FINAL ACCOUNTS

1.------------ value realized form the sale of scarp is credited to the manunufacturing account.

• a) factory expenses

• b) sale of scarp

• c)cost of production

• d)stock of finished goods

2. Assets are held for the purpose of -----------.

• a) Earning revenue

• b)resale

• c)conversion into cash

• d) capital expenses

3. Stock is value at ---------.

• a) cost price

• b) market price

• c) cost or market price which ever is lower

• d)demand for the goods is high

4. Heavy advertising to launch a new product is a--------.

• a) capital expenditure

• b) revenue expenditure

• c) intangible assets

• d) deferred revenue expenditure

5. Unearned income account is a ----------

• a) asset

• b) liability

• c) expenses

• d) income

6. In ------- excess of debit or credit is known as ----------.

• a) profit and loss account, net loss

• b) profit and loss account, gross profit

• c) trading account, gross profit

• d) profit and loss account, net profit

7. Marshalling of balance sheet means ----------.

• a) the order of assets and liabilities

• b) totaling and arranging of assets and liabilities

• c) find the balance in balance sheet

• d) none of the above

8. Value of scrap material must be ----------.

• a) debit to manufacturing account

• b) credit to manufacturing account

• c) credit to profit and loss account

• d) none of the above

9. Gross profit + opening stock + purchase + direct expenses - sales =

• a) closing stock

• b) return outwards

• c) opening stock

• d) liabilities

10. Material consumed during year is ---------.

• a) opening stock + purchase - closing stock

• b) opening stock + closing stock - purchases

• c) opening stock - purchase - closing stock

• d) none of the above