IGCSE Accounting Paper-1: Specimen Questions with Answers 155 - 157 of 338

Get unlimited access to the best preparation resource for Bank-PO : get questions, notes, tests, video lectures and more- for all subjects of Bank-PO.

Question 155

Question

MCQ▾

Which expenditure is incurred to increase the operational efficiency of the business concern?

Choices

Choice (4)

a.

Capital Receipt

b.

Deferred Revenue Expenditure

c.

Capital Expenditure

d.

Revenue Expenditure

Answer

c.

Explanation

Capital expenditure is incurred to increase the operational efficiency of the business concern. This kind of expenditure is non-recurring in nature and it is not acquired for sale purpose of the business.

Question 156

Write in Short

Short Answer▾

Leon sells three type of home appliances and provides the following information about the inventory in his business as on 30th April 2015.

Items of Inventory as on 30th April 2015
Home AppliancesUnit of stockCost per unit

$

Selling price per unit $
Iron boxes255060
Grinders303025
Mixie402022

Calculate the value of Leon՚s inventory at 30 April 2015.

Explanation

$ 2800

Calculation of Leon՚s inventory as on 30th April 2015

Finding Items of Inventory as on 30th April 2015
Home AppliancesUnit of stockCost or net realisable value per unit $Selling price per unit $
Iron boxes25501250
Grinders3025750
Mixie4020800
Total2800

Question 157

Question

MCQ▾

What is gross profit?

Choices

Choice (4)

a.

Sales proceeds over Costs of goods sold are equal

b.

Excess of cost of goods sold over sale proceeds

c.

Excess of sale proceeds over cost of goods sold.

d.

Costs of goods sold over sale proceeds are equal.

Answer

c.

Explanation

Gross profit or gross loss is the difference between actual sale proceeds and the cost of goods sold. The cost of goods sold includes the purchase value plus buying and bringing expenses. Thus

🎯 Select Paper 📂

🚀 Consider Exploring

Developed by: