Accounting MCQs With Answers 341. If opening stock is £3,000, closing stock £5,000, sales £40,000 and margin 20 per cent, then stock turn is:
7 ½ times 8 times 5 times 6 times View answer Correct answer: (B)
342. Which of the following should be charged in the Profit and Loss Account?
Carriage on raw materials Work in progress Office rent Direct materials View answer Correct answer: (C)
343. You are to buy an existing business which has assets valued at buildings £50,000, Motor vehicles £15,000, Fixtures £5,000 and Stock £40,000. You are to pay £140,000 for the business. This means that:
You have made an arithmetical mistake You are paying £40,000 for Goodwill Buildings are costing you £30,000 more than their value You are paying £30,000 for Goodwill View answer Correct answer: (D)
344. A company wishes to pay out all available profits as dividends. Net profit is £26,600. There are 20,000 8% Preference shares of £1 each, and 50,000 Ordinary shares of £1 each. £5,000 is to be transferred to General Reserve. What Ordinary dividends are to be paid, in percentage terms?
40 per cent 60 per cent 10 per cent 20 per cent View answer Correct answer: (A)
345. Which of the following is not an asset?
Buildings Debtors Loan from K Harris Cash balance View answer Correct answer: (C)
346. Which of the following best describes the meaning of 'Purchases'?
Goods bought on credit Goods paid for Goods bought for resale Items bought View answer Correct answer: (C)
347. Which of the following best describes a trial balance?
Shows all the entries in the books It is a list of balances on the books Shows the financial position of a business It is a special account View answer Correct answer: (B)
348. The descending order in which current assets should be shown in the balance sheet is:
Debtors, Stock, Bank, Cash Cash, Bank, Debtors, Stock Stock, Debtors, Cash, Bank Stock, Debtors, Bank, Cash View answer Correct answer: (D)
349. The Sales Day Book is best described as:
Containing customers' accounts Containing real accounts Part of the double entry system A list of credit sales View answer Correct answer: (D)
350. A debit balance of £100 in a cash account shows that:
There was £100 cash in hand The total of cash received was less than £100 £100 was the total of cash paid out Cash has been overspent by £100 View answer Correct answer: (A)