correct option:
The original cost
The scrap value
Book value
Both original cost and Scrap value
Question # 5 of 15 ( Start time: 05:43:50 PM ) Total Marks: 1
Which of the following voucher is used to record receipt of cash?
Select correct option:
Journal Voucher
Receipt Voucher
Payment Voucher
Nominal Voucher
Question # 6 of 15 ( Start time: 05:44:08 PM ) Total Marks: 1
Debts that are not collectible and worthless to the creditor are known as:
Select correct option:
Bad debts
Good debts
Doubtful debts
Provision for doubtful debts
Question # 7 of 15 ( Start time: 05:44:31 PM ) Total Marks: 1
Find out the missing value of an Accounting Equation with the help of given data: Furniture Rs. 90,000 Cash Rs.100, 000 Debtors Rs.10, 000 Other Assets Rs. 1,000 Owner’s equity Rs. 90, 000 Liaibilities ?
Select correct option:
Rs. 201,000
Rs. 111, 000
Rs. 290, 000
Rs. 291, 000
Question # 8 of 15 ( Start time: 05:45:08 PM ) Total Marks: 1
If, Cost of machine = Rs.400, 000 Useful life = 5 years Residual value = Rs.25, 000 Sale price = Rs.40, 000 Rate of depreciation = 40% What will be depreciation of machine after one years using diminishing balance method?
Select correct option:
Rs. 1, 60,000
Rs. 11,840
Rs. 34,560
Rs. 34,860
Question # 9 of 15 ( Start time: 05:46:21 PM ) Total Marks: 1
The main purpose of ___________ is to ascertain true result of the business operation during particular period of time.
Select correct option:
Cost Accounting
Financial Accounting
Managerial Accounting
Tax Accounting
Question # 10 of 15 ( Start time: 05:46:47 PM ) Total Marks: 1
What would be the value of Total Factory Cost, if cost of raw materials, direct labor costs, and manufacturing overhead costs are Rs.80,000, Rs.50,000, and Rs.60,000 respectively?
Select correct option:
Rs.130, 000
Rs.110, 000
Rs.140, 000
Rs.190, 000
Question # 11 of 15 ( Start time: 05:47:19 PM ) Total Marks: 1
Budget is a plan of income, expenses & other financial operations for:
Select correct option:
Current period
Future period
Past period
None of the given options
Question # 12 of 15 ( Start time: 05:47:37 PM ) Total Marks: 1
The allocation of the cost of a tangible plant asset to expense in the periods, in which services are received from the asset, is termed as:
Select correct option:
Appreciation
Depreciation
Fluctuation
None of the given options
Question # 13 of 15 ( Start time: 05:47:58 PM ) Total Marks: 1
The main objective of financial reporting is to provide:
Select correct option:
Essential information to internal users of financial reports.
Useful economic information about the business to the external parties for sound financial decisions.
Information to internal users about the cash position of the business.
Information to the Securities Exchange Commission (SEC).
Question # 14 of 15 ( Start time: 05:48:36 PM ) Total Marks: 1
Particulars Opening written down value of machine Rs. 2,00,000 Cost of new machine purchased during the year Rs. 50,000 Depreciation during the year Rs. 25,000 Closing written down value (WDV) of machines ?
Select correct option:
Rs. 2, 25,000
Rs. 2, 50,000
Rs. 2, 75,000
Rs. 75,000
Question # 15 of 15 ( Start time: 05:49:07 PM ) Total Marks: 1
Which one of the following is NOT a feature of sole proprietorship business.
Select correct option:
Easy Formation
Easy Dissolution
Unlimited Liability
Separate Legal Entity
Question # 1 of 15 ( Start time: 07:31:05 PM ) Total Marks: 1
For which of the following, Control Account system is used?
Select correct option:
Credit sales only
Cash sales only
Credit purchases only
Both Credit sales and Credit purchases
Question # 4 of 15 ( Start time: 07:32:24 PM ) Total Marks: 1
Cash book is a part of _______ .
Select correct option:
Voucher
General Journal
General Ledger
Trial Balance
Question # 5 of 15 ( Start time: 07:32:45 PM ) Total Marks: 1
Which of the following is(are) TRUE about the sole trader form of business?
