MCQ for CA Foundation Accounting Chapter 7 PREPARATION OF FINAL ACCOUNTS OF SOLE PROPERIETORS

Sample Multiple Choice Questions (MCQ's) for CA Foundation - Paper 1 - Principal and Practice of Accounting - Chapter 7 PREPARATION OF FINAL ACCOUNTS OF SOLE PROPERIETORS - For Practice relevant for Dec 22 and May/June 23 Examinations

Q:1  A decrease in the provision for doubtful debts would result in:

  1. An increase in liabilities.
  2. A decrease in working capital.
  3. An increase in net profit.
  4. None of the three

Answer: 3

Q:2  A Company wishes to earn a 20% profit margin on selling price. Which of the following is the profit mark up on cost, which will achieve the required profit margin?

  1. 33%
  2. 25%
  3. 20%
  4. 30%

Answer: 2

Q:3  Sales for the year ended 31st March, 2020 amounted to Rs 10,00,000. Sales included goods sold to Mr. A for Rs 50,000 at a profit of 20% on cost. Such goods are still lying in the godown at the buyer’s risk. Therefore, such goods should be treated as part of

  1. Sales.
  2. Closing Inventory.
  3. Goods in transit.
  4. None of the above.

Answer: 1

Q:4  Indirect Manufacturing expenses are also called

  1. Manufacturing overhead.
  2. Production overhead.
  3. Works overhead.
  4. All the three. 

Answer: 4

Q:5  Sale value of the by-product is credited to

  1. Manufacturing account.
  2. Capital account.
  3. Overheads account.
  4. Trading account

Answer: 1

Q:6  Manufacturing account shows

  1. Total cost of manufacturing the finished products.
  2. It provides details of factory cost.
  3. It facilitates reconciliation of financial books with cost records.
  4. All the three. 

Answer: 4

 

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