A-AS Level (CIE) Accounting Paper-1: Specimen Questions with Answers 62 - 64 of 93
Question 62
Question
MCQ▾The following data relate to manufacture of standard product during the month of April, 2019. Units produced and sold during the month is units.
1. Cost of Production
2. Selling and distribution expenses per unit
Profit margin is uniformly made to yield a profit of of the selling price
Choices
Choice (4) | |
---|---|
a. | 24,00, 000 |
b. | 20,00, 000 |
c. | 42,00, 000 |
d. | 32,00, 000 |
Answer
a.Explanation
Cost of production | 18,40, 000 |
Add: Selling and distribution overheads @ $ 4 per unit | 80000 |
Cost of Sales | 19,20, 000 |
Profit (20 % on selling price i.e.. , ) | 4,80, 000 |
Selling Price | 24,00, 000 |
Question 63
Question
MCQ▾What will be the working capital ratio from the following data:
Current Assets | 470,000 |
Current Liabilities | 120,000 |
Sales | 4,200, 000 |
Choices
Choice (4) | |
---|---|
a. | 12 Times |
b. | 17 Times |
c. | 11 Times |
d. | 14 Times |
Answer
a.Explanation
Question 64
Question
MCQ▾If Prepaid Wages՚ is given in Trial Balance, it will be shows as what on balance sheet side?
Choices
Choice (4) | |
---|---|
a. | Assets |
b. | Debit of Trading A/c |
c. | Debit of P & L A/C |
d. | All of the above |
Answer
a.Explanation
- Prepaid Expenses or Unexpired Expenses or Expenses paid in advance: These are the expenses which have been paid in advance for the next year during the current year itself. In other words, the benefit of such payments will be available in the next accounting year.
- Treatment in Final Accounts: Prepaid Expenses on the one hand, will be deducted from the concerned expenses on the debit side of Trading or Profit and Loss Account and on the other hand, will also be shown on the Assets side of the Balance Sheet. Prepaid Expenses is a Personal Account because it represents those persons to whom the payment has been made in advance.