871. Loss by fire is an example of:
A) Normal Loss
(B) Abnormal Loss
(C) Incremental Loss
(D) Cannot be determined
872. Where__ is equal, that point is called Economic order quantity?
(A) Ordering cost
(B) Carrying cost
C) Ordering and carrying cost
(D) Per unit order cost
873. In a repeated distribution method:
(A) Each service department in turn does not re-allocate its costs to all departments
B) Each service department in turn and re-allocates its costs to all departments
(C) Each service department in turn and allocates its costs to all departments
(D) Only one service department in turn and re-allocates its costs to all departments.
874. The FIFO assumption of cost flow when applied in a period of rising prices:
(A) Overstates profit and closing stock
(B) Overstates profit and understates closing stock
C) Overstates profit and shows closing stock at current prices
(D) Understates profit and overstates closing stock
875. In case of rise in price levels, the most suitable method for valuing materials issued is:
A) LIFO
(B) FIFO
(C) Simple average
(D) Weighted average
876. Average price methods of pricing materials issues are derived from cost prices. They include the following except:
(A) Simple average
B) Base stock
(C) Weighted average
(D) Moving average
877. In which of the following orders data is entered in the journal?
A: Chronological order
B: Alphabetical order
C: Bullets order
D: Numeric order
878. Which of the following accounts will be credited if a company purchases a building for cash?
A: Capital account
B: Fixed assets account
C: Building account
D: Cash account
879. Discount for quick repayment of debt is normally referred to as____________?
A: Trade discount
B: Prompt payment discount
C: Cash discount
D: Bulk discount
880. The first step in the accounting process is___________?
A: Recording the transaction
B: Identifying the transaction
C: Posting the transaction
D: Preparing the source documents
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