IGCSE Accounting Paper-1: Specimen Questions with Answers 52 - 54 of 341
Question 52
Question MCQ▾
Which method is suitable in case of those assets whose repair charges increase as they become old?
Choices
Choice (4) | |
---|---|
a. | Annuity Method |
b. | Diminishing balance method |
c. | Sinking Fund method. |
d. | Original cost method |
Answer
b.Explanation
Under diminishing balance method the depreciation are charged at fixed rate on the reducing balance of the assets at every year. Diminishing balance method is suitable in case of those assets whose repair charges increase as they become old.
Question 53
Question MCQ▾
A business provided the following information.
$ | |
Revenue (sales) | 10000 |
Purchases | 12000 |
Opening inventory | 2000 |
Closing inventory | 3000 |
Sales returns | 200 |
Purchases returns | 3000 |
What was the cost of sales?
Choices
Choice (4) | |
---|---|
a. | 7000 |
b. | 9000 |
c. | 10000 |
d. | 8000 |
Answer
d.Explanation
Gross profit of the particular year will be calculated with the help of the cost of sales. The following formula is used in the calculation of cost of sales:
Question 54
Question MCQ▾
Neena bought goods on credit from Richard for $ 1000. Ruth offers % discount for payment within fifteen days. Neenai paid her account within this period. Choose the amount discount received by the Neena.
Choices
Choice (4) | |
---|---|
a. | $ 35 |
b. | $ 45 |
c. | $ 55 |
d. | $ 65 |
Answer
b.Explanation
Discount will be provided to the customer when they paid the due amount with in the credit limit period. Hence Neena receives $ 45 as a discount for her purchase of goods from Richard.