| 1 |
Allowance for discount on account receivable is calculated on the amount of account receivable |
- A. Before deducting the allowance for doubtful debts
- B. Left after deducting the allowance for doubtful debts
- C. Before deducting the actual bad debts
- D. None of these
|
| 2 |
The gross amount of goods sold or services performed during an accounting period is known as |
- A. Purchase
- B. Sale
- C. Gross profit
- D. Net profit
|
| 3 |
Sales are equal to |
- A. Cost of goods sold + Profit
- B. Gross profit - cost of goods sold
- C. Cost of goods sold - gross profit
- D. None of these
|
| 4 |
Allowance for doubtful debts normally has a |
- A. Debit balance
- B. Credit balance
- C. Both debit & credit balance
- D. None of these
|
| 5 |
The margin that is available to cover the other expenses for a period and to yield net income is known as |
- A. Net profit
- B. Gross profit
- C. Net sales
- D. Cost of goods sold
|
| 6 |
A statement which i prepared to ascertain the net income or net loss for a specific accounting period is called |
- A. Position statement
- B. Statement of condition
- C. Financial statement
- D. Bank reconciliation statement
|
| 7 |
Net sales equal to |
- A. Sales - Returns outwards
- B. Sales + Returns inwards
- C. Sales - Returns inwards
- D. Purchases - Returns inwards
|
| 8 |
Cost of goods sold is equal to |
- A. sales - purchases
- B. purchases + closing stock - returns outwards
- C. Opening stock - closing stock + purchase + returns inwards
- D. Opening stock + purchases - returns outwards - closing stock
|
| 9 |
Net sales - cost of goods sold - operating expenses = ? |
- A. Net purchases
- B. Cost of goods sold available for sale
- C. Net operating income
- D. Gross Profit
|
| 10 |
The inflow of assets in return for services performed or products delivered during a period is |
- A. Asset
- B. Revenue
- C. Non current asset
- D. None of these
|
