A-AS Level (CIE) Accounting Paper-1: Specimen Questions with Answers 73 - 74 of 93

Question 73

Question

MCQ▾

Inventory at 31 Dec, 2019 is $ 440. Calculate the cost of goods sold from the following data:

Inventory at 31 Dec, 2019 is $ 440. Calculate the Cost of Goods Sold from the Following Data
Number of booksCost per bookTotal Cost
Inventor at 31,20181@ $ 8585
First purchase (January 2019)1@8787
Second Purchase1@89178
Third Purchase1@9090

Choices

Choice (4)

a.

$ 0

b.

$ 20

c.

$ 50

d.

$ 40

Answer

a.

Explanation

Inventory at 31 Dec, 2019 is $ 440. Calculate the Cost of Goods Sold from the Following Data
Number of booksCost per bookTotal Cost
Inventor at 31,20181@ $ 8585
First purchase (January 2019)1@8787
Second Purchase1@89178
Third Purchase1@9090
Total goods available for sale5$ 440
Less: Inventory at 31 Dec, 20195- $ 440
Cost of goods sold$ 0

Question 74

Question

MCQ▾

The Cash Book records:

Choices

Choice (4)

a.

All Cash Receipts

b.

Cash and Credit Sale of Goods

c.

All Cash Receipts and Payments

d.

All Cash Payments

Answer

c.

Explanation

Cash book is used to record all transactions relating to cash receipts and cash payments. The number of cash transactions is large in numbers in every business and it is quite impracticable and inconvenient to record all cash transactions in the journal. It is, therefore, necessary to maintain a separate book for cash transactions. Cash book allows a business to know the balance of cash in hand and at bank at a particular point of time. It also provides accounting information about the receipts, payments, and the closing cash balance at the end of every day. Hence, this is a very popular book and is maintained by all the organizations -big or small.

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