Select correct option:
A sole trader is liable to pay income tax on his/her earnings
Sole traders must have to prepare books of accounts by law
Sole traders must register the name of their business with the Registrar of
Companies
All of the given options
Question # 6 of 15 ( Start time: 07:33:29 PM ) Total Marks: 1
The allocation of the cost of a tangible plant asset to expense in the periods,
in which services are received from the asset, is termed as:
Select correct option:
Appreciation
Depreciation
Fluctuation
None of the given options
Question # 7 of 15 ( Start time: 07:34:48 PM ) Total Marks: 1
___________= Gross profit < Operating Expenses
Select correct option:
Net Profit
Gross Profit
Net Loss
Gross Loss
Question # 8 of 15 ( Start time: 07:36:14 PM ) Total Marks: 1
Particulars Rs. Opening written down value of machine 3,50,000 Cost of
machine purchased during the year 40,000 Depreciation during the year
13,000 Closing written down value (WDV) of the Machines ?
Select correct option:
Rs. 3, 77,000
Rs. 3, 90,000
Rs. 4, 12,000
Rs. 63,000
Question # 9 of 15 ( Start time: 07:37:37 PM ) Total Marks: 1
The main objective of financial reporting is to provide:
Select correct option:
Essential information to internal users of financial reports.
Useful economic information about the business to the external parties for
sound financial decisions.
Information to internal users about the cash position of the business.
Information to the Securities Exchange Commission (SEC).
Question # 11 of 15 ( Start time: 07:40:23 PM ) Total Marks: 1
Which one of the following is INCORRECT about closing Stock?
Select correct option:
It is added into current assets
It is deducted from Material available for use
It becomes opening stock of next year
It reduces the resources of business
Question # 12 of 15 ( Start time: 07:41:08 PM ) Total Marks: 1
A Bank Reconciliation Statement is prepared to:
Select correct option:
Ascertain that the difference between the Cash Book balance and the
Bank Statement balance is accounted for
Correct errors in the Cash Book or errors on the Bank Statement
Amend the balance of the Bank Statement of the firm
Amend the balance in the Cash Book of the firm
Question # 13 of 15 ( Start time: 07:41:36 PM ) Total Marks: 1
Fixed Asset (WDV) + ________ = Total assets Employed
Select correct option:
Total liabilities
Total assets
Current Assets
Working capital
Question # 14 of 15 ( Start time: 07:42:38 PM ) Total Marks: 1
Increase in an expense is recorded on the:
Select correct option:
Left or credit side of the account
Right or debit side of the account
Left or debit side of the account
Right or credit side of the account
Question # 15 of 15 ( Start time: 07:43:26 PM ) Total Marks: 1
What will be debited, if Mohsin commenced business with cash?
Select correct option:
Cash account
Capital account
Drawings account
Proprietor account
Question # 5 of 15 ( Start time: 07:53:02 PM )
Total Marks: 1
Which of the following is NOT correct?
Select correct option:
Decrease in Assets w ill be credit
Decrease in Liabilities w ill be debit
Decrease in Expenses w ill be debit
Decrease in Revenue w ill be debit
Question # 6 of 15 ( Start time: 07:53:51 PM )
Total Marks: 1
Money spent to acquire or upgrade physical assets is known as:
Select correct option:
Revenue Expense
Capital Expense
Administrative Expense
Operating Expense
Question # 7 of 15 ( Start time: 07:54:26 PM )
Total Marks: 1
A Bank Reconciliation Statement is prepared to:
Select correct option:
Ascertain that the difference betw een the Cash Boo
Correct errors in the Cash Book or errors on the Ban
Amend the balance of the Bank Statement of the firm
Amend the balance in the Cash Book of the firm
Question # 8 of 15 ( Start time: 07:54:56 PM )
Total Marks: 1
Which of the following account is normally NOT exists in the balance sheet
of the manufacturing concern?
Select correct option:
Work in Process Inventory
Raw Materials Inventory
Merchandise Inventory
Finished Goods Inventory
Question # 9 of 15 ( Start time: 07:55:34 PM )
Total Marks: 1
If cost of sales is Rs. 95,000, income from sales Rs. 200,000 and operating
expenses Rs. 300,000. What will be net result?
Select correct option:
Rs. 1, 95,000 Losses
Rs. 1, 95,000 Profits
Rs 1, 05,000 Profits
Rs1, 05,000 Losses
Question # 10 of 15 ( Start time: 07:56:34 PM )
Total Marks: 1
Which of the following will be debited if shares issued against cash?
Select correct option:
Cash account
Share capital account
Share premium account
None of the given options
Question # 11 of 15 ( Start time: 07:57:12 PM )
Total Marks: 1
Which of the following is (are) type(s) of Public Limited Companies?
Select correct option:
Listed company
Non listed company
Private limited company
Both Listed Company and non listed company
Question # 12 of 15 ( Start time: 07:57:58 PM )
Total Marks: 1
When closing stock is given in trial balance, then it will effect:
Select correct option:
Trading account only
Balance sheet only
Ow ner's equity only
Both Trading account and Balance sheet
Question # 13 of 15 ( Start time: 07:58:41 PM )
Total Marks: 1
Which of the following is TRUE about the treatment of insurance paid in
advance Rs. 13,000?
Select correct option:
It w ill be treated as an other income in Profit & Loss A
It w ill be treated as a current liability in Balance Shee
It w ill be treated as an accrued expense in Balance S
It w ill be deducted fromconcerned expense in Tradin
Question # 14 of 15 ( Start time: 07:59:58 PM )
Total Marks: 1
Which one of the following is INCORRECT about closing Stock?
Select correct option:
It is added into current assets
It is deducted from Material available for use
It becomes opening stock of next year
It reduces the resources of business
Question # 15 of 15 ( Start time: 08:00:49 PM )
Total Marks: 1
Which of the following is/are the example/s of Intangible Asset?
Select correct option:
Copy rights
Good w ill
Patent rights
All of the given options
Question # 3 of 15 ( Start time: 08:11:26 PM ) Total Marks: 1
Cost of goods manufactured - opening work in process + ending work in
process =?
Select correct option:
Cost of goods sold
Prime cost
Conversion cost
Total factory cost
Question # 4 of 15 ( Start time: 08:12:32 PM ) Total Marks: 1
Consider the following data: Particulars Rs. Assets ? Owner's equity 35,000
Liabilities 90,000
Select correct option:
Rs. 35,000
Rs. 55,000
Rs. 1, 25,000
Rs. 1, 05,000
Which of the following will be debited if shares issued against cash?
Select correct option:
Cash account
Share capital account
Share premium account
None of the given options
Question # 6 of 15 ( Start time: 08:14:00 PM ) Total Marks: 1
Which of the following is a debit entry on the Bank Statement that might not
appear in the Cash Book?
Select correct option:
A standing order
An uncredited cheque
A credit transfer
An unpresented cheque
Question # 7 of 15 ( Start time: 08:14:56 PM ) Total Marks: 1
Fixed assets are also called:
Select correct option:
Depreciable assets
Current assets
Liquid assets
Floating assets
Question # 8 of 15 ( Start time: 08:15:29 PM ) Total Marks: 1
Which of the following is fiscal Year of Government of Pakistan?
Select correct option:
1st January to 31st December
1st June to 31st May
1st July to 30th June
1st October to 30th September
Quiz Start Time: 08:06 PM Time Left 86
sec(s)
Question # 9 of 15 ( Start time: 08:16:02 PM ) Total Marks: 1
Which of the following is/are inventory valuation method(s)?
Select correct option:
FIFO
LIFO
Weighted average
All of the given options
Question # 10 of 15 ( Start time: 08:16:22 PM ) Total Marks: 1
Which of the following is the example of current liability?
Select correct option:
Notes payable
Notes receivable
Accounts receivable
Prepaid expenses
Question # 11 of 15 ( Start time: 08:17:14 PM ) Total Marks: 1
Which transaction will cause the balance in Terry's Cash Book to be greater
than his Bank Statement balance?
Select correct option:
A cheque is drawn but not yet presented at the bank for payment
The bank has not notified Terry about a dishonored cheque
A credit transfer into Terry's Bank Account
A cheque payment of Rs.101 is recorded in the Cash Book as Rs.110
Question # 12 of 15 ( Start time: 08:18:33 PM ) Total Marks: 1
Partner’s current accounts are opened when their capital accounts are:
Select correct option:
Fixed
Fluctuating
Working Capital
Work in progress capital
Question # 13 of 15 ( Start time: 08:19:35 PM ) Total Marks: 1
Inventory is considered a current asset because it:
Select correct option:
Often reflects the most current trends and styles
Was purchased during the current year, usually
Will be converted into cash in the course of the company's operating
cycle
Can be returned to the supplier for a cash refund
Question # 14 of 15 ( Start time: 08:21:07 PM ) Total Marks: 1
What will be debited, if business purchased Furniture on cash?
Select correct option:
Furniture account
Cash account
Business account
Bank account
