# IGCSE Accounting Paper-1: Specimen Questions with Answers 275 - 279 of 338

## Passage

Bhargav Traders provides the following information for the year ended 31 March 2020-

 \$ Closing Stock 42000 Carriage Inwards 15000 Selling Expenses 3600 Wages 37000 Opening Stock 30000 Income Tax 10000 Purchases 140000 Sales 240000 Administrative Expenses 8400 Profit on Sale of Machinery 4000

## Question number: 275 (3 of 5 Based on Passage) Show Passage

Edit

### Write in Short

Which of the above two ratios are complementary?

### Explanation

Operating Ratio and Operating Profit Ratio

Explanation:

Net Sales is the sum of Operating Costs and Operating Profit. i. e.

Or

## Question number: 276 (4 of 5 Based on Passage) Show Passage

Edit

One Liner Question▾

### Write in Brief

Operating Profit Ratio (Marks 1)

## Question number: 277 (5 of 5 Based on Passage) Show Passage

Edit

### Write in Short

Gross Profit Ratio (Marks 4)

## Question number: 278

Edit

MCQ▾

### Question

Purchases book was overcast by \$300. Which of the following journal entry would correct this error? (Marks 1)

### Choices

Choice (4)

a.

Debit- Purchases \$300, Credit- Purchases Returns \$300,

b.

Debit- Suspense \$300, Credit- Purchases \$300,

c.

Debit- Purchases \$300, Credit- Trial Balance \$300,

d.

Debit- Purchases \$300, Credit- Suspense \$300,

b.

### Explanation

Purchases A/c has a normal debit balance. So, when purchases is overcast, Purchases A/c will be credited to reduce the overcast. Since, overcasting or under casting is one sided error, for the other side we use suspense A/c. Suspense A/c will be debited.

## Question number: 279

Edit

MCQ▾

### Question

Which among the following is an external user of accounting information? (Marks 1)

### Choices

Choice (4)

a.

Director of Research & Development

b.

Customer

c.

d.

Inventory Clerk